QUESTION 2

1. Which one of the following events which occur after the reporting date of a company but before the financial statements are authorised for issue are classified as adjusting event in accordance with HKAS 10 Events after the Reporting Period?

   	1.	The discovery of fraud which had occurred during the year.
   	2.	The destruction of a factory by fire.
   	3.	None of them.
   	4.	The determination of the sale proceeds of an item of plant sold after the year end.
   	5.	A change in tax rate announced after the reporting date, but affecting the current tax liability.