QUESTION EIGHT a) In accordance with IAS 10: Events after the Reporting Period, explain what is meant by 'event after the reporting period'. b) How should information below be dealt with in the financial statements? i) AZ Ltd purchased a motor vehicle on 30 December 2016 and paid a non-refundable deposit of GH5,000 on that date. He also wrote a cheque on that date for the balance of GH20,000. The seller cashed the cheque on 3 January 2017. (4 marks) ii) AZ Ltd was sued by a customer who was unhappy with the quality of a product delivered to him in June 2016. The court case was heard in late October 2016 but it was not until 8 January 2017 that the judge ruled in favour of AZ Ltd and awarded it damages of GH20,000 to cover its solicitor's fees. The legal costs were paid by the customer to AZ Ltd on 12 January 2017. AZ Ltd was unsure of winning the case and it had previously included a provision in its financial statements for the year ended 31 December 2016 for compensation and legal costs as follows: GH GH Dr Legal Fees - Administrative Expenses 25,000 Dr Cost of Sales 35,000 Cr Provisions - Current Liabilities 60,000 (4 marks) iii) One of AZ's Ltd customers was declared bankrupt on 5 January 2017, owing GH4,000 to AZ Ltd. (4 marks) Required: How should the following issues raised in (i) to (iii) be treated in the financial statements of AZ Ltd