The balance sheet date of Bum Bum Berhad is31December2020 and the meeting of the Board of Director (BOD) is 25 March2021. Identify with reason each of the following situations whether the event is adjusting or non-adjusting.

(a)The goods inventory costing RM100,000 was written down to Net Realisable Value (NRV)of RM97,500at the balance sheet date. After the balance sheet date, it was sold for RM96,00.

( 10 )

(b)On the other hand,the goods inventory costing RM200,000 was written down to NRV ofRM197,000 at the balance sheet date. After the balance sheet date,the inventory was spoiled and sold for only RM10,000as scrap.

(10)