The end of financial year of a company is 31 December 2041. The annual general meeting of the shareholders is scheduled to be held on 5 March 2042.

Management plans to complete the draft financial statements on 24 February 2042 and to submit them to the board of directors the next day. The board of directors is scheduled to review the financial statements at its meeting on 28 February 2042 and to authorise them for issue to the shareholders.

- The company pays performance-based bonuses to its senior executives for meeting key benchmarks and targets. Some of the factors used to determine the bonuses are based on profit targets, so the amount of bonuses cannot be determined correctly until the financial statements are virtually complete. On 21 February 2042 the remuneration sub-committee of the board of directors met to review and ratify the performance bonuses for the financial year just ended. The bonuses will be paid in April 2042 and amount to $1.8m

• In reviewing the bonuses for the most recent financial year, the remuneration sub-committee found an error had been made in their February 2041 meeting to determine the bonuses for the previous financial year. They discovered that the bonus payments were significantly below the correct amount. They approved for the shortfall to be paid immediately.

  1. For the two issues, determine if it is an event after the reporting period and if so, classify it as an adjusting event or a non-adjusting event.

  2. Outline the accounting treatment or disclosure requirements in relation to the issues