The following event occurred after the company's year-end but before the completion of the audit.

For this subsequent event, determine whether the event

:requires an adjustment to the year-end financial statements,

requires note disclosure, or

requires neither adjustment to recognized amounts nor disclosure.

a)There is a significant fall in the market price of a major portion of inventory due to new technology making the existing items obsolete. The market price is lower than the current carrying value. (Justify your recommendation.)

b)New technology makes a major capital asset redundant or causes it to lose significant fair market and salvage value. (Justify your recommendation