The income tax expense at the end of the reporting period may be equal to the current tax liability for the period'. Is this statement correct? Explain your answer. (5 marks)

When is the omission or misstatement of an item deemed to be material? Which factor(s) should be considered in assessing whether the omission or misstatement of the item is material?

(5 marks)

c. Consider each of the following separate events for Yellow Ltd. Classify these events into adjusting and non-adjusting events. Justify your responses. Indicate the appropriate action in each event. In each event, the end of the reporting period was 30 june 2022. (6 marks)

c1. On 22 August 2022, you discovered that a debtor (e.g., accounts receivable) at 30 June 2022 had gone bankrupt on 3 August 2022. The cause of the bankruptcy was an unexpected loss of a prajor lawsuit issued against the debtor on 15 June 2022.

c2. On 22 August 2022, you discovered that the company's major debtor at 30 June 2022 had gone bankrupt on 3 August 2022. The cause of the bankruptcy was a major uninsured fire at one of the debtor's premises on 15 July 2022.