You are a senior accountant in a second-tier accounting firm. Your client Acacia Ltd has prepared a draft set of financial statements for the year ended 30 June 2035. Your manager is in the process of reviewing and finalising these financial statements and has become aware of some events that have occurred after the end of the reporting period. Your manager has asked you to prepare a memorandum (memo) to provide him/her with accounting advice regarding the following two events:

On 9 August the directors of Acacia Ltd declared a final dividend of $5 per share. The draft financial statements do not include a liability for this dividend.

On 25 August the Remuneration Committee met and approved a bonus for the Chief Executive Officer in the amount of $1,450,000. The draft financial statements do not include a liability for this bonus payment.

Additional information:

- The end of financial year of Acacia Ltd is 30 June 2035.

- The annual general meeting of the shareholders is scheduled to be held on 31 August 2035.

- Management plans to complete the draft financial statements on 20 August 2035 to submit to the board of

directors the following day.

- The board of directors is scheduled to review the financial statements at its meeting on 28 August 2035 and to

authorise them for issue to the shareholders.

Required:

Prepare a memorandum for your manager to outline the accounting treatment and disclosure requirements in relation to each of the two issues noted above. For each issue, determine if it is an event after the reporting period and if so, classify it as an adjusting event or a non-adjusting event. Provide support for your accounting advice with reference to the relevant paragraphs of the accounting standard. Outline for your manager if you are aware of any changes to the accounting treatment in relation to such issues noting that your manager completed their studies prior to 2005.