You are nearing the end of the audit for Yang Ltd and have commenced your review for subsequent events.

The balance sheet date is 30 June. The audit report date is 30 September.

Analyse the following independent situations regarding subsequent events.

For each subsequent event:

a) Determine whether the event would require i) an adjustment or ii) disclosure in the financial statements and provide an explanation for your answer; and

b) Describe what evidence would have brought this information to your attention.

Question 12

• The company records investments at fair value. Due to the corona-virus and the current global situation the value of these investments has declined significantly since reporting date.