You are the Group Accountant for the Australian based company BEAR Ltd. The Chief Financial Officer (CFO) has asked you to provide a report related to events/transactions outlined below in preparation of the annual report of the company for the financial year ending 30 June 2023. Todays date is 25 July 2023. The CFO wants to ensure that transactions are being reported accurately by you and that you have a thorough understanding of the applicable accounting standards related to these transactions and accounts. The following events/transactions have occurred over the time since the last annual report was prepared and issued. You need to determine how you will treat these events/transactions as well as provide appropriate disclosures or adjustments to the accounts where required, in BEAR Ltds financial statements for the financial ending 30 June 2023 and upcoming annual report to shareholders.

Required:

a) Identify the nature of the transaction/event.

b) Identify, provide and discuss the applicable accounting standard(s) for the events/transactions relate(s) to and why.

c) Is there a requirement for the transaction or event to be disclosed in the annual report? If so, provide a suitable disclosure note to the accounts that the company will use in their upcoming annual report or alternatively where it should appear in the financial statements. (Ensure you include amounts as well as any workings where applicable).

d) Is there a requirement for an adjustment to be made to the financial statements? If so, what would this adjustment amount be to the accounts? Provide sufficient workings (calculations) where required.

Events/Transactions:

1. On July 17, 2023, BEAR's management made the decision to sell Jaguar Ltd., one of its key subsidiaries, as a result of the detrimental effects that higher interest rates had on its operations during the year. Since Jaguar's operations and brands are well-known throughout South-East Asia and its management team, long-term employees, and know-how are highly regarded by competitors, the company estimated that Jaguar has a fair value of around $30 million overall, which includes the market value of all its assets, liabilities, and potential goodwill.

2. The accounts receivable amount for BEAR Ltd. as of June 30, 2023, was $5.564 million. The corporation estimated an allowance of doubtful debt of $250,000 from a local client whose business suffered severely as a result of high interest rates difficulties in the previous financial year. At the time, it was anticipated that this contribution would not be recouped, so an allowance for it was created in the accounts. The customer informed BEAR Ltd on July 1, 2023, that they are now in a position to pay off their obligation and will send payment in full on July 31, 2023.

3. From July 2022 to December 2022, BEAR Ltd. received 150 claims from customers which started lawsuit due to defective products that came from a particular production batch during the year. This lawsuit amounts to a total of $3.5 million as at the end of the financial year. As at 30 June 2023 the companys solicitors estimated that about $2 million of the total lawsuit (100 claims) was legitimate and the solicitors believed that there was a high likelihood (probable) that BEAR will need to reimburse the customers, however as at the end of the financial year the solicitors were still negotiating a settlement amount (the solicitors estimated 80% of the claimed amount) and payment date. The remaining $1.5 million related to the other 50 claims were deemed to be unsubstantiated, thus BEARs solicitors believed that there was a low likelihood (remote) that the company will need to reimburse these customers. The final court hearing when this lawsuit will be decided is scheduled to 15 December 2023.