Write whether the following events are considered as event occurring after the end of reporting period. Also explain whether these events are adjusting events or non-adjusting. On 12 September, the auditor became aware that a fire burnt down one of TGL’s warehouses, resulting in a loss of 40% of the inventory that was on hand at that date.On 30 September, management discovered that Johnno, a major debtor of TGL who was facing financial difficulties, became bankrupt on 15 September. All sales to Johnno were made before the end of the financial year. djjnsjsd

Event after reporting date are those event which are favourable or unfavourable Which occur between…

Answered: Write whether the following events are…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Write whether the following events are considered as event occurring after the end of reporting period. Also explain whether these events are adjusting events or non-adjusting.

On 12 September, the auditor became aware that a fire burnt down one of TGL’s warehouses, resulting in a loss of 40% of the inventory that was on hand at that date.
On 30 September, management discovered that Johnno, a major debtor of TGL who was facing financial difficulties, became bankrupt on 15 September. All sales to Johnno were made before the end of the financial year.

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