hard20 pts · first answer countssubsequent-eventsgoing-concern

A fire after the year end

The year ends on 31 March. On 15 April, a fire destroys the company’s main warehouse and much of its inventory. The financial statements are not yet approved. How should this be treated?

A.Write down inventory at 31 March for the lossB.Ignore it, since it happened after year endC.Treat it as a non-adjusting event: disclose its nature and estimated effect, and consider the impact on going concernD.Recognise a provision at 31 March

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A fire after the year end

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