d) Yompab Ltd is a manufacturing company that prepares its financial statements for the year ended 31st October 2018 in accordance with IFRS. The financial statements are due to be authorized for issue on 15th January 2019. Yompab Ltd holds an investment in shares of a listed company, Nanoni Ltd. During November 2018 there was a material fall in the value of Nanoni Ltd.’s shares. Analysts attribute the fall in value principally to a fraud dating back to 2017 that was discovered by management and announced publicly in November 2018. In December 2018, the directors of Yompab Ltd publicly announced a plan to reduce the workforce by 10% as a result of worsening economic conditions. Required; Discuss the effect of each of the above items on the financial statements of Yompab Ltd for the year ended 31st October 2018 in accordance with IAS 10: Events after Reporting Period.
d) Yompab Ltd is a manufacturing company that prepares its financial statements for the year ended 31st October 2018 in accordance with IFRS. The financial statements are due to be authorized for issue on 15th January 2019.
- Yompab Ltd holds an investment in shares of a listed company, Nanoni Ltd. During November 2018 there was a material fall in the value of Nanoni Ltd.’s shares. Analysts attribute the fall in value principally to a fraud dating back to 2017 that was discovered by management and announced publicly in November 2018.
- In December 2018, the directors of Yompab Ltd publicly announced a plan to reduce the workforce by 10% as a result of worsening economic conditions.
Required;
Discuss the effect of each of the above items on the financial statements of Yompab Ltd for the year ended 31st October 2018 in accordance with IAS 10: Events after Reporting Period.
e) After a wedding in 2018, ten people died, possibly as a result of food poisoning from products sold by Lambon Caterings Services. Legal proceedings have commenced, seeking damages from Lambon Catering Services but it disputes liability. Up to the date of approval of the financial statements for the year to 31st December 2018 Lambon Catering Services lawyers advised that it is probable that it will not be found liable. However, when Lambon Catering Services prepares the financial statements for the year to 31st December 2019, its lawyers advise that owing to developments in the case, it is probable that it will be found liable.
Required;
In accordance with IAS 37: Provisions,
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