IAS 10 deals with events after the reporting period.

Required:
(a) Define the period covered by IAS 10.
(b) Explain when should the financial statements be adjusted?
(c) Why should non-adjusting events be disclosed?
(d) A customer made a claim for £50,000 for losses suffered by the late delivery of goods. The main part (£40,000) of the claim referred to goods due to be delivered before the year end. Explain how this would be dealt with under IAS 10.
(e) After the year end a substantial quantity of inventory was destroyed in a fire. The loss was not adequately covered by insurance. This event is likely to threaten the ability of the business to continue as a going concern. Discuss the matters you would consider in making a decision under IAS 10.
(f) The business entered into a favorable contract after the year end that would see its profits increase by 15% over the next three years. Explain how this would be dealt with under IAS 10.