An earthquake occurred in one of the warehouses of Sable Ltd in Melbourne on 15 June 2022 and caused extensive damage worth $50,000. The warehouse and its contents are fully insured. No disclosure has so far been made about this event in the financial statements for the year ended 30 June 2022. There was no impact on the operations of the company as other fully stocked warehouses were able to meet all sales commitments.

REQUIRED:

Discuss the impact of the above event in the financial statements of Sable Ltd for the year ended 30 June 2022 and whether any disclosure is required.

Answer rating: 100% (QA)

The earthquake event that caused extensive damage to Sable Ltds warehouse in Melbourne has several i... View the full answer