The 30 June 2022 financial statements of ABC Ltd have been prepared in draft form. However, the financial statements have not yet been for issue. Subsequent to the end of the reporting period, the following events occur. Assume all amounts  material for financial statements purposes:

a. A judgement is handed down in the Victorian Supreme Court on 15 July 2022 in relation to a 2021 product liability case brought by a customer against the company. This judgement renders the company liable for court costs and compensation totalling $240 000.

b. On 14 July 2022 the Commonwealth government enacts legislation altering the company income tax rate from 30 per cent to 42 per cent for all income tax returns from 1 July 2022.

c. On 28 July 2022 the company’s country warehouse is destroyed by fire. The total carrying amount of the warehouse, which was uninsured, is $350 000.

d. On 2 August 2022 the financial cost of inventory shipped from overseas is determined. The inventory was received in June 2022 and the cost was estimated for accounting purposes. The revised cost is $900000 greater than the prior estimate.

e. On 16 July 2022 the company enters into a contract to purchase 25 per cent of the issued capital of a competitor XYZ Ltd for $750 000.

REQUIRED

Discuss the appropriate accounting treatment of the above events.