As part of the fight against the Corona virus, Company A, whose securities are traded on the stock exchange, is trying to develop a vaccine. Assume that on August 12, 2020, the company received a notification from the US Food and Drug Administration (FDA) that it must completely discontinue the human trial of the vaccine because the chances of successful vaccine development are nil. The company released an immediate report to the public on August 16, after realizing the decision was final. The company has invested about $ 100 million in building a unique experimental site and has also entered into non-discontinued annual contracts with experts in various fields, totaling $ 20 million. The company conducted the experiment from January to June. Immediately upon receiving the announcement, the CEO sold his shares in the company.

Required:
Detail what accounting issues arise from the description in relation to the Company's financial statements as of June 30, 2020, and what treatment is appropriate for them.

Answer rating: 100% (QA)

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