Aspire Ltd is a manufacturer and trader of consumer products. Its accounting year ends 31 December each

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Aspire Ltd is a manufacturer and trader of consumer products. Its accounting year ends 31 December each year. The management of Aspire Ltd are finalizing their accounts of 20X6 accounts and hope to meet the proposed deadline of 31 March 20X7 when the financial statements are expected to be authorized for issue. The following list was prepared by the finance manager for the attention of the financial controller:

a) Aspire Ltd has an investment worth $1,000,000 in its financial statements at 31 December 20X6. Due to the continuing recession, the investment reduced in value to $900,000 by 15 January 20X7.

b) On 20 December 20X6, Aspire Ltd was involved in a court case with a customer who sued the company for delivering products where there was a dispute over the exact ingredients included in the products manufactured by Aspire Ltd. These products were delivered to the customer in October 20X6. The details of the case were heard by 22 December 20X6, but the judge decided to reserve her judgment until 8 January 20X7. On 8 January 20X7, the judge ruled in favour of the customer, awarding it damages of $100,000.

c) On 8 January 20X7, one of the accountants left Aspire Ltd suddenly. On further investigation, the company realised that this employee had been paying himself money from the bank account in relation to false rental invoices. The amount of the overpayment was found to be $86,000. With the help of the police, the accountant was tracked down and repaid all of the money on 18 January 20X7.

d) A trade receivable which owed Aspire $5,000 at the year-end was declared bankrupt on 5 January 20X7. Aspire Ltd has no prospect of recovering any money from this bankrupt customer.

e) A dividend of $40,000, in relation to the financial year-ending 31 December 20X6, was declared in 3 January 20X7 and paid on 12 January 20X7. The accountant included the dividend in the financial statements for the year-ended 31 December 20X6.

Required: Indicate whether the above events after the reporting period should be classified as 'adjusting' or non-adjusting' events and suggest appropriate accounting treatment or disclosure in accordance to the NZ IAS 10: Events after the reporting period. (Ignore the impact of taxation, if any).