Question: Classify the following as either type 1 or type 2 events for a firm with a December 31st balance date. (i) A fire on January

Classify the following as either type 1 or type 2 events for a firm with a December 31st balance date.

(i) A fire on January 18th caused a material loss of inventory that was not covered by insurance

(ii) One month before balance date, the firm entered into a contract to purchase a new item of plant and equipment for $1m plus the cost of installing the item. Installation was completed on January 20th.

(iii) On January 5th a currency in which some of the firm's sales contracts are denominated was depreciated.

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