FreeLine Limited is a transport business with a 30 June year-end. They are in the process of

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Question:

FreeLine Limited is a transport business with a 30 June year-end. They are in the process of finalizing their 30 June 2021 financial statements.
The financial statements were presented to the board of directors for authorization for issue on 5 August 2021.
The following events took place:
1. After the finalization of the 2021 figures, on 31 July 2021, the directors approved and declared an additional ordinary dividend of R0,50 per share. The dividend is payable on 31 August 2021. FreeLine Limited has 1 500 000 shares in issue.
2. On 5 July 2021, FreeLine Limited instituted a claim of R500 000 against one of their competitors. The claim is based on the grounds of infringement of the FreeLine trademark. FreeLine Limited’s legal advisors believe that the claim will most probably succeed, but they were not virtually certain of this when finalizing the financial statements.
3. On 15 July 2021, a fire broke out at one of FreeLine Limited's depots. A truck to the value of R1 500 000 was destroyed, and damages to the depot amounted to R300 000.
4. On 15 August 2021, FreeLine Limited signed a contract with Construction Limited to repair the damages to the depot at the cost of R300 000.
5. On 1 August 2021, one of the company's customers sent an e-mail to inform them that they are terminating their business due to financial difficulty. A statement of assets and liabilities supported by an auditor’s certificate was included in his com-munication. They offered to pay FreeLine Limited R0,45 in Rand to cover their outstanding debt. This customer owed FreeLine Limited R250 000 on 30 June 2021.

You can assume that all amounts are material

REQUIRED:
2.1) Identify, per event, whether these events will classify as adjusting or non-adjusting events, in terms of the requirements of IAS 10, in the 30 June 2021 financial statements of FreeLine Limited.
2.2) Briefly discuss the effect of each event, if any, on the financial statements of FreeLine Limited as of 30 June 2021.
Clearly label your discussion for each event, for example:
Event 1
This event has the following effects….
2.3) Provide an extract from the financial statements of FreeLine Limited for 30 June 2021, disclosing the details, if necessary, of events 1, 2, 3, and 4.