Question: Identify whether it should be classified as a Type I or Type II subsequent event i. The Parish government approved a plan for the construction
Identify whether it should be classified as a Type I or Type II subsequent event
i. The Parish government approved a plan for the construction of a new road on January 4th. The plan will result in the appropriation of a portion of the land of XYZ company which has a calendar year-end. Construction will begin late this year. No estimate of the condemnation award is available
ii. The mineral content of a shipment of ore in transit to ABC company with a calendar year-end as of December 31st was estimated to be 60% which was used to record the shipment and the related payable on ABC companys books on December 31st. In mid-January, the shipment was received by ABC company in the actual mineral content of the ore was turning to be 72% the final liability of ABC company to the supplier is based on the actual mineral content of the shipment.
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