On 10 July 2022, the sales manager of Garuda Ltd issued credit notes worth $30,000 relating to sales of faulty goods in the last week of June 2021.

Assume the amount is material and that it occurred prior to the date the 2021 financial statements were authorized for issue:

REQUIRED:

1) Classify the above event occurring after the end of the reporting period as an adjusting or a non-adjusting event? Explain the impact, if any, on the financial statements of Garuda Ltd for the year ended 30 June 2022 to comply with AASB110 Events after the Reporting Period. Note the impact, if any, must be shown in dollar amounts.

Answer rating: 100% (QA)

The event of the credit notes issued for sales of faulty goods that occurred after the end of the reporting period on 30 June 2021 is a nonadjusting e... View the full answer