The financial year end of Tempura Limited is the 31 December 2020. The financial statements were presented to the board of directors for approval on 15 March 2021.During 2021 the following material events took place:1. On 28 February 2021, Tempura Limited paid a dividend of R160 000.The dividend was declared on the 15January 2021 as the company had made substantial profits during its financial year ended 31 December 2020.2. A damages claim for R2 000 000for a patent infringement had been served on Tempura Limited prior to 31 December2020. After consulting with their lawyers during the last week of December 2020, the directors are of the opinion that the claim will be dismissed by the courts. This opinion of the directors did not change by 15 March 2021, after further consultation with the company’s attorneys. However, it will still involve the expenditure of considerable legal fees.3. Financial assets of Tempura Limited comprising listed share investments with a carrying amount and fair valueofR125 000 at 31 December 2020 was quoted on the JSE Securities Exchange atR75 000 on 15 March 2021.4. A bomb exploded near one of the company's outlets on 1 February 2021. The total damage was estimated at R800 000. The company's insurance policy includes political riot cover. It is estimated that there will be aR40 000 shortfall which will have to be borne by Tempura Limited.5. On 31 January 2021, the engineering department discovered a quicker method of processing various products. As a result of this, the 10% increase in selling prices due for implementation on 1 April 2021 will no longer be implemented. 

Required: State, with reasons, how each of the above items should be dealt within the financial statements of Tempura Limited for the year ended 31 December 2020, in terms of International Financial Reporting Standards.

Answer rating: 100% (QA)

1 Dividend Payment R160000 The dividend declared on 15 January 2021 but paid on 28 February 2021 sho... View the full answer