You are a senior auditor at Prague Partners on one of the firm's main clients, Grace...

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You are a senior auditor at Prague Partners on one of the firm's main clients, Grace Limited. Year end is 30 June 2022, the auditor's report was issued on 6 August and the financial statements are authorised for issue on 25 August 2022. The following events occurred after year end: 1. Grace's major production plant was destroyed by a flood on 6 July 2022. 2. The share price went up significantly on 5 August 2022. 3. One of Grace's main customers, Dodgy Brothers Ltd, who owed 12% of Grace's total year end receivables balance went bankrupt on 10 August 2022. Grace initially became aware of this customer's financial difficulties 6 months before year end. Required: For each of the above events, identify the accounting treatment and justify your response, using the below format in your response: Event Accounting treatment Justification You are a senior auditor at Prague Partners on one of the firm's main clients, Grace Limited. Year end is 30 June 2022, the auditor's report was issued on 6 August and the financial statements are authorised for issue on 25 August 2022. The following events occurred after year end: 1. Grace's major production plant was destroyed by a flood on 6 July 2022. 2. The share price went up significantly on 5 August 2022. 3. One of Grace's main customers, Dodgy Brothers Ltd, who owed 12% of Grace's total year end receivables balance went bankrupt on 10 August 2022. Grace initially became aware of this customer's financial difficulties 6 months before year end. Required: For each of the above events, identify the accounting treatment and justify your response, using the below format in your response: Event Accounting treatment Justification

Answer rating: 100% (QA)

Here is the requested information in a table format Event Accounting Treatment Justification 1 Graces major production plant was destroyed by a flood ... View the full answer