IAS 10- F1 Recap

Hi Sir. I know this is a F1 question, but I have seen it in my F2 revision booklet. Please just to clarify some points. Main issue here is point C

Which ONE of the following would be classified by WDC as a non-adjusting event
according to IAS 10 Events After The Reporting Period? WDC’s year end is 30
September 20X1.

A WDC was notified on 5 November 20X1 that one of its customers was insolvent
and was unlikely to repay any of its debts. The balance outstanding at 30
September 20X1 was $42,000.

— Happened after month end.. why are we adjusting for it? isit because it is a trade receivable?

B On 30 September WDC had an outstanding court action against it. WDC had
made a provision in its financial statements for the year ended 30 September
20X1 for damages awarded against it of $22,000. On 29 October 20X1 the court
awarded damages of $18,000.

— Adjusting event

C On 5 October 20X1 a serious fire occurred in WDC’s main production centre and
severely damaged the production facility.

— event happened after month end.. but surely a fire with affects production facility is a big deal that will affect the company.. why is it a non- adjusting event?

D The year end inventory balance included $50,000 of goods from a discontinued
product line. On 1 November 20X1 these goods were sold for a net total of
$20,000.

— event happens after month end.. valuation of inventory. Ok get this point.