FAIAS10- EVENTS AFTER THE REPORTING PERIOD

Non-adjusting event- A fire at a warehouse of a company that occurred after the reporting date of the financial statements. Adjusting event.Sale of inventory at price substantially lower than carrying value after reporting date gives strong indication that inventory should have been written down to estimated net realiseable value at reporting date.The sales price minus cost of sale will give this value and accounts should be adjusted.As long as sale was at arms length and there were no other changes that could have impacted value of stock after reporting date.