in the subsequent event,the question read as below

The balance of $283,000 is material (nearly 7.4% of profit and 2.5% if revenue). It was on the SOFP at year end but the new information tells us that this blance is probably worthless ie this is an event that tells us more about the situation at year end. Therefore it is an adjustable event and the receivable shoudl be witten off as at 31/10/2014.

If the FS had been issued, the new information can show that the FS contained a meterial misstatement. The auditors shoud ty to persuade the directors to reissue corrected FS. If they don't, the auditors can circulate information to shareholders (very rare). I don't understand your second point. An event either happens before or after the period end. If before year end, it is not a post BS event. If after year-end it is and is treated either as non-adjusting or adjusting.

Hw is the balance 2 .5% as m getting 25% if calculating (2.83÷11.2)×100%

H hi hw we vl knw tht it's material or nt???? Thanks

Lk at pgs 27 & 28 of lctr nts.