Reference no: EM132760384

Question: Elliott Ltd's financial year ended on 30 June 2020. The following events occurred between the end of the reporting period and the date the directors of Elliott Ltd expect to authorise the financial statements for issue:

1. On 15 July 2020, the financial cost of inventory shipped from overseas is determined. The inventory was received in June 2020 and the cost was estimated for accounting purposes. The revised cost is $100,000 greater than the prior estimate.

2. On 28 July 2020, the company's country warehouse is destroyed by fire. The total carrying amount of the warehouse, which was uninsured, is $250,000.

3. At a director's meeting held in May 2020, it is decided in late July that the division that makes instant cameras will be closed, as the demand for such products had fallen. The costs involved in closing down the division amount to $1.5 million.

4. On 1 August 2020, The Commonwealth government announces a decrease in tax rates from 33 per cent to 30 per cent for the year commencing 1 July 2021.

Required: For each of the above material after-reporting-period events, briefly state whether adjustment or disclosure is required in the 30 June 2020 financial statements with reason. Assume the above events would not significantly affect the going-concern assumption for Elliott Ltd.

(You are not required to draft any financial statement notes or provide any journal entries for adjustments.)