Reference no: EM132915594

Dawson Ltd's financial year ended on 30 June 2021. The following events occurred between the end of the reporting period and the date the directors of Dawson Ltd expect to authorise the financial statements for issue:

i. A judgement is handed down in the NSW Supreme court on 2 July 2021 in relation to a 2020 product liability case brought by a customer against the company. This judgement renders the company liability for course coasts and compensation totalling $240,000.

ii. On 28 July 2021, the company's country warehouse is destroyed by fire. The total carrying amount of the warehouse, which was uninsured, is $250 000.

iii. At a director's meeting held in May 2021, 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 the division amount to $1.5 million.

iv. On 14 August 2021, Dawson Ltd enters into a contract to purchase 15% of the issued capital of a competitor, Smith Ltd for $1 000 000.

REQUIRED

Problem 1: Classify each of the above material after-reporting-period events as an adjusting or non-adjusting event and briefly discuss how this event should be reported by Dawson Ltd.