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Question - What is the required treatment of each of the below events in the financial statements? Justify your decisions.
a) On 25 July 20X9, Carey settled and paid a claim involving prior employees alleging sexual discrimination as a result of promotions announced at the Christmas party in 20X8. Five women who had been overlooked for management promotions undertook legal action in March 20X9.
b) On 1 August 20X9, Carey Ltd made an announcement to the Singapore Stock Exchange of its intention to take over a private engineering partnership. This would increase sales revenue of Carey Ltd by 15%. It was to be funded by a 1:10 rights issue.
c) On 12 August 20X9, a fire damaged the head office of Carey. The buildings, fixtures and fittings were only partly insured.
d) At its 5 September 20X9 meeting, Carey's board of directors voted to double the advertising budget for the coming year and authorised a change in advertising agencies.
After learning the basics of financial statements, it is very important for a health care manager to understand the basic five areas of performance.
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