The draft financial statements of a limited liability company are under consideration. The accounting treatment of the following material events after the reporting period needs to be determined.

1 The bankruptcy of a major customer, with a substantial debt outstanding at the end of the reporting period

2 A fire destroying some of the company's inventory (the company's going concern status is not affected)

3 An issue of shares to finance expansion

4 Sale for less than cost of some inventory held at the end of the reporting period

According to IAS 10 Events after the reporting period, which of the above events require an adjustment to the figures in the

draft financial statements?

 Which of the following material events after the reporting period and before the financial statements are approved by the

directors should be adjusted for in those financial statements?

1 A valuation of property providing evidence of impairment in value at the reporting period

2 Sale of inventory held at the end of the reporting period for less than cost

3 Discovery of fraud or error affecting the financial statements

4 The insolvency of a customer with a debt owing at the end of the reporting period which is still outstanding

Geofost is preparing its statement of cash flows for the year ended 31 October 20X7. You have been presented with the

following information.

GEOFOST

STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 OCTOBER 20X7

Profit from operations            15,730

Finance cost                            (730)

Profit before tax                     15,000

Taxation                                 (4,350)

Profit for the year                   10,650

Required

Prepare a statement of cash flows for Geofost for the year ended 31 October 20X7 in accordance with IAS 7 Statement of

cash flows, using the indirect method.

The following information is available for Sioux, a limited liability company：Statements of financial position

1 During the year non-current assets which had cost $800,000, with a carrying amount of $350,000, were sold for $500,000.

2 The revaluation surplus arose from the revaluation of some land that was not being depreciated.

3 The 20X3 income tax liability was settled at the amount provided for at 31 December 20X3.

4 The additional loan notes were issued on 1 January 20X4. Interest was paid on 30 June 20X4 and 31 December 20X4.

5 Dividends paid during the year amounted to $750,000.

Prepare the company's statement of cash flows for the year ended 31 December 20X4, using the indirect method, adopting

the format in IAS 7 Statement of cash flows.

During the year dividends paid were $270,000.