Your client's balance sheet date is 30 June 2012, the audit report date is 15 September 2012, and the financial statements and audit report are issued 30 September 2012.Your client suffers a material loss due to an uninsured loss of inventory as a result of fire that occurred 5 July 2012.This event warrants footnote disclosure in, but not an adjustment to, the 30 June 2012 financial statements.

Question

Quizplus · Accepted Answer

The event occurred after the balance sheet date, but before the audit report date and the financial statements issuance date. Therefore, it only requires footnote disclosure in the financial statements, but not an adjustment to the 30 June 2012 financial statements.

Your Client's Balance Sheet Date Is 30 June 2012, the Audit