Accounting · Financial Reporting Standards

Coleridge Co is a manufacturing company. The financial accountant is considering whether any of the events that took place in April 20X5 require adjustment in the financial statements for the year ended 31 March 20X5. Which TWO of the following events require adjusting in accordance with IAS 10 'Events After the Reporting Period'? 1. Thomas Co, a customer owing $200,000 at 31 March 20X5, entered insolvency on 3 April 20X5. 2. An employee commenced legal proceedings against Coleridge Co following an industrial accident on 10 April 20X5. damages of $350,000 are expected to be paid. 3. Inventory held at cost of $200,000 on 31 March 20X5 was sold on 21 April 20X5 for $150,000. 4. The company agreed to the sale of the Wordsworth division at a board meeting on 25 March 20X5, and a public announcement was made on 1 April 20X5.