The Following Events All Occurred After the Balance Sheet Date

Multiple Choice

The following events all occurred after the balance sheet date of 30 June 2012, but prior to the date of the audit report, 15 August 2012. Which one would require an adjustment to the account balances as at 30 June 2012?

A) The auditee will market $2 million of preference shares on 31 July, 2012.
B) Unused equipment recorded at $100 000 at 30 June, 2012 was disposed of on 3 July, 2012 for $60 000.
C) The client disposed of a major subsidiary on 30 July 2012.
D) Inventory valued at $100 000 on 30 June, 2012 was destroyed by a fire on 1 August, 2012.