IAS 10 – Events after the balance sheet date, distinguishes between adjusting and non-adjusting events. Which of the following is an adjusting event?

(A) One month after the year end, a customer lodged a claim for $1,000,000 compensation. The customer claimed to have suffered permanent mental damage as a result of the fright she had when one of the entity’s products malfunctioned and exploded. The outcome of the court case cannot be predicted at this stage.

(B) There was a dispute with the workers and all production ceased one week after the year end.

(C) A fire destroyed all of the entity’s inventory in its finished goods warehouse two weeks after the year end.

(D) Inventory valued at the year end at $20,000 was sold one month later for $15,000.