Financial Statement Disclosure: International Clothiers Ltd. has offices in Canada, Bermuda, Europe and the United States. Each...

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Accounting

Financial Statement Disclosure:
International Clothiers Ltd. has offices in Canada, Bermuda,Europe and the United States. Each of the following events haveoccurred after the company’s 31 December 2017 year-end, but beforetheir financial statements had been finalized:
a. On 27 January, International Clothiers Ltd entered into along-term lease for a private airplane for the company presidentand CEO. The lease requires payments of US$75,000 per month for 60months.
b. The board of directors met on 15 February 2018 and decided todiscontinue its shoe division due to continuing losses and a changein business strategy.
c. One of the company’s major retail customersdeclared bankruptcy on 22 March. The retail customer accounted for20% of International Clothier’s year-end receivables and 35% ofInternational Clothier’s revenue in 20x7.

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These events are called subsequent events in accounting parlance and are those events that occur after reporting period but before the financial statements for that period have been issued or are available to be issued a As per GAAP the event of entering into a longterm See Answer

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