Question -
1. On January 1, 2017, Germany Ltd. (a Canadian public company) issued a series of bonds in order to raise money for future projects. The bonds paid 5% interest per year, and mature on January 1, 2027. Germany's fiscal year runs from July 1 to June 30.
How should Germany classify these bonds on its June 30, 2017 statement of financial position? How should the bonds be shown on the June 30, 2026 statement of financial position?
2. Italy Ltd. is a small manufacturing company with two factories. The company's year-end was December 31, 2017. On January 15, there was a serious fire in one of the two factories. The entire building was destroyed.
Should Italy disclose the fire in the notes to the financial statements, and why?