Examples – Reporting date 30th June 2015 &

Authorization Date 30th October 2015

1. On 2nd August 2015 a fraud perpetrated by the account payable controller

was discovered. Payable recorded in March 2015 was overstated by Tsh
50,000,000.

2. PPE with carrying amount of Tshs.200M was destroyed by fire on 15th

July 2015.

3. A routine inspection of an entity’s main building in August 2015 revealed

substantial cracks in the wall. A more detailed review was immediately
undertaken by specialist professionals, who reported that there were major
problems with the foundations several years ago. In their view these
problems must have arisen several years ago, even though the visible
evidence had only now come to light.

4. A claim brought by a customer which was under negotiation at the

reporting period was settled in court on 5th September 2015. A payment of
Tshs. 80 M in full settlement was made on 20th September 2015.

5. At its year end, an entity held in inventories 4,000 units of a particular

product line at a cost of Tsh 550,000 each. The product had been selling
well at Tsh, 750,000 each. Early in in July 2015 the entity learnt that
competitor action was such that it could only sell its product for Tsh.
605,000 with selling cost unchanged.