MLM Bhd started operations on 1 January 2015 and has used the FIFO method of inventory valuation since its operation. In 2018, the company decides to switch to the average cost method. The following...

MLM Bhd started operations on 1 January 2015 and has used the FIFO method of inventory valuation since its operation. In 2018, the company decides to switch to the average cost method. The following table presents the effects of the change in inventory valuation method:

REQUIRED:

• Restate the beginning retained earnings balance as at 1 January 2018.


• Explain the accounting treatment for prior period errors in accordance to
  MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors.
  
  


• Briefly explain the accounting treatment for adjusting events and non-adjusting events after the reporting period in accordance to
  MFRS 110 Events After the Reporting Period.