Delta is an entity which prepares financial statements to 31 March each year. The financial statements for the year ended 31 March 2015 are to be authorised for issue on 30 June 2015. The following events are relevant to these financial statements:

(c) On 31 March 2015, the inventories of Delta included a consignment of components which Delta had been supplying to a number of different customers for some years. The cost of the consignment was $10 million and based on retail prices at 31 March 2015, the expected selling price of the consignment would have been $12 million. On 15 May 2015, a competitor completed the development of an alternative component which seems likely to make Delta’s consignment obsolete. The directors of Delta estimate that the consignment (all still currently unsold) will now be sold for only $2 million. (4 marks)

Required: 
Explain and show how the three events should be reported in the financial statements of Delta for the year ended 31 March 2015.

Note: The mark allocation is shown against each of the three events above.