The Rihanna Company Owns 1,000 Shares in Abhay Corp, a Public

The Rihanna Company owns 1,000 shares in Abhay Corp, a public company listed on the stock exchange. The share price was as follows: - At date of purchase, July 2, 2012 = $100/share
- At year end, June 30, 2013 = $100/share
- At start of next fiscal year, July 1, 2013 = $95/share
- At date financial statements authorized for issue, September 1, 2013 = $90/share
Materiality for the Rhianna's financial statements is $500,000. What is the appropriate treatment of the subsequent event in the June 30, 2013 financial statements?

A) Adjustment in the financial statement for the decline in value of $10,000.
B) No adjustment is needed for the subsequent decline in share price to $90/share.
C) Note disclosure in the financial statements for the decline in value of $5,000.
D) Both an adjustment and note disclosure in the financial statements for the decline to $90/share.