100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Solution Manual for Intermediate Accounting Volume 2 8th Edition Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel Chapter 12-22 CA$17.37   Add to cart
Quickly navigate to
Preview
  2.  
  3. Intermediate Accounting Volume
  4.  
  5. Intermediate Accounting Volume

Exam (elaborations)

Solution Manual for Intermediate Accounting Volume 2 8th Edition Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel Chapter 12-22
 11 views  0 purchase
  • Course
  • Intermediate Accounting Volume
  • Institution
  • Intermediate Accounting Volume
  • Book
  • Intermediate Accounting

Solution Manual for Intermediate Accounting Volume 2 8th Edition Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel Chapter 12-22

Preview 4 out of 892  pages

Document information

  • May 9, 2024
  • 892
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers

Subjects

  • solution manual for
  • solution manual
  • solution
  • 2024
  • solution manual for intermediate accounting volume
  • solution manual for intermediate accounting
  • solution manual for intermediate
  • a

Connected book

book image

Book Title:

Author(s):

  • Edition:
  • ISBN:
  • Edition:

More summaries for

  • TEST BANK FOR Intermediate Accounting Volume 2 8E Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel Chapter 12-22
  • Solution Manual for Intermediate Accounting Volume 2 8th Edition by Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel Complete Guide 9781259654688 ...
  • Solution Manual for Intermediate Accounting (Volume 2) 8th Canadian Edition By Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Verified All Chapters | Complete Newest Version.
All for this textbook (7)

Written for

  • Intermediate Accounting Volume
All documents for this subject (2)

Seller

avatar-seller
a_plus_work

Reviews received

Content preview

Solution Manual for
Intermediate Accounting Volume 2 8 th Edition Thomas H. Beechy, Joan E.
Conrod, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel
Chapter 12-22

Chapter 12: Financial Liabilities and Provisions

Case 12-1 Winter Fun Incorporated
12-2 Prescriptions Depot Limited
12-3 Camani Corporation
Suggested Time
Technical Review
TR12-1 Financial liabilities and provisions (IFRS) ...... 10
TR12-2 Financial liabilities and provisions (ASPE) ..... 10
TR12-3 Provision, measurement ................................... 10
TR12-4 Guarantee ......................................................... 10
TR12-5 Provision, warranty .......................................... 5
TR12-6 Foreign currency .............................................. 5
TR12-7 Note payable .................................................... 5
TR12-8 Discounting, note payable ................................ 10
TR12-9 Discounting, provision ..................................... 10
TR12-10 Classification, liabilities................................... 10

Assignment A12-1 Financial versus non-financial liabilities……. 10
A12-2 Common financial liabilities………………… 10
A12-3 Common financial liabilities ............................ 10
A12-4 Common financial liabilities: taxes ................. 20
A12-5 Common financial liabilities: taxes ................ 20
A12-6 Foreign currency payables……………………. 10
A12-7 Foreign currency payables ............................... 10
A12-8 Common financial liabilities and foreign currency 25
A12-9 Provisions......................................................... 20
A12-10 Provisions ........................................................ 20
A12-11 Provisions......................................................... 20
A12-12 Provision measurement .................................... 15
A12-13 Provision measurement .................................... 15
A12-14 Provisions; compensated absences…………... 15
A12-15 Provisions; compensated absences .................. 15
A12-16 Provisions; warranty ........................................ 15
A12-17 Provisions; warranty ....................................... 20
A12-18 Provisions; warranty ....................................... 25
A12-19 Discounting; no-interest note ........................... 15
A12-20 Discounting; low-interest note ........................ 20

© 2022 McGraw Hill Ltd. All rights reserved.
Solutions Manual to accompany Intermediate Accounting, Volume 2, 8th edition 14-1

, A12-21 Discounting; low-interest note ......................... 20
A12-22 Discounting; provision ..................................... 15
A12-23 Discounting; provision ..................................... 25
A12-24 Discounting; provision ..................................... 25
A12-25 Classification and SCF..................................... 20
A12-26 SCF .................................................................. 20
A12-27 Liabilities – IFRS and ASPE .......................... 10
A12-28 Liabilities - ASPE ........................................... 20
A12-29 Liabilities - ASPE ............................................ 20
A12-30 Provisions/Contingencies – IFRS and ASPE…. 20
A12-31 DAIS – warranty provision trend……………... 15
A12-32 DAIS – provision for coupon refund………… 15




Cases

Case 12-1 (LO12.3, LO12.5, LO12.6)
Winter Fun Incorporated

To: Members of Board of Directors
From: Accounting Consultant
RE: Winter Fun Incorporated

Overview

Winter Fun Incorporated (WFI) uses IFRS for financial reporting. The bank loan has a
minimum current ratio so you will need to be careful and watch for any impacts on the
ratio. You have had a tough year this year and faced a loss so the bank financing is critical
to your operations.

Issues

1. Revenue recognition memberships
2. Revenue recognition guests
3. Special promotions
4. Coupons
5. Manufacturer Loan
6. Lawsuit
7. Warranty
8. Gasoline storage tanks
9. Foreign currency payables
10. Compensated absences


© 2022 McGraw Hill Ltd. All rights reserved.
Solutions Manual to accompany Intermediate Accounting, Volume 2, 8th edition 14-2

,Analysis and Recommendations


1. Revenue recognition memberships

Following the 5 step IFRS model:
Initiation fee
Step 1: The contract with the customer is for the membership in the club. This would be a
written agreement between the member and WFI.

Step 2: There is one performance obligation, the promised service is membership in the
ski club. There is no transfer of the service until the membership is provided.

Step 3: The contract price is $10,000. The non-refundable deposit is an advance payment
towards this initiation fee and is part of the overall transaction price.

Step 4: No allocation since there is only one performance obligation.

Step 5: The performance obligation for the initiation fee is satisfied over the period of
time that the member belongs to the club. The $10,000 would be recognized over the
average period a member belongs. There should be enough historical data available to
come up with a reasonable estimate. There would be no cash collection risk since the
amount is paid upfront.

Annual fee
Step 1: The annual fee is a written agreement between the member and WFI.

Step 2: There is again one performance obligation, the service for this year.

Step 3: The fee of $2,000 is the total contract price and is received in 20X5 for the 20X6
ski season. This would be unearned revenue when received.

Step 4: There is no allocation since there is only one performance obligation.

Step 5: Assuming the ski season goes from Dec 1 until March 31 $500 would be
recognized in 20X5 and the remainder in 20X6 which would be the period in which the
service is performed. There would be no cash collection risk since the amount is paid
upfront.

2. Revenue recognition guests

Following the 5 step IFRS model:

Step 1: The contract with the guest is the written contract when they receive the ticket to
ski, not when the reservation is made since this reservation could be cancelled.


© 2022 McGraw Hill Ltd. All rights reserved.
Solutions Manual to accompany Intermediate Accounting, Volume 2, 8th edition 14-3

, Step 2: The performance obligation is the right to ski that day.

Step 3: The overall contract price is the price of the ski ticket.

Step 4: There is no allocation since there is only one performance obligation.

Step 5: The performance would be the right to ski on that day. There is no cash collection
risk since the guest pays by credit card when they purchase the ticket.

3. Special promotions

Following the 5 step IFRS model:

Step 1: The contract with the customer is the written contract when they receive the ticket
and the right to a future lesson.

Step 2: There are two separate performance obligations the right to ski and the right to the
lesson.

Step 3: The total contract price is $100.

Step 4: This price would need to be allocated to the two separate performance obligations
based on their relative fair value.

Fair value ski pass 80 = 61.5% x 100 = $61.50
Fair value lesson 50 = 38.5% x 100 = $38.50
Total fair value 130

Step 5: The $61.50 allocated to the performance obligation for the ski pass would be
satisfied on the day that they ski. For the $38.50, the performance obligation would be
satisfied on the day they take the lesson. There would be no cash collection risk assuming
a credit card is used to purchase the special pass.

4. Coupons

It must be determined if an economic loss would occur for the coupons. The coupons are
for $5 and the price of a ski pass is $80. This is a minor amount compared to the price of
the ski pass so WFI would still be selling the ski pass at a profit. Therefore, the coupons
should only be recognized as a cost when they are redeemed.

5. Manufacturer Loan

The manufacturer of the ski lift has provided a 0% interest loan. This is often referred to
as a dealer loan. The loan is either measured in FVTPL or other liabilities. Most liabilities

© 2022 McGraw Hill Ltd. All rights reserved.
Solutions Manual to accompany Intermediate Accounting, Volume 2, 8th edition 14-4

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller a_plus_work. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for CA$17.37. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

80796 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
CA$17.37
  • (0)
  Add to cart