Exam (elaborations)
SM Modern Advanced Accounting in Canada 7th Edition Hilton-Test Bank
- Module
- Advanced Accounting
- Institution
- Advanced Accounting
Complete Test Bank (with Questions Answers)
[Show more]
Content preview
, Chapter 1A Survey of International Accounting
Copyright 2013 McGraw-Hill Ryerson Limited. All rights reserved.
Solutions Manual, Chapter 1 1
,A brief description of the major points covered in each case and problem.
CASES
Case 1-1
In this case, students are introduced to the difference in accounting for R&D costs between
IFRS and U.S. GAAP and asked to provide arguments to support the different standards and to
give an opinion on which method is better.
Case 1-2 (adapted from a case prepared by Peter Secord, Saint Mary’s University)
In this real life case, students are asked to discuss the merits of historical costs vs. replacement
costs. Actual note disclosure from a company’s financial statements is provided as background
material.
Case 1-3 (adapted from a case prepared by Peter Secord, Saint Mary’s University)
A Canadian company has just acquired a non-controlling interest in a U.S. public company. It
must decide whether to use IFRSs or U.S. GAAP for the U.S. subsidiary. Financial statement
information is provided under IFRSs and U.S. GAAP.. The reasons for some of the differences
in numbers must be explained and an opinion provided as to which method best reflects
economic reality. .
Case 1-4
This case is adapted from a CICA case. A private company is planning to go public. Analysis
and recommendations are required for accounting issues related to purchase and installation of
new information system, revenue recognition, convertible debentures and doubtful accounts
receivable.
Case 1-5
This case is adapted from a CICA case. A mining company has just sold one of its operating
divisions. Analysis and recommendations are required for accounting issues related to
discontinued operations, revenue and expense recognition, government grants and pollution
rights, purchase and installation of new information system, revenue recognition, convertible
debentures and doubtful accounts receivable.
Copyright 2013 McGraw-Hill Ryerson Limited. All rights reserved.
2 Modern Advanced Accounting in Canada, Seventh Edition
, PROBLEMS
Problem 1-1 (40 min.)
A single asset is acquired, and students are asked to prepare and compare financial statement
numbers during the life of the asset using both a historical cost and a current value model.
Problem 1-2 (40 min.)
Details of a European company that reports using IFRSs are given along with specific details
relating to certain account balances. Students are asked to show how these balances should
be reported under 1) U.S. GAAP, and 2) IFRSs using the facts provided. Students are also
asked to reconcile Net Income and Shareholders` Equity to from IFRSs to U.S. GAAP.
Problem 1-3 (50 min.)
A private company plans to convert to IFRS go public within 5 years. It wants to know the
impact on net income and shareholders’ equity if it converts from ASPE to IFRSs for impaired
loans, interest costs, actuarial gains, compound financial instrument and income taxes.
Problem 1-4 (40 min.)
A private company plans to convert to IFRS and wants to know the impact on the debt-to-equity
ratio and return on total shareholder’s equity. The major issues pertain to impairment of
intangible assets, revaluation of PP&E, R&D costs and redeemable preferred shares.
WEB-BASED PROBLEMS
Web Problem 1-1
Students are asked to access the financial statements of China Mobile Limited, a public
company incorporated in China and listed on a U.S. stock exchange. The student answers a
series of questions based on the company’s financial statements. The questions are aimed at
highlighting the differences between IFRSs and U.S. GAAP.
Web Problem 1-2
Students are asked to access the financial statements of Dr. Reddy’s Laboratories Limited, a
public company incorporated in India and listed on a U.S. stock exchange. The student answers
a series of questions based on the company’s financial statements. The questions are aimed at
highlighting the differences between IFRSs and U.S. GAAP.
Copyright 2013 McGraw-Hill Ryerson Limited. All rights reserved.
Solutions Manual, Chapter 1 3
The benefits of buying summaries with Stuvia:
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
You can quickly pay through credit card for the summaries. There is no membership needed.
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 premiumbiz379. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £19.19. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
52510 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now