Question: Four different unrelated Canadian corporations are described below 1 Privately

Four different unrelated Canadian corporations are described below:
1. Privately owned Vancouver- based Moonburst Coffee Ltd. imports coffee beans from around the world, but mainly from South America. The company roasts and packages the coffee and distributes it to several B. C. retail grocery stores under its own Moonburst label. The company owns and operates 47 retail coffee shops in British Columbia and has franchised 16 coffee shops in Seattle, Washington. Currently, the company is in negotiations with a large Canada- wide supermarket chain to supply coffee under the chain’s private label brand, Chairman’s Choice. To supply the chain, Moonburst will have to drastically increase its purchasing and processing capacity. To finance its expanded operations, Moonburst’s owners are negotiating with four private investment firms for new equity. Three of the potential investment firms are based in the United States; the fourth firm is a large Canadian pension fund.
2. Pangal Inc. is a steel fabricating company based in Hamilton, Ontario. The company is listed on the TSX. The controlling shareholder, Nataraj Pangal, holds shares entitling him to 51% of the voting rights. Seventy percent of Pangal’s output is sold to U. S. manufacturers and builders ( in U. S. dollars), although contracts with non- American manufacturers are under negotiation and are expected to account for an increasing proportion of sales in future years. Pangal is considering the possibility of registering with the SEC and applying for a U. S. and applying for a U.S. exchange listing.
3. Economics International (EI) is a Toronto- based consulting company. EI provides consulting services to European companies that have operations in Canada and in the United States. EI bills its clients in the currency of their home country, primarily in euros and pounds sterling. Some billings are in the Scandinavian currencies as well. About half of EI’s consultants are based in Canada; the others are located in London and Brussels. EI’s shares are owned by the consultants; to become a senior consultant, a consultant must make a substantial equity investment in EI.
4. Chorus Entertainment Corporation’s (CEC) head office is in Montreal, while its executive offices are in Los Angeles. CEC’s main operations are in Los Angeles, although CEC does maintain an animation studio in Vancouver and operates a sound stage in Toronto. CEC is privately owned, but it raises additional financing almost exclusively in the United States and through its industry contacts in Los Angeles.

For each of the four companies, discuss the most appropriate accounting standards to use: IFRS, U. S. GAAP, Canadian ASPE, or DBA. Also indicate the most appropriate presentation currency for each company.

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  • CreatedFebruary 17, 2015
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