Question

In Chapter 1, you were asked to imagine that you were a student needing insurance on your apartment and you examined different ways of valuing the contents of the apartment. We identified three different ways of valuing the contents of the apartment. Table 1.7 from Chapter 1 is reproduced next. All the items on the list are owned by you, except for the appliances, which belong to the building.



In addition to the above, the following information is available:
Item Amount
Student loans ............. $27,500
Loans from parents......... 5,000
Cash in bank............. 1,200
Owing from employer........ 700

Required:
a. Prepare three separate balance sheets using the information in each column above.
Make sure to include the “other information” in each balance sheet.
b. Explain the benefits and limitations of each balance sheet to the people who might use them. Make sure to discuss specific stakeholders that might use each balance sheet.
c. Which balance sheet do you think would be appropriate under IFRS?
d. Which balance sheet do you think is best?Explain.


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  • CreatedFebruary 26, 2015
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