Question

Indicate if each of the following items would be recognized in TelCan Ltd.’s financial statements for 20X3 and, if so, what elements would be recognized. For any items that would not be recognized, explain the reason for nonrecognition.
1. TelCan issued a purchase order to buy inventory early in the following year.
2. TelCan’s share price has increased from $ 42 to $ 65 on the stock exchange.
3. The month of December has passed, and tenants occupying space in TelCan’s building have not yet paid the rent. TelCan’s rental agent believes that payment is reasonably assured.
4. TelCan sold the right to use its international industrial trademark to a Taiwanese com-puter manufacturer for the next five years.
5. TelCan experienced increases in the value of cash deposits held in U. S. dollars because of a stronger Canadian dollar.
6. TelCan invested in employee training costs to improve the company’s future productivity.
7. TelCan’s major competitor has liquidated and gone out of business. The company has purchased the competitor’s customer list.
8. TelCan has a reasonably reliable estimate of the future cost of reaching a settlement on a pending patent infringement lawsuit.



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  • CreatedFebruary 17, 2015
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