Mary Tokar is comparing a U.S. GAAP-based company to a company that uses IFRS. Both companies report non-trading equity investments. The IFRS company reports unrealized losses on these investments under the heading “Reserves” in its equity section. However, Mary can find no similar heading in the U.S. GAAP company financial statements. Can Mary conclude that the U.S. GAAP company has no unrealized gains or losses on its non-trading equity investments? Explain.
Answer to relevant QuestionsWang Corp. had $100,000 of 7%, $20 par value preference shares and 12,000 shares of $25 par value ordinary shares outstanding throughout 2011.(a) Assuming that total dividends declared in 2011 were $64,000, and that the ...Goosen Company has outstanding 40,000 shares of R5 par ordinary shares, which had been issued at R30 per share. Goosen then entered into the following transactions.1. Purchased 5,000 treasury shares at R45 per share.2. ...Oregon Inc.’s $10 par ordinary shares are selling for $110 per share. Four million shares are currently issued and outstanding. The board of directors wishes to stimulate interest in Oregon ordinary shares before a ...Bridgewater Corp. offered holders of its 1,000 convertible bonds a premium of €160 per bond to induce conversion into ordinary shares. Upon conversion of all the bonds, Bridgewater Corp. recorded the €160,000 premium as ...Explain how convertible securities are determined to be potentially dilutive ordinary shares and how those convertible securities that are not considered to be potentially dilutive ordinary shares enter into the ...
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