Silver Lining Corporation, a public company, is a large silver producer. Where appropriate, the company has chosen

Question:

Silver Lining Corporation, a public company, is a large silver producer. Where appropriate, the company has chosen to report fair value adjustments in other comprehensive income. Selected condensed information (in millions) for Silver Lining Corporation follows for the year ended December 31, 2015:
Cost of sales........................................................................$2,214
Loss from investment in associate.....................................................6
Silver sales...........................................................................3,350
Income tax expense....................................................................60
Interest expense..........................................................................7
Interest revenue...................................................................................38
Operating expenses...................................................................639
Dividend revenue.........................................................................6
Loss on fair value adjustments-trading investments..............................27
Gains on fair value adjustments-strategic investment (net of taxes of $5)....12
Instructions
(a) Prepare an income statement and a separate statement of comprehensive income for the year ended December 31, 2015.
(b) Silver Lining Corporation had an opening balance in its Accumulated Other Comprehensive Income account of $49 million. What is the ending balance it would report in the shareholders' equity section of its balance sheet at December 31, 2015?
Taking It Further
If a company has purchased common shares of another company as a trading investment, IFRS generally does not allow the investor to reclassify the trading investment as a long-term investment. Why do standard setters want to prevent companies from reclassifying investments?
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Accounting Principles Part 3

ISBN: 978-1118306802

6th Canadian edition Volume 1

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow

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