Question: The bookkeeper for Branford Ltd has drawn up a financial

The bookkeeper for Branford Ltd. has drawn up a financial statement on 31 December 20X1. Some of the items on the draft balance sheet are as follows:

Upon further inquiry, you discover that at 31 December 20X8, the Canadian dollar is worth HK$ 7.5. You also ascertain that the value of the marketable securities was $ 987,000 at 20X1 year- end.

1. Indicate what change, if any, you would make in reporting each of the preceding items.
2. In each case, discuss the accounting principle involved.

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  • CreatedFebruary 17, 2015
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