Question: The following transactions relate to Hana Microelectronic Public Company Limited

The following transactions relate to Hana Microelectronic Public Company Limited (Hana Microelectronic), an electronics and semiconductor firm headquartered in Thailand. Indicate whether each transaction immediately gives rise to a liability under U.S. GAAP and, separately, IFRS. If accounting recognizes a liability, state the account title, the amount, and the classification of the liability on the balance sheet as either a current liability or a noncurrent liability. Hana Microelectronic reports its results in millions of baht (Bt). a. Hana Microelectronic agrees to purchase land and a manufacturing plant from Fujitsu
Limited for Bt3,000 million.
b. Hana Microelectronic receives a check for Bt168 million from a customer for the delivery of merchandise that Hana Microelectronic will produce next month.
c. Refer to the event in part b, except now assume that Hana Microelectronic will deliver half of the merchandise next month and the remainder three years from now.
d. During the year, Hana Microelectronic issues 6 million shares of Bt1 par value common stock, for Bt62 million.
e. Hana Microelectronic borrows Bt24 million from a local bank, payable in equal installments over the next three years and bearing interest at the annual rate of 9%.
f. Hana Microelectronic signs a contract to purchase at least Bt45 millions of merchandise from a particular supplier over the next two years.
g. Refer to part f, and assume Hana Microelectronic places an order for Bt15 millions of this merchandise.

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  • CreatedMarch 04, 2014
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