Asset recognition and measurement The hypothetical transactions listed next relate to Ryanair Holdings. Plc. (Ryanair), an Irish

Question:

Asset recognition and measurement The hypothetical transactions listed next relate to Ryanair Holdings. Plc. (Ryanair), an Irish airline. Indicate whether each transaction immediately gives rise to an asset under U.S. and, separately. IFRS, If Ryanair recognizes an asset, state the account title, the amount, and the classification of the asset on the as either a current asset or a noncurrent asset. Ryanair reports its results in thousands of euros.
a. Ryanair’s board of directors decides to purchase 10 Hoeing 777 airplanes, costing €640 million each.
b. Ryanair places an order with Hoeing for 10 Boeing 777 airplanes, costing €640 million each.
c. Ryanair pays Boeing €60 million as a deposit on the aircraft it ordered in part b.
d. Ryanair spends €50 million to obtain landing rights for the next five years at Beijing Capital International Airport.
e. Ryanair writes a check for €12 million and assumes a mortgage from its bank for another €65 million to purchase new ground equipment costing €77 million.
f. Ryanair issues with a market value of €160 million to acquire used aircraft from a bankrupt regional airline. The carrying value of the equipment on the bankrupt airline’s books is €75 million.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the... 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...