Questions and Answers of Intermediate Accounting 11th

The trustees of the IFRS Foundation reiterated and confirmed the organization's vision in their 2012 Strategy Review Report:We remain committed to the belief that a single set of International
Locate the 2015 audited annual financial statements of a company that may be experiencing financial difficulties, such as a pharmaceutical company still primarily in the research and development
The following statement is an excerpt from a document on interim financial reporting:Interim financial information is essential to provide investors and others with timely information about the
J.J. Kersee Corporation, a Canadian publicly traded company, is currently preparing the interim financial data that it will issue to its shareholders and the securities commission at the end of the
Access IAS 34 (Interim Financial Reporting), and the interim financial report for the six-month period ended June 30, 2015, for Nestlé SA from the company's website (www.nestle.com).Instructions(a)
Access the annual report, including the audited financial statements, of Thomson Reuters Corporation for the year ended December 31, 2014 from SEDAR (www.sedar.com) or from the company's website
Access the annual report for Air Canada for itsDecember 31, 2014 fiscal year end from SEDARor the company's website (www.aircanada.com).Also, access the annual report for the year endedDecember 31,
Access the annual report for Air Canada for itsDecember 31, 2014 fiscal year end from SEDARor the company's website (www.aircanada.com).Also, access the annual report for the year endedDecember 31,
You are compiling the consolidated financial statements for Vu Corporation International (VCI), a public company. The corporation's accountant, Timothy Chow, has provided you with the following
You are compiling the consolidated financial statements for Vu Corporation International (VCI), a public company. The corporation's accountant, Timothy Chow, has provided you with the following
Franklin Corporation is a diversified company that operates in five different industries: A, B, C, D, and E. The following information relating to each segment is available for 2017. Sales of
Referring to the research study mentioned in this chapter (in the section "Limitations of Financial StatementAnalysis"), discuss some limitations of the financial statement analysis done in BE23-21.
Condensed data from the comparative statement of financial position (SFP) of Legros Inc.(a) Using vertical (common-size) analysis, calculate the various SFP categories as a percentage of total assets
How would the transaction in BE23-13 be recorded if the individual shareholder owned only 40% of theshares of each company? Assume that there is independent evidence to support the value of the
How would the transaction in BE23-13 be recorded if it were arm's length?Data From BE23-13:Nguyen Limited buys land from its president for $390,000 in cash, which is the land's appraised value atthe
How would the transaction in BE23-13 be recorded if it were arm's length?Data From BE23-13:Nguyen Limited buys land from its president for $390,000 in cash, which is the land's appraised value atthe
Nguyen Limited buys land from its president for $390,000 in cash, which is the land's appraised value atthe time of the purchase. The land was purchased by the president 15 years ago for $65,000. (a)
Corby Spirit and Wine Limited is a leadingCanadian marketer and distributor of premiumspirits and wine brands. Obtain a copy of thecompany's comparative financial statements forthe year ended June
Alta Gas Ltd. capitalizes on the supply and demand dynamic for natural gas and power by owning and operating assets in gas, power, and utilities in places that provide a strategic competitive
Alta Gas Ltd. capitalizes on the supply and demand dynamic for natural gas and power by owning and operating assets in gas, power, and utilities in places that provide a strategic competitive
Access the financial statements of Bombardier Inc. for the years ended December 31, 2015 and December 31, 2014 from the company's website or SEDAR (www.sedar.com).InstructionsChanges in non-cash
Brookfield Asset Management Inc.'s 2014 financial statements can be found at the end of this volume or on the company website. Brookfield owns and operates assets with a focus on property, renewable
The comparative statement of financial position for Cosky Corporation follows:Additional information:1. Dividends of $15,000 were declared and paid in 2017.2. There were no unrealized gains or losses
Data for Malouin Corp. are presentedin E22-12.InstructionsPrepare the operating activities section of the statement of cash flows using the indirect method.Data From E22-12:Malouin Corp.'s income
Ciao Corporation had January 1 and December 31 balances as follows:For 2017, the cost of goods sold was $550,000. Calculate Ciao's 2017 cash paid to suppliers of inventory.
Using the information from BE22-9 for Azure Ltd., (a) prepare the cash flows from operating activitiessection of Azure's 2017 statement of cash flows using the indirect method and following IFRS. (b)
Watson Corporation, which uses IFRS, is using the indirect method to prepare its 2017 statement of cash flows and chooses to classify dividends paid as financing activities and interest paid as
Access the financial statements of Loblaw Companies Limited for its 2014 year ended January 3, 2015 from SEDAR (www.sedar.com) or the company's website.InstructionsReview the financial statements and
The IASB regularly updates and publishes a project plan that outlines the timelines for the projects it is working on.InstructionsUsing the IASB website (www.ifrs.org), identify new standards that
Access the financial statements of Airbus GroupNV for its year ended December 31, 2014 fromthe company's website at www.airbusgroup.com.Note 1 to its financial statements indicates thatAirbus Group's
Refer to the specimen financial statements at the end of the book, which show excerpts from the 2014 year-end financial statements, including the accompanying notes, of Brookfield Asset Management
You have been asked by a client to review the records of Inteq Corporation, a small manufacturer of precision tools and machines that follows ASPE. Your client is interested in buying the business,
At a recent conference on financial accounting and reporting, three participants provided examples of similar accounting changes that they had encountered in the last few months. They all involved
Sporon Corp. is a fast-growing Canadian private company involved in the manufacturing, distribution, and retail of specially designed yoga and leisure wear. Sporon has recently signed 10 leases for
Contact an automobile dealership and find outthe full out-of-pocket cost of purchasing a specific model of car if you were to pay cash for it.Also find out the details of the costs that are
Chorus Aviation Inc. is a Canadian aviation holding company that provides, through Jazz Aviation LP, a "significant part of Air Canada's domestic and transborder network." Chorus indicates in Note 1
The accounting for operating leases has been a controversial issue. Many observers argue that firms that use operating leases are using significantly more assets and are more highly leveraged than
Access the annual financial statements, includingthe accompanying notes, of Loblaw CompaniesLimited for its 52 weeks ended January 2, 2016.These can be found on SEDAR (www.sedar.com)or the company's
Refer to the information in P20-4. Follow the instructions under the assumption that Situ Ltd. follows IAS 17.Data From P20-4:Refer to the information in P20-3.Instructions(a) Prepare the journal
Refer to the information in P20-3. Follow the instructions under the assumption that Hunter Ltd. follows IAS 17.Data From P20-3:On January 1, 2017, Hunter Ltd. entered into an agreement to lease a
Use the information for P20-21.InstructionsUnder Option 2:(a) Assume that at the signing of the original lease, Sanderson Inc. has no intention of exercising the lease renewal.Determine the
Jennings Inc., which uses IFRS 16, manufactures an X-ray machine with an estimated life of 12 years and leases it to SNC Medical Centre for a period of 10 years. The machine's normal selling price is
Assume the same data as in P20-15 and that Provincial Airlines Corp. has an incremental borrowing rate of 8%.InstructionsAnswer the following questions, rounding all numbers to the nearest dollar.(a)
Assume the same information as in P20-9. Follow the instructions assuming that McKee Electronics followsIFRS 16.Data From P20-9:The following facts pertain to a non-cancellable lease agreement
Assume the same information as in P20-9. Follow the instructions assuming that McKee Electronics followsIFRS 16.Data From P20-9:The following facts pertain to a non-cancellable lease agreement
Use the information for Lalonde and Costner from BE20-6. Using tables, a financial calculator, or Excel functions, illustrate how Costner determined the amount of the lease payment of $25,173.Data
IAS 19 Employee Benefits requires companies that have a surplus in a defined benefit plan to perform a "ceiling test" on the net benefit asset account. Instructions Explain what an asset ceiling test
Research what Canadian companies have been doing in recent years in response to rising post-employment health care costs and the risks that are associated with defined benefit pension plans. Write a
Potash Corporation of Saskatchewan Inc., Loblaw Companies Limited, and Air Canada are all Canadian companies with defined benefit plans. Visit www.sedar.com to access financial statements for their
Canadian National Railway Company Obtain the financial statements of the Canadian National Railway Company for its year ended December 31, 2014 from SEDAR (sedar.com) or the company's
BCE Inc. BCE Inc.'s accounting policy note and its note disclosures relating to the company's pension and other post-employment benefits for the year ended December 31, 2014 are set out in the
Refer to the data in P19-9, except now assume Dela Corporation reports under IFRS. Depending on what your instructor assigns, do either parts (a), (b), (c), and (e) or parts (d) and (e).Data From
Refer to BE19-16 and Saver Corporation's single-person defined benefit pension plan. If the change inthe January 1, 2017 defined benefit obligation had been the result of an actuarial revaluation
Refer to the data provided about Rui Corporation's pension plan in BE19-11. Prepare a pension work sheetfor Rui Corporation for 2017 assuming the company applies ASPE.Data From BE19-11:At January 1,
Refer to the data for Duster Corporation's defined benefit pension plan in BE19-9. Now assume that the company follows ASPE instead of IFRS. Determine the 2017 effect of the pension plan on pension
Refer to the information for Maya Corp. in BE19-4, and provide a continuity schedule for the plan assets for the year. Is the plan in a surplus or a deficit position at the end of the year?Data From
Henrietta Aguirre, the ethical accountant, is the newly hired Director of Corporate Taxation for Mesa Incorporated, which is a publicly traded corporation. Aguirre's first job with Mesa was to review
Henrietta Aguirre, the ethical accountant, is the newly hired Director of Corporate Taxation for Mesa Incorporated, which is a publicly traded corporation. Aguirre's first job with Mesa was to review
The amount of income tax that is due to the government for a period of time is rarely the same as the amount of income tax expense that is reported on the income statement for thatsame period under
LGS Inc. is a private company. You have recently been hired as the CFO for the company and are currently finalizing the company year-end report for December 31, 2017. The company has an option to
Different countries have different statutory taxrates.InstructionsChoose an industry and select five companiesthat operate in different countries. Access these companies'most recent annual financial
Alimentation Couche-Tard Inc., Loblaw Companies Limited, and Empire Company Limited are three companies in the same industry. Because of this, the expectation is that their operations and financial
Maple Leaf Foods Inc. is a Canadian company that produces food products such as prepared meats, ready-to-cook and ready-to-serve meals, and fresh pork and poultry. While most of Maple Leaf Foods'
Davida Limited started operations in 2013. Although it has grown steadily, the company reported accumulated operating losses of $450,000 in its first four years in business. In the most recent year
Using the information from BE18-3, prepare Nilson's journal entry to record 2017 income tax. Assume atax rate of 25% and that Nilson uses the taxes payable method of accounting for income taxes under
Using the information from BE18-5, and assuming that the $40,000 difference is the only difference between Mazur's accounting income and taxable income, prepare the journal entry(ies) to record the
BCE Inc., a well-known Canadian telecommunications and media company, has a December 31 year end. Access the company's 2014 annual report from the company website or from
Refer to the financial statements of Brookfield Asset Management Inc. for its year ended December 31, 2014, which are reproduced at the end of Volume 2 of this text, and for its year ended December
Non-GAAP Financial Measures IFRS allows per share amounts to be reported on items other than earnings.Instructions(a) Adopt the role of the ethical accountant and write a short essay on the pros and
Molson Coors Brewing Company has a December 31 year end. Access the company's 2014 annual report from the company website (www.molsoncoors.com).Instructions(a) What types of earnings per share
Sky plc Sky plc, formerly British Sky Broadcasting Group ple, is a pan-European pay television giant and multimedia content company whose common shares trade on the London Stock Exchange. The company
Canton Products Inc. has been in business for quite a while. Its shares trade on a public exchange and it is thinking of expanding onto the New York and London Stock Exchanges. Recently, however, the
Assume the same information as in BE17-20 except that the put options allow the holder to sell Redpath's shares to Redpath at $6 each. How should these options be treated when calculating the diluted
Assume the same information as in BE17-19 except that Redpath purchased put options to give it the option of selling 25,000 of its own common shares for S5 each. How should the options be treated
Use the same information as in BE17-19 and assume that Redpath also wrote put options that allow the holder to sell 25,000 of Redpath's shares to Redpath at $8 per share. Calculate the incremental
Use the same information as in BE17-19 and assume that Redpath also wrote put options that allow the holder to sell 25,000 of Redpath's shares to Redpath at $8 per share. Calculate the incremental
Bantec Corporation had 500,000 common shares outstanding on January 1, 2017. On May 1, Bantec issued50,000 shares. (a) Calculate the weighted average number of shares outstanding for the year ended
Assume the same information for Hedley Corporation as in BE17-2 except that the preferred shares are cumulative and the dividends have not yet been declared or paid.Data From BE 17-2:Hedley
Assume the same information for Hedley Corporation as in BE17-2 except that the preferred shares are non-cumulative and the dividend has not been declared or paid.Data From BE 17-2:Hedley Corporation
Hedley Corporation had 2017 net income of $1.4 million. During 2017, Hedley paid a dividend of $5 pershare on 100,000 preferred shares. Hedley also had 220,000 common shares outstanding during the
Locate and review Brookfield Asset Management's financial statements, including selected notes to its financial statements for the year ended December 31, 2014, located at the end of Volume 2 of this
Access the financial statements of Loblaw Companies Limited for its year ended January 3, 2015. The statements are available on the company's website or SEDAR (www.sedar.com).Instructions(a) Loblaw's
Access the annual report of Canadian Tire Corporation for its year ended January 2, 2016 from the company's website or SEDAR (www.sedar.com). According to Note 1 to the financial statements, the
Access the financial statements of Saskatoon-based Potash Corporation of Saskatchewan Inc. for its year ended December 31, 2014 from the company's website or SEDAR (www.sedar.com). Potash Corp is a
Soron Limited is a private company that uses derivatives to mitigate a variety of risks. The ethical accountant, Leon Price, has just been hired as the new controller and has recently met with the
Soron Limited is a private company that uses derivatives to mitigate a variety of risks. The ethical accountant, Leon Price, has just been hired as the new controller and has recently met with the
Air Canada is Canada's largest domestic and international airline, providing scheduled and charter air transportation for passengers and cargo. The airline industry has suffered many difficulties and
Refer to E16-2. Assume the same facts except that the forward contract is a futurescontract that trades on the Futures Exchange. On January 1, 2017, Roper is required to deposit $65 with the
Refer to E16-2. Assume the same facts except that the forward contract is a futurescontract that trades on the Futures Exchange. On January 1, 2017, Roper is required to deposit $65 with the
RIT Co. has an investment of 5,000 shares in a public company, SIT Ltd. In October 2017, RIT Co. purchased 5,000 put options for SIT Ltd. shares at a price of $2 per put option. The strike price
Refer to BE16-12. Assume that Bantry Capital Ltd. follows ASPE and valued the debt component of the instruments first, applying the residual to the equity component. On a date when the bonds had a
Refer to BE16-12. Assume that Bantry Capital Ltd. follows IFRS and recorded the issuance of the bonds and warrants accordingly. On a date when the bonds had a carrying value of $489,100, Bantry paid
Refer to BE16-12. Assume that Bantry Capital Ltd. follows IFRS and recorded the issuance of the bonds and warrants accordingly. On a date when the bonds had a carrying value of $489,100, Bantry paid
Refer to BE16-12 but assume that the instruments are convertible bonds and that they have now been converted. Assume that Bantry Capital Ltd. follows ASPE, and that all of the proceeds were allocated
Refer to BE16-4. Assume the same facts except that the forward contract is a futures contract that trades on the Futures Exchange. Ginseng Inc. was required to deposit $30 with the stockbroker as a
Access the audited annual financial statements of Rogers Sugar Inc. for the year ended October 3, 2015 from SEDAR (www.sedar.com) or the company's website.Instructions(a) Identify the components of
Access the audited annual financial statements of Goldcorp Inc. for its year ended December 31, 2014 from SEDAR (www.sedar.com) or the company's website.Instructions(a) Describe the business that
Companies around the globe have moved to, or are in the process of moving to, IFRS. Evidence has shown that it is preferable to adopt IFRS in its entirety, with no deviations from the standards. This
Locate and review Brookfield Asset Management's statement of changes in shareholders' equity in its financial statements for the fiscal years ended December 31, 2014 and 2013, at the end of Volume 2
On December 5, 2013, the Toronto-Dominion Bank (TD) announced, and on January 31, 2014 the bank paid, a stock dividend of one common share for each common share issued and outstanding. Access TD's

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