A = = 11 C A A 2 Wrap Text 3 Merge & Center - Calibri (Body) BI U & fx B C x A D E The information below is to be used to answer problem tabs 6, 7, 8 and 9. WHEN YOU HAVE COMPLETED PROBLEMS 6. 7. 8 & 9-COMPLETE RECONCILIATION BELOW IN THE SPACE PROVIDED BELOW: Os Inc. is a U.S. based company that prepares its financial statements in accordance with U.S. Generally Accepted Accounting Principles (US G.A.A.P.). QB Inc. reported net income in 2019 of $2,500,000 and Stockholder's equity at December 31, 2018 of $21,650,000. QB Inc. wishes to determine the impact of a switch to IFRS would have on its financial statements as of December 31, 2019. As the Corporate Controller you are charged with the task, to prepare a reconciliation of income and stockholder's equity from U.S. G.A.A.P. to IFRS for 2019. You have Identified the following areas where QB Inc US G.A.A.P. accounting principles differ with IFRS accounting principles. Property, plant and equipment -measurement subsequent to initial recognition Sale and leaseback -gain on sale Research and development costs Asset impairment As Corporate Controller review each of the areas identified above for differences between GAAP and IFRS. Proceed to each tab labeled Prob_6. Prob_7. Prob_8, and Prob_9 for further information to assist with and complete your review. Follow all instructions on each Tabl Then summarize results and do the reconciliation between GAAP and IFRS for net income and for Stockholder's Equity in the area provided below. (reference p. 548 in your text). After completing Problems 6 through 9 complete a reconciliation of QB Inc's GAAP Net Income and Stockholder's Equity to IFRS's Net Income and Stockholder's Equity similar to the analysis shown in your text on chapter 11, page 548. Use the template provided below to complete your reconciliation: QB INC GAAP TO IFRS RECONCILE NET INCOME AND SHAREHOLDER'S EQUITY December 31, 2019 Shareholders Income Equity GAAP S 2,500,000 $ 22,500,000 Net = = = Calibri (Body) BIU 11 a A A A ab Wrap Tex Merge & , C D E Arter comprering problems o througn y comprere a reconciation or QB TC'S GAAP Net Income and Stockholder's Equity to IFRS's Net Income and Stockholder's Equity similar to the analysis shown in your text on chapter 11, page 548. Use the template provided below to complete your reconciliation: QB INC GAAP TO IFRS RECONCILE NET INCOME AND SHAREHOLDER'S EQUITY December 31, 2019 Net Shareholders Income Equity GAAP $ 2,500,000 $ 22,500,000 PROB 6 PROB 7 PROB 8 PROB 9 IFRS $ 2,500,000 $ 22,500,000 A A = = ab Wrap Text LL LD Calibri (Body) BI U 11 O Paste B A Merge & Cente 17 x fx B C D E F G BE SURE TO ANSWER ALL REQUIRED QUESTIONS (a) through (e) AND SHOW ALL COMPUTATIONS AND WORK IN SUPPORT OF YOUR ANSWERS H I QB Inc. acquired a new piece of equipment on January 1, 2017 at a cost of $200,000. The equipment is expected to have a useful life of 10 years, a residual value of $20,000 and is depreciated on a straight-line basis. On January 1, 2019, the equipment was appraised and determined to have a fair value of $190,000 and a residual value of $25,000 and a remaining useful life of 10 years. a. What depreciation expense would QB Inc. record under G.A.A.P in 2019? b. What revaluation gain, if any would QB Inc. record under IFRS. in 2019? MOMO MANNS c. What depreciation expense would QB Inc, record under IFRS in 2019? Id. As a result of building valuation what is the difference in income between reporting using U.S. GAAP and IFRS in 2019? 15 19 . As a result of the building valuation w G.A.A.P. and IFRS in 2019? Stockholder's Equity between reporting using U.S. 11 A = = 0 Calibri (Body) BI U A A Wrap Text 3 Merge & Cente maste v E B C D E F BE SURE TO ANSWER ALL REQUIRED QUESTIONS (a) through (e) AND SHOW ALL COMPUTATIONS AND WORK IN SUPPORT OF YOUR ANSWERS Jin January 2016, QB INC. realized a gain on the sale and leaseback of an office building in the amount of $500,000. The lease is accounted for as an operating lease and the term of the lease is five years. a. What amount of gain did QB recognize in 2016 under US G.A.A.P? b. What amount of gain should QB Inc. recognize in 2016 under US IFRS? c. What amount of gain, if any, should QB Inc. recognize in 2019 under US G.A.A.P? d. What amount of gain, if any, should QB Inc. recognize in 2019 under IFRS? e. As a result of the sale leaseback transaction what is the difference in QB Inc.'s Stockholder's Equity in 2019 between U.S. GAAP reporting and IFRS reporting? B C D E F G H I BE SURE TO ANSWER ALL REQUIRED QUESTIONS (a) through (d) AND SHOW ALL COMPUTATIONS AND WORK IN SUPPORT OF YOUR ANSWERS 8. QB Inc. incurred research and development costs of $500,000 in 2019 of which $125,000 of these costs relate to development activities with certain criteria having been met suggesting an intangible asset has been created. a. What amount should QB Inc. recognize as research and development expense in 2019 using U.S. GAAP? b. What amount should QB Inc. recognize as research and development expense in 2019 using IFRS? c. As a result of research and development costs, what difference in income does QB Inc. report between using U.S. GAAP and IFRS in 2019? H. As a result of research and development costs, what difference does QB Inc. realize in Stockholder's equity between using U.S. GAAP and IFRS in 2019? E E HE! LE Paste & B I UVI a. Av A3 & fx A B C D E F G H BE SURE TO ANSWER ALL REQUIRED QUESTIONS (a) through (d) AND SHOW ALL COMPUTATIONS AND WORK IN SUPPORT OF YOUR ANSWERS I On 12/31/2019 QB Inc. has machinery with a carrying value (net book value) of $255,000. The machinery has a remaining useful life of 5 Years. The machinery is expected to generate future cash flows of $265,000. The machinery also has a fair value (after costs to sell) of $220,000 and the present value of expected future cash flows for the machinery is $230,000. a. What amount of impairment, if any would QB Inc. recognize on the machinery under GAAP in fiscal year 2019? b. What amount of impairment, if any would QB Inc. recognize on the machinery under IFRS in fsical year 2019? c. As a result of impairment to the machinery, what is the difference in income QB Inc. realizes between using U.S. GAAP and IFRS in 2019? d. As a result of impairment to the machinery, what is the difference in Stockholder's equity QB Inc. realizes between reporting using U.S. GAAP and IFRS in 2019? SU Font Alignment Number Format as lable Cell Styles Cells Editin x & fx The information below is to be used to answer problem tabs 6, 7, 8 and 9. WHEN YOU HAVE COMPLETED PROBLEMS 6, 7, 8 & 9- COMPLETE RECONCILIATION BELOW IN THE SPACE PROVIDED BELOW: QB Inc. is a U.S. based company that prepares its financial statements in accordance with U.S. Generally Accepted Accounting Principles (US G.A.A.P.). QB Inc. reported net income in 2019 of $2,500,000 and Stockholder's equity at December 31, 2018 of $21,650,000. QB Inc. wishes to determine the impact of a switch to IFRS would have on its financial statements as of December 31, 2019. As the Corporate Controller you are charged with the task, to prepare a reconciliation of income and stockholder's equity from U.S. G.A.A.P. to IFRS for 2019. You have identified the following areas where QB Inc US G.A.A.P. accounting principles differ with IFRS accounting principles. Property, plant and equipment -measurement subsequent to initial recognition Sale and leaseback-gain on sale Research and development costs Asset impairment As Corporate Controller review each of the areas identified above for differences between GAAP and IFRS. Proceed to each tab labeled Prob 6, Prob_7. Prob_8, and Prob_9 for further information to assist with and complete your review. Follow all instructions on each Tab! Then summarize results and do the reconciliation between GAAP and IFRS for net income and for Stockholder's Equity in the area provided below. (reference p. 548 in your text). After completing Problems 6 through 9 complete a reconciliation of QB Inc's GAAP Net Income and Stockholder's Equity to IFRS's Net Income and Stockholder's Equity similar to the analysis shown in your text on chapter 11, page 548. Use the template provided below to complete your reconciliation: A = = 11 C A A 2 Wrap Text 3 Merge & Center - Calibri (Body) BI U & fx B C x A D E The information below is to be used to answer problem tabs 6, 7, 8 and 9. WHEN YOU HAVE COMPLETED PROBLEMS 6. 7. 8 & 9-COMPLETE RECONCILIATION BELOW IN THE SPACE PROVIDED BELOW: Os Inc. is a U.S. based company that prepares its financial statements in accordance with U.S. Generally Accepted Accounting Principles (US G.A.A.P.). QB Inc. reported net income in 2019 of $2,500,000 and Stockholder's equity at December 31, 2018 of $21,650,000. QB Inc. wishes to determine the impact of a switch to IFRS would have on its financial statements as of December 31, 2019. As the Corporate Controller you are charged with the task, to prepare a reconciliation of income and stockholder's equity from U.S. G.A.A.P. to IFRS for 2019. You have Identified the following areas where QB Inc US G.A.A.P. accounting principles differ with IFRS accounting principles. Property, plant and equipment -measurement subsequent to initial recognition Sale and leaseback -gain on sale Research and development costs Asset impairment As Corporate Controller review each of the areas identified above for differences between GAAP and IFRS. Proceed to each tab labeled Prob_6. Prob_7. Prob_8, and Prob_9 for further information to assist with and complete your review. Follow all instructions on each Tabl Then summarize results and do the reconciliation between GAAP and IFRS for net income and for Stockholder's Equity in the area provided below. (reference p. 548 in your text). After completing Problems 6 through 9 complete a reconciliation of QB Inc's GAAP Net Income and Stockholder's Equity to IFRS's Net Income and Stockholder's Equity similar to the analysis shown in your text on chapter 11, page 548. Use the template provided below to complete your reconciliation: QB INC GAAP TO IFRS RECONCILE NET INCOME AND SHAREHOLDER'S EQUITY December 31, 2019 Shareholders Income Equity GAAP S 2,500,000 $ 22,500,000 Net = = = Calibri (Body) BIU 11 a A A A ab Wrap Tex Merge & , C D E Arter comprering problems o througn y comprere a reconciation or QB TC'S GAAP Net Income and Stockholder's Equity to IFRS's Net Income and Stockholder's Equity similar to the analysis shown in your text on chapter 11, page 548. Use the template provided below to complete your reconciliation: QB INC GAAP TO IFRS RECONCILE NET INCOME AND SHAREHOLDER'S EQUITY December 31, 2019 Net Shareholders Income Equity GAAP $ 2,500,000 $ 22,500,000 PROB 6 PROB 7 PROB 8 PROB 9 IFRS $ 2,500,000 $ 22,500,000 A A = = ab Wrap Text LL LD Calibri (Body) BI U 11 O Paste B A Merge & Cente 17 x fx B C D E F G BE SURE TO ANSWER ALL REQUIRED QUESTIONS (a) through (e) AND SHOW ALL COMPUTATIONS AND WORK IN SUPPORT OF YOUR ANSWERS H I QB Inc. acquired a new piece of equipment on January 1, 2017 at a cost of $200,000. The equipment is expected to have a useful life of 10 years, a residual value of $20,000 and is depreciated on a straight-line basis. On January 1, 2019, the equipment was appraised and determined to have a fair value of $190,000 and a residual value of $25,000 and a remaining useful life of 10 years. a. What depreciation expense would QB Inc. record under G.A.A.P in 2019? b. What revaluation gain, if any would QB Inc. record under IFRS. in 2019? MOMO MANNS c. What depreciation expense would QB Inc, record under IFRS in 2019? Id. As a result of building valuation what is the difference in income between reporting using U.S. GAAP and IFRS in 2019? 15 19 . As a result of the building valuation w G.A.A.P. and IFRS in 2019? Stockholder's Equity between reporting using U.S. 11 A = = 0 Calibri (Body) BI U A A Wrap Text 3 Merge & Cente maste v E B C D E F BE SURE TO ANSWER ALL REQUIRED QUESTIONS (a) through (e) AND SHOW ALL COMPUTATIONS AND WORK IN SUPPORT OF YOUR ANSWERS Jin January 2016, QB INC. realized a gain on the sale and leaseback of an office building in the amount of $500,000. The lease is accounted for as an operating lease and the term of the lease is five years. a. What amount of gain did QB recognize in 2016 under US G.A.A.P? b. What amount of gain should QB Inc. recognize in 2016 under US IFRS? c. What amount of gain, if any, should QB Inc. recognize in 2019 under US G.A.A.P? d. What amount of gain, if any, should QB Inc. recognize in 2019 under IFRS? e. As a result of the sale leaseback transaction what is the difference in QB Inc.'s Stockholder's Equity in 2019 between U.S. GAAP reporting and IFRS reporting? B C D E F G H I BE SURE TO ANSWER ALL REQUIRED QUESTIONS (a) through (d) AND SHOW ALL COMPUTATIONS AND WORK IN SUPPORT OF YOUR ANSWERS 8. QB Inc. incurred research and development costs of $500,000 in 2019 of which $125,000 of these costs relate to development activities with certain criteria having been met suggesting an intangible asset has been created. a. What amount should QB Inc. recognize as research and development expense in 2019 using U.S. GAAP? b. What amount should QB Inc. recognize as research and development expense in 2019 using IFRS? c. As a result of research and development costs, what difference in income does QB Inc. report between using U.S. GAAP and IFRS in 2019? H. As a result of research and development costs, what difference does QB Inc. realize in Stockholder's equity between using U.S. GAAP and IFRS in 2019? E E HE! LE Paste & B I UVI a. Av A3 & fx A B C D E F G H BE SURE TO ANSWER ALL REQUIRED QUESTIONS (a) through (d) AND SHOW ALL COMPUTATIONS AND WORK IN SUPPORT OF YOUR ANSWERS I On 12/31/2019 QB Inc. has machinery with a carrying value (net book value) of $255,000. The machinery has a remaining useful life of 5 Years. The machinery is expected to generate future cash flows of $265,000. The machinery also has a fair value (after costs to sell) of $220,000 and the present value of expected future cash flows for the machinery is $230,000. a. What amount of impairment, if any would QB Inc. recognize on the machinery under GAAP in fiscal year 2019? b. What amount of impairment, if any would QB Inc. recognize on the machinery under IFRS in fsical year 2019? c. As a result of impairment to the machinery, what is the difference in income QB Inc. realizes between using U.S. GAAP and IFRS in 2019? d. As a result of impairment to the machinery, what is the difference in Stockholder's equity QB Inc. realizes between reporting using U.S. GAAP and IFRS in 2019? SU Font Alignment Number Format as lable Cell Styles Cells Editin x & fx The information below is to be used to answer problem tabs 6, 7, 8 and 9. WHEN YOU HAVE COMPLETED PROBLEMS 6, 7, 8 & 9- COMPLETE RECONCILIATION BELOW IN THE SPACE PROVIDED BELOW: QB Inc. is a U.S. based company that prepares its financial statements in accordance with U.S. Generally Accepted Accounting Principles (US G.A.A.P.). QB Inc. reported net income in 2019 of $2,500,000 and Stockholder's equity at December 31, 2018 of $21,650,000. QB Inc. wishes to determine the impact of a switch to IFRS would have on its financial statements as of December 31, 2019. As the Corporate Controller you are charged with the task, to prepare a reconciliation of income and stockholder's equity from U.S. G.A.A.P. to IFRS for 2019. You have identified the following areas where QB Inc US G.A.A.P. accounting principles differ with IFRS accounting principles. Property, plant and equipment -measurement subsequent to initial recognition Sale and leaseback-gain on sale Research and development costs Asset impairment As Corporate Controller review each of the areas identified above for differences between GAAP and IFRS. Proceed to each tab labeled Prob 6, Prob_7. Prob_8, and Prob_9 for further information to assist with and complete your review. Follow all instructions on each Tab! Then summarize results and do the reconciliation between GAAP and IFRS for net income and for Stockholder's Equity in the area provided below. (reference p. 548 in your text). After completing Problems 6 through 9 complete a reconciliation of QB Inc's GAAP Net Income and Stockholder's Equity to IFRS's Net Income and Stockholder's Equity similar to the analysis shown in your text on chapter 11, page 548. Use the template provided below to complete your reconciliation