AirFrance IFRS comprehensive case Part D

D4. Note 31.3 lists a number of contingent liabilities. Are amounts for those items recognized as a liability on AF's balance sheet? Explain.

D5. Sealy Corporation reported the following line items in its statement of cash flows:

Amortization of discount on secured notes .382,000

Amortization of debt issuance cost and other....... 1,175,000

In AF's financial statements, Note 32: Financial Debt describes the company's long-term debt. Neither of the two items above is reported in the financial statements of Air France, and neither is likely to appear there in the future. Why?

D6. Examine the long-term borrowings in AF's balance sheet and the related note. Note that AF has convertible bonds outstanding that it issued in 2005. Prepare the journal entry AF would use to record the issue of convertible bonds. Prepare the

Financial Roport 5.5.3 Consolidated balance sheet December 31, 2013 December 31, 2012January 1 January 1,2012 Pro ,2012 Pro forma 17 Goodw intangibie asoets Fight equpment Other proporty plant and equipment nvestments in equity associatoo Penision assets Other financial assets" Deterred tax assets Othor non-curiont assets Total non-current assets Assets held for sale Other short-term fnancial assets" 842 10,048 1,932 381 2.477 1,665 1.392 152 19,141 896 9.391 1,819 18 10 20 2,454 1,963 2.336 2015 1 322 168 13.4 113 17, 486 91 ,031 511 1,775 23 15 24 25 933 521 1,859 751 Trade accounts recoivablos Income tax receivables Other current assets Cash and cash equvalenns Total current assets Total assets 27 3,684 7,937 25,423 3,420 7,579 26,720 2.283 6.408 26,615 Decenbe 31, 2013 Decenber 31, 2012 Jansary 1, 212 Deposts rolated to fnuncal dabts 006 957 The accompanying notes are an integral part of these consolidated fnancial statements