Part A (5 marks) Presented below are five segments that have been identified by Beta Ltd.

Required: determine the segments that are reportable segments in accordance IFRS.

Segments Revenue Profit (Loss) Assets

A $ 150,000 $ 20,000 $ 600,000

B 415,000 (35,000) 475,000

C 65,000 3,000 100,000

D 70,000 1,000 130,000

E 60,000 4,000 140,000

Total $ 760,000 $ (7,000) $ 1,445,000

Part B (5 marks) Alpha owns 70% of Beta. During 2020, Alpha and Beta exchanged equipment at an agreed exchange amount of $1,000, although the transaction is non-monetary (no cash was exchanged). The equipment carrying values are as follows: Alpha $900; Beta $700. Alpha has contributed surplus of $100 relating to previous related-party transactions. Both Alpha and Beta follow ASPE. This transaction is not in the normal course of operations and the transaction does not have commercial substance.

Required: Prepare the required journal entries to record the exchange for both Alpha and Beta.

Part C (5 marks) The following are subsequent events (ie. occurring after the year-end but before the financial statements are issued). The company reports using IFRS.

Required: for each event indicate whether the company should (a) adjust the year-end statements, (b) disclose in the notes, (c) neither adjust nor disclose.

1. i. The president is fired for poor performance
2. ii. The company merges with another company
3. iii. A significant customer, that has a large accounts receivable balance unexpectedly goes bankrupt
4. iv. One of the three operating plants is destroyed by fire
5. v. A lawsuit is settled for an amount greater than we had estimated