Part D: Liabilities D1. Read Notes 4.6 and 35. What do you think gave rise to total deferred income of 249 as of the end of fiscal 2017? Would transactions of this type be handled similarly under U.S. GAAP? D2. Is the threshold for recognizing a provision under IFRS different than it is under U.S. GAAP? Explain. D3. Note 32 lists other provisions." a. Do the beginning and ending balances of total provisions and retirement benefits shown in Note 32 for fiscal 2017 tie to the balance sheet? By how much has the total amount of AF's other provisions increased or decreased during fiscal 2017? b. Write journal entries for the following changes in the litigation provision that occurred during fiscal 2017, assuming any amounts recorded on the income statement are recorded as provision expense and any use of provisions is paid for in cash. In each case, provide a brief explanation of the event your journal entry is capturing. i. New provision. ii. Use of provision. c. Is AF's treatment of litigation provision under IFRS similar to how it would be treated under U.S. GAAP? D4. Note 32.2 lists a number of contingent liabilities. Are amounts for those items recognized as a liability on AF's balance sheet? Explain. D5. Examine the long-term borrowings in AF's balance sheet and the related note (33.2.2). Note that AF has convertible bonds outstanding that it issued in 2013. Prepare the journal entry AF would use to record the issue of convertible bonds. Prepare the journal entry AF would use to record the issue of the convertible bonds if AF used U.S. GAAP. D6. AF does not elect the fair value option (FVO) to report its financial liabilities. Examine Note 35-3, Market value of financial instruments." If the company had elected the FVO for all of its debt measured at amortized cost, what would be the balance at December 31, 2017, in the fair value adjustment account? Part D: Liabilities D1. Read Notes 4.6 and 35. What do you think gave rise to total deferred income of 249 as of the end of fiscal 2017? Would transactions of this type be handled similarly under U.S. GAAP? D2. Is the threshold for recognizing a provision under IFRS different than it is under U.S. GAAP? Explain. D3. Note 32 lists other provisions." a. Do the beginning and ending balances of total provisions and retirement benefits shown in Note 32 for fiscal 2017 tie to the balance sheet? By how much has the total amount of AF's other provisions increased or decreased during fiscal 2017? b. Write journal entries for the following changes in the litigation provision that occurred during fiscal 2017, assuming any amounts recorded on the income statement are recorded as provision expense and any use of provisions is paid for in cash. In each case, provide a brief explanation of the event your journal entry is capturing. i. New provision. ii. Use of provision. c. Is AF's treatment of litigation provision under IFRS similar to how it would be treated under U.S. GAAP? D4. Note 32.2 lists a number of contingent liabilities. Are amounts for those items recognized as a liability on AF's balance sheet? Explain. D5. Examine the long-term borrowings in AF's balance sheet and the related note (33.2.2). Note that AF has convertible bonds outstanding that it issued in 2013. Prepare the journal entry AF would use to record the issue of convertible bonds. Prepare the journal entry AF would use to record the issue of the convertible bonds if AF used U.S. GAAP. D6. AF does not elect the fair value option (FVO) to report its financial liabilities. Examine Note 35-3, Market value of financial instruments." If the company had elected the FVO for all of its debt measured at amortized cost, what would be the balance at December 31, 2017, in the fair value adjustment account