Solution Manual for Modern Advanced Accounting in Canada 7th Edition by Hilton

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1)89*EMS Problem 1-1

2% !in.4

 A single asset is ac5uired- and students are asked to prepare and co!pare financial state!ent nu!bers during the life of the asset using both a historical cost and a current value !odel. Problem 1-2

2% !in.4

etails of a European co!pany that reports using ,F)Ss are given along "ith specific details relating to certain account account balances. Students are asked to sho" ho" these these balances should be reported under &4 0.S. (AA1(AA1- and $4 ,F)Ss using using the facts provided. provided. Students Students are also asked to reconcile ;et ,nco!e and Shareholders< E5uity to fro! ,F)Ss to 0.S. (AA1. (AA1. Problem 1-3

2=% !in.4

 A private private co!pany plans to convert to ,F)S go public "ithin = years. years. ,t "ants to kno" the i!pact on net inco!e and shareholders3 e5uity if it converts fro! AS1E to ,F)Ss for i!paired loansinterest costs- actuarial gains- co!pound financial instru!ent and inco!e taes. Problem 1-4

2% !in.4

 A private co!pany plans to convert to ,F)S and "ants to kno" the i!pact on the debt#to#e5uity ratio ratio and return return on total total shareh sharehold older3s er3s e5uity e5uity.. 6he !a+or !a+or issues issues pertai pertain n to i!pair i!pair!en !entt of  intangible assets- revaluation of 11E- ) costs and redee!able preferred shares.

>E9#9ASE 1)89*EMS eb Problem 1-1

Students are asked to access the financial state!ents of China Mobile *i!ited- a public co!pany incorporated in China and listed on a 0.S. stock echange. 6he student ans"ers a series of 5uestions based on the co!pany3s financial state!ents. 6he 5uestions are ai!ed at highlighting the differences bet"een ,F)Ss and 0.S. (AA1. (AA1. eb Problem 1-2

Students are asked to access the financial state!ents of r. )eddy3s )eddy3s *aboratories *i!ited- a public co!pany incorporated in ,ndia and listed on a 0.S. stock echange. 6he student ans"ers

Solutions Manual, Chapter &

Copyright  $%&' Mc(ra"#ill )yerson *i!ited. All rights reserved. '

 A brief description description of the !a+or points points covered covered in each case case and proble!. proble!. CASES Case 1-1

,n this case- students are introduced to the difference in accounting for ) costs bet"een ,F)S and 0.S. (AA1 and asked to provide argu!ents to support the different standards and to give an opinion on "hich !ethod is better. Case 1-2 2adapted fro! a case prepared by 1eter Secord- Saint Mary3s 0niversity4 0niversity4

,n this real life case- students are asked to discuss the !erits of historical costs vs. replace!ent costs. Actual note disclosure fro! a co!pany3s co!pany3s financial state!ents is provided as background !aterial. Case 1-3 2adapted fro! a case prepared by 1eter Secord- Saint Mary3s 0niversity4

 A Canadian co!pany has +ust ac5uired a non#controlling interest in a 0.S. public co!pany. co!pany. ,t !ust decide "hether to use ,F)Ss or 0.S. (AA1 for the 0.S. subsidiary. Financial state!ent infor!ation is provided under ,F)Ss and 0.S. (AA1.. (AA1.. 6he reasons for so!e of the differences in nu!bers !ust be eplained and an opinion provided as to "hich !ethod best reflects econo!ic reality. . Case 1-4

6his case is adapted fro! a C,CA case. case. A private private co!pany is planning planning to go public. Analys Analysis is and reco!!endations are re5uired for accounting issues related to purchase and installation of  ne" infor!ation syste!- revenue recognition- convertible debentures and doubtful accounts receivable. Case 1-5

6his case is adapted fro! a C,CA case. case. A !ining !ining co!pany has +ust sold one of its operating operating divisi divisions ons.. Analys Analysis is and reco!! reco!!end endati ations ons are re5uir re5uired ed for accoun accountin ting g issues issues relate related d to discontinued operations- revenue and epense recognition- govern!ent grants and pollution rights- purchase and installation of ne" infor!ation syste!- revenue recognition- convertible debentures and doubtful accounts receivable.

Copyright  $%&' Mc(ra"#ill )yerson *i!ited. All rights reserved. $ Modern Advanced Accounting in Canada, Seventh Edition