SOLUTION MANUAL
Modern Advanced Accounting In Canada,
10th Edition By Darrell Herauf, Chima
Mbagwu,
Chapters 1 - 12, Complete
,
, Chapter 1
Conceptual & Case Analysis
Frameworks for Financial Reporting
A brief description of the major points covered in each case and problem.
CASES
Case 1-1
In this case, students are introduced to the difference in accounting for R&D costs between
IFRS and ASPE and asked to provide arguments to support the different standards.
Case 1-2 (adapted from a case prepared by Peter Secord, Saint Mary’s University)
In this real life case, students are asked to discuss the merits of historical costs vs. replacement
costs. Actual note disclosure from a company’s financial statements is provided as background
material.
Case 1-3 (adapted from a case prepared by Peter Secord, Saint Mary’s University)
, AgCanadiangcompanyghasgjustgacquiredgagnon-
controllingginterestgingagU.S.gpublicgcompany.gItgmustgdecidegwhethergtogusegIFRSgorgU.S.gGAAPgfo
rgthegU.S.gsubsidiary.gFinancialgstatementginformationgisgprovidedgundergIFRSgandgU.S.gGAAP.gTheg
reasonsgforgsomegofgthegdifferencesgingnumbersgmustgbegexplainedgandgangopiniongprovidedgasgt
ogwhichgmethodgbestgreflectsgeconomicgreality.
Caseg1-4
ThisgcasegisgadaptedgfromgagCPAgCanadagcase.gAgprivategcompanygisgplanninggtoggogpublic.gAnaly
sisgandgrecommendationsgaregrequiredgforgaccountinggissuesgrelatedgtogpurchasegandginstallationg
ofgnewginformationgsystem,grevenuegrecognition,gconvertiblegdebenturesgandgdoubtfulgaccountsgr
eceivable.
Caseg1-5
ThisgcasegisgadaptedgfromgagCPAgCanadagcase.gggAgprivategcompanygisgplanninggtogtransitiongfromg
ASPEgtog IFRS.gAnalysisgandgrecommendationsgaregrequiredgforgaccountinggissuesgrelatedgtogconv
ertiblegdebentures,g unusualgitem,grevenuegrecognition,gcontingencygandgimpairment.
Modern Advanced Accounting In Canada,
10th Edition By Darrell Herauf, Chima
Mbagwu,
Chapters 1 - 12, Complete
,
, Chapter 1
Conceptual & Case Analysis
Frameworks for Financial Reporting
A brief description of the major points covered in each case and problem.
CASES
Case 1-1
In this case, students are introduced to the difference in accounting for R&D costs between
IFRS and ASPE and asked to provide arguments to support the different standards.
Case 1-2 (adapted from a case prepared by Peter Secord, Saint Mary’s University)
In this real life case, students are asked to discuss the merits of historical costs vs. replacement
costs. Actual note disclosure from a company’s financial statements is provided as background
material.
Case 1-3 (adapted from a case prepared by Peter Secord, Saint Mary’s University)
, AgCanadiangcompanyghasgjustgacquiredgagnon-
controllingginterestgingagU.S.gpublicgcompany.gItgmustgdecidegwhethergtogusegIFRSgorgU.S.gGAAPgfo
rgthegU.S.gsubsidiary.gFinancialgstatementginformationgisgprovidedgundergIFRSgandgU.S.gGAAP.gTheg
reasonsgforgsomegofgthegdifferencesgingnumbersgmustgbegexplainedgandgangopiniongprovidedgasgt
ogwhichgmethodgbestgreflectsgeconomicgreality.
Caseg1-4
ThisgcasegisgadaptedgfromgagCPAgCanadagcase.gAgprivategcompanygisgplanninggtoggogpublic.gAnaly
sisgandgrecommendationsgaregrequiredgforgaccountinggissuesgrelatedgtogpurchasegandginstallationg
ofgnewginformationgsystem,grevenuegrecognition,gconvertiblegdebenturesgandgdoubtfulgaccountsgr
eceivable.
Caseg1-5
ThisgcasegisgadaptedgfromgagCPAgCanadagcase.gggAgprivategcompanygisgplanninggtogtransitiongfromg
ASPEgtog IFRS.gAnalysisgandgrecommendationsgaregrequiredgforgaccountinggissuesgrelatedgtogconv
ertiblegdebentures,g unusualgitem,grevenuegrecognition,gcontingencygandgimpairment.
