Modern Advanced Accounting in Canada (10th Edition, 2022 – Herauf & Mbagwu) | Complete E-Book PDF

,Contents in Brief

Preface ix

CHAPTER 1 Conceptual and Case Analysis Frameworks for Financial Reporting 1

CHAPTER 2 Investments in Equity Securities 55

CHAPTER 3 Business Combinations 91

CHAPTER 4 Consolidation of Non–Wholly Owned Subsidiaries 154

CHAPTER 5 Consolidation Subsequent to Acquisition Date 208

CHAPTER 6 Intercompany Inventory and Land Profits 299

CHAPTER 7 (A) Intercompany Profits in Depreciable Assets (B) Intercompany Bondholdings 363

CHAPTER 8 Consolidated Cash Flows and Changes in Ownership 436

CHAPTER 9 Other Consolidation Reporting Issues 509

CHAPTER 10 Foreign Currency Transactions 576

CHAPTER 11 Translation and Consolidation of Foreign Operations 636

CHAPTER 12 Accounting for Not-for-Profit and Public Sector Organizations 718


Index IN-1




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,Contents

Preface ix SELF-STUDY PROBLEM 2 73
REVIEW QUESTIONS 75
CASES 75
CHAPTER 1 PROBLEMS 84
Conceptual and Case Analysis
Frameworks for Financial Reporting 1 CHAPTER 3
LEARNING OBJECTIVES 1 Business Combinations 91
INTRODUCTION 1 LEARNING OBJECTIVES 91
The Conceptual Framework for Financial Reporting 2 INTRODUCTION 91
Professional Judgment 4
Business Combinations 93
Accounting Standards in Canada 5
Forms of Business Combinations 97
Analysis and Interpretation of Financial
Accounting for Business Combinations under the
Statements 9
Acquisition Method 99
SUMMARY 13
Control through Purchase of Net Assets 103
SELF-STUDY PROBLEM 1 13
Consolidated Financial Statements 105
APPENDIX 1A: A GENERIC APPROACH TO CASE
ANALYSIS 16 Control through Purchase of Shares 108

SELF-STUDY CASE 1 35 Analysis and Interpretation of Financial
REVIEW QUESTIONS 40 Statements 118
CASES 40 ASPE Differences 119
PROBLEMS 48 SUMMARY 119
SELF-STUDY PROBLEM 1 120
SELF-STUDY PROBLEM 2 121
CHAPTER 2
APPENDIX 3A: REVERSE TAKEOVERS 123
Investments in Equity Securities 55
REVIEW QUESTIONS 129
LEARNING OBJECTIVES 55 CASES 130
INTRODUCTION 55 PROBLEMS 139
Equity Investments—The Big Picture 56
CHAPTER 4
Investments Measured at Fair Value 57
Consolidation of Non–Wholly Owned
Investments Not Measured at Fair Value 59
Subsidiaries 154
Cost Method of Reporting an Equity Investment 59
Equity Method of Reporting an Investment in an LEARNING OBJECTIVES 154
Associate 60 INTRODUCTION 154
Illustration of Equity Method Basics 61
Non–Wholly Owned Subsidiaries 155
Complexities Associated with the Equity Method 62
Consolidation Methods 156
Analysis and Interpretation of Financial
Fair Value Enterprise (FVE) Method 159
Statements 68
Identifiable Net Assets Method 164
ASPE Differences 70
SUMMARY 71 Bargain Purchases 166
SELF-STUDY PROBLEM 1 71 Contingent Consideration 171


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, Contents



Analysis and Interpretation of Financial SELF-STUDY PROBLEM 2 253
Statements 176 APPENDIX 5A: GOODWILL IMPAIRMENT 256
ASPE Differences 177 APPENDIX 5B: WORKING PAPER APPROACH
SUMMARY 177 FOR CONSOLIDATIONS SUBSEQUENT TO
ACQUISITION 260
SELF-STUDY PROBLEM 1 177
REVIEW QUESTIONS 268
SELF-STUDY PROBLEM 2 179
CASES 269
APPENDIX 4A: WORKING PAPER APPROACH FOR
CONSOLIDATION OF NON–WHOLLY OWNED PROBLEMS 279
SUBSIDIARIES 181
REVIEW QUESTIONS 186
CHAPTER 6
CASES 187 Intercompany Inventory and Land
PROBLEMS 194 Profits 299
LEARNING OBJECTIVES 299
CHAPTER 5 INTRODUCTION 299
Consolidation Subsequent to Acquisition Intercompany Revenue and Expenses 300
Date 208 Intercompany Sales and Purchases 300
LEARNING OBJECTIVES 208 Other Examples of Intercompany Revenue
and Expenses 302
INTRODUCTION 208
Intercompany Profits in Assets 303
Methods of Accounting for an Investment
Intercompany Inventory Profits: Subsidiary Selling
in a Subsidiary 209
(Upstream Transactions) 305
Consolidated Income and Retained Earnings Application of Basic Accounting Principles 310
Statements 211 Equity Method Journal Entries 311
Testing Goodwill and Other Assets for Intercompany Inventory Profits: Parent Selling
Impairment 213 (Downstream Transactions) 316
Property, Plant, Equipment, and Intangible Assets with Losses on Intercompany Transactions 319
Definite Useful Lives 214 Intercompany Land Profit Holdback 321
Intangible Assets with Indefinite Useful Lives 215 Realization of Intercompany Land Profits 322
Cash-Generating Units and Goodwill 215 Intercompany Transfer Pricing 323
Reversing an Impairment Loss 216 Analysis and Interpretation of Financial
Disclosure Requirements 217 Statements 324
Consolidation of a 100%-Owned Subsidiary 220 ASPE Differences 326
Consolidated Statements, End of Year 5 221 SUMMARY 326
Consolidated Statements, End of Year 6 224 SELF-STUDY PROBLEM 1 327

Consolidation of an 80%-Owned Subsidiary—Direct SELF-STUDY PROBLEM 2 330

Approach 228 REVIEW QUESTIONS 335
Consolidated Statements, End of Year 5 229 CASES 336
Consolidated Statements, End of Year 6 233 PROBLEMS 344
Identifiable Net Assets Method 237
Acquisition Differential Assigned to Liabilities 237 CHAPTER 7
Intercompany Receivables and Payables 240 (A) Intercompany Profits in
Subsidiary Acquired during the Year 240 Depreciable Assets (B) Intercompany
Equity Method of Recording 241 Bondholdings 363
Analysis and Interpretation of Financial LEARNING OBJECTIVES 363
Statements 243 INTRODUCTION 363
ASPE Differences 245
(A) Intercompany Profits in Depreciable Assets 364
SUMMARY 246 Holdback and Realization—Year 4 364
SELF-STUDY PROBLEM 1 247 Application of Basic Accounting Principles 366

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