.________________________________________2. Law Exams2.1. Overview of Law EducationLaw education provides students with the knowledge of legal principles, case law, legal frameworks, and ethical issues. It prepares students for
legal practice, with specializations that may include constitutional law, criminal law, corporate law, human
SOLUTION MANUAL
Modern Advanced Accounting In Canada,
10th Edition By Darrell Herauf, Chima Mbagwu,
Chapters 1 - 12, Complete
,.________________________________________2. Law Exams2.1. Overview of Law EducationLaw education provides students with the knowledge of legal principles, case law, legal frameworks, and ethical
issues. It prepares students for legal practice, with specializations that may include constitutional law, criminal law, corporate law, human
, 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)
.________________________________________2. Law Exams2.1. Overview of Law EducationLaw education provides students with the knowledge of legal principles, case law, legal frameworks, and ethical issues. It prepares students for
legal practice, with specializations that may include constitutional law,
, A Canadian company has just acquired a non-controlling interest in a U.S. public company. It must
decide whether to use IFRS or U.S. GAAP for the U.S. subsidiary. Financial statement information is
provided under IFRS and U.S. GAAP. The reasons for some of the differences in numbers must be
explained and an opinion provided as to which method best reflects economic reality.
Case 1-4
This case is adapted from a CPA Canada case. A private company is planning to go public. Analysis and
recommendations are required for accounting issues related to purchase and installation of new
information system, revenue recognition, convertible debentures and doubtfulaccounts receivable.
Case 1-5
This case is adapted from a CPA Canada case. A private company is planning to transition from ASPE
to IFRS. Analysis and recommendations are required for accounting issues related to convertible
debentures, unusual item, revenue recognition, contingency and impairment.
.________________________________________2. Law Exams2.1. Overview of Law EducationLaw education provides students with the knowledge of legal principles, case law, legal frameworks, and ethical issues. It prepares students for
legal practice, with specializations that may include constitutional law, criminal law, corporate law, human
PROBLEMS
Problem 1-1 (40 min.)
A single asset is acquired. Students are asked to prepare and compare financial statement numbers
during the life of the asset using both a historical cost and a current value model.
Problem 1-2 (40 min.)
Details of a European company that reports using IFRS are given along with specific details relating to
certain account balances. Students are asked to show how these balances should be reported under 1)
ASPE and 2) IFRS using the facts provided. Students are also asked to reconcile Net Income and
Shareholders` Equity from IFRS to ASPE.
Problem 1-3 (50 min.)
A private company plans to convert to IFRS go public within 5 years. It wants to know the impact
on net income and shareholders’ equity if it converts from ASPE to IFRS for impaired loans, interest
costs, actuarial gains, compound financial instrument and income taxes.
Problem 1-4 (50 min.)
While taking the role of a financial analyst, the student uses vertical and horizontal analysis and
ratios to analyse and interpret the profitability, solvency and liquidity of a private company.
legal practice, with specializations that may include constitutional law, criminal law, corporate law, human
SOLUTION MANUAL
Modern Advanced Accounting In Canada,
10th Edition By Darrell Herauf, Chima Mbagwu,
Chapters 1 - 12, Complete
,.________________________________________2. Law Exams2.1. Overview of Law EducationLaw education provides students with the knowledge of legal principles, case law, legal frameworks, and ethical
issues. It prepares students for legal practice, with specializations that may include constitutional law, criminal law, corporate law, human
, 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)
.________________________________________2. Law Exams2.1. Overview of Law EducationLaw education provides students with the knowledge of legal principles, case law, legal frameworks, and ethical issues. It prepares students for
legal practice, with specializations that may include constitutional law,
, A Canadian company has just acquired a non-controlling interest in a U.S. public company. It must
decide whether to use IFRS or U.S. GAAP for the U.S. subsidiary. Financial statement information is
provided under IFRS and U.S. GAAP. The reasons for some of the differences in numbers must be
explained and an opinion provided as to which method best reflects economic reality.
Case 1-4
This case is adapted from a CPA Canada case. A private company is planning to go public. Analysis and
recommendations are required for accounting issues related to purchase and installation of new
information system, revenue recognition, convertible debentures and doubtfulaccounts receivable.
Case 1-5
This case is adapted from a CPA Canada case. A private company is planning to transition from ASPE
to IFRS. Analysis and recommendations are required for accounting issues related to convertible
debentures, unusual item, revenue recognition, contingency and impairment.
.________________________________________2. Law Exams2.1. Overview of Law EducationLaw education provides students with the knowledge of legal principles, case law, legal frameworks, and ethical issues. It prepares students for
legal practice, with specializations that may include constitutional law, criminal law, corporate law, human
PROBLEMS
Problem 1-1 (40 min.)
A single asset is acquired. Students are asked to prepare and compare financial statement numbers
during the life of the asset using both a historical cost and a current value model.
Problem 1-2 (40 min.)
Details of a European company that reports using IFRS are given along with specific details relating to
certain account balances. Students are asked to show how these balances should be reported under 1)
ASPE and 2) IFRS using the facts provided. Students are also asked to reconcile Net Income and
Shareholders` Equity from IFRS to ASPE.
Problem 1-3 (50 min.)
A private company plans to convert to IFRS go public within 5 years. It wants to know the impact
on net income and shareholders’ equity if it converts from ASPE to IFRS for impaired loans, interest
costs, actuarial gains, compound financial instrument and income taxes.
Problem 1-4 (50 min.)
While taking the role of a financial analyst, the student uses vertical and horizontal analysis and
ratios to analyse and interpret the profitability, solvency and liquidity of a private company.
