Solution manual for modern advanced accounting in canada 9th edition hilton murray.pdf

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Solutions Manual, Chapter
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reserved.
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6 1

,COMPLETE SOLUTION MANUAL FOR mm mm mm




MODERN ADVANCED ACCOUNTING IN
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CANADA 9TH EDITION HILTON MURRAY,
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HERAUF DARRELL
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Chapter 1 mm




Conceptual & Case Analysis mm mm mm mm




Frameworks for Financial Reporting mm mm mm




A brief description of the major points covered in each case and
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mm problem. CASES mm




Case 1-1 mm




In this case, students are introduced to the difference in accounting for R&D costs
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mm between IFRS and ASPE and asked to provide arguments to support the different
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mm standards.


Case 1-2 mm m m (adapted from a case prepared by Peter Secord, Saint Mary’s University)
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In this real life case, students are asked to discuss the merits of historical costs vs.
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mm replacement costs. mm m m Actual note disclosure from a company’s financial statements is
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mm provided as background material.
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Case 1-3 mm m m (adapted from a case prepared by Peter Secord, Saint Mary’s University)
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Copyright  2019 McGraw-Hill Education. All rights
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reserved. 2
mm mm Modern Advanced Accounting in Canada, Ninth
mm mm mm mm mm


Edition

,A Canadian company has just acquired a non-controlling interest in a U.S. public
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mm company. It must decide whether to use IFRS or U.S. GAAP for the U.S. subsidiary.
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mm Financial statement information is provided under IFRS and U.S. GAAP.
mm mm mm mm mm mm mm mm mm m m The reasonsmm




mm for some of the differences in numbers must be explained and an opinion provided as
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mm to which method best reflects economic reality.
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Case 1-4 mm




This case is adapted from a CPA Canada case.
mm mm mm mm mm mm mm mm m m A private company is planning to go
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mm public. Analysis and recommendations are required for accounting issues related to
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mm purchase and installation of new information system, revenue recognition, convertible
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mm debentures and doubtful accounts receivable.
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Case 1-5 mm




This case is adapted from a CPA Canada case.
mm mm mm mm mm mm mm mm m m A private company is planning to
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mm transition m m from ASPE to IFRS. Analysis and recommendations are required for
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mm accounting issues related to convertible debentures, unusual item, revenue recognition,
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mm contingency and impairment. mm mm




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Solutions Manual, Chapter
mm mm
reserved. mm



6 3

, PROBLEMS

Problem 1-1 (40 min.) mm mm




A single asset is acquired. Students are asked to prepare and compare financial
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mm statement numbers during the life of the asset using both a historical cost and a
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mm current value model. mm mm




Problem 1-2 (40 min.) mm mm




Details of a European company that reports using IFRS are given along with specific
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mm details relating to certain account balances.
mm mm mm mm mm m m Students are asked to show how these
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mm balances should mm m m be reported under 1) ASPE and 2) IFRS using the facts provided.
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m m Students are also asked to reconcile Net Income and Shareholders` Equity from IFRS
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mm to ASPE.
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Problem 1-3 (50 min.) mm mm




A private company plans to convert to
mm mm mm mm mm mm m m IFRS go public within 5 years. It wants to know
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mm the m m impact on net income and shareholders’ equity if it converts from ASPE to IFRS
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mm for impaired loans, interest costs, actuarial gains, compound financial instrument and
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mm income taxes. mm




Problem 1-4 (50 min.) mm mm




While taking the role of a financial analyst, the student uses vertical and horizontal
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mm analysis and ratios to analyse and interpret the profitability, solvency and liquidity of a
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mm private company. mm




Problem 1-5 (25 min.) mm mm




A private company plans to convert to IFRS. It wants to know the impact on three key
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mm ratios if it converts from ASPE to IFRS for impaired loans, capitalization of interest and
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mm actuarial gains/losses. mm




Problem 1-6 (50 min.) mm mm




A private company plans to convert from ASPE to IFRS and wants to know the impact
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mm on three key ratios if it converts from ASPE to IFRS for impairment losses, convertible
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mm bonds and income taxes.
mm mm mm




Copyright  2019 McGraw-Hill Education. All rights
mm mm mm mm mm mm



reserved. 4
mm mm Modern Advanced Accounting in Canada, Ninth
mm mm mm mm mm


Edition