Solution Manual For Intermediate Accounting
(Volume 2), 8th Canadian Edition By Thomas H.
Beechy, Joan E. Conrod, Verified Chapters 12 - 22,
Complete Newest Version
© 2022 McGraw Hill Ltd. All rights reserved.
Solutions Manual to accompany Intermedia te Accounting, Volume 2, 8 th edition 14-6
,Solution Manual For
Intermediate Accounting Volume 2 8th Edition Thomas H. Beechy, Joan E. Conrod,
Elizabeth Farrell, Ingrid Mcleod -Dick, Kayla Tomulka, Romi -L ee Sevel Chapter 12-22
Chapter 12: Financial Liabilities And Provisions
Case 12-1 Winter Fun Incorporated
12-2 Prescriptions Depot Limited
12-3 Camani Corporation
Suggested Time
Technical Review
Tr12-1 Financial Liabilities And Provisions (Ifrs) ...... 10
Tr12-2 Financial Liabilities And Provisions (Aspe) ..... 10
Tr12-3 Provision, Measurement ................................... 10
Tr12-4 Guarantee ......................................................... 10
Tr12-5 Provision, Warranty .......................................... 5
Tr12-6 Foreign Currency .............................................. 5
Tr12-7 Note Payable .................................................... 5
Tr12-8 Discounting, Note Payable................................ 10
Tr12-9 Discounting, Provision ..................................... 10
Tr12-10 Classification, Liabilities................................... 10
Assignment A12-1 Financial Versus Non-Financial Liabilities……. 10
A12-2 Common Financial Liabilities………………… 10
A12-3 Common Financial Liabilities............................ 10
A12-4 Common Financial Liabilities: Taxes ................. 20
A12-5 Common Financial Liabilities: Taxes ................ 20
A12-6 Foreign Currency Payables……………………. 10
A12-7 Foreign Currency Payables ............................... 10
A12-8 Common Financial Liabilities And Foreign 25
Currency
A12-9 Provisions......................................................... 20
A12-10 Provisions ........................................................ 20
A12-11 Provisions......................................................... 20
A12-12 Provision Measurement .................................... 15
A12-13 Provision Measurement .................................... 15
A12-14 Provisions; Compensated Absences…………... 15
A12-15 Provisions; Compensated Absences .................. 15
A12-16 Provisions; Warranty ........................................ 15
A12-17 Provisions; Warranty ....................................... 20
A12-18 Provisions; Warranty ....................................... 25
A12-19 Discounting; No-Interest Note ........................... 15
A12-20 Discounting; Low-Interest Note ........................ 20
A12-21 Discounting; Low-Interest Note ......................... 20
© 2022 McGraw Hill Ltd. All rights reserved.
Solutions Manual to accompany Intermedia te Accounting, Volume 2, 8 th edition 14-7
, A12-22 Discounting; Provision..................................... 15
A12-23 Discounting; Provision..................................... 25
A12-24 Discounting; Provision..................................... 25
A12-25 Classification And Scf..................................... 20
A12-26 Scf .................................................................. 20
A12-27 Liabilities – Ifrs And Aspe .......................... 10
A12-28 Liabilities - Aspe ........................................... 20
A12-29 Liabilities - Aspe ............................................ 20
A12-30 Provisions/Contingencies – Ifrs And Aspe…. 20
A12-31 Dais – Warranty Provision Trend……………... 15
a12-32 dais – provision for coupon refund………… 15
© 2022 McGraw Hill Ltd. All rights reserved.
Solutions Manual to accompany Intermedia te Accounting, Volume 2, 8 th edition 14-8
, cases
case 12-1 (lo12.3, lo12.5, lo12.6)
winter fun incorporated
to: members of board of directors from:
accounting consultant
re: winter fun incorporated
overview
winter fun incorporated (wfi) uses ifrs for financial reporting. the bank loan has a
minimum current ratio so you will need to be careful and watch for any impacts on the
ratio. you have had a tough year this year and faced a loss so the bank financing is critical
to your operations.
issues
1. revenue recognition memberships
2. revenue recognition guests
3. special promotions
4. coupons
5. manufacturer loan
6. lawsuit
7. warranty
8. gasoline storage tanks
9. foreign currency payables
10. compensated absences
analysis and recommendations
1. revenue recognition memberships
following the 5 step ifrs model:
initiation fee
step 1: the contract with the customer is for the membership in the club. this would be a
written agreement between the member and wfi.
step 2: there is one performance obligation, the promised service is membership in the ski
club. there is no transfer of the service until the membership is provided.
step 3: the contract price is $10,000. the non-refundable deposit is an advance payment
© 2022 McGraw Hill Ltd. All rights reserved.
Solutions Manual to accompany Intermedia te Accounting, Volume 2, 8 th edition 14-9
(Volume 2), 8th Canadian Edition By Thomas H.
Beechy, Joan E. Conrod, Verified Chapters 12 - 22,
Complete Newest Version
© 2022 McGraw Hill Ltd. All rights reserved.
Solutions Manual to accompany Intermedia te Accounting, Volume 2, 8 th edition 14-6
,Solution Manual For
Intermediate Accounting Volume 2 8th Edition Thomas H. Beechy, Joan E. Conrod,
Elizabeth Farrell, Ingrid Mcleod -Dick, Kayla Tomulka, Romi -L ee Sevel Chapter 12-22
Chapter 12: Financial Liabilities And Provisions
Case 12-1 Winter Fun Incorporated
12-2 Prescriptions Depot Limited
12-3 Camani Corporation
Suggested Time
Technical Review
Tr12-1 Financial Liabilities And Provisions (Ifrs) ...... 10
Tr12-2 Financial Liabilities And Provisions (Aspe) ..... 10
Tr12-3 Provision, Measurement ................................... 10
Tr12-4 Guarantee ......................................................... 10
Tr12-5 Provision, Warranty .......................................... 5
Tr12-6 Foreign Currency .............................................. 5
Tr12-7 Note Payable .................................................... 5
Tr12-8 Discounting, Note Payable................................ 10
Tr12-9 Discounting, Provision ..................................... 10
Tr12-10 Classification, Liabilities................................... 10
Assignment A12-1 Financial Versus Non-Financial Liabilities……. 10
A12-2 Common Financial Liabilities………………… 10
A12-3 Common Financial Liabilities............................ 10
A12-4 Common Financial Liabilities: Taxes ................. 20
A12-5 Common Financial Liabilities: Taxes ................ 20
A12-6 Foreign Currency Payables……………………. 10
A12-7 Foreign Currency Payables ............................... 10
A12-8 Common Financial Liabilities And Foreign 25
Currency
A12-9 Provisions......................................................... 20
A12-10 Provisions ........................................................ 20
A12-11 Provisions......................................................... 20
A12-12 Provision Measurement .................................... 15
A12-13 Provision Measurement .................................... 15
A12-14 Provisions; Compensated Absences…………... 15
A12-15 Provisions; Compensated Absences .................. 15
A12-16 Provisions; Warranty ........................................ 15
A12-17 Provisions; Warranty ....................................... 20
A12-18 Provisions; Warranty ....................................... 25
A12-19 Discounting; No-Interest Note ........................... 15
A12-20 Discounting; Low-Interest Note ........................ 20
A12-21 Discounting; Low-Interest Note ......................... 20
© 2022 McGraw Hill Ltd. All rights reserved.
Solutions Manual to accompany Intermedia te Accounting, Volume 2, 8 th edition 14-7
, A12-22 Discounting; Provision..................................... 15
A12-23 Discounting; Provision..................................... 25
A12-24 Discounting; Provision..................................... 25
A12-25 Classification And Scf..................................... 20
A12-26 Scf .................................................................. 20
A12-27 Liabilities – Ifrs And Aspe .......................... 10
A12-28 Liabilities - Aspe ........................................... 20
A12-29 Liabilities - Aspe ............................................ 20
A12-30 Provisions/Contingencies – Ifrs And Aspe…. 20
A12-31 Dais – Warranty Provision Trend……………... 15
a12-32 dais – provision for coupon refund………… 15
© 2022 McGraw Hill Ltd. All rights reserved.
Solutions Manual to accompany Intermedia te Accounting, Volume 2, 8 th edition 14-8
, cases
case 12-1 (lo12.3, lo12.5, lo12.6)
winter fun incorporated
to: members of board of directors from:
accounting consultant
re: winter fun incorporated
overview
winter fun incorporated (wfi) uses ifrs for financial reporting. the bank loan has a
minimum current ratio so you will need to be careful and watch for any impacts on the
ratio. you have had a tough year this year and faced a loss so the bank financing is critical
to your operations.
issues
1. revenue recognition memberships
2. revenue recognition guests
3. special promotions
4. coupons
5. manufacturer loan
6. lawsuit
7. warranty
8. gasoline storage tanks
9. foreign currency payables
10. compensated absences
analysis and recommendations
1. revenue recognition memberships
following the 5 step ifrs model:
initiation fee
step 1: the contract with the customer is for the membership in the club. this would be a
written agreement between the member and wfi.
step 2: there is one performance obligation, the promised service is membership in the ski
club. there is no transfer of the service until the membership is provided.
step 3: the contract price is $10,000. the non-refundable deposit is an advance payment
© 2022 McGraw Hill Ltd. All rights reserved.
Solutions Manual to accompany Intermedia te Accounting, Volume 2, 8 th edition 14-9
