ALL 12 CHAPTERS COVERED
,Alaa Aliasrei فيس @Aliasrei تيليگرام عالء هحسن شحن
Chapter 1
Conceptual & Case Analysis
Frameworks for Financial Reporting
Copyright 2022 McGraw Hill Ltd. All rights reserved.
Solutions Manual, Chapter 1 1
,A brief description of the major points covered in each case and problem.
CASES
Case 1-1
Students are asked to determine the impact of adopting the future tax method on key ratios and
to provide supporting arguments for the two different methods of accounting for income taxes.
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)
A Canadian company has just acquired a noncontrolling 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
doubtful accounts 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.
Copyright 2022 McGraw Hill Ltd. All rights reserved.
2 Modern Advanced Accounting in Canada, Tenth Edition
, Alaa Aliasrei فيس @Aliasrei تيليگرام عالء هحسن شحن
PROBLEMS
Problem 1-1 (15 min.)
A short problem to calculate and interpret three key ratios for two years.
Problem 1-2 (20 min.)
A short problem to use horizontal and vertical analysis to identify unusual trends in financial
performance over two years.
Problem 1-3 (30 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 1-4 (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 1-5 (30 min.)
This problem involves horizontal, vertical and ratio analysis to assess performance of an actual
public company.
Problem 1-6 (40 min.)
A private company plans to convert from IFRS to ASPE and wants to know the impact on three
key ratios if it converts from IFRS to ASPE for impairment losses, convertible bonds, and
income taxes.
Problem 1-7 (40 min.)
A private company plans to convert to IFRS. It wants to know the impact on three key ratios if it
converts from ASPE to IFRS for impaired loans, capitalization of interest and actuarial
gains/losses.
Copyright 2022 McGraw Hill Ltd. All rights reserved.
Solutions Manual, Chapter 1 3
,Alaa Aliasrei فيس @Aliasrei تيليگرام عالء هحسن شحن
Chapter 1
Conceptual & Case Analysis
Frameworks for Financial Reporting
Copyright 2022 McGraw Hill Ltd. All rights reserved.
Solutions Manual, Chapter 1 1
,A brief description of the major points covered in each case and problem.
CASES
Case 1-1
Students are asked to determine the impact of adopting the future tax method on key ratios and
to provide supporting arguments for the two different methods of accounting for income taxes.
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)
A Canadian company has just acquired a noncontrolling 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
doubtful accounts 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.
Copyright 2022 McGraw Hill Ltd. All rights reserved.
2 Modern Advanced Accounting in Canada, Tenth Edition
, Alaa Aliasrei فيس @Aliasrei تيليگرام عالء هحسن شحن
PROBLEMS
Problem 1-1 (15 min.)
A short problem to calculate and interpret three key ratios for two years.
Problem 1-2 (20 min.)
A short problem to use horizontal and vertical analysis to identify unusual trends in financial
performance over two years.
Problem 1-3 (30 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 1-4 (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 1-5 (30 min.)
This problem involves horizontal, vertical and ratio analysis to assess performance of an actual
public company.
Problem 1-6 (40 min.)
A private company plans to convert from IFRS to ASPE and wants to know the impact on three
key ratios if it converts from IFRS to ASPE for impairment losses, convertible bonds, and
income taxes.
Problem 1-7 (40 min.)
A private company plans to convert to IFRS. It wants to know the impact on three key ratios if it
converts from ASPE to IFRS for impaired loans, capitalization of interest and actuarial
gains/losses.
Copyright 2022 McGraw Hill Ltd. All rights reserved.
Solutions Manual, Chapter 1 3
