Solution Manual for Intermediate Accounting (Volume 2), 8th Canadian Edition By Thomas H. Beechy, Joan E. Conrod Verified All Chapters (12 - 22)Complete Newest Version A+

Solution Manual for Intermediate Accounting (Volume 2),
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M 8th Canadian Edition By Thomas H. Beechy, Joan E. Conrod / Verifi
M M M M M M M M M M MM




ed All Chapters (12 - 22)Complete M M M M M




Solution Manual for
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Intermediate Accounting Volume 2 8th Edition Thomas H. Beechy, Joan E. Conro
M M M M
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M M M M M M


d, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel Chapter 12-
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22

Chapter 12: Financial Liabilities and Provisions
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Case 12-1 WinterMFunMIncorporated
12-2 PrescriptionsMDepotMLimited
12-3 CamaniMCorporation

TechnicalMReview

,SuggestedMTime
TR12-1 FinancialMliabilitiesMandMprovisionsM(IFRS)...................... 10
TR12-2 FinancialMliabilitiesMandMprovisionsM(ASPE) .................... 10
TR12-3 Provision,Mmeasurement................................... 10
TR12-4 GuaranteeM......................................................... 10
TR12-5 Provision,MwarrantyM.......................................... 5
TR12-6 ForeignMcurrencyM.............................................. 5
TR12-7 NoteMpayableM.................................................... 5
TR12-8 Discounting,MnoteMpayable................................ 10
TR12-9 Discounting,Mprovision..................................... 10
TR12-10M Classification,Mliabilities................................... 10

AssignmentMA12-1 FinancialMversusMnon-financialMliabilities……. 10
A12-2 CommonMfinancialMliabilities………………… 10
A12-3 CommonMfinancialMliabilities............................ 10
A12-4 CommonMfinancialMliabilities:MtaxesM................. 20
A12-5 CommonMfinancialMliabilities:MtaxesM ................ 20
A12-6 ForeignMcurrencyMpayables……………………. 10
A12-7 ForeignMcurrencyMpayablesM............................... 10
A12-8 CommonMfinancialMliabilitiesMandMforeign 25
currency
A12-9 Provisions......................................................... 20
A12-10 ProvisionsM........................................................ 20
A12-11 Provisions......................................................... 20
A12-12 ProvisionMmeasurement.................................... 15
A12-13 ProvisionMmeasurement.................................... 15
A12-14 Provisions;McompensatedMabsences…………... 15
A12-15 Provisions;McompensatedMabsencesM.................. 15
A12-16 Provisions;MwarrantyM........................................ 15
A12-17 Provisions;MwarrantyM ....................................... 20
A12-18 Provisions;MwarrantyM ....................................... 25
A12-19 Discounting;Mno-interestMnote........................... 15
A12-20 Discounting;Mlow-interestMnoteM ........................ 20
A12-21 Discounting;Mlow-interestMnote......................... 20
A12-22 Discounting;Mprovision..................................... 15
A12-23 Discounting;Mprovision..................................... 25
A12-24 Discounting;Mprovision..................................... 25
A12-25 ClassificationMandMSCF..................................... 20
A12-26 SCFM.................................................................. 20
A12-27 LiabilitiesM–MIFRSMandMASPEM .......................... 10
A12-28 LiabilitiesM-MASPEM ........................................... 20
A12-29 LiabilitiesM-MASPEM............................................ 20
A12-30MM Provisions/ContingenciesM–MIFRSMandMASPE…. 20
A12-31 DAISM–MwarrantyMprovisionMtrend……………... 15
A12-32 DAISM–MprovisionMforMcouponMrefund………… 15
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on

,Cases
CaseM12-1M(LO12.3,MLO12.5,MLO12.6)
WinterMFunMIncorporated

To:MMembersMofMBoardMofMDirectorsM F
rom:MAccountingMConsultant
RE:MWinterMFunMIncorporated

Overview

WinterMFunMIncorporatedM(WFI)MusesMIFRSMforMfinancialMreporting.MTheMbankMloanMhasM aMmi
nimumMcurrentMratioMsoMyouMwillMneedMtoMbeMcarefulMandMwatchMforManyMimpactsMonM theM rati
o.MYouMhaveMhadMaMtoughMyearMthisMyearMandMfacedMaMlossMsoMtheMbankMfinancingM isMcritica
lMtoMyourMoperations.

Issues

1. RevenueMrecognitionMmemberships
2. RevenueMrecognitionMguests
3. SpecialMpromotions
4. Coupons
5. ManufacturerMLoan
6. Lawsuit
7. Warranty
8. GasolineMstorageMtanks
9. ForeignMcurrencyMpayables
10. CompensatedMabsences

©M2022MMcGrawMHillMLtd.MAllMrightsMreserved.
AnalysisMandMRecommendations


1. RevenueMrecognitionM membership

sMFollowingMtheM5MstepM IFRSMmodel:
InitiationMfee
StepM1:MTheMcontractMwithMtheMcustomerMisMforMtheMmembershipMinMtheMclub.MThisMwouldM beMaM
writtenMagreementMbetweenMtheMmemberMandMWFI.

StepM2:MThereMisMoneMperformanceMobligation,MtheMpromisedMserviceMisMmembershipMinM theMs
kiMclub.MThereMisMnoMtransferMofMtheMserviceMuntilMtheMmembershipMisMprovided.

StepM 3:M TheM contractM priceM isM $10,000.M TheM non-
refundableM depositM isM anM advanceM paymentMtowardsMthisMinitiationMfeeMandMisMpartMofMtheM
overallMtransactionMprice.

StepM4:MNoMallocationMsinceMthereMisMonlyMoneMperformanceMobligation.

, StepM 5:M TheM performanceM obligationM forM theM initiationM feeMisM satisfiedM overM theM periodM ofM
timeMthatMtheMmemberMbelongsMtoMtheMclub.MTheM$10,000MwouldMbeMrecognizedMoverM theMa
verageMperiodMaM memberMbelongs.MThereMshouldMbeMenoughMhistoricalMdataM availableMtoM
comeMupM withM aM reasonableMestimate.MThereMwouldMbeM noM cashM collectionM riskMsinceMtheMam
ountMisMpaidMupfront.

AnnualMfee
StepM1:MTheMannualMfeeMisMaMwrittenMagreementMbetweenMtheMmemberMandM WFI.M

StepM2:MThereMisMagainMoneMperformanceMobligation,MtheMserviceMforMthisM year.

StepM3:MTheMfeeMofM$2,000MisMtheMtotalMcontractMpriceMandMisMreceivedMinM20X5MforMtheM 20X
6MskiMseason.MThisMwouldMbeMunearnedMrevenueMwhenMreceived.

StepM4:MThereMisMnoMallocationMsinceMthereMisMonlyMoneMperformanceMobligation.

StepM 5:M AssumingM theM skiM seasonM goesM fromM DecM 1M untilM MarchM 31M $500M wouldM beM re
cognizedMinM 20X5MandMtheMremainderMinM20X6MwhichMwouldMbeMtheM periodMinMwhichM theMse
rviceMisMperformed.MThereMwouldMbeMnoMcashMcollectionMriskMsinceMtheMamountMisM paidMupfro
nt.

2. RevenueMrecognitionMguestsM F

ollowingMtheM5MstepMIFRS

model:

StepM1:MTheMcontractMwithMtheMguestMisMtheMwrittenMcontractMwhenMtheyMreceiveMtheM ticketMt
oMski,MnotMwhenMtheMreservationMisMmadeMsinceMthisMreservationMcouldMbeM cancelled.

StepM2:MTheMperformanceMobligationMisMtheMrightMtoMskiMthatM day.M

StepM3:MTheMoverallMcontractMpriceMisMtheMpriceMofMtheMskiM ticket.

StepM4:MThereMisMnoMallocationMsinceMthereMisMonlyMoneMperformanceMobligation.

StepM5:MTheMperformanceMwouldMbeMtheMrightMtoMskiMonMthatMday.MThereMisMnoMcashM collectionM
riskMsinceMtheMguestMpaysMbyMcreditMcardMwhenMtheyMpurchaseMtheMticket.

3. SpecialMpromotionsM Fol

lowingMtheM5MstepMIFRSM mo

del:

StepM1:MTheMcontractMwithMtheMcustomerMisMtheMwrittenMcontractMwhenMtheyMreceiveMtheM ticketM
andMtheMrightMtoMaMfutureMlesson.

StepM2:MThereMareMtwoMseparateMperformanceMobligations MtheMrightMtoMskiMandMtheMrightM toMt
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he
on Mlesson.