Solutions Manual for Intermediate Accounting (Volume 2) 9th Canadian Edition By Beechy, Conrod, Farrell, McLeod-Dick, Morriello, Paisley, Sevel, Tomulka
Solutions Manual for Intermediate
Accounting (Volume 2) 9th Canadian
Edition By Beechy, Conrod, Farrell,
McLeod-Dick, Morriello, Paisley,
Sevel, Tomulka
(All Chapters 12-22, 100% Original
Verified, A+ Grade)
This is The Only Original and
Complete Solutions Manual for
(Volume 2) 9th Canadian Edition, All
Other Files in The Market are
Fake/Old/Wrong Edition.
All Supplement Files Download Link
is Added At The End of PDF.
Solutions Manual for Intermediate Accounting (Volume 2) 9th Canadian Edition By Beechy, Conrod, Farrell, McLeod-Dick, Morriello, Paisley, Sevel, Tomulka
,Solutions Manual for Intermediate Accounting (Volume 2) 9th Canadian Edition By Beechy, Conrod, Farrell, McLeod-Dick, Morriello, Paisley, Sevel, Tomulka
Table of contents
VOLUME 2
Chapter 12: Financial Liabilities and Provisions
Chapter 13: Financial Instruments: Long-Term Debt
Chapter 14: Shareholders’ Equity
Chapter 15: Financial Instruments: Complex Debt and Equity
Chapter 16: Corporate Income Tax
Chapter 17: Tax Losses
Chapter 18: Leases
Chapter 19: Post-Employment Benefits
Chapter 20: Earnings per Share
Chapter 21: Accounting Changes
Chapter 22: Financial Statement Analysis
Appendix: Statement of Cash Flows
Solutions Manual for Intermediate Accounting (Volume 2) 9th Canadian Edition By Beechy, Conrod, Farrell, McLeod-Dick, Morriello, Paisley, Sevel, Tomulka
,Solutions Manual for Intermediate Accounting (Volume 2) 9th Canadian Edition By Beechy, Conrod, Farrell, McLeod-Dick, Morriello, Paisley, Sevel, Tomulka
Concept Review Solutions
CHAPTER 12: Financial Liabilities and Provisions
Liability Definition and Categories
1. The three time periods inherent in the definition of a liability are:
a) an expected future delivery of assets or services;
b) constitutes a present obligation; and
c) Is the result of a past transaction or event.
2. A financial liability (payables) is a financial instrument that requires some form of cash
payment or asset transfer. It gives rise to a corresponding financial asset for another
individual or company. An example is a bond or a loan. A non-financial liability is any
liability that is not a financial liability, for example a warranty.
Financial liabilities are further classified by how they will be subsequently measured.
FVTPL/FVNI are initially recorded at fair value and subsequently measured at fair value.
Other financial liabilities are initially measured at fair value and subsequently at cost.
3. Financial liabilities can either be classified and measured using the amortized cost method or
FVTPL/FVNI.
FVTPL – Initial recognition is at fair value. At each reporting date, the instrument is measured
at fair value with gains and losses recognized in earnings (changes to credit risk is
recognized in OCI).
Amortized cost – initial recognition at fair value. Subsequently, the liabilities are not adjusted
except for impairments (cost), or using the effective interest method (amortized cost).
4. Liabilities of all categories must be valued at the present value of cash flows— commonly
called discounting—where the time value of money has material impact on the value of the
liability.
Common Financial Liabilities
1. A loan guarantee is measured at its fair value which is an expected value calculated
multiplying the probability that a payment will be required times the amount of the guarantee.
Solutions Manual for Intermediate
A 10% chanceAccounting (Volume to
of having 2) 9th
be Canadian
honouredEdition
is aBypositive
Beechy, Conrod, Farrell,
fair value McLeod-Dick,
of 10% of the Morriello,
debt and Paisley,
would Sevel, Tomulka
Concept Review Solutions Intermediate Accounting, 9e, Volume 2
, Solutions Manual for Intermediate Accounting (Volume 2) 9th Canadian Edition By Beechy, Conrod, Farrell, McLeod-Dick, Morriello, Paisley, Sevel, Tomulka
have to be recorded as such. A loan guarantee would not be recorded if there was a 0%
probability.
2. The $8,000 of GST would not be included in the cost of inventory as this is a recoverable
tax. In most cases PST is not levied on goods for resale, but in the event it was, it would be
included in the cost of the inventory and the inventory cost would be $105,000.
3. In the case of employee withholdings, the employer acts as the government’s agent in
collecting and remitting these payroll taxes.
Foreign Currency Payables
1. Inventory is recorded at the amount using the spot rate on the date of purchase.
2. The capital asset would be recorded at $210,000 (100,000 x $2.10).
3. There would be an exchange gain of $15,000. (100,000 x (2.10-1.95)).
On the date of purchase:
Dr. Capital Asset 210,000
Cr. Accounts payable 210,000
When the balance is paid:
Dr. Accounts payable 210,000
Cr. Cash 195,000
Cr. Foreign exchange gain 15,000
Non-Financial Liabilities: Provisions
1. A provision is defined as a liability of uncertain timing or amount. If here is sufficient certainty
the liability is recorded for a provision. In the case of a contingency the likelihood of a liability
falls beneath the threshold to be recorded.
2. A provision is recorded at the best estimate of the expenditure required to settle the present
obligation – the expected value. In a large population this would be a statistical product of
the possible outcomes and their probabilities. In a small population, judgment would be
applied to obtain the best estimate.
3. These would not be discounted if the amount and timing of cash flows is highly uncertain.
4. Virtually certain is a much higher degree of certainty compared to probable. It means that the
amount is going to be paid. Probable has a lower degree of certainty, but given the balance
of facts there is a strong chance that it will be paid.
Solutions Manual for Intermediate Accounting (Volume 2) 9th Canadian Edition By Beechy, Conrod, Farrell, McLeod-Dick, Morriello, Paisley, Sevel, Tomulka
Concept Review Solutions Intermediate Accounting, 9e, Volume 2
Solutions Manual for Intermediate
Accounting (Volume 2) 9th Canadian
Edition By Beechy, Conrod, Farrell,
McLeod-Dick, Morriello, Paisley,
Sevel, Tomulka
(All Chapters 12-22, 100% Original
Verified, A+ Grade)
This is The Only Original and
Complete Solutions Manual for
(Volume 2) 9th Canadian Edition, All
Other Files in The Market are
Fake/Old/Wrong Edition.
All Supplement Files Download Link
is Added At The End of PDF.
Solutions Manual for Intermediate Accounting (Volume 2) 9th Canadian Edition By Beechy, Conrod, Farrell, McLeod-Dick, Morriello, Paisley, Sevel, Tomulka
,Solutions Manual for Intermediate Accounting (Volume 2) 9th Canadian Edition By Beechy, Conrod, Farrell, McLeod-Dick, Morriello, Paisley, Sevel, Tomulka
Table of contents
VOLUME 2
Chapter 12: Financial Liabilities and Provisions
Chapter 13: Financial Instruments: Long-Term Debt
Chapter 14: Shareholders’ Equity
Chapter 15: Financial Instruments: Complex Debt and Equity
Chapter 16: Corporate Income Tax
Chapter 17: Tax Losses
Chapter 18: Leases
Chapter 19: Post-Employment Benefits
Chapter 20: Earnings per Share
Chapter 21: Accounting Changes
Chapter 22: Financial Statement Analysis
Appendix: Statement of Cash Flows
Solutions Manual for Intermediate Accounting (Volume 2) 9th Canadian Edition By Beechy, Conrod, Farrell, McLeod-Dick, Morriello, Paisley, Sevel, Tomulka
,Solutions Manual for Intermediate Accounting (Volume 2) 9th Canadian Edition By Beechy, Conrod, Farrell, McLeod-Dick, Morriello, Paisley, Sevel, Tomulka
Concept Review Solutions
CHAPTER 12: Financial Liabilities and Provisions
Liability Definition and Categories
1. The three time periods inherent in the definition of a liability are:
a) an expected future delivery of assets or services;
b) constitutes a present obligation; and
c) Is the result of a past transaction or event.
2. A financial liability (payables) is a financial instrument that requires some form of cash
payment or asset transfer. It gives rise to a corresponding financial asset for another
individual or company. An example is a bond or a loan. A non-financial liability is any
liability that is not a financial liability, for example a warranty.
Financial liabilities are further classified by how they will be subsequently measured.
FVTPL/FVNI are initially recorded at fair value and subsequently measured at fair value.
Other financial liabilities are initially measured at fair value and subsequently at cost.
3. Financial liabilities can either be classified and measured using the amortized cost method or
FVTPL/FVNI.
FVTPL – Initial recognition is at fair value. At each reporting date, the instrument is measured
at fair value with gains and losses recognized in earnings (changes to credit risk is
recognized in OCI).
Amortized cost – initial recognition at fair value. Subsequently, the liabilities are not adjusted
except for impairments (cost), or using the effective interest method (amortized cost).
4. Liabilities of all categories must be valued at the present value of cash flows— commonly
called discounting—where the time value of money has material impact on the value of the
liability.
Common Financial Liabilities
1. A loan guarantee is measured at its fair value which is an expected value calculated
multiplying the probability that a payment will be required times the amount of the guarantee.
Solutions Manual for Intermediate
A 10% chanceAccounting (Volume to
of having 2) 9th
be Canadian
honouredEdition
is aBypositive
Beechy, Conrod, Farrell,
fair value McLeod-Dick,
of 10% of the Morriello,
debt and Paisley,
would Sevel, Tomulka
Concept Review Solutions Intermediate Accounting, 9e, Volume 2
, Solutions Manual for Intermediate Accounting (Volume 2) 9th Canadian Edition By Beechy, Conrod, Farrell, McLeod-Dick, Morriello, Paisley, Sevel, Tomulka
have to be recorded as such. A loan guarantee would not be recorded if there was a 0%
probability.
2. The $8,000 of GST would not be included in the cost of inventory as this is a recoverable
tax. In most cases PST is not levied on goods for resale, but in the event it was, it would be
included in the cost of the inventory and the inventory cost would be $105,000.
3. In the case of employee withholdings, the employer acts as the government’s agent in
collecting and remitting these payroll taxes.
Foreign Currency Payables
1. Inventory is recorded at the amount using the spot rate on the date of purchase.
2. The capital asset would be recorded at $210,000 (100,000 x $2.10).
3. There would be an exchange gain of $15,000. (100,000 x (2.10-1.95)).
On the date of purchase:
Dr. Capital Asset 210,000
Cr. Accounts payable 210,000
When the balance is paid:
Dr. Accounts payable 210,000
Cr. Cash 195,000
Cr. Foreign exchange gain 15,000
Non-Financial Liabilities: Provisions
1. A provision is defined as a liability of uncertain timing or amount. If here is sufficient certainty
the liability is recorded for a provision. In the case of a contingency the likelihood of a liability
falls beneath the threshold to be recorded.
2. A provision is recorded at the best estimate of the expenditure required to settle the present
obligation – the expected value. In a large population this would be a statistical product of
the possible outcomes and their probabilities. In a small population, judgment would be
applied to obtain the best estimate.
3. These would not be discounted if the amount and timing of cash flows is highly uncertain.
4. Virtually certain is a much higher degree of certainty compared to probable. It means that the
amount is going to be paid. Probable has a lower degree of certainty, but given the balance
of facts there is a strong chance that it will be paid.
Solutions Manual for Intermediate Accounting (Volume 2) 9th Canadian Edition By Beechy, Conrod, Farrell, McLeod-Dick, Morriello, Paisley, Sevel, Tomulka
Concept Review Solutions Intermediate Accounting, 9e, Volume 2
