TEST BANK FOR INTERMEDIATE ACCOUNTING VOLUME 2 8TH EDITION UPDATED VERSION BY THOMAS H. BEECHY, JOAN E. CONROD, ELIZABETH FARRELL & INGRID MCLEOD-DICK CHAPTER 12-22 COVERED QUESTIONS AND ANSWERS GRADED A+ |100% VERIFIED| |2025|

,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 currency 25
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
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




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


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