SOLUTION MANUAL
All Chapters Included
,Modern Advanced Accounting In Canada,10th Edition By Darrell
Herauf, Chima Mbagwu,Chapters 1 - 12, Complete
, Chapter 1
Conceptual & Case Analysis Frameworks for Financial
Reporting
A brief description of the major points covered in each case and
problem.CASES
Case 1-1
In this case, students are introduced to the difference in
accounting for R&D costs between IFRS and ASPE and asked to
provide arguments to support the different standards.
Case 1-2 (adapted from a case prepared by Peter Secord, Saint Mary’
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’
University)
A Canadian company has just acquired a non-controlling 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
doubtfulaccounts 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.
PROBLEMS
Problem 1-1 (40 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 1-2 (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 1-3 (50 min.)
A private company plans to convert to IFRS go public within 5
All Chapters Included
,Modern Advanced Accounting In Canada,10th Edition By Darrell
Herauf, Chima Mbagwu,Chapters 1 - 12, Complete
, Chapter 1
Conceptual & Case Analysis Frameworks for Financial
Reporting
A brief description of the major points covered in each case and
problem.CASES
Case 1-1
In this case, students are introduced to the difference in
accounting for R&D costs between IFRS and ASPE and asked to
provide arguments to support the different standards.
Case 1-2 (adapted from a case prepared by Peter Secord, Saint Mary’
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’
University)
A Canadian company has just acquired a non-controlling 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
doubtfulaccounts 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.
PROBLEMS
Problem 1-1 (40 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 1-2 (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 1-3 (50 min.)
A private company plans to convert to IFRS go public within 5
