Complete Solutions Manual – Modern Advanced
Accounting in Canada 9E All Chapters Included |
Detailed Accounting Problem Solutions | Graded A+
Elitedocs
, Complete Solution Manual for
Modern Advanced Accounting In
Canada 9th Edition Hilton Murray,
Herauf Darrell
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’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)
Copyright 2019 McGraw-Hill Education. All rights reserved.
Solutions Manual, Chapter 6 1
Elitedocs
, 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 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 2019 McGraw-Hill Education. All rights reserved.
2 Modern Advanced Accounting in Canada, Ninth Edition
Elitedocs
, 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 years. It wants to know the
impact on net income and shareholders’ equity if it converts from ASPE to IFRS for impaired
loans, interest costs, actuarial gains, compound financial instrument and income taxes.
Problem 1-4 (50 min.)
While taking the role of a financial analyst, the student uses vertical and horizontal analysis and
ratios to analyse and interpret the profitability, solvency and liquidity of a private company.
Problem 1-5 (25 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.
Problem 1-6 (50 min.)
A private company plans to convert from ASPE to IFRS and wants to know the impact on three
key ratios if it converts from ASPE to IFRS for impairment losses, convertible bonds and income
taxes.
Copyright 2019 McGraw-Hill Education. All rights reserved.
Solutions Manual, Chapter 6 3
Elitedocs
Accounting in Canada 9E All Chapters Included |
Detailed Accounting Problem Solutions | Graded A+
Elitedocs
, Complete Solution Manual for
Modern Advanced Accounting In
Canada 9th Edition Hilton Murray,
Herauf Darrell
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’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)
Copyright 2019 McGraw-Hill Education. All rights reserved.
Solutions Manual, Chapter 6 1
Elitedocs
, 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 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 2019 McGraw-Hill Education. All rights reserved.
2 Modern Advanced Accounting in Canada, Ninth Edition
Elitedocs
, 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 years. It wants to know the
impact on net income and shareholders’ equity if it converts from ASPE to IFRS for impaired
loans, interest costs, actuarial gains, compound financial instrument and income taxes.
Problem 1-4 (50 min.)
While taking the role of a financial analyst, the student uses vertical and horizontal analysis and
ratios to analyse and interpret the profitability, solvency and liquidity of a private company.
Problem 1-5 (25 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.
Problem 1-6 (50 min.)
A private company plans to convert from ASPE to IFRS and wants to know the impact on three
key ratios if it converts from ASPE to IFRS for impairment losses, convertible bonds and income
taxes.
Copyright 2019 McGraw-Hill Education. All rights reserved.
Solutions Manual, Chapter 6 3
Elitedocs
