Solution manual for intermediate accounting volume 1 8th edition by Thomas h Beechy and Joan e conrod All Chapters 1-11 Covered

Solution manual
intermediate accounting volume 1 8th edition
by Thomas h Beechy and Joan e conrod
All Chapters 1-11 Covered

,Intermediate Accounting Volume 1 8E Thomas H. Beechy, Joan E. Conrod, Elizabeth
V V V V V V V V V V V V




Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel
V V V V V V

AllVChaptersV1-11V [WithVAppendix]


Chapter 1: The Framework for Financial Reporting
V V V V V V




CaseV 1-1 MullaVandVYang
1-2 RichardVWright
1-3 TaylorVJay

SuggestedVTime
VTechnical 1-1 ChapterVoverview,Vtrue-falseV.............................. 10
1-2 ChapterVoverview,Vtrue-falseV.............................. 10
1-3 Acronyms……………………………………… 10
1-4 IFRSVorVASPE…………………………………. 10
1-5 IFRSVorVASPE…………………………………. 10
1-6 DisclosedVbasisVofVaccounting………………… 10
1-7 GAAPVandVreportingVcurrencyV........................... 10
1-8 GAAPVandVreportingVcurrencyV........................... 10
1-9 UsersVandVobjectives………………………….. 10
1-10 RequiredVfinancialVstatementsV............................ 10

AssignmentV1-1 IASBVstandard-setting...................................... 10
1-2 InternationalVcomparisons................................ 10
1-3 AccountingVchoicesV.......................................... 10
1-4 EffectVofVaccountingVpoliciesV .......................... 15
1-5 ReportingValternativesV...................................... 10
1-6 Non-IFRSVsituationsV........................................ 15
1-7 ReportingVsituationsV......................................... 20
1-8 ReportingVsituationsV......................................... 15
1-9 ObjectivesVofVfinancialVreportingV..................... 20
1-10 ImpactVofVdifferingVobjectivesV ......................... 20
1-11 AccountingVpolicyVdisagreement...................... 15
1-12 AccountingVpoliciesVandVreportingVobjectives.. 10
1-13 PolicyVchoiceV.................................................... 20

,Cases

CaseV1-1V(LO1.2,VLO1.3,VLO1.4,VLO1.5)

NotesVforVDiscussionVWithVElicia:

ThereVisVaVconflictVofVinterestVbetweenVtheVobjectivesVofVEliciaVandVDabikaVdueVtoVtheVbuy
outVclauseVinVtheVshareholderVagreement.VEliciaVwillVhaveVaVmotivationVtoVdecreaseVshare
holders‘VequityVsinceVthisVwillVreduceVtheVamountVthatVsheVwillVbeVrequiredVtoVpayVtoVbuyVo
utVDabika.VDabikaVwillVbeVinterestedVinVincreasingVshareholders‘VequityVtoVincreaseVtheVam
ountVsheVwillVreceive.VItVmustVbeVclarifiedVwhoVIVamVworkingVforVsinceVIVmayVhaveVaVconflic
tVofVinterestVsinceVIVknowVbothVparties.

ItV isV importantV thatV allV accountingV policiesV areV ‗fair‘V toV bothV sides.V WhatV isV considered
‗fair‘?VFromVDabika‘sVperspective,VfairVcouldVbeVaccountingVpoliciesVconsistentVwithVpriorV
years.VFromVElicia‘sVperspective,VfairVcouldVbeVifVtheVeconomicVeventsVchangeVtheVaccoun
tingVpolicyVwouldVchange.VFairVcouldVbeVbothVsidesVsplitVtheVdifferenceVwhereVDabikaVandV
EliciaVdisagreeVonVvalue.VInVtheVfutureVitVisVimportantVthatVtheVshareholdersVagreementVisV
moreVspecific.

DueVtoVtheVchoicesVallowedVwithinVGAAPVaVpolicyVcouldVbeVselectedVthatVwouldVbeVmoreV
beneficialVtoVoneVofVtheVparties.VItVisVassumedVsinceVthisVisVaVsmallVprivateVcompanyVthatVt
heyVareVusingVASPE.VThereVisVnoVindicationVthatVneitherVEliciaVorVDabikaVwouldVbeVusingVIF
RSVnorVthatVtheVbankVrequiresVit.

Inventory
EliciaVwantsVtoVwriteVoffVtheVinventoryVvalueVforVtheVgardenVgnomesVandVstatuesVandVthisV
willVdecreaseVtheVamountVofVtheVpaymentVtoVDabika.VAccordingVtoVASPE,VinventoryVwouldV
beVvaluedVatVtheVlowerVofVcostVandVnetVrealizableVvalue.VEvenVthoughVthisVinventoryVhasVbe
enVsittingVinVtheVgardeningVcentreVthereVisVstillVaVfewVbeingVsoldVeachVyear.VThisVindicatesVt
hereVisVstillVsomeVvalueVassociatedVwithVtheVinventoryVandVthereforeVitVshouldVnotVbeVwritt
enVdownVtoVzero.VItVshouldVbeVdeterminedVwhatVtheVnetVrealizableVvalueVofVthisVinventoryVi
sVtoVdetermineVtheVamountVofVtheVwriteVoff.VIfVitVisVallVwrittenVoffVandVthenVsoldVatVaVlaterVd
ateVthisVwouldVnotVbeVfairVtoVDabikaVsinceVEliciaVwouldVgetVtheVbenefitVofVaVreducedVshare
holders‘VequityVandVthusVaVlowerVpaymentVrequiredVtoVDabika.VTheVpurchaseVofVthisVinvent
oryVwouldVhaveVbeenVaVdecisionVmadeVbyVbothVDabikaVandVEliciaVsoVifVtheVinventoryVisVuns
ellableVtheyVshouldVbothVbearVtheVimpactVofVthisVdecision.

Warranty
AccordingVtoVASPEVtheVaccountingVpolicyVisVappropriateVandVaVwarrantyVexpenseVshouldVb
eVincludedVforVtheVguarantee.VTheVimpactVisVthatVthisVwouldVdecreaseVshareholders‘Vequit
yVandVtheVamountVofVtheVpaymentVtoVDabika.VThisVisVaVnewVpolicyVthatVdidVnotVexistVuntilVth
isVyear.VTheVestimateVofV5%VwasVonlyVbasedVonVsalesVfromVtheVfall.VSinceVitVisVaVnewVpolic
yVthatVwasVmadeVbyVEliciaVonVherVownVitVmayVbeVappropriateVthatVtheVimpactVofVthisVisVexcl

, udedVfromVtheVcalculationVofVshareholders‘Vequity.VAtVaVminimumVtheVestimateVshould