ADVANCED ACCOUNTING(LL) W/CONNECT
13th Edition
ISBN: 9781260282382
Author: Hoyle
Publisher: MCG
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Question
Chapter 11, Problem 19P
a.
To determine
Determine the appropriate accounting for this compound financial instrument for the year ending December 31, 2017, under (1) IFRS and (2) U.S. GAAP.
b.
To determine
Prepare the entry that the U.S. parent would make on the December 31, 2017, conversion worksheet to convert IFRS balances to U.S. GAAP.
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Izmir A.S. issued convertible bonds at the face value of 113,000 lira on December 31, 2017. The bonds have a 10-year life with interest of 12 percent payable annually. At the date of issue, the prevailing interest rate for similar debt without a conversion option was 14 percent.
Assume that a foreign company using IFRS is owned by a company using U.S. GAAP. Thus, IFRS balances must be converted to U.S. GAAP to prepare consolidated finanacial statements. Ignore income taxes.
Required;
a. Prepare journal entries for this compound financial instrument for the year ending December31, 2017, under (1) IFRS and (2) U,S. GAAP.
b. Prepare the entries that the U.S. parent would make on the December 31, 2017, conversion worksheet to convert IFRS balances to U.S. GAAP
Izmir A.S. issued convertible bonds at their face value of 113.000 lira on December 31, 2017. The bonds have a 10-year life with interest
of 12 percent payable annually. At the date of issue, the prevailing interest rate for similar debt without a conversion option was 14
percent.
Assume that a foreign company using IFRS is owned by a company using U.S. GAAP. Thus, IFRS balances must be converted to US.
GAAP to prepare consolidated financial statements. Ignore income taxes.
Required:
a. Prepare journal entries for this compound financial instrument for the year ending December 31. 2017, under (1) IFRS and (2) U.S.
GAAP.
b. Prepare the entry(ies) that the U.S. parent would make on the December 31, 2017. conversion worksheet to convert IFRS balances to
US. GAAP.
tzmir A.S. issued convertible bonds at their face value of 113.000 lira on December 31. 2017. The bonds have a 10-year life with interest
of 12 percent payable annually. At the date of issue, the prevailing interest rate for similar debt without a conversion option was 14
percent.
Assume that a foreign company using IFRS is owned by a company using U.S. GAAP. Thus, IFRS balances must be coverted to U.S.
GAAP to prepare consolidated financial statements. Ignore income taxes.
Required:
a. Prepare journal entries for this compound financial instrument for the year ending December 31. 2017, under (1) IFRS and (2) U.S.
GAAP.
b. Prepare the entry(ies) that the U.S. parent would make on the December 31. 2017, conversion worksheet to convert IFRS balances to
U.S. GAAP
Chapter 11 Solutions
ADVANCED ACCOUNTING(LL) W/CONNECT
Ch. 11 - Historically, what factors contributed to the...Ch. 11 - Nestl S.A. is a very large company headquartered...Ch. 11 - Prob. 3QCh. 11 - Prob. 4QCh. 11 - Prob. 5QCh. 11 - In general terms, how does IFRS for SMEs differ...Ch. 11 - Prob. 7QCh. 11 - What are three countries that do not allow...Ch. 11 - Prob. 9QCh. 11 - Prob. 10Q
Ch. 11 - Prob. 11QCh. 11 - What are the two extreme approaches that a company...Ch. 11 - Prob. 13QCh. 11 - Prob. 14QCh. 11 - Prob. 15QCh. 11 - Prob. 16QCh. 11 - Prob. 17QCh. 11 - Prob. 18QCh. 11 - Prob. 19QCh. 11 - Even if all companies in the world were to use...Ch. 11 - Prob. 1PCh. 11 - Prob. 2PCh. 11 - Which of the following is not a reason for...Ch. 11 - Prob. 4PCh. 11 - Prob. 5PCh. 11 - Prob. 6PCh. 11 - Prob. 7PCh. 11 - Prob. 8PCh. 11 - Prob. 9PCh. 11 - Prob. 10PCh. 11 - Prob. 11PCh. 11 - Prob. 12PCh. 11 - Which of the following statements is true for a...Ch. 11 - Prob. 14PCh. 11 - Prob. 15PCh. 11 - Prob. 16PCh. 11 - Prob. 17PCh. 11 - Prob. 18PCh. 11 - Prob. 19PCh. 11 - Prob. 20PCh. 11 - Prob. 21PCh. 11 - Prob. 22PCh. 11 - Prob. 23PCh. 11 - Prob. 24PCh. 11 - Prob. 25PCh. 11 - Prob. 26PCh. 11 - Parnell Company acquired construction equipment on...Ch. 11 - Prob. 28PCh. 11 - Prob. 29PCh. 11 - Hirsch Company acquired equipment at the beginning...
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