ADV. ACCT CONNECT STAND ALONE
13th Edition
ISBN: 9781266295744
Author: Hoyle
Publisher: MCG
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Chapter 11, Problem 22P
a.
To determine
Determine the appropriate accounting for this brand name 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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Aa.18.
Mikkeli OY acquired a brand name with an indefinite life in 2021 for 42,600 markkas. At December 31, 2020, the brand name could be sold for 35,600 markkas, with zero costs to sell. Expected cash flows from the continued use of the brand are 44,870 markkas, and the present value of this amount is 34,600 markkas.
Assume that Mikkeli OY is a foreign company using IFRS and is owned by a company using U.S. GAAP. Thus, IFRS balances must be converted to U.S. GAAP to prepare consolidated financial statements. Ignore income taxes.
Required:
a. Prepare journal entries for this brand name for the year ending December 31, 2020, under (1) IFRS and (2) U.S. GAAP.
b. Prepare the entry(ies) that the U.S. parent would make on the December 31, 2020 conversion worksheet to convert IFRS balances to U.S. GAAP.
Banco Company acquired a new machine on a delayed payment basis on August 1, 2018.
A down payment of P100,000 was made, with four monthly instalments of P250,000 to commence on September 1, 2018.
The machine's cash equivalent price was P 950 000. The entity spent and paid P 30 000 in installation fees.
What is the sum to be capitalised as the machine's cost?
Suppose a company using IFRS acquires the ownership rights to a celebrity photograph on December 1, 2014, for $
530. The company accounts for these rights under the revaluation model. Assume the fair value at relevant dates is as
follows. December 1, 2014 $530 December 31, 2014 $550 December 31, 2015 $520 December 31, 2016 $510
December 31, 2017 $565 What are the balances in revaluation surplus at the end of each year? How much revaluation is
recognized through OCI each year? How much revaluation is recognized in income each year?
Chapter 11 Solutions
ADV. ACCT CONNECT STAND ALONE
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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