INTERMEDIATE ACCT VOL.2>CUSTOM<
9th Edition
ISBN: 9781307165067
Author: SPICELAND
Publisher: MCG/CREATE
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 3.21E
To determine
Segment reporting:
It is the report disclosing information about the operating units of the company functioning in various geographical areas engaged in producing products (or) services that differ from other business segment.
To determine: Segment required to be reported and the disclosures required for segment reporting.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
#19During 20B, Janess company engaged in the following transactions:Key management personnel compensation 2,400,000Sales to affiliated entities 3,600,000What total amount should be included as related party disclosures in Janess’ financial statements?
PLS provide solution and explanation for the answer above
Philippines Accounting standard
QUESTION SIX
The following financial statements relate to ZB Plc.
ZB PLC
Statement of comprehensive Income for the year ended 31st December:
2021
2020
K'000
K'000
Revenue
3,068,959
2,305,425
Cost of sales
-2,024,857
-1,346,701
Gross profit
1,044,102
958,724
Other expenses
-244,307
-458,473
Net impairment credit on financial assets
12,291
3,002
Distribution costs
-208,749
-178,028
Administrative expenses
-413,157
-302,323
Operating profit
190,180
22,902
Finance Income
2,978
1,557
Interest Expense
-86,936
-15,974
Profit before income tax
106,222
8,485
Income tax credit (expense)
41,730
-2,546
Profit for the year
147,952
5,939
Other comprehensive income
Total comprehensive income for the year
147,952
5,939
ZB PLC
Statement of Financial Position as at 31st December:…
Comprehensive Problem 11-1
Floyd Corporation was formed and began operations on January 1, 2020. The corporation is located at 210 N. Main St., Pearisburg, VA 24134 and the EIN is 91-1111111. The corporation's income statement for the year and the balance sheet at year-end are presented below.
The Floyd Corporation Income Statementfor the Year Ended December 31, 2020
Gross income from operations
$320,000
Qualified dividends received from a 15percent-owned domestic corporation
20,000
Total gross income
340,000
Cost of goods sold
(70,000)
Total income
270,000
Other expenses:
Compensation of officers
$80,000
Salaries and wages
20,000
Bad debts (direct charge-offs)
9,000
Repairs
3,000
Depreciation for book (tax depreciation = $90,000)
10,000
Advertising
3,000
Payroll taxes
15,000
Total other expenses
(140,000)
Pretax book income
130,000
Income tax expense
25,200
Net income…
Chapter 3 Solutions
INTERMEDIATE ACCT VOL.2>CUSTOM<
Ch. 3 - Prob. 3.1QCh. 3 - Prob. 3.2QCh. 3 - Define current assets and list the typical asset...Ch. 3 - Prob. 3.4QCh. 3 - Prob. 3.5QCh. 3 - Prob. 3.6QCh. 3 - Describe the common characteristics of assets...Ch. 3 - Prob. 3.8QCh. 3 - Prob. 3.9QCh. 3 - Define the terms paid-in-capital and retained...
Ch. 3 - Disclosure notes are an integral part of the...Ch. 3 - A summary of the companys significant accounting...Ch. 3 - Define a subsequent event.Ch. 3 - Prob. 3.14QCh. 3 - Prob. 3.15QCh. 3 - Prob. 3.16QCh. 3 - Prob. 3.17QCh. 3 - Show the calculation of the following solvency...Ch. 3 - Prob. 3.19QCh. 3 - Prob. 3.20QCh. 3 - (Based on Appendix 3) Segment reporting...Ch. 3 - Prob. 3.22QCh. 3 - Prob. 3.23QCh. 3 - Current versus long-term classification LO32,...Ch. 3 - Balance sheet classification LO32, LO33 The trial...Ch. 3 - Prob. 3.3BECh. 3 - Balance sheet classification LO32, LO33 Refer to...Ch. 3 - Balance sheet classification LO32, LO33 The...Ch. 3 - Balance sheet classification LO32, LO33 You have...Ch. 3 - Balance sheet preparation; missing elements LO32,...Ch. 3 - Financial statement disclosures LO34 For each of...Ch. 3 - Calculating ratios LO38 Refer to the trial...Ch. 3 - Prob. 3.10BECh. 3 - Calculating ratios; solving for unknowns LO38 The...Ch. 3 - Balance sheet; missing elements LO32, LO33, LO38...Ch. 3 - Balance sheet classification LO32, LO33 The...Ch. 3 - Balance sheet classification LO32, LO33 The...Ch. 3 - Balance sheet preparation LO32, LO33 The...Ch. 3 - Balance sheet preparation LO32, LO33 The...Ch. 3 - Balance sheet; Current versus long-term...Ch. 3 - Prob. 3.7ECh. 3 - Prob. 3.8ECh. 3 - Balance sheet preparation LO32, LO33 The...Ch. 3 - Financial statement disclosures LO34 The...Ch. 3 - Prob. 3.11ECh. 3 - Prob. 3.12ECh. 3 - Prob. 3.13ECh. 3 - FASB codification research LO32, LO34 Access the...Ch. 3 - Prob. 3.15ECh. 3 - Prob. 3.16ECh. 3 - Prob. 3.17ECh. 3 - Calculating ratios; solve for unknowns LO38 The...Ch. 3 - Prob. 3.19ECh. 3 - Effect of management decisions on ratios LO38...Ch. 3 - Prob. 3.21ECh. 3 - Prob. 3.22ECh. 3 - Balance sheet preparation LO32, LO33 Presented...Ch. 3 - Balance sheet preparation; missing elements LO32,...Ch. 3 - Balance sheet preparation LO32, LO33 The...Ch. 3 - Balance sheet preparation LO32, LO33 The...Ch. 3 - Balance sheet preparation LO32, LO33 The...Ch. 3 - Prob. 3.6PCh. 3 - Balance sheet preparation; errors LO32, LO33 The...Ch. 3 - Balance sheet; errors; missing amounts LO32, LO33...Ch. 3 - Balance sheet preparation LO32 , LO33 Presented...Ch. 3 - Prob. 3.10PCh. 3 - Communication Case 31 Current versus long-term...Ch. 3 - Analysis Case 32 Current versus long- term...Ch. 3 - Prob. 3.4BYPCh. 3 - Judgment Case 35 Balance sheet; errors LO32...Ch. 3 - Prob. 3.6BYPCh. 3 - Real World Case 37 Balance sheet and significant...Ch. 3 - Judgment Case 38 Post fiscal year-end e vents ...Ch. 3 - Prob. 3.9BYPCh. 3 - Prob. 3.10BYPCh. 3 - Prob. 3.11BYPCh. 3 - Analysis Case 314 Balance sheet information LO32...Ch. 3 - Prob. 3.15BYPCh. 3 - Ethics Case 316 Segment reporting Appendix 3 You...Ch. 3 - Prob. 1CCTC
Knowledge Booster
Similar questions
- IFRS Activity 2 The following is a recent consolidated statement of financial position on December 31 of a recent year for LVMH, a French company that markets the Louis Vuitton and Mot Hennessy brands: a. Identify presentation differences between the balance sheet of LVMH and a balance sheet prepared under U.S. GAAP. Use the Mornin Joe balance sheet (Exhibit 2) as an example of a U.S. GAAP balance sheet. (Ignore minority interests and cumulative translation adjustment.) b. Compare the terms used in this balance sheet with the terms used by Mornin Joe (Exhibit 2), using the table that follows: c. What does the Revaluation reserves in the Equity section of the balance sheet represent?arrow_forwardEffect of Industry Characteristics on Financial Statement Relations: A Global Perspective. Effective financial statement analysis requires an understanding of a firms economic characteristics. The relations between various financial statement items provide evidence of many of these economic characteristics. Exhibit 1.24 (pages 6667) presents common-size condensed balance sheets and income statements for 12 firms in different industries. These common-size balance sheets and income statements express various items as a percentage of operating revenues. (That is, the statement divides all amounts by operating revenues for the year.) A dash for a particular financial statement item does not necessarily mean the amount is zero. It merely indicates that the amount is not sufficiently large for the firm to disclose it. A list of the 12 companies, the country of their headquarters, and a brief description of their activities follow. A. Accor (France): Worlds largest hotel group, operating hotels under the names of Sofitel, Novotel, Motel 6, and others. Accor has grown in recent years by acquiring established hotel chains. B. Carrefour (France): Operates grocery supermarkets and hypermarkets in Europe, Latin America, and Asia. C. Deutsche Telekom (Germany): Europes largest provider of wired and wireless telecommunication services. The telecommunications industry has experienced increased deregulation in recent years. D. E.ON AG (Germany): One of the major public utility companies in Europe and the worlds largest privately owned energy service provider. E. Fortis (Netherlands): Offers insurance and banking services. Operating revenues include insurance premiums received, investment income, and interest revenue on loans. Operating expenses include amounts actually paid or amounts it expects to pay in the future on insurance coverage outstanding during the year. F. Interpublic Group (U.S.): Creates advertising copy for clients. Interpublic purchases advertising time and space from various media and sells it to clients. Operating revenues represent the commissions or fees earned for creating advertising copy and selling media time and space. Operating expenses include employee compensation. G. Marks Spencer (U.K.): Operates department stores in England and other retail stores in Europe and the United States. Offers its own credit card for customers purchases. H. Nestl (Switzerland): Worlds largest food processor, offering prepared foods, coffees, milk-based products, and mineral waters. I. Roche Holding (Switzerland): Creates, manufactures, and distributes a wide variety of prescription drugs. J. Sumitomo Metal (Japan): Manufacturer and seller of steel sheets and plates and other construction materials. K. Sun Microsystems (U.S.): Designs, manufactures, and sells workstations and servers used to maintain integrated computer networks. Sun outsources the manufacture of many of its computer components. L. Toyota Motor (Japan): Manufactures automobiles and offers financing services to its customers. REQUIRED Use the ratios to match the companies in Exhibit 1.24 with the firms listed above.arrow_forwardNeed an answer for question B (i ii iii) (b) Obtain the most recent annual reports for TWO FTSE 100 companies of your choice (NOTE: you need to make sure the companies chosen to have more than one operating segment and thus have meaningful segment notes for analysis). Examine the segmental disclosures provided in the segment notes of the annual reports by the selected two companies and comment on the following:i. Based on extracts from the segment notes,• how much and what segmental information is provided in the segment notes?• discuss whether the companies are in compliance with the relevant accounting standard, and• discuss the similarities and differences between their disclosure practices. ii. Comment on whether the information is useful and sufficient to allow shareholders to make informed investment decisions iii. Discuss the implications of your analysis and findings, such as policy implications.arrow_forward
- 11. A company is issuing its comparative financial statements for years 2021 and 2022. If the company is required to issue an additional statement of financial position, such statement should be dated a. as of Jan. 1, 2021 b. as of Dec. 31, 2021 c. as of Dec. 31, 2022 d. as of Jan. 1, 2022arrow_forwardNeed an answer for question B (i ii iii) (b) Obtain the most recent annual reports for TWO FTSE 100 companies of your choice (NOTE: you need to make sure the companies chosen have more than one operational segment and thus have meaningful segment notes for analysis). Examine the segmental disclosures provided in the segment notes of the annual reports by the selected two companies and comment on the following:i. Based on extracts from the segment notes,• how much and what segmental information is provided in the segment notes?• discuss whether the companies are in compliance with the relevant accounting standard, and• discuss the similarities and differences between their disclosure practices. ii. Comment on whether the information is useful and sufficient to allow shareholders to make informed investment decisions iii. Discuss the implications of your analysis and findings, such as policy implications.arrow_forwardMULTIPLE CHOICE QUESTIONS: (A1&D3) General-purpose financial statements are the product of financial accounting. managerial accounting. both financial and managerial accounting. neither financial nor managerial accounting. Users of financial reports include all of the following except creditors. government agencies. unions. All of these are users. The purpose of the International Accounting Standards Board is to issue enforceable standards which regulate the financial accounting and reporting of multinational corporations. develop a uniform currency in which the financial transactions of companies through-out the world would be measured. promote uniform accounting standards among countries of the world. arbitrate accounting disputes between auditors and international companiesarrow_forward
- Disclosures for major customer shall be provided if revenues from transactions with a single customer amount toA. 10% or more of the entity’s external revenues.B. 10% or more of the entity’s external and internal revenuesarrow_forwardRead and summarise the following standards in not more than 2 pages for each standard. 1. IFRS 3 Business Combinations2. IFRS 10 Consolidated Financial Statements 3. IAS 27 Separate Financial Statements 4. IAS 28 Investment in Associates 5. IFRS 11 Joint Arrangementsarrow_forwardPROBLEM True (t) or False (f) _____ Currently, both U.S. GAAP and the International Financial Reporting Standars are acceptable for international use. _____ The AICPA's Code of Professional Conduct requires that members prepare financial statements in accordance with generally accepted accotungin principles. _____ Companies consider only quantitative factors in determining whether an item is material. _____ Financial statements are the principal means through which financial information is communicated to those outside an enterprise. _____ The matching principle states that debits must equal credits in each transaction. _____ The income statement is useful for helping to assess the risk or uncertainty of achieving future flows. _____ Revenues, gains, and distributions to owners all increase equity. _____ The balance sheet omits many items that are of financial value to the business but cannot be recorded objectivelty. _____ A strength of the income statement as compared to the…arrow_forward
- 7. The notes to financial statements of an entity shallI. Present information about the basis of preparation of the financial statements and the specific accounting policies used.II. Disclose the information required by Philippine Financial Reporting Standards that is not presented elsewhere in the financial statements.III. Provide additional information which is not presented on the face of the financial statements but that is necessary for a fair presentation.a. I , II and IIIb. I and II onlyc. I and III onlyd. I only8. The summary of accounting policies section of the notes to financial statements shall describea. Only the measurement basis used in preparing the financial statementsb. Only the specific accounting policies followed by the entityc. Both the measurement basis and accounting policies followedd. Nature of the entity’s operations and its principal activities9. An entity is required to disclose nonfinancial information. Which is not embraced in this disclosure?a. A…arrow_forwardMultiple choice 1. ABC Co. completes the draft of its December 31, 20x1 year-end financial statements on January 31, 20x2. On March 1, 20x2. the management of ABC Co. authorizes the financial statements for issue its supervisory board. The supervisory board is made up solely of non-executives and includes representatives of employees and other outside interests. The supervisory board approves the financial statements on March 10, 20x2. The financial statements are made available to shareholders and others on March 14, 20x2. The shareholders approve the financial statements at their annual meeting on March 23, 20x2 and the financial statements are then filed with a regulatory body on April 1, 20x2. For purposes of PAS 10, what is the date of authorization of the financial statements? a. March 1, 20x2 b. March 10, 20x2 c. March 14, 20x2 d. March 23, 20x2 2. According to PAS 10, these are events that provide evidence of conditions that existed at the end of the reporting period. a.…arrow_forwardIFRS 10 Consolidated Financial Statements sets out how to determine whether one entity has control over another entity. Which of the following statements is in accordance with either the IFRS 10 definition of control or with the guidance prescribed to help identify whether control exists over another entity? a. The investor must be represented on the board of directors or governing body of the other entity. b. The investor must have greater than 50 per cent of the voting rights in the other entity. c. The investor must be the only party that receives variable returns from the other entity. d. The investor must have existing rights that give it the current ability to direct relevant activities of the other entity.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage LearningFinancial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
- Accounting (Text Only)AccountingISBN:9781285743615Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage LearningCorporate Financial AccountingAccountingISBN:9781305653535Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage LearningFinancial Reporting, Financial Statement Analysis...FinanceISBN:9781285190907Author:James M. Wahlen, Stephen P. Baginski, Mark BradshawPublisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Financial Accounting
Accounting
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Accounting (Text Only)
Accounting
ISBN:9781285743615
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Corporate Financial Accounting
Accounting
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Financial Reporting, Financial Statement Analysis...
Finance
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:Cengage Learning