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B. As on 31st March, 2021 the company has receivables account of its exports in terms of US Dollars. The rate of US Dollar on 20th May, 2021 has reduced by 20%, causing a substantial loss to the company. What are the matters to be stated in this regard in the Annual Report for 2020-21 ?
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- 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 financial statements. Ignore income taxes for given problem. Tapatio S.A. de C.V. acquired a new piece of manufacturing equipment on January 1, 2016, for a cash price of 500,000 pesos. The equipment was expected to have a useful life of 10 years and no residual value, and is being depreciated on a straight-line basis. On January 1, 2017, the equipment was appraised and determined to have a fair value of 540,000 pesos, zero salvage value, and a remaining useful life of 9 years. Tapatio uses the revaluation model in IAS 16 to measure equipment subsequent to acquisition. Any revaluation surplus will be recycled to retained earnings when the equipment is disposed of.a. Determine the appropriate accounting for this equipment for the years ending December 31, 2017, and December 31, 2018, under (1) IFRS and (2) U.S. GAAP. b. Prepare the…Assume that a U.S.-based company is issuing securities to foreign investors who require financial statements prepared in accordance with IFRS. Thus, adjustments to convert from U.S. GAAP to IFRS must be made. Ignore income taxes for given problem. Hirsch Company acquired equipment at the beginning of 2017 at a cost of $135,000. The equipment has a five-year life with no expected salvage value and is depreciated on a straight-line basis. At December 31, 2017, Hirsch compiled the following information related to this equipment: Expected future cash flows from use of the equipment . . . . . . . . $116,000Present value of expected future cash flows from use of the equipment . . . . . . . . . . . 100,000Fair value (selling price less costs to dispose) . . . . . . . . . . . . . . . . 96,600 a. Determine the appropriate accounting for this equipment for the years ending December 31, 2017, and December 31, 2018, under (1) U.S. GAAP and (2) IFRS.b. Prepare the entry(ies) that Hirsch would…Quadros Inc., a Portugese firm was acquired by a U.S. company on January 1, 2021. Selected account balances are available for the year ended December 31, 2022, and are stated in euro, the local currency. Sales Euro 400,000 20,000 90,000 Inventory (bought on February 1, 2022) Equipment (bought on January 1, 2021) Dividends (paid on September 1, 2022) Accumulated depreciation equipment Depreciation expense- equipment 20,000 45,000 9,000 Relevant exchange rates are given below: $.91 93 January 1, 2021 January 1, 2022 February 1, 2022 September 1, 2022 94 December 31, 2022 Weighted Average 2022 95 Assume the functional currency is the euro, compute the restated amount for sales for 2022. Ⓒa $364,000 Ob $372,000 Oc $380,000 Od $404,000 97 1.01
- Problem 10-26 (Algo) (LO 10-3) Sullivan's Island Company began operating a subsidiary in a foreign country on January 1, 2020, by investing capital in the amount of 68,000 pounds. The subsidiary immediately borrowed 160,000 pounds on a five-year note with 8 percent interest payable annually beginning on January 1, 2021. The subsidiary then purchased for 228,000 pounds a building that had a 10-year expected life and no salvage value and is to be depreciated using the straight-line method. Also on January 1, 2020, the subsidiary rented the building for three years to a group of local attorneys for 8,200 pounds per month. By year-end, rent payments totaling 82,000 pounds had been received, and 16,400 pounds was in accounts receivable. On October 1, 2020, 2,800 pounds was paid for a repair made to the building. The subsidiary transferred a cash dividend of 11,900 pounds back to Sullivan's Island Company on December 31, 2020. The functional currency for the subsidiary is the pound. Currency…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 financial statements. Ignore income taxes for given problem. Mikkeli OY acquired a brand name with an indefinite life in 2015 for 40,000 markkas. At December 31, 2017, the brand name could be sold for 35,000 markkas, with zero costs to sell. Expected cash flows from the continued use of the brand are 42,000 markkas, and the present value of this amount is 34,000 markkas.a. Determine the appropriate accounting for this brand name 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.Seoul Company, the head office of a network of multinational companies, had the following information for 2020: Depreciation expense Increase in receivables Increase in other current assets P 1,408,885 4,208 463,407 580,195 Increase in payables Additional property, plant and equipment purchased during the year, paid in cash Long-term notes payable 209,920 15,510,698 17,931,234 Net loss Cash at the beginning of the year amounted to P2,204,671. 1. How much is the net cash from operating activities? 2. How much is the net cash from investing activities? 3. How much is the net cash from financing activities? How much is the cash balance as at December 31, 4. 2020?
- Assume that a U.S.-based company is issuing securities to foreign investors who require financial statements prepared in accordance with IFRS. Thus, adjustments to convert from U.S. GAAP to IFRS must be made. Ignore income taxes for given problem. Parnell Company acquired construction equipment on January 1, 2017, at a cost of $78,400. The equipment was expected to have a useful life of six years and a residual value of $10,000 and is being depreciated on a straight-line basis. On January 1, 2018, the equipment was appraised and determined to have a fair value of $74,500, a salvage value of $10,000, and a remaining useful life of five years. In measuring property, plant, and equipment subsequent to acquisition under IFRS, Parnell would opt to use the revaluation model in IAS 16.a. Determine the appropriate accounting for this equipment for the years ending December 31, 2017, and December 31, 2018, under (1) U.S. GAAP and (2) IFRS.b. Prepare the entry(ies) that Parnell would make on the…Assume that a U.S.-based company is issuing securities to foreign investors who require financial statements prepared in accordance with IFRS. Thus, adjustments to convert from U.S. GAAP to IFRS must be made. Ignore income taxes for given problem. Trecek Corporation incurs research and development costs of $650,000 in 2017, 30 percent of which relate to development activities subsequent to IAS 36 criteria having been met that indicate an intangible asset has been created. The newly developed product is brought to market in January 2018 and is expected to generate sales revenue for 10 years.a. Determine the appropriate accounting for research and development costs for the years ending December 31, 2017, and December 31, 2018, under (1) U.S. GAAP and (2) IFRS.b. Prepare the entry(ies) that Trecek would make on the December 31, 2017, and December 31, 2018, conversion worksheets to convert U.S. GAAP balances to IFRS.1. block 2 2018 In relation to the reference period t1, Schmalisch GmbH shows an operating result of +88 T€, a financial result of -19 T€ and a tax result of -31 T€. All results were determined based on commercial law regulations. In addition, you can see from the information in the appendix that at t1 the operating result was charged with an accidental uninsured cargo of €18k. Let us assume that the internal control system in the company will ensure in the future that all cargoes are insured! How high is the annual surplus under commercial law at t1 and how high is the sustainable annual output at t1? Present your calculations in an understandable way Why does it make sense to determine a sustainable annual result?
- es Rolfe Company (a US-based company) has a subsidiary in Nigeria where the local currency unit is the naira (NGN). On December 31, 2019, the subsidiary had the following balance sheet (amounts are in thousands [000s] Cash Inventory Land Building Accumulated depreciation NGN 16,820 12, 200 4,220 42,200 (21,100) NGN 54,340 2020 Feb. 1 Paid 8,220,000 NGN on the note payable. May 1 Sold entire inventory for 18,200,000 NGN on accou The subsidiary acquired the inventory on August 1, 2019, and the land and building in 2013. It issued the common stock in 2011. During 2020, the following transactions took place June 1 Sold land for 6,220,000 NGN cash. Aug. 1 Collected all accounts receivable. Sept. 1 Signed long-term note to receive 8,220,000 NGN cash. Oct. 1 Bought inventory for 20,220,000 NGN cash. 2011 2013 Nov. 1 Bought land for 3,220,008 NGN on account. Dec. 1 Declared and paid 3,220,000 NON cash dividend to parent. Dec.31 Recorded depreciation for the entire year of 2,110,000 NON. The US…QUESTION 5 Below are relevant extracts from Pitzer Bhd's financial statements for the financial year ended 31 December 2020 and 31 December 2021: 2020 (RM) 2021 (RM) ASSETS: Freehold land Plant and machinery at cost Inventories Bank Tax recoverable 386,000 182,000 44,000 13,000 6,000 20,000 86,400 737,400 477,000 212,000 52,000 55,000 Fixed deposits Account receivables 27,000 97,200 920,200 LIABILITIES & EQUITIES Ordinary Share Capital General reserve Retained earnings 5% Bank loan Bank overdraft Account payables Tax payable Accumulated depreciation of Plant & Machinery 264,000 112,420 36,400 169,400 13,400 69,780 364,000 112,420 135,280 135,400 7,600 62,340 9,960 93,200 920,200 72,000 737,400The adjusted account balances of UTV Corp. for the year ended December 31, 2020 are as follows: Cash and cash equivalents P400,000 Bank overdraft 100,000 Accounts receivable 900,000 Allowance for doubtful accounts 40,000 Raw materials 560,000 Goods in process 600,000 Finished goods 1,400,000 Financial assets at fair value through other comprehensive income 2,500,000 Land, at fair market value 12/31/20 1,000,000 Building 6,000,000 Accumulated depreciation – building 1,600,000 Plant and equipment 2,400,000 Accumulated depreciation – plant and equipment 400,000 Patent 800,000 Goodwill, recognized in Jan. 2019 thru a business combination 1,400,000 Note payable, bank – due June 30, 2021 1,300,000 Note payable, bank – due June 30, 2022 2,100,000 Accounts payable 1,000,000 Employee benefit provisions 180,000 Warranty liabilities 80,000 Income tax payable 120,000 Deferred tax liability 280,000 Accumulated profits, January 1, 2020 3,600,000 Revaluation surplus on Land, January 1, 2020 360,000…