Problems 18–25 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 each 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.

Problems 18–25 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 each problem.Surat Limited paid cash to acquire an aircraft on January 1, 2017, at a cost of 30,000,000 rupees. The aircraft has an estimated useful life of 40 years and no salvage value. The company has deter-mined that the aircraft is composed of three significant components with the following original costs (in rupees) and estimated useful lives:The U.S. parent of Surat does not depreciate assets on a component basis, but instead depreciates assets over their estimated useful life as a whole.a. Determine the appropriate accounting for this aircraft for the years ending December 31, 2017, and December 31, 2018, 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, and Decem­ber 31, 2018, conversion worksheets…

None

QUESTION 1 MITISHAMBA Co., a USA-based company specializing in the supply of medical equipment to both the USA and Europe, finds itself on November 30, 2023, engaging in a recently finalized deal with a Swiss customer. The agreement involves the sale of CHF12.3 million worth of medical equipment, with the customer scheduled to make payment on May 31, 2024. To mitigate the foreign exchange risk associated with this transaction, MITISHAMBA Co.'s Treasury Department aims to employ traded futures or options to the fullest extent possible. Any portion of the transaction value not covered by a futures or options contract will be hedged using the forward market. Exchange rates (quoted as US$/CHF 1) Spot Three months forward Six months forward Current futures (contract size CHF 125,000, futures price quoted as US$ per CHF1) Futures price: December 1.0318 1.0345 1.0369 1.0292-1.0309 1.0327-1.0347 1.0358-1.0380 March June Page 1 of 2 Currency options Contract size CHF 125.000 Exercise price…