PUMASA AKO Company and its subsidiaries own the following properties that are accounted for in accordance with international accounting standards: Land held by the parent for undetermined use A vacant building owned by the parent and to be leased out under an operating lease Property held by a subsidiary, a real estate firm, in the ordinary course of business Property held by the parent for use in production Building owned by a subsidiary and for which the subsidiary provides security and maintenance services to the lessees Land leased by the parent to a subsidiary under an operating lease 6,000,000 2,500,000 2,000,000 4,000,000 2,000,000 2,500,000 Property under construction for use as investment property Land held for future factory site Machinery leased out by the parent to an unrelated party under an operating lease 4,000,000 3,500,000 1,000,000 How much is the total investment property that should be reported in the consolidated statement of financial position of PUMASA AKO Company and its subsidiaries?

PUMASA AKO Company and its subsidiaries own the following properties that are accounted for in accordance with international accounting standards: Land held by the parent for undetermined use A vacant building owned by the parent and to be leased out under an operating lease Property held by a subsidiary, a real estate firm, in the ordinary course of business Property held by the parent for use in production Building owned by a subsidiary and for which the subsidiary provides security and maintenance services to the lessees Land leased by the parent to a subsidiary under an operating lease 6,000,000 2,500,000 2,000,000 4,000,000 2,000,000 2,500,000 Property under construction for use as investment property Land held for future factory site Machinery leased out by the parent to an unrelated party under an operating lease 4,000,000 3,500,000 1,000,000 How much is the total investment property that should be reported in the consolidated statement of financial position of PUMASA AKO Company and its subsidiaries?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Company A exchanges equipment with Company B, resulting in a gain for company A. The transaction has commercial substance. Which of the following statements is TRUE regarding this transaction as it related to company A? The entire amount of the gain would be recognized Only a part of the gain would be recognized None of the gain would be recongnized Because the transaction has commercial substance. Company A is in the same economic position as it was before the exchange took place.
Sendelbach Corporation is a U.S.-based organization with operations throughout the world. One of its subsidiaries is headquartered in Toronto. Although this wholly owned company operates primarily in Canada, it engages in some transactions through a branch in Mexico. Therefore, the subsidiary maintains a ledger denominated in Mexican pesos (Ps) and a general ledger in Canadian dollars (C$). As of December 31, 2020, the subsidiary is preparing financial statements in anticipation of consolidation with the U.S. parent corporation. Both ledgers for the subsidiary are as follows: Main Operation—Canada Debit Credit Accounts payable C$ 57,410 Accumulated depreciation 49,000 Buildings and equipment C$ 189,000 Cash 48,000 Common stock 72,000 Cost of goods sold 225,000 Depreciation expense 9,100 Dividends, 4/1/20 41,000 Gain on sale of equipment, 6/1/20 7,200 Inventory 101,000 Notes…
Statement 1: Non-controlling interest in subsidiary's net income is never affected by a gain on the transfer of depreciable asset. Statement 2: When change in the estimated life of depreciable assests occurs at the time of an intercompany sales, the treatment is different than if the change occured while the asset remained on the books of the selling affiliate . Which statement/s is TRUE?
Discuss the related party party disclosure required in the financial statements of Terrier plc only.
How does a parent company determine the appropriate method for translating the financial statements of a foreign subsidiary?
Identify the particular accounting challenges that arise when a foreign subsidiary is consolidated with its parent company's activities in the United States.
Problem 22-1 (IFRS) Classic Company and its subsidiaries own the following properties that are accounted for in accordance with international accounting standards: Land held by the parent for undetermined use 5,000,000 A vacant building owned by the parent and to be leased out under an operating lease Property held by a subsidiary, a real estate firm, in the ordinary course of business Property held by the parent for use in production Building owned by a subsidiary and for which the subsidiary provides security and maintenance services to the lessees Land leased by the parent to a subsidiary under an operating lease 2,500,000 Property under construction for use as investment property Land held for future factory site Machinery leased out by the parent to an unrelated party under an operating lease 1,000,000 Required: 1. Compute the total investment property that should be reported in the consolidated statement of financial position of Classic Company and its subsidiaries. 2. Indicate…
Parent Ltd (Parent) controls a subsidiary Sub Ltd (Sub), in which it owns 70 per cent of the issued capital since 30 June 20X3. The following transactions are relevant for the preparation of the consolidated financial statements for the financial year ending 30 June 20X7. Transaction 1: During the financial year ending 30 June 20X4, Sub sold an item of plant to Parent at a loss. Parent is still using the plant at 30 June 20X7. Transaction 2: Sub paid an interim dividend in August 20X5. Parent is exempt from income tax on dividends received from the subsidiary. Transaction 3: During the financial year ending 30 June 20X7, Parent sold inventory to Sub for a price greater than its cost to Parent. One-third of this inventory is still on hand at 30 June 20X7. Transaction 4: On 1 November 20X6, Parent borrowed $50 000 from Sub at an interest rate of 10 per cent per annum. The interest on the loan is payable every six months starting 1 May 20X7. The loan is still outstanding at 30 June…
a) Discuss the related party disclosures required in the financial statements of Terrier plc only. b) Explain why such disclosures are important to the user of financial statements