International Accounting
5th Edition
ISBN: 9781259747984
Author: Doupnik, Timothy S., Finn, Mark T., Gotti, Giorgio
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 2, Problem 9EP
To determine
Prepare the
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
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
b. In-Charge Ltd is a multinational mining group which involved in different operations. You have
been appointed as Auditor to express your opinion on the drafted financial statements for the year
ended 31* May, 2019. The draft financial statements for the year ended 31 March 2019 show the
following:
Income statement Extracts
2019 (draft)
GH¢million
Cost of sales (i)
Operating expenses (ii)
(10.50)
(15.00)
Statement of Financial Position extracts
Fixed Assets (ii) & (iii)
20.00
Additional Information
You inquired from management and the following were revealed to you.
i.
Cost of sales includes purchase of furniture costing GH¢ 500,000 during the year
ii.
Operating expenses included the payment for next year's electricity bills amounting
GH¢ 300,000
ii.
Some of the fixed assets presented in the financial statement were acquired 15 years ago.
Required
As an auditor of In-charge Ltd, consider the use of assertion level with regards to the
information above to obtain audit evidence by…
Siemens AG, a German company, is Europe’s largest engineering and electronics company. The company prepares its financial statements according to IFRS. Required: 1. Use the Internet to locate the most recent financial report for Siemens. The address is www.siemens.com. Locate the significant accounting policies disclosure note. 2. How does the company account for research and development expenditures? Does this policy differ from U.S. GAAP?
Chapter 2 Solutions
International Accounting
Ch. 2 - Prob. 1QCh. 2 - Prob. 2QCh. 2 - 3. How does the relationship between financial...Ch. 2 - 4. Who are the major providers of capital...Ch. 2 - Prob. 5QCh. 2 - According to Gray, how does national culture...Ch. 2 - Prob. 7QCh. 2 - 8. How are the Anglo and less developed Latin...Ch. 2 - Prob. 9QCh. 2 - 5. What are the major problems caused by worldwide...
Ch. 2 - 6. What are the major problems caused by worldwide...Ch. 2 - According to Nobess simplified model of accounting...Ch. 2 - In what way does Nobess simplified model of...Ch. 2 - Prob. 14QCh. 2 - 11. How are the various costs that comprise cost...Ch. 2 - Prob. 16QCh. 2 - Prob. 17QCh. 2 - Prob. 1EPCh. 2 - Prob. 2EPCh. 2 - Using their most recent annual reports, access the...Ch. 2 - 4. Cultural dimension index scores developed by...Ch. 2 - 5. Refer to Nobes’s judgmental classification of...Ch. 2 - Prob. 6EPCh. 2 - Prob. 7EPCh. 2 - 8. Various attempts have been made to reduce the...Ch. 2 - Prob. 9EPCh. 2 - Prob. 1CCh. 2 - Case 2-2
SKD Limited
SKD Limited is a...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- REQUIRED Use the information provided below to calculate the ratios for 2021 (expressed to two decimal places) that would reflect each of the following: The time taken by the company to settle its debts with trade suppliers The amount of debt that the company uses to finance its assets The operational effectiveness of the company before considering interest income,interest expense and company tax. What investors are willing to pay for the shares of the company with due considerationgiven to the profit generated by each share in the company. Comment on the FIVE (5) ratios of Oslo Limited as compared to the industry average provided in the additional information. INFORMATION The information given below was extracted from the books of Oslo Limited: OSLO LIMITED STATEMENT OF COMPREHENSIVE…arrow_forwardEpsilon Golf Company's balance sheet at December 31, 2021 is as follows: (Click the icon to view the balance sheet.) Requirement 1. Perform a vertical analysis of Epsilon Golf Company's balance sheet to determine the component percentages of its assets, liabilities, and stockholders' equity. (Round the percentages to the nearest hundredth percent, X.XX%. Do not enter the % symbol in any of the input fields.) Assets Total current assets Property, plant, and equipment, net Other assets Total assets Liabilities Total current liabilities December 31, 2021 Long-term debt Total liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity $ $ $ $ Amount 42,465 203,775 38,760 285,000 46,455 107,730 154,185 130,815 285,000 % of total % % % % % % % % %arrow_forwardThe following are the balance sheet of ABC ltd. for the years 2020 and 2021. Prepare a comparative Balance sheet and comment on the financial position of the company Liabilities 2020 Equity share 600000 2021 800000 Assets Land Buildings & 2020 370000 2021 270000arrow_forward
- Translated and Remeasured Trial Balances The Thode Company established a wholly-owned subsidiary in Saudi Arabia on January 1, 2016, when the exchange rate was $0.30/riyal (SAR). Of Thode's initial SAR160,000,000 investment, SAR80,000,000 was used to acquire plant assets (ten-year life) and SAR40,000,000 was used to acquire inventory. The remaining amount was initially held as cash by the subsidiary. During 2016, the subsidiary reported net income of SAR16,000,000. Inventory purchases of SAR12,000,000 were made evenly during the year. It paid dividends of SAR8,000,000 on September 30, when the exchange rate was $0.255/SAR. No other transactions occurred between the subsidiary and the parent. The subsidiary's condensed income statement appears below: Sales Cost of goods sold Depreciation expense Other cash expenses Net income SAR68,000,000 (32,000,000)* (8,000,000)** (12,000,000) SAR16,000,000 *Assume a FIFO inventory flow assumption. **Relates solely to plant assets acquired on January…arrow_forwardCompute for the reported net income of GHI Company from its own operation, if the net income of ABC from its own operation for 2024 amounted to P157,500. Do not forget if there is any upstream and downstream.arrow_forwardThe following are the summarised statements of financial position of WWW Ltd, Zonko's Ltd and MoM Ltd as at 31 July 2020: www Ltd Zonko's Ltd МоM Ltd €000 €000 €000 Assets Non-current assets Property, Plant and Equipment 12,830 7,690 5,130 Investment in Zonko's 5,040 1,390 4,490 Investment in MoM Current assets 2,680 1,770 Total assets 23,750 10,370 6,900 Equity and liabilities Equity Ordinary share capital (€1) Retained earnings 10,000 5,000 4,000 7,930 3,210 1,250 Non-current liabilities 1,200 900 2,000 3,820 Current liabilities 960 750 Total equity and liabilities 23,750 10,370 6,900 The following additional notes are available: 1. www Ltd acquired three million of the ordinary shares of Zonko's Ltd on 1 October 2011 when the retained earnings of Zonko's Ltd were €1,800,000. 2. www Ltd acquired 30% of the ordinary shares of MoM Ltd on 1 March 2012 when the retained earnings of MoM Ltd were €500,000. 3. During July 2020 MoM Ltd sold goods to WWW Ltd at invoice value €60,000 on which…arrow_forward
- What four factors must be considered when Measuring income in financial statement Preparation? When a U.S. company operates globally and its Financial statements are to be consolidated With a foreign subsidiary, what must first Нарpen?arrow_forwardAdom Ltd, is a private company in Ghana operating in the manufacturing sector. Below is a Statement of financial position and a summarized statement of income with comparatives for the year ended 31st December 2019. statement of financial position as at 31st December 2019: Non-current assets 2019 GH¢ 2018 GH¢ PPE 200,000 250,000 R &D 40,000 - Total Non-current assets 240,000 250,000 Current assets Available for sale 12,000 20,000 Inventory 70,000 45,000 Trade receivables 30,000 23,000 Cash & cash equivalents 18,000 17,000 Total current assets 130,000 105,000 Total assets 370,000 355,000 Equity Equity share capital (GH¢1 per share) 150,000 100,000 10% preference share capital 50,000 50,000 Retained earnings 60,000 55,000 Total equity 260,000 205,000 Non-current liabilities 10% loan notes 50,000 90,000 12% debentures…arrow_forwardUsing concrete examples, explain how International Accounting Standard 23 might apply to your company's assets.arrow_forward
- Problem No. 5 DAP Company started operation on January 1, 2018 and acquired the following securities: Trading Securities Portfolio Abad Company Aquino Company Lacierda Company Fair value P2,400,000 2,600,000 1,900,000 Fair value FVTOCI Portfolio Coloma Company Soliman Company Villanueva Company P3,050,000 2,725,000 1,875,000 No disposals were made during 2018. The fair values of the investment securities as of December 31, 2018 are as follows: Trading Securities Portfolio Abad Company Aquino Company Lacierda Company Fair value P2,380,000 2,600,000 1,870,000 Page |S/TOCI Portfolio Coloma Company Soliman Company Villanueva Company Fair value P3,070,000 2,737,500 1,871,000 The following additional transactions happened in 2019: On September 1, DAP Company sold its Aquino Company securities for P2,590,000. On October 1, DAP Company exchanged it Soliman Company portfolio for a piece of land. The carrying amount of the land was P1,937,500 an a zonal value of P2,777,500. At the time of…arrow_forwardSiemens AG, a German company, is Europe’s largest engineering and electronics company. The company prepares its financial statements according to IFRS. Required: I need to use the Internet to locate the most recent financial report for Siemens. The address is www.siemens.com. Locate the significant accounting policies disclosure note. How does the company account for research and development expenditures? Does this policy differ from U.S. GAAP?arrow_forwardNestlé S.A., the largest food and beverage company in the world, prepares its financial statements according to International Financial Reporting Standards. Its financial statements include ordinary share capital, translation reserve, and share premium. If Nestlé used U.S. GAAP, what would be the likely account titles for these accounts?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning