Financial Accounting
15th Edition
ISBN: 9781337272124
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Textbook Question
Chapter MJ, Problem 2IFRS
IFRS Activity 2
The following is a recent consolidated
- 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?
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Question 3
Translate the following Balance sheet of XYZ Ltd. Which is an Indian based multinational
company doing business in UK using Current rate, Current/Non-current method, and monetary
non-Monetary and temporal method and show the Cumulative translation Adjustment. You are
required to prepare the Consolidated Balance Sheet under all methods. Assume the Current rate of
exchange INR/GBP as on 31st December 2018 is 94.1041 and Historical exchange rate GBP/INR
as on 1st January 2018 was 0.01063 and average rate is INR/GBP was at 86.2458
Balance sheet of XYZ Ltd as on 31 December 2018.
(Parent)
Amount in INR
Assets
Amount in GBP
cash at bank
7526
624658
Deferred Tax assets
4500
373500
Receivables from debtors
5350
444050
Derivative financial assets
8635
716705
Licences
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Accrued interest
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Translation and Remeasurement Gains and Losses Amcrest France Sarl, located in Paris
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€(15,000)
5,400
Net monetary liabilities, beginning of year.
Net assets, beginning of year..
Transactions during 2020:
Sales....
72,000
59,000
......
Inventory purchases..
Depreciation and amortization
Cost of sales.....
Cash operating expenses..
Dividends declared and paid
New long-term interest borrowings
1,000
61,000
9,500
100
300
Sales, inventory purchases, and cash operating expenses were reported evenly throughout the year.
Exchange rates are as follows ($/€):
Beginning of 2020
Average for 2020
End of 2020
$1.30
1.24
1.20
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Chapter MJ Solutions
Financial Accounting
Ch. MJ - Prob. 1DQCh. MJ - What is the difference between classifying an...Ch. MJ - If a functional expense classification is used for...Ch. MJ - Prob. 4DQCh. MJ - What are two main differences in inventory...Ch. MJ - Prob. 6DQCh. MJ - Prob. 7DQCh. MJ - Prob. 8DQCh. MJ - Prob. 9DQCh. MJ - IFRS Activity 1
Unilever Group is a global company...
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