TEST BANK CHAPTER 1 Intercorporate Investments: An Overview MULTIPLE CHOICE Use the following information on a company’s investments in equity securities to answer questions 1- 4 below. The company’s accounting year ends December 31. Investment Date of acquisition Cost Fair value 12/31/13 Date sold Selling price Ajax Company stock 6/20/13 $40‚000 $35‚000 2/10/14 $32‚000 Bril Corporation stock 5/1/13 20‚000 N/A 11/15/13 26‚000 Coy Company stock 8/2/13 16‚000 16‚500 1/17/14 23‚000
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The Concept of Prudence: dead or alive? FEE Conference on Corporate Reporting of the Future‚ Brussels‚ Belgium‚ Tuesday 18 September 2012 Hans Hoogervorst‚ Chairman of the IASB ______________________________________________________________ Ladies and gentlemen‚ I am grateful to the Federation of European Accountants for the opportunity to participate in today’s conference. As has often been said‚ Europe kickstarted the move towards global accounting standards when it and others adopted IFRSs
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When a bargain purchase arises‚ an acquirer must reassess whether it has correctly identified and measured all of the components of the business combination. If it truly is a bargain purchase the goodwill is reduced to zero and any gain remaining is recognized in the income statement. Under Canadian GAAP‚ the timeframe for adjustments to the purchase equation subsequent to the acquisition date is consistent with the 12month window provided in IFRS
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Corporate Reporting Paper P2 (International) Course Notes ACP2CN07 (INT) P2 Corporate Reporting (International) Study Programme 1 2 3 4 5 6 Page Introduction to the paper and the course............................................................................................................... (ii) The financial reporting framework .............................................................................................................. 1.1 Professional and ethical duty of the accountant
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What are the reasons why Enron collapsed? * Investments Enron dealt in energy. According to Infinite Energy‚ the first and main cause of Enron’s collapse was failed investments. Enron invested money in fiber-optic networks‚ a power plant in India and water distribution in the United Kingdom‚ to name a few. While a company the size of Enron could afford occasional losses‚ the mounting‚ failed investments added up and created a plethora of debt. * Hidden Losses Infinite Energy states that
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must be adhered. Valuation of goodwill The current valuation of goodwill from the bottling machine is inappropriately reported. Under IFRS 3‚ all identifiable assets and liabilities are to be recognized at fair value. By not recognizing at fair value‚ the machine will be understated‚ goodwill will be overstated‚ and income will be overstated due to lower depreciation on the machine. Adjustment required: the machine should be reported at fair value and goodwill should be calculated by subtracting
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fascination with the group and how it goes beyond the norm because she truly believes that each of the girl’s life depends on her teachings and life lessons. Primavera demonstrates irony with its failure to fulfill its primary purpose to represent goodwill as the division between the materialistic and spiritualistic side of humanity doing so with a Greek goddess who is a symbol of love‚ beauty‚ and infatuation. The irony found in Botticelli’s Primavera seems to be the novel’s foreshadowing that Miss
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Question 1: 2A4-LS12 All of the following are forms of off-balance sheet financing except: Completing a horizontal merger. Creating a special purpose entity. Factoring accounts receivable. Forming a joint venture. The four common techniques used by companies to engage in off-balance sheet financing are; factoring of receivables‚ creating a special purpose entity‚ operating leases and joint ventures. Question 2: 2A4-LS34 Which of the following costs‚ when subtracted from total revenue‚ yields
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Chapter 7 Reflection Paper Financial Accounting Buildings‚ machinery‚ equipment‚ furniture‚ fixtures‚ computers‚ cars and trucks are examples of assets that will last for more than one year‚ but will not last indefinitely. These are some examples of long-lived non-monetary assets. When these assets were acquired‚ the company has made an expenditure. If the company will benefit in the curret period‚ the cost of the goods are expenses. If the benefits are expected in future periods‚ the costs are
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The History And Background Of Tesco Accounting Essay Tesco is one the UKs biggest food supermarket offering a variety of services for food and non-food products which include insurance‚ entertainment‚ electrical goods and many more. It employs over 500‚000 people around the world with over 300‚000 in the UK itself. It has around 3000 stores in the UK and a growing number of stores abroad in countries such as Thailand‚ China‚ Hungary‚ India and the United States. (Tesco website) According to the
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