| Ruckman‚ Inc.: Converting from U.S. GAAP to IFRS | ACTG 4240 – Assignment #4 | | Fannie Fang‚ Yingqi Gu‚ Ya Wang | 1/24/2013 | | Ruckman Part I Solutions Page 1. For each of the 16 items listed below‚ briefly describe the difference in GAAP treatment and IFRS treatment. Just start with this form and type in your responses in the appropriate cells. You don’t need to give too much detail‚ just enough so your client can tell the difference. 2. In the “Needed to Convert
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would be allocated for the Algerine War due to the possibility of the ships being in the dockyard rather than in full service. Jefferson was simply allocating the costs of the war in terms of accounting allocations per asset capitalization and depreciation. 3) Evaluate Jefferson’s reasoning in his 1822 letter. Do you agree with his logic? This letter does not specifically identify the cost of building the fleet‚ but it does compare the construction cost to the cost of maintaining the fleet
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omissions of previous years but it does not include correction of accounting estimates made in earlier years. 5. AS 6: Depreciation Accounting- * It states the amount of depreciation of some assets to be charged. It is calculated using the Straight Line Method‚ Written down Value or any other method carefully selected. When the method of calculating depreciation is changed it must be applied to all previous years and deficiency or surplus due to change must be adjusted in the profit and
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controller’s bonus is based on the next income. It is the controller’s belief that the switch in inventory methods would increase the net income of the company. What are the differences between the LIFO and FIFO methods? D2: A variety of depreciation methods are used to allocate the cost of an asset to all of the accounting periods benefited by the use of the asset. Your client has just purchased a piece of equipm... Follow the link Now for full guide - https://bitly.com/1oJLnk3 When
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from contract manufacturers less incremental Stryker manufacturing costs Operating income from project less architect and engineering fees pre-tax income less taxes at 36% After-tax income add back Building depreciation add back Equipment depreciation add back It & other equipment depreciation Subtotal plus NCW Savings Subtotal Cash Flow Terminal Value‚ at book value Hurdle rate Discount factor at 15% PV of Cash Flows Sum‚ PV of Cash Flows & Terminal Value (BV Less 3 Initial Investments: 1. Building
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$13‚980; depreciation expenses = $2‚370; interest expense = $345; dividends paid = $400. At the beginning of the year‚ net fixed assets were $13‚800‚ current assets were $2‚940 and current liabilities were $2‚070. At the end of the year‚ net fixed assets were $16‚340‚ current assets were $3‚280‚ and current liabilities were $2‚160. The tax rate for 2010 was 35 percent. a. What is net income for 2010? Net income = Revenue – Expenses = Net sales – Cost of goods sold – Depreciation – Interest
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property‚ plant and equipment‚ the amount will be carried at its cost less any accumulated depreciation and ant accumulated impairment losses. However under the Revaluation model‚ after recognition of an item of property‚ plant and equipment whose fair value can be measured reliably shall be carried at a revaluated amount‚ being it’s fair value at the dated of the revaluation less any subsequent accumulated depreciation and accumulated impairment losses. It also states that revaluation shall be done regularly
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What is a rights issue? Distinguish between a renounceable and a non-renounceable rights issue. How would a company account for such issues? A rights issue is an issue of new shares to existing shareholders whereby they are given the right to purchase additional shares in proportion to their current shareholdings. Usually the issue price is set below the current market price of the company’s shares. A renounceable rights issue allows the shareholder to take up the rights issue‚ let it lapse
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calculate the corporate taxes is different compared to that of the production director’s. The pre-tax profits of the two approaches are different which lead to different after-tax profits. The methods for depreciation are different. That is： 1. Their depreciation methods are different. Depreciation is the reduction in the book value of an asset due to usage
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[pic] Click www.ondix.com to visit our student-to-student file sharing network. REVIEW OF FACTS Rock Creek Golf Club is a public golf course owned by a private company and managed by Lee Jeffries. The case entails a debate about the golf carts used to take players around the course instead of walking around. The carts they already owned were old and there was a need for new golf carts. Approached by two salesman‚ Lee Jeffries was forced to chose to make a deal with one of them. Salesman
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