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Study Resources (Accounting)

30) Prawn Corporation owns 80 percent of the outstanding voting shares of Shrimp Corporation, having acquired its interest January 1, 20X3 for $100,000. At the time of the acquisition, Shrimp Corporation had a shareholder's equity totalling $150, made up for retained earnings of $30,000 and common shares of $20,000. The.
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34) On December 31, 20X5, Space Co. purchased 100% of the outstanding common shares of Shuttle Ltd. for $1,200,000 in shares and $200,000 in cash. The statements of financial position of Space and Shuttle immediately before the acquisition and issuance of the notes payable were as follows (in 000s):        Space   .
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21) Which translation method should be used for the following subsidiaries? A) Extension of Parent Company Autonomous Temporal Temporal B) Extension of Parent Company Autonomous Temporal Current C) Extension of Parent Company Autonomous Current Current D) Extension of Parent Company Autonomous Current Temporal 22) For publicly-accountable companies, with foreign operations in countries with a hyper-inflationary economy, what should be done prior to translation? A) The subsidiary's financial statements.
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32) The Alfred Company has operations in several international regions. These regions reported the following information: SegmentRevenuesProfitAssets A3,500600 9,000 B4,000300 6,000 C1,100<200>2,400 D2,800300 10,400 E1,400100 2,000 12,8001,100 29,800 Which of these segments are reportable? Fully document all supporting calculations. 33) Ravens Inc. sells office furniture including desks, chairs, partitioning walls and office supplies in more than 6 countries. The.
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21) With respect to interim financial statements, which of the following is not dictated by IFRS? A) Content B) Identification of recognition principles C) Identification of measurement principles D) Frequency of preparation 22) Which of the following is not included among requirements for interim financial reports for public companies? A) Statement of comprehensive income B) Statement of.
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44) Helvetia Corp., a Swiss firm, bought merchandise from Bouchard Company of Quebec on December 15, 20X7 for 20,000 CHF, payable on January 14, 20X8. Bouchard and Helvetia both close their books on December 31. The 20,000 CHF was paid on January 14, 20X8. The exchange rates for CHF1 were: December.
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32) On December 31, 20X5, Space Co. purchased 100% of the outstanding common shares of Shuttle Ltd. for $1,200,000 in shares and $200,000 in cash. The statements of financial position of Space and Shuttle immediately before the acquisition and issuance of the notes payable were as follows (in 000s):        Space   .
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11) The following information on sales is available for the company's three operating segments: Segment International Sales External Sales Total Sales A $60,000 $300,000 $360,000 B 200,000 10,000 210,000 C    1,500,000   1,500,000 $260,000 $1,810,000 $2,070,000 Which of the operating segments must be reported separately? A) Only Segment C B) Only Segments B and C C) Only Segments A and C D) Segments A, B and C 12) The following information on sales.
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11) What exchange rate is usually used to report non-monetary assets on the statement of financial position? A) Historical rate B) Spot rate C) Closing rate D) Fair value 12) What is a currency swap an example of? A) A futures contract B) A call option C) A derivative instrument D) A forward contract 13) Which of the following list.
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33) On December 31, 20X6, the statements of financial position of the Power Company and the Pro Company are as follows (amounts in thousands): PowerProPro (FV) Cash$   500$   800 Accounts Receivable1,5001,700 Inventories2,0001,500 Plant & Equipment (net)2,5004,000$4,300 Total Assets$6,500$8,000 Current liabilities$   700$   400 Long term liabilities800500$   400 Common shares2,5001,000 Contributed surplus8001,500 Retained earnings1,7004,600 Total Equities$6,500$8,000 Power Company has 100,000 shares of common stock outstanding..
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39) Under IAS 34, companies generally should use the discrete approach for interim reporting. However, IAS 34 outlines exceptions to this rule. Explain what these exceptions are and how they are treated in interim reports. What argument does IAS 34 provide for this treatment? 40) Sharst Link Company (SLC) is a.
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  1) On December 31, 20X2, Bates Ltd. purchased 75% of the outstanding common shares of Ted Ltd. for $1,050,000 in cash. The balance sheets of Bates and Ted immediately before the acquisition were as follows (in 000s): Bates Ted Book Value Fair Value Book Value Fair Value Cash $160 $160 $100 $100 Accounts receivable 420 400 280 280 Inventory 600 680 300 350 Capital assets 1,820 2,000 1,320 1,620 $3000 $2,000 Current liabilities $280 $280 $160 1$80 Long-term liabilities 1,100 1,100 900 900 Common shares 500 500 Retained earnings 1,120 440 $3,000 $2,000 At the time of acquisition, Ted's capital assets.
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30) On December 31, 20X5, Paper Co. purchased 60% of the outstanding common shares of Book Ltd. for $760,000 in shares and $200,000 in cash. The statements of financial position of Paper and Book immediately before the acquisition and issuance of the notes payable were as follows (in 000s):         Paper       .
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42) Helvetia Corp., a Swiss firm, bought merchandise from Bouchard Company of Quebec on December 15, 20X7 for 20,000 CHF, payable on January 14, 20X8. Bouchard and Helvetia both close their books on December 31. The 20,000 CHF was paid on January 14, 20X8. The exchange rates for CHF1 were: December.
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32) On December 31, 20X5, Paper Co. purchased 60% of the outstanding common shares of Book Ltd. for $760,000 in shares and $200,000 in cash. The statements of financial position of Paper and Book immediately before the acquisition and issuance of the notes payable were as follows (in 000s):          Paper        .
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29) Prawn Corporation owns 80 percent of the outstanding voting shares of Shrimp Corporation, having acquired its interest January 1, 20X3 for $100,000. At the time of the acquisition, Shrimp Corporation had a shareholder's equity totalling $150, made up for retained earnings of $30,000 and common shares of $20,000. The.
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  1) Under the temporal method, which of the following items would be translated using the year-end spot rate? A) Inventory B) Land C) Long-term debentures D) Building 2) Under the temporal method, which of the following items would be translated using the historical rate? A) Inventory B) Accounts receivable C) Accounts payable D) Long-term debentures 3) Which of the following.
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  1) Which of the following organizations does IFRS 8 not apply to? A) Banks B) Mutual life insurance companies C) Private companies D) Cooperative business enterprises 2) Which of the following is not a requirement in defining an operating segment? A) The particular component must be generating revenue. B) The particular component's operating results must be reviewed.
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35) Explain what an "operating segment" is. For each of the examples below, determine what operating segments the company has and why? a.A beverage company sells beer, wine and bottled water. The beer and wine are sold through liquor store outlets and directly to restaurants. The bottled water is sold to retailers. b.A.
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11) What is the risk of an apparent gain or loss arising from the restatement of financial statements prepared in one currency to another currency called? A) Transaction exposure B) Accounting exposure C) Economic exposure D) Restatement exposure 12) Cho Co., a public Canadian corporation has a subsidiary in South Africa that supplies half of.
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11) In preparing consolidation working papers, why is it necessary to eliminate intercompany profits? A) To nullify the effect of intercompany transactions on consolidated financial statements B) To defer intercompany profits until the following year C) To allocate unrealized profits until the following year D) To reduce consolidated income 12) Taguchi Ltd. owns 80% of.
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48) Under IFRS, a hedging relationship qualifies for special hedge accounting rules, only if it meets five conditions. Required: Explain the five conditions that must be met for a derivative to qualify for special hedge accounting. Identify what qualifies as a "hedged item". Identify what qualifies as a "hedging instrument". Outline the.
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46) Beauty Care Limited (BCL) manufactures and distributes leather furniture to various companies in Europe. On April 2, 20X6, BCL entered into a sales contract with a company in Germany to sell 1,000 sofas. The contract price is €2,000 per sofa. Five hundred sofas are to be delivered in May.
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