Q: On January 1, 2020, Xiamen Company made amendments to its
On January 1, 2020, Xiamen Company made amendments to its defined benefit pension plan that resulted in 60,000 yuan of past service cost. The plan has 5,000 active employees with an average expected r...
See AnswerQ: Mikkeli OY acquired a brand name with an indefinite life in 2021
Mikkeli OY acquired a brand name with an indefinite life in 2021 for 40,000 markkas. At December 31, 2020, the brand name could be sold for 35,000 markkas, with zero costs to sell. Expected cash flows...
See AnswerQ: Llungby AB spent 1,000,000 krone in 2020 on
Llungby AB spent 1,000,000 krone in 2020 on the development of a new product. The company determined that 25 percent of this amount was incurred after the criteria in IAS 36 for capitalization as an i...
See AnswerQ: Sapporo K.K. was sued by a competitor in late
Sapporo K.K. was sued by a competitor in late 2020, and company management concluded that there was a 55 percent probability that the company would lose the lawsuit. The best estimate of the loss on D...
See AnswerQ: Tapatio S.A. de C.V. acquired a
Tapatio S.A. de C.V. acquired a new piece of manufacturing equipment on January 1, 2019, for a cash price of 500,000 pesos. The equipment was expected to have a useful life of 10 years and no residual...
See AnswerQ: Harrington Company was sued by an employee in late 2020. General
Harrington Company was sued by an employee in late 2020. General counsel concluded that there was an 80 percent probability that the company would lose the lawsuit. The range of possible loss is estim...
See AnswerQ: Parnell Company acquired construction equipment on January 1, 2020, at
Parnell Company acquired construction equipment on January 1, 2020, at a cost of $78,400. The equipment was expected to have a useful life of six years and a residual value of $10,000 and is being dep...
See AnswerQ: Trecek Corporation incurs research and development costs of $650,000
Trecek Corporation incurs research and development costs of $650,000 in 2020, 30 percent of which relate to development activities subsequent to IAS 36 criteria having been met that indicate an intang...
See AnswerQ: Hirsch Company acquired equipment at the beginning of 2020 at a cost
Hirsch Company acquired equipment at the beginning of 2020 at a cost of $135,000. The equipment has a five-year life with no expected salvage value and is depreciated on a straight- line basis. At Dec...
See AnswerQ: Prior to the creation of government-wide financial statements, the
Prior to the creation of government-wide financial statements, the City of Loveland did not report the cost of its infrastructure assets. Now city officials are attempting to determine reported values...
See Answer
