Q: In 2012, Hans Hoogervorst, Chairman of the IASB, gave
In 2012, Hans Hoogervorst, Chairman of the IASB, gave a speech at the FEE Conference on Corporate Reporting of the Future entitled “The Concept of Prudence: Dead or Alive?” This speech was in answer t...
See AnswerQ: In 1988, Lincoln Limited completed the construction of a building at
In 1988, Lincoln Limited completed the construction of a building at a cost of $1.8 million; it occupied the building in January 1989. It was estimated that the building would have a useful life of 40...
See AnswerQ: Finlay Limited constructed a building at a cost of $2.
Finlay Limited constructed a building at a cost of $2.8 million and has occupied it since January 1997. It was estimated at that time that its life would be 40 years, with no residual value. In Januar...
See AnswerQ: The management of Luis Inc., a small private company that uses
The management of Luis Inc., a small private company that uses the cost recovery impairment model, was discussing whether certain equipment should be written down as a charge to current operations bec...
See AnswerQ: Diderot Corp. acquired a property on September 15, 2017,
Diderot Corp. acquired a property on September 15, 2017, for $220,000, paying $3,000 in transfer taxes and a $1,500 real estate fee. Based on the provincial assessment information, 75% of the property...
See AnswerQ: Perez Corp., a mining company, owns a significant mineral deposit
Perez Corp., a mining company, owns a significant mineral deposit in a northern territory. Perez prepares financial statements in accordance with IFRS. Included in the asset is a road system that was...
See AnswerQ: Green Thumb Landscaping Limited has determined that its lawn maintenance division is
Green Thumb Landscaping Limited has determined that its lawn maintenance division is a cash-generating unit under IFRS. The carrying amounts of the division’s assets at December 31, 2017, are as follo...
See AnswerQ: The information that follows relates to equipment owned by Gaurav Limited at
The information that follows relates to equipment owned by Gaurav Limited at December 31, 2017: Cost……………………………………………………………………………………..$10,000,000 Accumulated depreciation to date…………………………………………….2,0...
See AnswerQ: Assume the same information as in E11-22, except that
Assume the same information as in E11-22, except that at December 31, 2017, Gaurav discontinues use of the equipment and intends to dispose of it in the coming year by selling it to a competitor. It i...
See AnswerQ: Jamoka Corporation is a public company that manufactures farm implements, such
Jamoka Corporation is a public company that manufactures farm implements, such as tractors, combines, and wagons. Jamoka uses the revaluation model per IAS 16, and records asset revaluations using the...
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