Explain how an intercompany gain of $2,700 on the sale of a depreciable asset is held back on the consolidated income statement in the year of sale and realized on subsequent consolidated income statements. What income tax adjustments should be made in each instance?
> Briefly outline how the presentation of assets and liabilities on the statement of financial position of a government differs from the presentation shown on the balance sheet of a typical business enterprise.
> Y Company has a 62% interest in Z Company. Are there circumstances where this would not result in Z Company being a subsidiary of Y Company? Explain.
> Explain how to account for an interest in a joint operation.
> Explain how the definitions of assets and liabilities can be used to support the consolidation of special-purpose entities.
> What is a reverse takeover, and why is such a transaction entered into?
> Explain how the use of the information provided in segment disclosures can aid in the assessment of the overall profitability of a company.
> What sort of reconciliations are required for segmented reporting?
> In accordance with IFRS 8 Operating Segments, answer the following: (a) What information must be disclosed about business carried out in other countries? (b) What information must be disclosed about a company's products or services? (c) What information
> For each of its operating segments that require separate disclosure, what information must an enterprise disclose?
> Describe the three tests for identifying reportable operating segments.
> Explain how the definition of a liability supports the recognition of a deferred income tax liability when the fair value of an asset acquired in a business combination is greater than the tax base of this asset.
> Governments are different from business organizations and NFPOs in many respects and yet in some respect they are similar. Explain.
> Explain how it is possible to have a deferred tax liability with regard to the presentation of a subsidiary's assets in a consolidated balance sheet, whereas on the subsidiary's balance sheet the same assets produce a deferred tax asset.
> What is the difference between a deductible temporary difference and a taxable temporary difference?
> Explain the similarities and differences between a subsidiary and a controlled special purpose entity and between a majority shareholder for a subsidiary and a sponsor for a controlled special-purpose entity.
> If a gain or a loss is realized by a parent company as a result of the sale of a portion of the investment in a subsidiary, should the gain or loss be eliminated in the preparation of the consolidated income statement? Explain..
> A parent company will realize a loss or a gain when its subsidiary issues common shares at a price per share that differs from the carrying amount per share of the parent's investment, and the parent's ownership percentage declines. Explain why this is s
> When a parent decreases its investment in a subsidiary from 76 to 60%, should the non controlling interest be re measured at fair value? Explain.
> When a parent increases its investment in a subsidiary from 60 to 75%, should the acquisition differential from the 60% purchase be re measured at fair value? Explain.
> When should the change in accounting for a long-term investment from the cost method to the equity method be accounted for retroactively, and when should it be accounted for prospectively?
> Why are dividend payments to non-controlling shareholders treated as an outflow of cash in the consolidated cash flow statement but not included as dividends paid in the consolidated retained earnings statement?
> Why is the amortization of the acquisition differential added back to consolidated net income to compute net cash flow from operating activities in the consolidated cash flow statement?
> Explain the meaning of the account "net assets invested in capital assets" and describe how it is used under the two methods of accounting for contributions.
> A parent company acquired a 75% interest in a subsidiary company in Year 4. The acquisition price was $1,000,000, made up of cash of $700,000 and the parent's common shares with a current market value of $300,000. Explain how this acquisition should be r
> What are some of the main differences between IFRS and ASPE for business combinations?
> When the parent company uses the cost method, an adjustment must be made to its retained earnings on consolidation in every year after the year of acquisition. Why is this entry necessary? Why is a similar entry not required when the parent utilized the
> What is the major consolidation problem associated with indirect shareholdings?
> Explain the difference in the calculation of consolidated net income attributable to shareholders of parent and consolidated retained earnings depending on whether the preferred shares of a subsidiary are cumulative or non-cumulative.
> Explain how the non-controlling interest in the net assets and net income of a subsidiary is calculated and reported when the parent owns 90% of the subsidiary's common shares and 30% of the subsidiary's cumulative preferred shares.
> Explain how an acquisition differential from an investment in preferred shares should be reflected in the consolidated financial statements.
> A company's net income for the year was $17,000. During the year, the company paid dividends on its non-cumulative preferred shares amounting to $12,000. Calculate the amount of the year's net income that "belongs to" the common shares.
> The shareholders' equity of a subsidiary company contains preferred and common shares. The parent company owns 100% of the subsidiary's common shares. Will the consolidated financial statements show non-controlling interest? Explain.
> Is the consolidated cash flow statement prepared in the same manner as the consolidated balance sheet and income statement? Explain.
> Is it possible that an organization would be required to use certain aspects of the deferral method even though it reports using the restricted fund method? Explain.
> "There should never be a gain on an intercompany sale of equipment when the selling company uses the revaluation model under lAS 16 and the equipment is sold at fair value." Is this statement true or false? Explain.
> When a company sells equipment that had previously been re measured to fair value under the revaluation model of lAS 16, it transfers the revaluation surplus from accumulated other comprehensive income directly to retained earnings. What adjustments must
> When there has been an intercompany sale of a used depreciable asset (i.e., accumulated depreciation has been recorded for this asset), it is necessary to gross up the asset and accumulated depreciation when preparing the consolidated financial statement
> If an intercompany sale of a depreciable asset has been made at a price above carrying amount, the beginning retained earnings of the seller are reduced when preparing each subsequent consolidation. Why does the amount of the adjustment change from year
> Why does an intercompany sale of a depreciable asset (such as equipment or a building) require subsequent adjustments to depreciation expense within the consolidation process?
> An intercompany gain on a depreciable asset resulting from a sale by the parent company is subsequently realized by an adjustment to the subsidiary's depreciation expense in the preparation of consolidated income statements. Should this adjustment be tak
> An intercompany inventory profit is realized when the inventory is sold outside the entity. Is this also the case with respect to an intercompany profit in a depreciable asset? Explain.
> "The realization of intercompany inventory and depreciable asset profits is really an adjustment made in the preparation of consolidated income statements to arrive at historical cost numbers." Explain.
> Explain how the matching principle supports the recognition of deferred income tax expense when a gain is recognized on the elimination of intercompany bond holdings.
> Explain how the recognition of gains on the elimination of intercompany bond holdings is consistent with the principle of recording gains only when they are realized.
> Name the two methods of accounting for contributions, and explain how the methods differ from each other.
> "Some intercompany gains (losses) are realized for consolidation purposes subsequent to their actual recording by the affiliates, while others are recorded by the affiliates subsequent to their realization for consolidation purposes." Explain and refer t
> The adjustment for the holdback of an intercompany gain in assets requires a corresponding adjustment to a consolidated deferred tax asset. The adjustment for a gain from intercompany bond holdings requires a corresponding adjustment to a consolidated de
> An interest elimination gain (loss) does not appear as a distinguishable item on a consolidated income statement. Explain.
> Four approaches could be used to allocate gains (losses) on the elimination of intercompany bond holdings in the preparation of consolidated financial statements. Outline these four approaches. Which approach is conceptually superior? Explain.
> "Intercompany losses recorded on the sale of assets to an affiliate within the consolidated entity should always be eliminated when consolidated financial statements are prepared." Do you agree with this statement? Explain.
> A parent company rents a sales office to its wholly owned subsidiary under an operating lease requiring rent of $2,000 a month. What adjustments to consolidated income tax expense should accompany the elimination of the parent's $24,000 rent revenue and
> Explain how the matching principle supports adjustments to income tax expense when eliminating intercompany profits from consolidated financial statements.
> "The reduction of a $1,000 intercompany gross profit from ending inventory should be accompanied by a $400 increase to deferred income taxes in consolidated assets." Do you agree? Explain.
> Explain how the revenue recognition principle supports the elimination of intercompany transactions when preparing consolidated financial statements.
> Contrast the revenue recognition and matching concepts that apply to profit-oriented organizations with those that apply to NFPOs.
> The Handbook describes revenue that is unique to NFPOs. What is this revenue called, and what characteristic does it have that makes it unique?
> The hoisting arrangement for lifting a large pipe is shown in the figure. The spreader is a steel tubular section with outer diameter 70 mm and inner diameter 57 mm. Its length is 2.6 m, and its modulus of elasticity is 200 GPa. Based upon a factor of sa
> A long slender column ABC is pinned at ends A and C and compressed by an axial force P (see figure). At the midpoint B, lateral support is provided to prevent deflection in the plane of the figure. The column is a steel wide-flange section (W 250 Ã
> Three pinned-end columns of the same material have the same length and the same cross- sectional area (see figure). The columns are free to buckle in any direction. The columns have cross sections as: (a) a circle, (b) a square, and (c) an equilateral tr
> Three identical, solid circular rods, each of radius r and length L, are placed together to form a compression member (see the cross section shown in the figure). Assuming pinned-end conditions, determine the critical load Pcr. (a) The rods act independe
> A rectangular column with cross-sectional dimensions b and h is pin-supported at ends A and C (see figure). At mid-height, the column is restrained in the plane of the figure but is free to deflect perpendicularly to the plane of the figure. Determine th
> A slender bar AB with pinned ends and length L is held between immovable supports (see figure). What increase ∆T in the temperature of the bar will produce buckling at the Euler load? Α ΔΤ Β L
> A horizontal beam AB has a sliding support at end A and carries a load Q at end B, as shown in the figure part a. The beam is supported at C and D by two identical pinned-end columns of length L. Each column has flexural rigidity EI. (a) Find an expressi
> A horizontal beam AB is supported at end A and carries a load Q at joint B, as shown in the figure part a. The beam is also supported at C by a pinned end column of length L. The column has flexural rigidity EI. (a) For the case of a sliding support at A
> A horizontal beam AB is pin-supported at end A and carries a load Q at joint B, as shown in the figure. The beam is also supported at C by a pinned end column of length L; the column is restrained laterally at 0.6L from the base at D. Assume the column c
> Determine the allowable axial load Pallow for a steel pipe column that is fixed at the base and free at the top (see figure) for each of the following lengths: L = 2.6 m, 2.8 m, 3.0 m, and 3.2 m. The column has an outside diameter d = 140 mm and wall thi
> Repeat Problem 9. Use two C 150 × 12.2 steel shapes and assume that E = 205 GPa and L = 6 m. Data from Problem 9: A column, pinned at top and bottom, is made up of two C6 × 13 steel shapes (see figure) that act together. (a)
> A column, pinned at top and bottom, is made up of two C6 × 13 steel shapes (see figure) that act together. (a) Find the buckling load (kips) if the gap is zero. (b) Find required separation distance d (inches) so that the buckling load is th
> Find the controlling buckling load (kN) for the steel column shown in the figure. The column is pinned at top and bottom and is made up of two C 150 × 12.2 shapes that act together. Assume that E = 205 GPa and L = 6 m. y
> A column ABC is supported at ends A and C and compressed by an axial load P (figure a). Lateral support is provided at point B but only in the plane of the figure; lateral support perpendicular to the plane of the figure is provided only at A and C. The
> A horizontal beam AB is pin-supported at end A and carries a clockwise moment M at joint B, as shown in the figure. The beam is also supported at C by a pinned-end column of length L; the column is restrained laterally at 0.6 L from the base at D. Assume
> Solve Problem 3 for a W 10 × 45 steel column having a length L = 28 ft. Data from Problem 3: Calculate the critical load Pcr for a W 8 × 35 steel column (see figure) having a length L = 24 ft and E = 30 × 106 psi
> Solve the preceding problem for a W 250 × 89 steel column having a length L = 10 m. Let E = 200 GPa. Data from Problem 3: Calculate the critical load Pcr for a W 8 × 35 steel column (see figure) having a length L = 24 ft and
> Calculate the critical load Pcr for a W 8 × 35 steel column (see figure) having a length L = 24 ft and E = 30 × 106 psi under the following conditions: (a) The column buckles by bending about its strong axis (axis 1â€
> Slender column ABC is supported at A and C and is subjected to axial load P. Lateral support is provided at mid-height B but only in the plane of the figure; lateral support perpendicular to the plane of the figure is provided only at ends A and C. The c
> Determine the allowable axial load Pallow for a steel pipe column that is fixed at the base and free at the top (see figure) for each of the following lengths: L = 6 ft, 9 ft, 12 ft, and 15 ft. The column has an outside diameter d = 6.625 in and wall thi
> An aluminum tube AB with a circular cross section has a sliding support at the base and is pinned at the top to a horizontal beam supporting a load Q = 200 kN (see figure). Determine the required thickness t of the tube if its outside diameter d is 200 m
> A rigid L-shaped frame is supported by a steel pipe column AB (see figure) and is subjected to a horizontal load F = 140 kips. If the pipe has an outside diameter d = 4 in. and a factor of safety of 2.5 is required with respect to Euler buckling, what is
> A column, fixed at the base and free at the top, is made up of two C 100 × 10.8 steel shapes (see figure) that act together. (a) Find the buckling load (kN) if the gap is zero. (b) Find the required separation distance d (mm) so that the buc
> Find the controlling buckling load (kips) for the steel column shown in the figure. The column is fixed at the base and free at the top and is made up of two C6 × 10.5 shapes that act together. Assume that E = 30,000 ksi and L = 14 ft.
> A fixed-pinned column is a W310 × 21 steel shape and is designed to carry an axial load of 125 kN. Determine the maximum permissible height L of the column if a factor of safety n = 2.5 is required with respect to the buckling of the column.
> Determine the critical load Pcr and the equation of the buckled shape for an ideal column with ends fixed against rotation (see figure) by solving the differential equation of the deflection curve. B A
> The roof beams of a warehouse are supported by pipe columns (see figure) having an outer diameter d2 = 100 mm and inner diameter d1 = 90 mm. The columns have a length L = 4.0 m, modulus E = 210 GPa, and fixed supports at the base. Calculate the critical
> The horizontal beam ABC shown in the figure is supported by columns BD and CE. The beam is prevented from moving horizontally by the pin support at end A. Each column is pinned at its upper end to the beam, but at the lower ends, support D is a sliding s
> A vertical post AB is embedded in a concrete foundation and held at the top by two cables (see figure). The post is a hollow steel tube with modulus of elasticity 200 GPa, outer diameter of 40 mm, and thickness of 5 mm. The cables are tightened equally b
> The upper end of a W 8 × 21 wide-flange steel column (E = 30 × 103 ksi) is supported laterally between two pipes (see figure). The pipes are not attached to the column, and friction between the pipes and the column is unreliable
> Determine the allowable axial load Pallow for a steel pipe column with pinned ends having an outside diameter of 220 mm and wall thickness of 12 mm for each of the following lengths: L = 2.5 m, 5 m, 7.5 m, and 10 m. (Assume E = 200 GPa and σY = 250 MPa)
> Solve the preceding problem for a W250 × 89 shape with length L = 7.5 m and E = 200 GPa. Data from Problem 5: A wide-flange steel column (E = 30 × 106 psi) of W12 × 87 shape (see figure) has a length L = 28 ft. I
> A wide-flange steel column (E = 30 × 106 psi) of W12 × 87 shape (see figure) has a length L = 28 ft. It is supported only at the ends and may buckle in any direction. Calculate the allowable load allow P based upon the critical
> Solve the preceding problem for a steel pipe column (E = 210GPa) with length L = 1.2 m, inner diameter d1 = 36 mm, and outer diameter d2 = 40 mm. Data from Problem 3: An aluminum pipe column (E = 10,400ksi) with a length L = 10.0 ft has inside and out
> An aluminum pipe column (E = 10,400ksi) with a length L = 10.0 ft has inside and outside diameters d1 = 5.0 in. and d2 = 6.0 in., respectively (see figure). The column is supported only at the ends and may buckle in any direction. Calculate the critical
> A cantilever aluminum column has a square tube cross section with an outer dimension of 150 mm. The column has a length L = 4 m and is designed to support an axial load of 45 kN. Find the minimum required thickness of the section if the factor of safety
> A frame ABCD is constructed of steel wide-flange members (W8 × 21; E = 30 × 106 psi) and subjected to triangularly distributed loads of maximum intensity qo acting along the vertical members (see figure). The distance between su
> A steel post AB with a hollow circular cross section is fixed at the base and free at the top (see figure). The inner and outer diameters are d1 = 96 mm and d2 = 110 mm, respectively, and the length is L = 4.0 m. A cable CBD passes through a fitting that
> Solve the preceding problem for an aluminum column with b = 6.0 in., t = 0.5 in., P = 30 kips, and E = 10.6 × 103 ksi. The deflection at the top is limited to 2.0 in. Data from Problem 12: An aluminum box column with a square cross sectio
> An aluminum box column with a square cross section is fixed at the base and free at the top (see figure). The outside dimension b of each side is 100 mm and the thickness t of the wall is 8 mm. The resultant of the compressive loads acting on the top of
> The column shown in the figure is fixed at the base and free at the upper end. A compressive load P acts at the top of the column with an eccentricity e from the axis of the column. Beginning with the differential equation of the deflection curve, derive
> Determine the allowable axial load Pallow for a steel pipe column with pinned ends having an outside diameter of 4.5 in. and wall thickness of 0.237 in. for each of the following lengths: L = 6 ft, 12 ft, 18 ft, and 24 ft. (Assume E = 29,000 ksi and σY =
> Solve the preceding problem (W250 × 44.8) if the resultant force P equals 110 kN and E = 200 GPa. Data from Problem 9: A wide-flange member (W10 × 30) is compressed by axial loads that have a resultant P = 20 kips acting at t
> A wide-flange member (W10 × 30) is compressed by axial loads that have a resultant P = 20 kips acting at the point shown in the figure. The material is steel with modulus of elasticity E = 29,000 ksi. Assuming pinned-end conditions, determin
