The company sells its products to the retail market on a world-wide basis. Its major clientele is Home Depot and Lowes and has captured about 10 percent of the world market of light bulbs sales. Their financial statements presented below, for the Year Ending December 31, 2019, have been prepared using US GAAP. The controller would like to begin to see the effects of using IFRS on the Income Statement and Balance Sheet and you has been assigned to help with this task. The company would like to adapt IFRS by as early as next year as it is considering a new stock issue in the London Stock Exchange, which requires IFRS compliance. ADDITIONAL INFORMATION 1. NGD Corp. uses the LIFO method to account for its inventory. The LIFO reserve was $30,000 at the beginning of the year and $40,000 as of year-end. 2. Management has established that the Fair market value of Property, Plant and Equipment as of 1/1/2019 is $170,000, resulting in a $10,000 increase above Book Value. 3. Upon review, management has established the following Fair Market Values for the presented assets as of 12/31/2019: Goodwill $20,000 Trademark $20,000 4. In 2018, there was a Goodwill impairment accounted for in the amount of $6,000. 5. In 2016, there was a Trademark impairment of $4,000. 6. Property, plant and equipment is depreciated over a 10-year period using the straight line depreciated method. There is no salvage value. Amortizable Intangible assets are amortized over a 5 INCOME STATEMENT 1/1/2019-12/31/2019 (In 000’s) INCOME FROM CONTINUING OPERATIONS Sales 500,000 Cost of Goods Sold 350,000 Gross profit 150,000 Selling and Administrative Expenses 62,000 (exclusive of Amortization and Depreciation) Earnings before Interest, Taxes, Depreciation and Amortization 88,000 Amortization and Depreciation Expense 20,000 Earnings from Operations 68,000 Other Expenses and Losses Loss from Hurricane 30,000 Earnings before Interest and Taxes 38,000 Interest Expense 8,000 Income before Tax 30,000 Tax Expense (30 %) 9,000 Earnings from Continuing Operations 21,000 Net Income 21,000 year period using the straight line method. No salvage value is expected. 7. Investments include Available for Sale Securities (AFS) with a Fair market Value of $20,000 as of 12/31/2019. The beginning of year value was $14,000 and $4,000 of this increase of value is due to an exchange rate gain. 8. There are contingencies of $12,000 stemming from civil lawsuits. Legal council considers the payout slightly “more likely than not”, but not highly probable. 9. The company incurred a loss due to hurricane damage which is considered unusual and infrequent. 10. The effective tax rate for NGD is 30 percent.   For each of the above statements, record the differences, in journal entry form, to satisfy IFRS rules.

NGD Corp, a publically traded company, is a manufacturer of electrical supplies. Its main headquarters is based in Salt Lake City, Utah, and the company has been operating since 1977. The company sells its products to the retail market on a world-wide basis. Its major clientele is Home Depot and Lowes and has captured about 10 percent of the world market of light bulbs sales. Their financial statements presented below, for the Year Ending December 31, 2019, have been prepared using US GAAP. The controller would like to begin to see the effects of using IFRS on the Income Statement and Balance Sheet and you has been assigned to help with this task. The company would like to adapt IFRS by as early as next year as it is considering a new stock issue in the London Stock Exchange, which requires IFRS compliance.

ADDITIONAL INFORMATION 1. NGD Corp. uses the LIFO method to account for its inventory. The LIFO reserve was $30,000 at the beginning of the year and $40,000 as of year-end.

2. Management has established that the Fair market value of Property, Plant and Equipment as of 1/1/2019 is $170,000, resulting in a $10,000 increase above Book Value.

3. Upon review, management has established the following Fair Market Values for the presented assets as of 12/31/2019: Goodwill $20,000 Trademark $20,000

4. In 2018, there was a Goodwill impairment accounted for in the amount of $6,000.

5. In 2016, there was a Trademark impairment of $4,000.

6. Property, plant and equipment is depreciated over a 10-year period using the straight line depreciated method. There is no salvage value. Amortizable Intangible assets are amortized over a 5 INCOME STATEMENT 1/1/2019-12/31/2019 (In 000’s) INCOME FROM CONTINUING OPERATIONS Sales 500,000 Cost of Goods Sold 350,000 Gross profit 150,000 Selling and Administrative Expenses 62,000 (exclusive of Amortization and Depreciation) Earnings before Interest, Taxes, Depreciation and Amortization 88,000 Amortization and Depreciation Expense 20,000 Earnings from Operations 68,000 Other Expenses and Losses Loss from Hurricane 30,000 Earnings before Interest and Taxes 38,000 Interest Expense 8,000 Income before Tax 30,000 Tax Expense (30 %) 9,000 Earnings from Continuing Operations 21,000 Net Income 21,000 year period using the straight line method. No salvage value is expected.

7. Investments include Available for Sale Securities (AFS) with a Fair market Value of $20,000 as of 12/31/2019. The beginning of year value was $14,000 and $4,000 of this increase of value is due to an exchange rate gain.

8. There are contingencies of $12,000 stemming from civil lawsuits. Legal council considers the payout slightly “more likely than not”, but not highly probable.

9. The company incurred a loss due to hurricane damage which is considered unusual and infrequent.

10. The effective tax rate for NGD is 30 percent.

For each of the above statements, record the differences, in journal entry form, to satisfy IFRS rules.