ADVANCED FINANCIAL ACCT.(LL) >CUSTOM<
12th Edition
ISBN: 9781260824292
Author: Christensen
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 7, Problem 7.6Q
To determine
Concept Introduction:
The intercompany transactions occur when the unit of legal entity is having transactions with another unit of the similar entity. This transaction can be divided into two categories such as direct and indirect intercompany transfer. The direct transfer occurs when there is transfer between the different units of the same entity and indirect transfer occurs when the unit of entity acquires debt or assets issued to unrelated entity through another unit of the same entity. This type of transfer will help the entity in improving the flow of finance and asset in efficient manner.
:
The realization of profit on intercompany sale when profit are not realized by the end of the current period.
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Gem Company classifies a portion of its retained earnings as appropriated for loss contingencies. Consequently, the company
Group of answer choices
A.) May transfer to income a part of said retained earnings so appropriated.
B.)Should not identify said appropriation as an appropriation of retained earnings.
C.) Should show the said appropriation of retained earnings within the stockholders' equity section of the balance sheet
D.)Could charge costs or losses to the said appropriated retained earnings.
If a company has elected the fair value option, where are gains and losses resulting from adjusting these accounts to fair value reported?
Group of answer choices
Unrealized Gains are reported as part of Other Comprehensive Income while Unrealized losses are reported as part of Net Income.
Unrealized Gains and Losses are both reported as part of Net Income.
Unrealized Gains are reported as part of Net Income, while Unrealized Losses are reported as part of Other Comprehensive Income.
Unrealized Gains and Losses are both reported as part of Other Comprehensive Income.
Following IFRS, which statement is false?
Group of answer choices
The revaluation surplus account is a specific account reported as an unrealized gain in the statement of comprehensive income.
If the revaluation initially increases the long-term operating asset's carrying value, the firm records the difference between the carrying value and the fair value (the unrealized gain) in the revaluation surplus account.
The revaluation surplus account is a specific account reported in other comprehensive income (OCI) in the statement of comprehensive income.
If a long-term operating asset's fair value decreases in subsequent accounting periods, after an earlier write-up, the firm reduces the revaluation surplus if it exists.
Chapter 7 Solutions
ADVANCED FINANCIAL ACCT.(LL) >CUSTOM<
Ch. 7 - Prob. 7.1QCh. 7 - Prob. 7.2QCh. 7 - Prob. 7.3QCh. 7 - Prob. 7.4QCh. 7 - Prob. 7.5QCh. 7 - Prob. 7.6QCh. 7 - Prob. 7.7QCh. 7 - Prob. 7.8QCh. 7 - Prob. 7.9QCh. 7 - Prob. 7.10Q
Ch. 7 - Prob. 7.11QCh. 7 - Prob. 7.12QCh. 7 - Prob. 7.13QCh. 7 - Prob. 7.14QCh. 7 - Prob. 7.15QCh. 7 - Prob. 7.16QCh. 7 - Prob. 7.17QCh. 7 - Prob. 7.18AQCh. 7 - Prob. 7.1CCh. 7 - Prob. 7.2CCh. 7 - Prob. 7.3CCh. 7 - Prob. 7.4CCh. 7 - Prob. 7.5CCh. 7 - Prob. 7.1.1ECh. 7 - Prob. 7.1.2ECh. 7 - Prob. 7.1.3ECh. 7 - Prob. 7.1.4ECh. 7 - Prob. 7.1.5ECh. 7 - Prob. 7.2.1ECh. 7 - Prob. 7.2.2ECh. 7 - Prob. 7.2.3ECh. 7 - Prob. 7.2.4ECh. 7 - Prob. 7.2.5ECh. 7 - Prob. 7.2.6ECh. 7 - Prob. 7.3ECh. 7 - Prob. 7.4ECh. 7 - Prob. 7.5ECh. 7 - Prob. 7.6ECh. 7 - Prob. 7.7ECh. 7 - Transfer of Depreciable Asset at Year-End Pitcher...Ch. 7 - Prob. 7.9ECh. 7 - Sale of Equipment to Subsidiary in Current Period...Ch. 7 - Prob. 7.11ECh. 7 - Prob. 7.12ECh. 7 - Prob. 7.13ECh. 7 - Prob. 7.14ECh. 7 - Prob. 7.15ECh. 7 - Prob. 7.16ECh. 7 - Prob. 7.17ECh. 7 - Prob. 7.18ECh. 7 - Prob. 7.19ECh. 7 - Prob. 7.20ECh. 7 - Prob. 7.21ECh. 7 - Prob. 7.22ECh. 7 - Prob. 7.23AECh. 7 - Prob. 7.24PCh. 7 - Prob. 7.25PCh. 7 - Prob. 7.26PCh. 7 - Prob. 7.27PCh. 7 - Prob. 7.28.1PCh. 7 - Prob. 7.28.2PCh. 7 - Prob. 7.28.3PCh. 7 - Prob. 7.28.4PCh. 7 - Prob. 7.29PCh. 7 - Prob. 7.30PCh. 7 - Prob. 7.31PCh. 7 - Prob. 7.32PCh. 7 - Prob. 7.33PCh. 7 - Prob. 7.34PCh. 7 - Prob. 7.35PCh. 7 - Prob. 7.37PCh. 7 - Prob. 7.38PCh. 7 - Prob. 7.41AP
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- When there is no specified agreement in the profit-sharing, what happens to the distribution of the profits/losses? Does it will be divided equally or according to the capital contributions?arrow_forwardWhich of the following statements about post-acquisition earnings is incorrect? А. They are the earnings produced subsequent to the acquisition date by members of the group. В. They form part of earnings of the economic entity. С. They are eliminated against the parent's earnings, in a similar fashion to pre- acquisition earnings. D. They form part of earnings of the economic entity and they are eliminated against the parent's earnings, in a similar fashion to pre-acquisition earnings.arrow_forwardIf an entity has elected to use the fair value option for a financial liability; a. It is measured at fair value through other comprehensive income. b. It is measured at fair value through profit or loss. c. It is measured at amortized cost. d. Fair value op don is prohibited for financial liabilities.arrow_forward
- In a recent acquisition, the consolidated value of a subsidiary's assets exceeded the basis appropriate for tax purposes. How does this difference affect the consolidated balance sheet?arrow_forwardWhich of the following would trigger a subtraction in the indirect operating section? A. gain on sale of investments B. depreciation expense C. decrease in accounts receivable D. decrease in bonds payablearrow_forwardWhich of the following statements is true about contingent consideration under the revised PFRS 3? Contingent consideration in a business acquisition that is not classified as equity is subsequently re-measured with changes recognize directly in retained earnings. Contingent consideration can be measured at fair value through other comprehensive income. Contingent consideration obligations are recognized only when the contingency was probable and could be measured reliably. Contingent considerations in form of equity are not subject to re- measurement.arrow_forward
- What is the noncontrolling interest in Subsidiary income? Select one: a. The portion of Subsidiary income that is not included in consolidated income b. The allocation of difference between fair value and book value c. The difference between Parents reported income and Subsidiary reported income d. The part of Subsidiary income that is owned by shareholders other than Parentsarrow_forwardOther comprehensive income includes all of the following, except: unrealized gains on available for sale financial asset. loss from translating the financial statements of a foreign operations. actuarial gain on defined benefit plan that is fully recognized. share premiumarrow_forwardWhich of the following is NOT a component of Accumulated Other Comprehensive Income? A. Gains or losses on Treasury Stock B. Unrealized holding gains or losses on available-for-sale securities C. Gains or losses from foreign currency translation adjustments D. Gains or losses related to post retirement benefit plans (pensions)arrow_forward
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