Chapter 13: Q1IFRS (page 658)
Where can authoritative IFRS be found related to investments?
It is found in IFRS 9.
Over 30 million students worldwide already upgrade their learning with Vaia!
All the tools & learning materials you need for study success - in one app.
Get started for free
Question: The presentation of current and non-current liabilities in the statement of financial position (balance sheet):
(d)includes contingent liabilities under IFRS.
How are current liabilities related by definition to current assets? How are current liabilities related to a company’s operating cycle?
Question: When should liabilities for each of the following items be recorded on the books of an ordinary business corporation?
In determining the amount of a provision, a company using IFRS should generally measure:
(a) Using the midpoint of the range between the lowest possible loss and the highest possible loss.
(b) Using the minimum amount of the loss in the range.
(c) Using the best estimate of the amount of the loss expected to occur.
(d) Using the maximum amount of the loss in the range.
(Equity Method) Parent Co. invested $1,000,000 in Sub Co. for 25% of its outstanding stock. Sub Co. pays out
40% of net income in dividends each year.
Instructions
Use the information in the following T-account for the investment in Sub to answer the following questions.
Investment in Sub Co.
1,000,000
110,000
44,000
(a) How much was Parent Co.’s share of Sub Co.’s net income for the year?
(b) What was Sub Co.’s total net income for the year?
(c) What were Sub Co.’s total dividends for the year?
(d) How much was Parent Co.’s share of Sub Co.’s dividends for the year?
What do you think about this solution?
We value your feedback to improve our textbook solutions.
