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arsen [322]
3 years ago
8

Aviation Inc. decided that they would sale the bond within 90 days. Assume that Aviation now has to adjust their financial state

ments and account for the investment as available for sale. Write a memo detailing the impact that the change will have on each financial statement and site and explain the accounting codification that explains how this change should be accounted for in the financial statements. You must show the journal entry that will be made to adjust the financials statements.
Business
1 answer:
natali 33 [55]3 years ago
7 0

Answer:

You didn´t post the complete information of the exercise, I searched the exercise online and tried to ask the most useful question.

Explanation:

As per IFRS 32, if the entity holds a Financial Instrument as held for maturity, then Financial Instruments shall be treated as Financial Instruments amortised at cost and shall be recognised at cost.

In the present case, the entity decides to reclassify its financial instruments from Instruments held for maturity to financial instruments held for sale within next 90 days

There will be two implications for the same

a) The financial instruments shall be classified as Financial Asset - FVTPL, i.e. Fair value measured through Profit and Loss or FVTOCI, i.e. Fair Value measured through Other Comprehensive Income. In both the cases, financial asset shall be remeasured at Fair value as on the date of reporting period end with the only difference being that in FVTPL, gain/loss on re-measurement should be routed through Profit and Loss A/c where as in FVTOCI, gain/loss on re-measurement should be routed through Other Comprehensive Income.

b) Since, financial instruments shall be sold within next 90 days, Financial Assets shall be reclassified as Current Assets.

Check the document attached

Download xlsx
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When Moon Star Products Inc. planned to start its operations in United Cadvia, an emerging nation, it realized that it will have
lorasvet [3.4K]

Answer:

a. Equity alliance

Explanation:

Equity alliance -

It is the process , in which one of the company take the equity stake of the other company and vice versa , is referred to as equity alliance .

Due to this ,  the company becomes shareholder and stakeholder of each other .

The share acquired is the minor one , so that the company still have the power of decision making .

Hence , same case is shown in the question ,where the Moon Star Products Inc.buys the 40 % of the stock of Gold Logistics .

8 0
3 years ago
Type the correct answer in the box. Spell all words correctly.
frosja888 [35]

Answer:

After-sales service

Explanation:

After-sales service are all the efforts of a business to keep its clients happy and satisfied with the products they have purchased. It is providing care to customers after they have made purchases from the business. After-sale service help in retaining and building loyal customers.

Some of the techniques used in after-sales service include

  • Keeping in touch with customers after purchases
  • Responding to customer queries either on call, emails, or customer visit
  • Offering technical supports when a customer is facing challenges like in the scenario described above
3 0
3 years ago
Read 2 more answers
Tri-State Mill uses a special sander to finish lumber. Data on the sander and its usage follow. Cost Driver Rate Cost Driver Vol
Nadusha1986 [10]

Answer and Explanation:

The computation of the unused resource capacity in energy and repairs for Tri-State Mill. is shown below;

For energy

= $6,900 - 6,000 × $0.90

= $6,900 - $5,400

= $1,500

For repairs

= $12,000 - 600 × $16

= $12,000 - $9,600

= $2,400

Hence, the unused resource capacity in energy and repairs for Tri-State Mill. is $1,500 and $2,400 respectively

7 0
3 years ago
The following proceeds received by Grove City in year 1 are legally restricted to expenditure for specified purposes: Donation b
tatiyna

Answer:

The $1,200,000 should be accounted for in Grove’s special revenue funds

Explanation:

Special revenue fund: The special revenue fund is a fund that is introduced by the government to collect the money from the public. It is made to fulfill the need for specific purposes/ projects.  

The computation of special revenue funds is shown below:

= Income received for providing the meals to the needy people + financing of sales tax with respect to tourist facilities maintenance in the shopping district

= $300,000 + $900,000

= $1,200,000

4 0
4 years ago
Match the following:
asambeis [7]

Explanation:

1. If butter complements margarine for instance, and there occurs a sudden increase in the price of butter leading to lower demand, this would affect the demand for margarine negatively leading to a fall in the demand for margarine.

2. If this goods are substitutes the demand for butter will increase when the price of margarine rises.

This is because it is only natural for people to switch to the next best alternative (substitute) that fills the same purpose or needs.

3. Remember Ice cream and ice cream cones complementary goods; meaning the demand for one increases the demand for the other and vice versa.

4. If the price of ice cream increases, demand would also decrease for ice cream as consumers are usually sensitive to price.

This decrease in the demand for ice cream would also affect ice cream cones since they complement each other, leading to a decrease in the demand for ice cream cones.

5 0
3 years ago
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