Reference no: EM133008484

Dashall Ltd. has the following accounts in its year-end 20X7 trial balance:

Retained earnings

Investment in shares of another company as a temporary use of cash to earn a return.

Deferred income tax asset.

Note payable for equipment, payable in equal instalments over two years.

Income tax payable

• U.S. deposit account held in a New York Bank.
• Inventory held in a bonded warehouse(i.e. protected against improper entry). The product needs to be aged for five years before being finished and released for sale.
• Foreign currency translation gain on U.S. subsidiary.
• Investment in the marketable equity securities of another company in which Dashall Ltd. has significant influence.
• Decline in fair value of assets in a division that is being discontinued. A buyer for the division is actively being sought.

Problem 1: Explain how each item would be reported on Imposing Ltd's 20X7 SFP and/ or Statement of changes in equity.