Quantacc carries fixed assets at revalued amounts fixed

Reference no: EM13579951

Quantacc Ltd. began operations on January 1, 2011 and uses IFRS to prepare its consoliated financial statements. Although not required to do so, to facilitate comparisons with companies in the US, Quantacc reconciles its net income and stockholder's equity to US GAAP. Information relevant for preparing this reconciliation is as follows:

1. Quantacc carries fixed assets at revalued amounts. Fixed assets were revalued upward on January 1, 2013, by $35000. At that time, fixed assets had a remaining useful life od 10 years.

2. On January 1, 2012, Quantacc realized a gain on the sale and leaseback of an office building in the amount of $200,000. The lease is classified as an operating lease and has a term of 20 years.

3. Quantacc capitalized development costs related to a new pharmaceutical product in 2012 in the amount of $80,000. Quantacc began selling the new product on January 1, 2013, and expects the product to be marketable for a total of 5 years.Net income under IFRS in 2013 is $100,000 and stockholders' equity under IFRS at December 31, 2013 is $1,000,000.

Required:

a) Prepare a schedule to reconcile Quantacc's 2013 net income and December 31, 2013 stockholders' equity under IFRS to US GAAP.

b) Provide a brief title/description for each reconciling adjustment made, indicate the dollar amount of the adjustment, and calculate total amounts for the net income and stockholders' equity under US GAAP.

Reference no: EM13579951

Questions Cloud

Heather company uses the weighted-average method in its : heather company uses the weighted-average method in its process-costing system. operating data for the first processing

Prepare the stockholders equity section of shark school : shark school supply corporation was organized in 2011. it was authorized to issue 200000 shares of no-par common stock

Given a level of confidence of 95 and a population standard : given a level of confidence of 95 and a population standard deviation of 9 answer the followinga what other information

Using the high-low method calculate the stores total fixed : sporting goods is a locally owned store that specializes in printing team jerseys. the majority of its business comes

Quantacc carries fixed assets at revalued amounts fixed : quantacc ltd. began operations on january 1 2011 and uses ifrs to prepare its consoliated financial statements.

Include the results of your power analysis in a word : consider your study terrorism ideology and perception of national security strategies by local police conduct a mock

Whats going on in that lab asked derek warren chief : whats going on in that lab? asked derek warren chief administrator for cottonwood hospital as he studied the prior

The waiting time at a certain bank is approximately : the waiting time at a certain bank is approximately normally distributed with a mean of 3.7 min and a standard

Foxgloves budgeted cash disbursements related to : foxglove company a growing retailer is preparing its budget for the first half of the year assuming the following sales

User Account

All Pages