Accounting Principles IFRS Version Global 1st Edition .
Accounting Principles IFRS Version Global 1st Edition Weygandt Solutions ManualFull Download: olutions-maCHAPTER 1Accounting in ActionASSIGNMENT CLASSIFICATION TABLEBriefExercisesLearning ObjectivesQuestions1.Identify the activities andusers associated withaccounting.1, 2, 3, 4, 511, 22.Explain the building blocks ofaccounting: ethics, principles,and assumptions.6, 7, 8, 9, 10233.State the accountingequation, and define itscomponents.11, 12, 13, 221, 2, 3, 4, 5, 63514.Analyze the effects ofbusiness transactions on theaccounting equation.14, 15, 16, 187, 8, 946, 7, 81, 2, 4, 55.Describe the four financialstatements and how they areprepared.17, 19, 20, 2110, 1159, 10, 11, 12,13, 14, 15, 16,17, 182, 3, 4, 5Copyright 2018 WILEYDo It!Weygandt, Accounting Principles, IFRS 1/e, Solutions ManualThis sample only, Download all chapters at: AlibabaDownload.comExercises(For Instructor Use Only)Problems1-1
ASSIGNMENT CHARACTERISTICS e Allotted(min.)1Analyze transactions and compute net income.Moderate40–502Analyze transactions and prepare income statement,owner’s equity statement, and statement of financialposition.Moderate50–603Prepare income statement, owner’s equity statement, andstatement of financial position.Moderate50–604Analyze transactions and prepare financial statements.Moderate40–505Determine financial statement amounts and prepareowner’s equity statement.Moderate40–50Copyright 2018 WILEYWeygandt, Accounting Principles, IFRS 1/e, Solutions Manual(For Instructor Use Only)
WEYGANDT ACCOUNTING PRINCIPLES IFRS 1ECHAPTER 1ACCOUNTING IN ACTIONNumberLOBTDifficultyTime 185CSimple2–4Copyright 2018 WILEYWeygandt, Accounting Principles, IFRS 1/e, Solutions Manual(For Instructor Use Only)1-3
ACCOUNTING IN ACTION (Continued)NumberLOBTDifficultyTime (min.)P13, 4APModerate40–50P24, 5APModerate50–60P35APModerate50–60P44, 5APModerate40–50P54, 51-4Copyright 2018 WILEYWeygandt, Accounting Principles, IFRS 1/e, Solutions Manual(For Instructor Use Only)
Learning ObjectiveKnowledge ComprehensionApplicationWeygandt, Accounting Principles, IFRS 1/e, Solutions Manual(For Instructor Use Only)1. Identify the activities and users DI1-1associated with accounting.Q1-1Q1-2Q1-3Q1-42. Explain the building blocks ofaccounting: ethics, principles,and assumptions.Q1-7Q1-8Q1-9Q1-10DI1-2Q1-6E1-3E1-43. State the accounting equation,and define its components.Q1-22Q1-11Q1-12Q1-13BE1-5BE1-6 BE1-1E1-5 BE1-2BE1-3BE1-4DI1-3P1-14. Analyze the effects of businesstransactions on the E1-9E1-6E1-7DI1-4E1-8P1-1P1-2P1-4P1-55. Describe the four financialstatements and how they 3P1-4P1-5Expand Your Critical ThinkingReal–World FocusConsideringPeople, Planet,and Financial ReportingComparative AnalysisComparative AnalysisDecision–Making Acrossthe OrganizationCommunication ActivityAll About YouBLOOM’S TAXONOMY TABLECopyright 2018 WILEYCorrelation Chart between Bloom’s Taxonomy, Learning Objectives and End-of-Chapter Exercises and Problems1-5
ANSWERS TO QUESTIONS1.Yes, this is correct. Virtually every organization and person in our society uses accountinginformation. Businesses, investors, creditors, government agencies, and not-for-profit organizationsmust use accounting information to operate effectively.2.Accounting is the process of identifying, recording, and communicating the economic events ofan organization to interested users of the information. The first step of the accounting process istherefore to identify economic events that are relevant to a particular business. Once identifiedand measured, the events are recorded to provide a history of the financial activities of theorganization. Recording consists of keeping a chronological diary of these measured events in anorderly and systematic manner. The information is communicated through the preparation anddistribution of accounting reports, the most common of which are called financial statements.A vital element in the communication process is the accountant’s ability and responsibility toanalyze and interpret the reported information.3.(a) Internal users are those who plan, organize, and run the business and therefore are officersand other decision makers.(b) To assist management, managerial accounting provides internal reports. Examples includefinancial comparisons of operating alternatives, projections of income from new salescampaigns, and forecasts of cash needs for the next year.4.(a) Investors (owners) use accounting information to make decisions to buy, hold, or sell ownership shares of a company.(b) Creditors use accounting information to evaluate the risks of granting credit or lending money.5.No, this is incorrect. Bookkeeping usually involves only the recording of economic events andtherefore is just one part of the entire accounting process. Accounting, on the other hand, involvesthe entire process of identifying, recording, and communicating economic events.6.Benton Travel Agency should report the land at 90,000 on its December 31, 2020 statement offinancial position. This is true not only at the time the land is purchased, but also over the timethe land is held. In determining which measurement principle to use (cost or fair value)companies weigh the factual nature of cost figures versus the relevance of fair value. In general,companies use cost. Only in situations where assets are actively traded do companies apply thefair value principle. An important concept that accountants follow is the historical cost principle.7.The monetary unit assumption requires that only transaction data that can be expressed in termsof money be included in the accounting records. This assumption enables accounting to quantify(measure) economic events.8.The economic entity assumption requires that the activities of the entity be kept separate anddistinct from the activities of its owners and all other economic entities.9.The three basic forms of business organizations are: (1) proprietorship, (2) partnership, and(3) corporation.1-6Copyright 2018 WILEYWeygandt, Accounting Principles, IFRS 1/e, Solutions Manual(For Instructor Use Only)
Questions Chapter 1 (Continued)10.One of the advantages Neha Singh would enjoy is that ownership of a corporation is representedby transferable shares. This would allow Neha to raise money easily by sellinga part of her ownership in the company. Another advantage is that because holders of the shares(shareholders) enjoy limited liability; they are not personally liable for the debts of the corporateentity. Also, because ownership can be transferred without dissolving the corporation, the corporationenjoys an unlimited life.11.The basic accounting equation is Assets Liabilities Owner’s Equity.12.(a) Assets are resources owned by a business. Liabilities are claims against assets. Put moresimply, liabilities are existing debts and obligations. Owner’s equity is the ownership claimon total assets.(b) Owner’s equity is affected by owner’s investments, drawings, revenues, and expenses.13.The liabilities are: (b) Accounts payable and (g) Salaries and wages payable.14.Yes, a business can enter into a transaction in which only the left side of the accounting equationis affected. An example would be a transaction where an increase in one asset is offset bya decrease in another asset. An increase in the Equipment account which is offset by a decreasein the Cash account is a specific example.15.Business transactions are the economic events of the enterprise recorded by accountantsbecause they affect the basic accounting equation.(a) The death of the owner of the company is not a business transaction as it does not affectthe basic accounting equation.(b) Supplies purchased on account is a business transaction as it affects the basic accountingequation.(c) An employee being fired is not a business transaction as it does not affect the basicaccounting equation.(d) A withdrawal of cash from the business is a business transaction as it affects the basicaccounting equation.16.(a)(b)(c)(d)17.(a) Income statement.(b) Statement of financial position.(c) Income statement.18.No, this treatment is not proper. While the transaction does involve a receipt of cash, it does notrepresent revenues. Revenues are the gross increase in owner’s equity resulting from businessactivities entered into for the purpose of earning income. This transaction is simply an additionalinvestment made by the owner in the business.Decrease assets and decrease owner’s equity.Increase assets and decrease assets.Increase assets and increase owner’s equity.Decrease assets and decrease liabilities.Copyright 2018 WILEY(d) Statement of financial position.(e) Statement of financial position and owner’sequity statement.(f) Statement of financial position.Weygandt, Accounting Principles, IFRS 1/e, Solutions Manual(For Instructor Use Only)1-7
Questions Chapter 1 (Continued)19.Yes. Net income does appear on the income statement—it is the result of subtracting expensesfrom revenues. In addition, net income appears in the owner’s equity statement—it is shown asan addition to the beginning-of-period capital. Indirectly, the net income of a company is alsoincluded in the statement of financial position. It is included in the capital account which appearsin the owner’s equity section of the statement of financial position.20.(a) Ending capital balance .Beginning capital balance .Net income. 189,000186,000 3,000(b) Ending capital balance .Beginning capital balance .Deduct: Investment .Net loss . 189,000186,0003,00013,000 10,000(a) Total revenues ( 20,000 70,000) . 90,000(b) Total expenses ( 26,000 40,000) . 66,000(c) 90,00066,000 24,00021.22.1-8Total revenues .Total expenses.Net income.TSMC’s accounting equation at December 31, 2016 was NT 1,886,455,302 NT 496,404,176 NT 1,390,051,126.Copyright 2018 WILEYWeygandt, Accounting Principles, IFRS 1/e, Solutions Manual(For Instructor Use Only)
SOLUTIONS TO BRIEF EXERCISESBRIEF EXERCISE 1.1(a) 90,000 – 50,000 40,000 (Owner’s Equity).(b) 44,000 70,000 114,000 (Assets).(c) 94,000 – 53,000 41,000 (Liabilities).BRIEF EXERCISE 1.2(a) 120,000 230,000 350,000 (Total assets).(b) 190,000 – 89,000 101,000 (Total liabilities).(c) 900,000 – 0.5( 900,000) 450,000 (Owner’s equity).BRIEF EXERCISE 1.3(a) ( 800,000 150,000) – ( 300,000 – 60,000) 710,000(Owner’s equity).(b) ( 300,000 100,000) ( 800,000 – 300,000 – 70,000) 830,000(Assets).(c) ( 800,000 – 80,000) – ( 800,000 – 300,000 120,000) 100,000(Liabilities).BRIEF EXERCISE 1.4Owner’s EquityOwner’sAssets(a)(b)(c) LiabilitiesOwner’s Capital–Drawings –INR40,000 INR450,000 – INR340,000X INR90,000 INR150,000X INR90,000 INR220,000X INR310,000INR57,000 X INR35,000INR57,000 X INR45,000X INR12,000 (INR57,000 – INR45,000)– INR7,000INR660,000 (INR660,000 x 2/3) X (Owner’s equity)INR660,000 INR440,000 XX Revenues–INR52,000 –ExpensesINR35,000 INR220,000Copyright 2018 WILEYWeygandt, Accounting Principles, IFRS 1/e, Solutions Manual(For Instructor Use Only)1-9
BRIEF EXERCISE 1.5ALA(a) Accounts receivable(b) Salaries and wages payable(c) EquipmentA (d) SuppliesOE (e) Owner’s capitalL (f) Notes payableBRIEF EXERCISE 1.6EREE(a)(b)(c)(d)Advertising expenseService revenueInsurance expenseSalaries and wages expenseDRE(e) Owner’s drawings(f) Rent revenue(g) Utilities expenseBRIEF EXERCISE 1.7(a)(b)(c)Assets –Liabilities NENEOwner’s EquityNE –BRIEF EXERCISE 1.8(a)(b)(c)Assets –NELiabilitiesNENENEOwner’s Equity –NEBRIEF EXERCISE 1.9RNOEE1-10(a) Received cash for services performed(b) Paid cash to purchase equipment(c) Paid employee salariesCopyright 2018 WILEYWeygandt, Accounting Principles, IFRS 1/e, Solutions Manual(For Instructor Use Only)
BRIEF EXERCISE 1.10GRANDE LTD.Statement of Financial PositionDecember 31, 2020AssetsAccounts receivable .Cash .Total assets . 62,50049,000 111,500Owner’s Equity and LiabilitiesOwner’s equityOwner’s capital .LiabilitiesAccounts payable .Total owner’s equity and liabilities . 21,50090,000 111,500BRIEF EXERCISE 1.11SFPISOE, SFPSFPIS(a)(b)(c)(d)(e)Notes payableAdvertising expenseOwner’s capitalCashService revenueSOLUTIONS FOR DO IT! EXERCISESDO IT! 1.11.2.3.4.5.False. The three steps in the accounting process are identification,recording, and communication.True.False. Financial accounting provides reports to help investors andcreditors evaluate a company.True.True.Copyright 2018 WILEYWeygandt, Accounting Principles, IFRS 1/e, Solutions Manual(For Instructor Use Only)1-11
DO IT! 1.21.2.3.4.5.False. IFRS are issued by the IASB.False. The standards of conduct by which actions are judged as rightor wrong, honest or dishonest, fair or not fair, are ethics.False. The primary accounting standard-setting body in the UnitedStates is the Financial Accounting Standards Board (FASB).True.True.DO IT! 1.31.2.3.4.Drawings is owner’s drawings (D); it decreases owner’s equity.Rent Revenue is revenue (R); it increases owner’s equity.Advertising Expense is an expense (E); it decreases owner’s equity.When the owner puts personal assets into the business, it is investmentby owner (I); it increases owner’s equity.DO IT! 1.4AssetsCash(1)(2) R20,000(3)(4) – R 2,5001-12Owner’s Equity Liabilities AccountsAccounts Receivable Payable Owner’sCapital–Owner’sDrawings R20,000– R20,000 Revenues – Expenses R20,000–R3,200 R3,200–R2,500Copyright 2018 WILEYWeygandt, Accounting Principles, IFRS 1/e, Solutions Manual(For Instructor Use Only)
DO IT! 1.5(a) The total assets are HK 49,000, comprised of Cash HK 6,500,Accounts Receivable HK 13,500, and Equipment HK 29,000.(b) Net income is HK 20,500, computed as follows:RevenuesService revenue.ExpensesSalaries and wages expense .Rent expense .Advertising expense .Total expenses .Net income .HK 53,500HK 16,50010,5006,00033,000HK 20,500(c) The ending owner’s equity balance of Tsui Repairs is HK 21,000. Byrewriting the accounting equation, we can compute Owner’s Equity asAssets minus Liabilities, as follows:Total assets [as computed in (a)] .Less: LiabilitiesNotes payable .Accounts payable .Owner’s equity .HK 49,000HK 25,0003,00028,000HK 21,000Note that it is not possible to determine the company’s owner’s equity inany other way, because the beginning balance for owner’s equity is notprovided.Copyright 2018 WILEYWeygandt, Accounting Principles, IFRS 1/e, Solutions Manual(For Instructor Use Only)1-13
SOLUTIONS TO EXERCISESEXERCISE 1.1CRCRRCCIRAnalyzing and interpreting information.Classifying economic events.Explaining uses, meaning, and limitations of data.Keeping a systematic chronological diary of events.Measuring events in dollars and cents.Preparing accounting reports.Reporting information in a standard format.Selecting economic activities relevant to the company.Summarizing economic events.EXERCISE 1.2(a)Internal usersMarketing managerProduction supervisorStore managerVice-president of financeExternal usersCustomersFinancial regulatorsLabor unionsSuppliersTax authorities(b)1-14IEIEIIECan we afford to give our employees a pay raise?Did the company earn a satisfactory income?Do we need to borrow in the near future?How does the company’s profitability compare to other companies?What does it cost us to manufacture each unit produced?Which product should we emphasize?Will the company be able to pay its short-term debts?Copyright 2018 WILEYWeygandt, Accounting Principles, IFRS 1/e, Solutions Manual(For Instructor Use Only)
EXERCISE 1.3Angela Manternach, president of Manternach Designs, instructed CarlaRuden, the head of the accounting department, to report the company’s landin its accounting reports at its fair value of 170,000 instead of its cost of 100,000, in an effort to make the company appear to be a betterinvestment. The historical cost principle requires that assets be recordedand reported at their cost, because cost is faithfully representative and canbe objectively measured and verified. In this case, the historical costprinciple should be used and Land reported at 100,000, not 170,000.The stakeholders include owners and creditors of Manternach Company,potential owners and creditors, other users of Manternach’s accountingreports, Angela, and Carla. All users of Manternach’s accounting reportscould be harmed by relying on information that may be unreliable. AngelaManternach could benefit if the company is able to attract more investors,but would be harmed if the inappropriate reporting is discovered. Similarly,Carla could benefit by pleasing her boss, but would be harmed if theinappropriate reporting is discovered.Carla’s alternatives are to report the land at 100,000 or to report it at 170,000. Reporting the land at 170,000 is not appropriate since it maymislead many people who rely on Manternach’s accounting reports to makefinancial decisions. Carla should report the land at its cost of 100,000. Sheshould try to convince Angela Manternach that this is the appropriatecourse of action, but be prepared to resign her position if Manternachinsists.EXERCISE 1.41.Incorrect. The historical cost principle requires that assets (such asbuildings) be recorded and reported at their cost.2.Correct. The monetary
3. State the accounting equation, and define its components. Q1-22 Q1-11 Q1-12 Q1-13 BE1-5 BE1-6 E1-5 BE1-1 BE1-2 BE1-3 BE1-4 DI1-3 P1-1 . Analyze the effects of business transactions on the accounting equation. Q1 -14 Q1-15 Q1-16 Q1-18 BE1-7 BE1 8 BE1-9 E1-6 E1-7 DI1 4 E1-8 P1-1 P1-2 P1 P1-5 5. Describe the four financial statements and how .
(a) IFRS 9 Financial Instruments (Part A); and (b) IFRS 15 Revenue from Contracts with Customers (Part B). Introduction 2 IFRS 17 is effective from 1 January 2021. An insurer can choose to apply IFRS 17 before that date but only if it also applies IFRS 9. 3 The paper considers components of IFRS 9 and IFRS 15 that are relevant to the
IFRS 17 basics IFRS 17 is the new accounting standard for Insurance Contracts published 18 May 2017 Replace the interim standard IFRS 4 (not standardized across jurisdictions) EU endorsement still under process Go-live 1st January 2022 18 May 2017 IFRS 17 Publication Effective application of IFRS 17 & IFRS 9 1st January 2022 IFRS 17 Go-live ! Transitory
Accounting rules and principles 5 Accounting principles and applicability of IFRS 6 First-time adoption of IFRS – IFRS 1 7 Presentation of financial statements – IAS 1 8 Accounting policies, accounting estimates and errors – IAS 8 10 Fair value – IFRS 13 11 Financial
1 Overview of IFRS 9 and implementation plan in Thailand 2 IFRS 9 Classification and Measurement 3 IFRS 9 Impairment 4 IFRS 9 Hedge accounting 5 Transition requirements (with applying IFRS 9 with IFRS 4 phase II) 6 Concluding remark
New IFRS Standards—IFRS 16 Leases Page 1 of 26 . Agenda ref 30E STAFF PAPER June 2019 IASB Meeting Project Comprehensive review of the IFRS for SMEs Standard Paper topic New IFRS Standards—IFRS 16 Leases CONTACT(S) Yousouf Hansye ykhansye@ifrs.org 44 (0) 20 7246 6470
IFRS and US GAAP: similarities and differences IFRS first-time adoption IFRS 1, First-Time Adoption of International Financial Reporting Standards, is the standard that is applied during preparation of a company's first IFRS-based financial statements. IFRS 1 was created to help companies transition to IFRS and provides practical
IFRS 3 Summary Notes Page 1 (kashifadeel.com)of 6 IFRS 3 IFRS 3 Business Combination INTRODUCTION Background IFRS 3 Business Combinations outlines the accounting when an acquirer obtains control of a business (e.g. an acquisition or merger).
from the entity size. (McQuaid 2009) The IFRS for SMEs is a stand-alone standard unlike from all the accounting policies in full IFRS that had been permitted by the Exposure Draft with cross-references to IFRS. Because IFRS for SMEs is a stand-alone standard there are no cross-references to full
