Chapter 1 Setting the Stage
1) What do business enterprises have that NFPs do not have?
A) Specified products or services
B) Identifiable customers or clients
D) Boards of directors
Page Ref: 3
Learning Obj.: 1.1
Answer: In EU they set its own accounting principles and standards according to
existing law and government regulation. So, EU accepted some of the aspects of
IFRS and not accepted in a whole. Thus, they have some differences with usual
While goodwill was required to be amortized a few years ago under then extant Canadian standards, under IFRS goodwill has to be tested for
impairment on an annual basis and not amortized. We can presume that the goodwill was acquired in a busines
The answer can be presented using either of the following methods. In either case students are expected to demonstrate that they
understand how the figures are computed and be able to explain the adjustment reversals.
Method A BY Reversing the consolidati
Price for 100% of Teresa
Gain of bargain purchase
Fair-value of 100% of Teresa
The next step to prepare separate statement of financial position for Rodriguez Inc.
identifying differences and possible adjustments.