Hong Kong Trading Co. (which uses iGAAP) is in the midst of a multi-year operational restructuring. It
Question:
Hong Kong Trading Co. (which uses iGAAP) is in the midst of a multi-year operational restructuring. It reported the following information in its 2010 annual report (amounts in $, in millions): Restructuring provision balance at 1 January 2010, $135; provisions made in the period, $275; and unused amounts reversed, $22. Respond to the following:
(a) What is the balance for the Restructuring Provision at 31 December 2010?
(b) How did the reversal of unused amounts affect net income?
(c) Briefly discuss how the accounting for the restructuring provision can be used for earnings management.
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a The balance in the provision accounting at 31 December 2010 would be At 1 January 2010 ...View the full answer
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Related Book For 
Intermediate Accounting
ISBN: 978-0470423684
13th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
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