Goodman Company is preparing to adopt IFRS. In preparing its opening statement of financial position on January 1, 2015, Goodman identified the following accounting policy differences between IFRS and its previous GAAP.

1. Under its previous GAAP, Goodman classified proposed dividends of €45,000 as a current liability.

2. Goodman had deferred advertising costs of €500,000.

Instructions

(a) Prepare the journal entries (if any) needed before preparation of Goodman’s opening statement of financial position.

(b) Determine the net change in equity from these adjustments.