1. AD has been depreciating equipment over a 10-year life on a straight-line basis. An equipment, which costs $ 25,000, was purchased on January 1, 2017 and has an estimated residual value of $5,000. On the basis of experience since acquisition, AD has decided in 2021 to depreciate it over an extended total life of 14 years with no change in the estimated residual value. The change was effective on January 1, 2021. Financial requirements/issues when reporting under both aspe and ifrs?

2.

Brian wants to conduct vertical integration to secure the supply of alcohol, the major ingredient for making hand-sanitizer. For that purpose, AD issued preferred shares of $15,000 to one key employee, Helen Brown at the end of 2021, with a rate of return of 4% per annum. The preferred shares are cumulative, redeemable and retractable in two years time at face value plus dividends in arrears, if any. Then AD use the money to purchase $120,000 common shares of Woodbridge Alcohol Ltd., an alcohol manufacturer and ADs primary supplier. AD will now own 25% of Woodbridge Alcohol. Financial requirements/issues when reporting under both aspe and ifrs?

3.

AD incurred $10,000 costs in 2021 to develop a new hand-sanitizer. 40% of the costs are related to market research, 30% related to testing this new product, and the rest 30% for the design of the product. Financial requirements/issues when reporting under both aspe and ifrs?

4.

AD received an order from a recurring customer, Walmart Canada, in early October, 2021. Walmart paid AD $3,000 deposit on placing the order, and promised to pay the balance of $17,000 upon the final delivery of the order on December 9, 2021. AD completed the production for the order on November 30, well ahead of the scheduled final delivery. In early December, Walmart notified AD that it could not take the order delivery until January 5, 2022 because they had too many hand-sanitizers in stock. However, Walmart would honour all the payment arrangement set out in the original order. Financial requirements/issues when reporting under both aspe and ifrs?