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Investment Company Limited (ICL) is a private company owned by 10 doctors. The company's objective is to manage the doctors' investment portfolios. It actually began

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Investment Company Limited (ICL) is a private company owned by 10 doctors. The company's objective is to manage the doctors' investment portfolios. It actually began as an investment club 10 years ago. At that time, each doctor invested equal amounts of cash and the group met every other week to determine where the money should be invested. Eventually, they decided to incorporate the company and each doctor now owns one tenth of the voting shares. The company employs two managers who look after the business full-time and make the investment decisions with input from the owners. Earnings per year after taxes now average $1.5 million. During the year, the following transactions took place 1. Investment A - Investment in $100,000, 5% per annum, 10-year bonds of Company A. The market rate is currently 8% per annum. The owners intend to hold this bond until maturity 2. Investment B - Investments in common shares of Company B. ICL owns 7% of the total shares of the company and does not have significant influence. 3 of the shareholders of ICL would like to hold onto these shares for the long term whereas 2 of the shareholders of ICL would like to hold onto the shares for less than a year and sell them off. 3. Investment C - Investments in common shares of Company C. ICL owns 17% of the total shares. ICL has the ability to elect 3/12 members of the Board. Although the investments have been mainly in private companies so far, the doctors are thinking of revising their investment strategy and investing in more public companies They feel that the stock market is poised for recovery, and are therefore planning to borrow some funds for investment. The accountant is currently reviewing the above transactions in preparation for a meeting with the bank. The company has never prepared GAAP statements before but is considering doing so. The company has not made the decision as to which GAAP to follow (IFRS or ASPE) D Focus

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