Maurice Ltd. is a private Canadian company. It has been preparing its financial statements in accordance with IFRS but is now considering a change to ASPE. For its Year 6 financial statements, Maurice reported the following in accordance with IFRS: You have identified the following three areas in which Maurice's accounting policies have differences between IFRS and ASPE: 1. Impairment losses 2. Convertible bonds 3. Income taxes The controller at Maurice provides the following information with respect to each of these accounting differences and indicates that the Year 6 financial statements reflect the proper accounting for these items in accordance with IFRS: Impairment Losses Impairment tests were performed on the company's equipment for Years 5 and 6 with the following results: At the end of Year 5, the equipment had an estimated remaining useful life of 10 years. There were no impairment losses prior to Year 5. Convertible Bonds Maurice issued bonds for proceeds of $13,000 on January 1, Year 5. The bonds are convertible into common shares at any time within the next five years. The bonds would have been worth only $12,100 if they did not have the conversion feature. The amortization of the discount on bonds was $55 in Year 5 and $56 in Year 6. Maurice's income tax rate has been and is expected to continue at 40%. The financial statements reflect the future taxes payable method of accounting for income taxes and contain the following amounts: The CEO is concerned about the impact of converting Maurice's financial statements from IFRS to ASPE on the following metrics: current ratio, debt-to-equity ratio, and return on total shareholders' equity. Where ASPE provides an accounting policy choice, he wants to choose the method that is most simple and straightforward. Required (a) Calculate the three ratios first using IFRS and then ASPE. Prepare a schedule showing any adjustments to the numerator and denominator for these ratios. Ignore income taxes on the impairment losses and convertible bonds. (b) Explain whether Maurice's liquidity, solvency, and profitability look better or worse under ASPE after considering the combined impact of the three areas of difference