Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mikkeli OY acquired a brand name with an indefinite life in 2020 for 43,800 markkas. At Decembet 31, 2020, the brand name could be sold

image text in transcribed
image text in transcribed
Mikkeli OY acquired a brand name with an indefinite life in 2020 for 43,800 markkas. At Decembet 31, 2020, the brand name could be sold for 37,200 markkas, with zero costs to sell. Expected cash flows from the continued use of the brand are 46,000 markkas, and the present value of this amount is 36,200 markkas. Assume that Mikkell OY is a foreign company using IFRS and is owned by a company using US. GAAP. Thus, IFRS balances must be converted to U.S. GAAP to prepare consolidated financial statements, Ignore income taxes. Required: Q. Prepare journal entries for this brand name for the year ending December 31,2020 , under (1) IFRS and (2) US. GAAP b. Prepare the entry(les) that the US. parent would make on the December 31, 2020 conversion worksheet to convert IFRS balances to U.S. GAAP. What entry(ies), if any, would be made at 12/31/21, assuming that the Brand has suffered no further impaiment in 2021. (3) Answer is not complete. Complete this question by entering your answers in the tabs below. Prepare journal entries for this brand name for the year ending December 31, 2020. under (1) ifRS and (2) U.5. GAAR: (If no entry is required for a transaction/event select. Wo joumal ontry required' in tho first aceount field 3 Mikkeli OY acquired a brand name with an indefinite life in 2020 for 43,800 markkas. At December 31,2020 , the brand name could be sold for 37,200 markkas, with zero costs to sell. Expected cash flows from the continued use of the brand are 46,000 markkas, and the present value of this amount is 36,200 markkas Assume that Mikkeli OY is a foreign company using IFRS and is owned by a company using US. GAAP. Thus, IFRS balances must be converted to U.S GAAP to prepare consolidated financial statements, Ignore income toxes. Required: Q. Prepare joumal entries for this brand name for the year ending December 31, 2020, under (1) IFRS and (2) U.S. GAAP b. Prepare the entry(ies) that the U.S. parent would make on the December 31,2020 conversion worksheet to convert IFRS balances to U.S. GA.P. What entry(ies), if any, would be made at 12/31/21, assuming that the Brand has suffered no further impairment in 2021 Answer is not complete. Complete this question by entering your answers in the tabs below. Prepare the entry(ies) that the U.5. parent would make on the December 31,2020 conversion worksheet to convert IFRS balances to U.S. GAAP. What entry(les), If any, would be made at 12/31/21, assuming that the Brand has suffered no further impairment in 2021, (If no entry s required fors transactionvevent, splect 110 journatentry required in the first accouns

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing A Practical Approach

Authors: Robyn Moroney

1st Canadian Edition

978-1118472972, 1118472977, 978-1742165943

More Books

Students also viewed these Accounting questions

Question

Know why employees turn to unions

Answered: 1 week ago

Question

Understand the process of effective succession planning

Answered: 1 week ago

Question

Understand the history of unionization

Answered: 1 week ago