Question
On 31 December 20X5, ABC company is a public headquartered in Vancouver. the post-closing trial balance included the following accounts ( in thousands of Canadian
On 31 December 20X5, ABC company is a public headquartered in Vancouver. the post-closing trial balance included the following accounts ( in thousands of Canadian dollars.
Debit | Credit | |
Investment in Mongolian subsidiary | $72,000 | |
Provision for future site restoration | $34,000 | |
Common share | 170,000 | |
Translation differential from Mongolian subsidiary | 12,000 | |
Convertible bonds | 85,000 | |
Equity portion of convertible bonds | 5,000 | |
Contributed surplus premium on common shares issued | 35,000 | |
Goodwill from purchase of Mongolian subsidiary | 18,000 | |
Investment in shares of upstream affiliate | 36,000 | |
Retained Earning | 533,000 | |
Trademarks | 6,800 |
The following transactions and events occurred during 20X6.
1. Net income amounted to $47 million.
2. The value of trademarks was written off after ABC lost a patent protection lawsuit.
3. An additional $1.5 million of convertible bonds was transferred from the debt portion to the equity portion.
4. An accounting policy was changed due to a new IFRS taking effect in 20X6. the effect of retrospective restatement was reduced prior years earning by an aggregate amount of $31 million
5. The future liability for site restoration was increased by $5million.
6. Common shares with a stated value of $15 million were repurchased on the open market for $20 million and canceled. The original issue price of the shares amounted to $18 of which $3million had been credited to contributed surplus.
7. A new class of preferred shares was issued to a major public sector pension plan for $85 million to finance future development.
8. Dividends totaling $24 million were issued during the year. Of that amount, $6 million were declared on 24 December 20X6, payable to shareholders of record on January 15, 20X7.
9. The translated amount of ABC's investment in Mongolian subsidiary declined by $2 million due to a rise in the value of Canadian dollar.
Prepare a statement of change in equity for ABC for the year ended 31 December 30X6.
Explain assumption you need to make if any. Hint: Not all of the accounts listed above are relevant to the SCE.
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