Answered step by step
Verified Expert Solution
Question
1 Approved Answer
PART A PART B Mikkeli OY acquired a brand name with an indefinite life in 2015 for 42,700 markkas. At December 31, 2017, the brand
PART A
PART B
Mikkeli OY acquired a brand name with an indefinite life in 2015 for 42,700 markkas. At December 31, 2017, the brand name could be sold for 35,800 markkas, with zero costs to sell. Expected cash flows from the continued use of the brand are 44,770 markkas, and the present value of this amount is 34,800 markkas. Assume that a foreign company using IFRS is owned by a company using U.S. GAAP. Thus, IFRS balances must be converted to U.S. GAAP to prepare consolidated financial statements. Ignore income taxes. Required: a. Prepare journal entries for this brand name for the year ending December 31, 2017, under (1) IFRS and (2) U.S. GAAP. b. Prepare the entry(ies) that the U.S. parent would make on the December 31, 2017 and December 31, 2018 conversion worksheet to convert IFRS balances to U.S. GAAP. 1 Record the entry for the loss on impairment of brand as per IFRS. 2 Record the entry for the loss on impairment of brand as per U.S. GAAP. 1 Record the conversion entry needed for 12/31/17. N Record the conversion entry needed for 12/31/18Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started