Problem One:

Refer to TSMC's financial statements in Appendix A in the textbook, as well as the company's website, and answer the following:

a)TSMC is traded on the Taiwan and New York Stock exchanges.

1)If TSMC were a New Zealand company trading on the New Zealand Stock Exchange, would it fall under Tier I IFRS, Tier II IFRS, or no Tier at all?Explain your answer.

2)Would your answer change if TSMC were a "small" company trading on the Exchange?Why or why not?

3)What is the fundamental difference between the financial reporting requirements under Tier I and Tier II?

b)Per the Conceptual Framework ("CF"), the objective of financial reporting is to provide financial information about the reporting entity.

1)How has TSMC applied the reporting entity concept?

2)How has TSMC summarised its financial information?

3)Chapter 1 in the textbook claims that a Statement of Retained Earnings is a required financial statement.Do you find this Statement in the appendix?If not, what statement is presented instead, and can you gather from it the same information shown on a Statement of Retained Earnings?Explain your answer.

c)The concept of materiality is defined as an entity specific application of the fundamental qualitative characteristic of relevance.Discuss how you think TSMC applied this concept to the non-current asset category of Property, Plant and Equipment.

Problem Two:

Refer to CTP1.5 on page 1-45, but instead of a memo, write a corrected Balance Sheet using the same format used by TSMC in Appendix A and as shown in the solution to E1.13--see Canvas, tutorial 1 solutions.(Also follow the proper form?correct dollar sign placement--as shown in the Canvas solution.)Important additional information:a) assume that the Notes Payable is due 1 March 2022: b) "Dividends" is different from "Dividends Payable"--you may assume that the $2,000 of dividends were paid; c) the company uses a Retained Earning account; d) profit for the period was $3,000; and the Cash account should have a balance of $12,000 instead of the $9,000 shown in the textbook.

CT1.5 Erin Danielle, the bookkeeper for Liverpool Ltd., has been trying to determine the correct statement of financial position for the company. The company's statement of financial position is shown below. Liverpool Ltd. Statement of Financial Position For the Month Ended December 31, 2020 Assets Liabilities Equipment f25,500 Share capital-ordinary E26,000 Cash 9,000 Accounts receivable (5,000) Supplies 3,000 Dividends (2,000) Accounts payable (8,000) Notes payable 10,500 f29,500 L29,500 Instructions Explain to Erin Danielle in a memo why the original statement of financial position is incorrect, and what should be done to correct it.P1.5 (LO 4, 5) Writing Financial statement information about four different companies is as follows. Determine financial statement amounts and prepare retained earnings statement. Crosby Stills Nash Young Company Company Company Company January 1, 2020 Assets HK$ 900,000 HK$ 1,100,000 (g) HK$1,500,000 Liabilities 650,000 (d) HK$ 750,000 Equity (a) 500,000 450,000 1,000,000 December 31, 2020 Assets (b) 1,370,000 2,000,000 (k) Liabilities 550,000 750,000 (h) 800,000 Equity 400,000 (e) 1,300,000 1,400,000 Equity changes in year Additional investment (c) 150,000 100,000 150,000 Dividends 100,000 (f) 140,000 100,000 Total revenues 3,500,000 4,200,000 (i) 5,000,000 Total expenses (D 3,300,000 3,850,000 3,420,000 Instructions HK$250,000.) a. Determine the missing amounts. (Hint: For example, to solve for (a), Assets - Liabilities = Equity = b. Prepare the retained earnings statement for Stills Company. Assume beginning retained earnings was HK$200,000. c. Write a memorandum explaining the sequence for preparing financial statements and the interrelationship of the retained earnings statement to the income statement and statement of financial position