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Review the consolidated balance sheet of spin master in Appendix III. Identify an asset account that requires adjustment before annual financial statements can be prepared.
Review the consolidated balance sheet of spin master in Appendix III. Identify an asset account that requires adjustment before annual financial statements can be prepared. What would be the effect on the income statement if this asset account were not adjusted.
Spin Master Corp. Consolidated statements of financial position (US\$ millions) Assets Current assets Cash Trade receivables Other receivables Inventories Advances on royalties Prepaid expenses Other assets Non-current assets Intangible assets Goodwill Right-of-use assets Property, plant and equipment Deferred income tax assets Advances on royalties Other assets Notes Dec 31, 2020 Dec 31, 2019 320.6 265.2 73.4 102.0 17.2 7.9 3.0 789.3 115.3 370.7 57.0 185.3 18.0 14.4 12 10 10 11 192.0 760.7 14 15 138.0 182.4 138.8 24 78.3 66.8 26.2 3.2 \begin{tabular}{lrrr} \hline & 9 & 98.7 & 0.7 \\ \hline Total assets & 12 & 3.0 & - \\ \hline \hline \end{tabular} Current liabilities Trade payables and accrued liabilities Contract liabilities Provisions and contingent liabilities Income tax payable Lease liabilities 16 67.0 13 53.4 17 19 345.6 9 7.6 24 26.2 Approved by the Board of Directors on March 1, 2021. The accompanying notes on pages 5 to 44 are an integral part of these consolidated financial statementsStep by Step Solution
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