Question
The Atlantic Refinery Corp. (ARC) is a public company headquartered in St. Johns, Newfoundland. On 31 December 20X5, the post-closing trial balance included the following
The Atlantic Refinery Corp. (ARC) is a public company headquartered in St. Johns, Newfoundland. On 31 December 20X5, the post-closing trial balance included the following accounts (in thousands of Canadian dollars):
Debit | Credit | |||||
Investment in Mongolian subsidiary | $ | 70,100 | ||||
Provision for future site restoration | $ | 33,200 | ||||
Common shares | 166,000 | |||||
Translation differential from Mongolian subsidiary | 11,900 | |||||
Convertible bonds | 84,300 | |||||
Equity portion of convertible bonds | 6,000 | |||||
Contributed surpluspremium on common shares issued | 33,600 | |||||
Goodwill (from purchase of Mongolian subsidiary) | 17,600 | |||||
Investment in shares of upstream affiliate | 35,200 | |||||
Retained earnings | 511,600 | |||||
Trademarks | 6,500 | |||||
The following transactions and events occurred during 20X6: a. Net income amounted to $53 million. b. The value of trademarks was written off after ARC lost a patent protection lawsuit. c. An additional $1.7 million of convertible bonds was transferred from the debt portion to the equity portion. d. An accounting policy was changed due to a new IFRS taking effect in 20X6 the effect of retrospective restatement was to reduce prior years earnings by an aggregate amount of $38 million. e. The future liability for site restoration was increased by $6 million. f. Common shares with a stated value of $15 million were repurchased on the open market for $21 million and cancelled. The original issue price of the shares amounted to $18, of which $3 million had been credited to contributed surplus. g. A new class of preferred shares was issued to a major public sector pension plan for $87 million to finance future development. h. Dividends totalling $21 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. i. The translated amount of ARCs investment in Mongolian subsidiary declined by $4 million due to a rise in the value of the Canadian dollar.
Required: Prepare a statement of changes in equity for Atlantic Refinery Corp. for the year ended 31 December 20X6.
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