The bookkeeper for Branford Ltd. has drawn up a financial statement on 31 December 20X1. Some of the items on the draft balance sheet are as follows:

Cash $400,000 Consists of 300,000 Canadian dollars in the bank, plus 100,000 Hong Kong dollars held in cash. The HK$ were received in full payment for a consulting assignment recorded as revenue in 20X1.

Marketable securities $900,000 Represents the cost of a temporary investment in the common shares of another company.

Accounts receivable $500,000 Recorded as revenue in December 20X1 for a customer order that had not been shipped by year-end.

Contract liability $ 100,000 The amount of a contract with a construction firm for modifications to Branford Ltd.s office space, expected to be undertaken in early 20X2.

Other liabilities $ 1 Recorded as a result of a contractual (long-term) requirement to repair the roof of an office building that Branford rents for an advertising sign. The sign is to be removed and the roof repaired in January 20X2, at an estimated cost of $75,000.

Upon further inquiry, you discover that at 31 December 20X1, the Canadian dollar is worth HK$7.5. You also ascertain that the value of the marketable securities was $987,000 at 20X1 year-end.

Required: a Indicate what change, if any, you would make in reporting each of the preceding items. In each case, discuss the accounting principle involved.