TUDI 1493 recently commented, "If I have to disclose our segments individually, the only people who We Our competitors and the only people who will lose only people who will lose are our present shareholders." Evaluate this comment. 223-2 In an examination of Daniel Corporation Ltd as of December 31, 2017. you have learned that situations exist. No entries have been made in the accounting records for these items. Daniel follows Ink 1. The corporation erected its present factory building in 1909. Denreciation was calculated by the strang method, using an estimated life of 35 years. Early in 2017, the board of directors com fly in 2017, the board of directors conducted a careful survey and estimated that the factory building had a remaining useful life of 25 years as of January 1, 201 2. An additional assessment of 2016 income tax was levied and paid in 2017. 3. When calculating the accrual for officers' salaries at December 31, 2017, it was discovered that the acade officers' salaries for December 31, 2016 had been overstated. 4. Un December 13, 2017, Daniel Corporation Ltd. declared a stock dividend of 1,000 common shares per 100,000 of its common shares outstanding, distributable February 1, 2018 to the common shareholders of record on December 31, 2017. 5. Daniel Corporation Ltd., which is on a calendar-vear basis, changed its inventory method as of January 1, 2017 The inventory for December 31, 2016 was costed by the average method, and the inventory for December 31 2017 was costed by the FIFO method. Daniel is changing its inventory method because it would result in reliable and more relevant information. 6. Daniel has guaranteed the payment of interest on the 20-year first mortgage bonds of Bonbee Inc., an affiliate. Outstanding bonds of Bonbee Inc. amount to $150,000 with interest payable at 6% per annum, due June 1 and December 1 of each year. The bonds were issued by Bonbee Inc. on December 1, 2013, and the company has met all interest payments except for the payment due December 1, 2017. Daniel states that it will pay the defaulted interest to the bondholders on January 15, 2018. 7. During 2017, Daniel Corporation Ltd. was named as a defendant in a lawsuit for damages by Anand Shahid Corporation for breach of contract. The case was decided in favour of Anand Shahid Corporation, which was awarded $80,000 damages. At the time of the audit, the case was under appeal to a higher court. Instructions (a) Describe fully how each item should be reported in the financial statements of Daniel Corporation Ltd. for the year 2017 (b) Determine if any of the treatment given under IFRS in part (a) would be different if ASPE had been used. mine the financial statements of Samson Corporation for the year 2017. The 1 uninl statements for the corporation TUDI 1493 recently commented, "If I have to disclose our segments individually, the only people who We Our competitors and the only people who will lose only people who will lose are our present shareholders." Evaluate this comment. 223-2 In an examination of Daniel Corporation Ltd as of December 31, 2017. you have learned that situations exist. No entries have been made in the accounting records for these items. Daniel follows Ink 1. The corporation erected its present factory building in 1909. Denreciation was calculated by the strang method, using an estimated life of 35 years. Early in 2017, the board of directors com fly in 2017, the board of directors conducted a careful survey and estimated that the factory building had a remaining useful life of 25 years as of January 1, 201 2. An additional assessment of 2016 income tax was levied and paid in 2017. 3. When calculating the accrual for officers' salaries at December 31, 2017, it was discovered that the acade officers' salaries for December 31, 2016 had been overstated. 4. Un December 13, 2017, Daniel Corporation Ltd. declared a stock dividend of 1,000 common shares per 100,000 of its common shares outstanding, distributable February 1, 2018 to the common shareholders of record on December 31, 2017. 5. Daniel Corporation Ltd., which is on a calendar-vear basis, changed its inventory method as of January 1, 2017 The inventory for December 31, 2016 was costed by the average method, and the inventory for December 31 2017 was costed by the FIFO method. Daniel is changing its inventory method because it would result in reliable and more relevant information. 6. Daniel has guaranteed the payment of interest on the 20-year first mortgage bonds of Bonbee Inc., an affiliate. Outstanding bonds of Bonbee Inc. amount to $150,000 with interest payable at 6% per annum, due June 1 and December 1 of each year. The bonds were issued by Bonbee Inc. on December 1, 2013, and the company has met all interest payments except for the payment due December 1, 2017. Daniel states that it will pay the defaulted interest to the bondholders on January 15, 2018. 7. During 2017, Daniel Corporation Ltd. was named as a defendant in a lawsuit for damages by Anand Shahid Corporation for breach of contract. The case was decided in favour of Anand Shahid Corporation, which was awarded $80,000 damages. At the time of the audit, the case was under appeal to a higher court. Instructions (a) Describe fully how each item should be reported in the financial statements of Daniel Corporation Ltd. for the year 2017 (b) Determine if any of the treatment given under IFRS in part (a) would be different if ASPE had been used. mine the financial statements of Samson Corporation for the year 2017. The 1 uninl statements for the corporation
