The following hypothetical events relate to the Berlin Philharmonic Indicate whether each transaction immediately gives rise to a liability under U S GAAP and, separately, IFRS If the Berlin Philharmonic recognizes a liability, state the account title, the amount, and the classification of the liab...

a Under both US GAAP and IFRS the Berlin Philharmonic would record Advances from Customers current l ...

The following hypothetical events relate to the Berlin Philharmonic. Indicate whether each transaction immediately gives rise to

Question:

The following hypothetical events relate to the Berlin Philharmonic. Indicate whether each transaction immediately gives rise to a liability under U.S. and, separately, IFRS. If the Berlin Philharmonic recognizes a liability, state the account title, the amount, and the classification of the liability on the as either a current liability or a noncurrent liability. The Berlin Philharmonic reports its results in euros.
a. The Berlin Philharmonic receives €3,040,000 for season tickets sold for next season.
b. The Berlin Philharmonic places an order with a printing company totaling €185,000 for symphony performance programs for next season.
c. The Berlin Philharmonic receives the programs ordered in part b, along with an invoice for €185,000.
d. The Berlin Philharmonic receives notice from its attorneys that a loyal customer attending a concert last season and sitting in the first row of the symphony hall has sued the Berlin Philharmonic for €10 million, claiming hearing loss. The customer normally sits farther back, but staff asked her to move forward for this particular concert because of damage to the regular seat.
e. The Berlin Philharmonic signs a three-year contract with its first violinist at a salary of €140,000 per year.
f. The Berlin Philharmonic signs a five-year contract with Sir Simon Rattle, present conductor of the Philharmonic, to be the spokesman for the symphony at the end of his current contract, in 2012. Under the terms of the deal, the Berlin Philharmonic will pay compensation of €2 million a year to Sir Simon, beginning in 2012. Sir Simon will earn this compensation regardless of whether the Berlin Philharmonic asks him to perform any speaking engagements each year.

GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...