IFRS4-1 The financial statements of Louis
Vuitton are presented in Appendix F. Instructions for accessing and using the company's
complete annual report, including the notes to its financial statements, are
also provided in Appendix F.InstructionsVisit Louis Vuitton's corporate website and answer the following
questions from Louis Vuitton's 2014 annual report.(a) From the notes to th
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IFRS4-1
The financial statements of Louis
Vuitton are presented in Appendix F. Instructions for accessing and using the company's
complete annual report, including the notes to its financial statements, are
also provided in Appendix F.
Instructions
Visit Louis Vuitton's corporate website and answer the following
questions from Louis Vuitton's 2014 annual report.
(a)
From the notes to the financial statements, how does the company
determine the amount of revenue to record at the time of a sale?
(b)
From the notes to the financial statements, how does the company
determine the provision for product returns?
(c)
Using the consolidated income statement and consolidated statement
of financial position, identify items that may result in adjusting entries for
deferrals.
(d)
Using the consolidated income statement, identify two items that
may result in adjusting entries for accruals.
IFRS5-1
Explain the difference between the “nature-of-expense” and
“function-of-expense” classifications.
IFRS5-2
For each of the following
income statement line items, state whether the item is a “by nature” expense
item or a “by function” expense item.
·
________ Cost of goods sold.
·
________ Depreciation expense.
·
________ Salaries and wages expense.
·
________ Selling expenses.
·
________ Utilities expense.
·
________ Delivery expense.
·
________ General and administrative expenses.
IFRS5-3
Matilda Company reported the following amounts (in euros) in 2017:
Net income, €150,000; Unrealized gain related to revaluation of buildings,
€10,000; and Unrealized loss on non-trading securities, €(35,000). Determine
Matilda's total comprehensive income for 2017.
INTERNATIONAL FINANCIAL
REPORTING PROBLEM: Louis Vuitton
IFRS5-4
The financial statements of Louis
Vuitton are presented in Appendix F. Instructions for accessing and using the company's
complete annual report, including the notes to its financial statements, are
also provided in Appendix F.
Instructions
Use Louis Vuitton's annual report to answer the following questions.
(a)
Does Louis Vuitton use a multiple-step or a single-step income
statement format? Explain how you made your determination.
(b)
Instead of “interest expense,” what label does Louis Vuitton use
for interest costs that it incurs?
(c)
Using the notes to the
company's financial statements, determine the following:
·
1.Composition of the inventory.
·
2.Amount of inventory (gross) before impairment.
IFRS6-1
Briefly describe some of the
similarities and differences between GAAP and IFRS with respect to the
accounting for inventories.
IFRS6-2
LaTour Inc. is based in France and
prepares its financial statements (in euros) in accordance with IFRS. In 2017,
it reported cost of goods sold of €578 million and average inventory of €154
million. Briefly discuss how analysis of LaTour's inventory turnover (and
comparisons to a company using GAAP) might be affected by differences in
inventory accounting between IFRS and GAAP.
INTERNATIONAL
FINANCIAL REPORTING PROBLEM: Louis Vuitton
IFRS6-3
The financial statements of Louis
Vuitton are presented in Appendix F. Instructions for
accessing and using the company's complete annual report, including the notes
to its financial statements, are also provided in Appendix F.
Instructions
Using the notes to the company's
financial statements, answer the following questions.
(a)
What cost flow assumption does the
company use to value inventory?
(b)
What amount of goods purchased for
retail and finished products did the company report at December 31, 2014?
IFRS2-1
In
what ways does the format of a statement of financial of position under IFRS
often differ from a balance sheet presented under GAAP?
IFRS2-2
What
term is commonly used under IFRS in reference to the balance sheet?
IFRS2-3
The
statement of financial position for Sundell Company includes the following
accounts (in British pounds): Accounts Receivable £12,500, Prepaid Insurance
£3,600, Cash £15,400, Supplies £5,200, and Debt Investments (short-term)
£6,700. Prepare the current assets section of the statement of financial
position, listing the accounts in proper sequence.
IFRS2-4
The
following information is available for Lessila Bowling Alley at December 31,
2017.
Buildings
|
$128,800
|
Share Capital
|
$100,000
|
Accounts Receivable
|
14,520
|
Retained Earnings (beginning)
|
15,000
|
Prepaid Insurance
|
4,680
|
Accumulated Depreciation—Buildings
|
42,600
|
Cash
|
18,040
|
Accounts Payable
|
12,300
|
Equipment
|
62,400
|
Notes Payable
|
97,780
|
Land
|
64,000
|
Accumulated Depreciation—Equipment
|
18,720
|
Insurance Expense
|
780
|
Interest Payable
|
2,600
|
Depreciation Expense
|
7,360
|
Bowling Revenues
|
14,180
|
Interest Expense
|
2,600
|
|
|
Prepare a classified statement of financial position. Assume
that $13,900 of the notes payable will be paid in 2018.
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