Garrison Managerial Accounting 9th Canadian...

Hilton: Modern Advanced Accounting in Canada, 7ce

Errata

Chapter 1Page 28 – Exhibit 1.6:

There should be an additional row at the bottom of the table with the following content in the columns:

Accounting Item IFRSs ASPEValue of conversion option for convertible bonds

Record as equity Choice between recognizing as debt or equity

Problem 1-3:

Item 3 currently states “Actuarial gains/losses – recognize immediately or defer and amortize”.

It should read “Actuarial gains/losses – recognize in net income versus OCI”.

Chapter 4

Page 162 – Third Paragraph:

The content of the paragraph has been updated as outlined below; changes are shown underlined:

Let us now modify the situation by reducing the percentage of shares acquired in the business combination and changing the purchase price. Assume that on January, Year 1, P Ltd. purchased 80% of the outstanding shares of S Ltd. at a total cost of $60,000. If we used the implied value approach, the value of the subsidiary as a whole would be set at $75,000 (60,000/0.8) and the non-controlling interest would be valued at $15,000 (75,000 – 60,000). This is less than the fair value of identifiable net assets of $77,000 and would imply negative goodwill of $2,000. Normally Intuitively , the $2,000 gain would be split between the parent and non-controlling interests. However, IFRS 3 states that a gain on a bargain purchase can only be recognized by the acquirer. This implies that only the parent’s share of the negative goodwill can be recognized. It also implies that non-controlling interest must be measured at its share of the fair value of the identifiable net assets. In effect, the parent company extension method must be used for valuing the NCI. Any difference between the value assigned to the non-controlling interest and the non-controlling interest's share of the fair value of the subsidiary's identifiable net assets is attributed to the parent and is included in the overall gain on bargain purchase at the date of acquisition. The calculation and allocation of the acquisition differential on this date is shown in Exhibit 4.9.

Exhibit 4.9:

The highlighted values should be adjusted.

Two additional rows should be added to the bottom of the table, as well. Exhibit 4.9 should read as follows:

Exhibit 4.10:

The highlighted values should be changed.

“Retained Earnings” should show “(160,000 + [9a] 2,000)”. The value of “161,600” should read “162,000”. The “Non-controlling interest” value should be adjusted to “15,000” rather than “15,400”.

Chapter 5

Page 278 – Problem 5-10:

The first bullet point under “Additional Information”, Year 5 should read Year 6.

It should read:

Page 281 – Problem 5-12

The last sentence of the second paragraph currently reads “$15,000”:

This should read “$16,364”:


Under Required, Part B, the last sentense should read: “Compute the cost method balances of these items” not “equity method”.

Chapter 6


Within the first bullet for “Additional Information”, “cost method” should be changed to “equity method”.

It should read:

Problem 6-15:

In the Income Statements under “Paper Corp’s Balance Sheets” the highlighted should be changed to show “050” not “500”:

It should read:

Chapter 7

Page 413 – Problem 7-13

In the table of trial balances, the RAV amounts for the highlighted amount should be changed:

It should read:

Problem 7-17

The last bullet point for “Additional Information” currently reads “…with production expenses,…”:

It should read “…with selling and administrative expenses,…”:

Chapter 8


The second bullet point under “Additional Information” currently reads:

It should read:

Problem 8-13:

The 3rd bullet point under “Additional Information” currently reads:

It should read:

Chapter 9

Page 524 – Exhibit 9.5:

The amounts for the Income Statement, Equity method currently read:

These amounts should read:

Chapter 11

Page 636:

The values for “Retained earnings” and “Accumulated translation adjustments” currently read:

“Retained earnings” should read “87,900” and “Accumulated translation adjustments” should read “(51,100)”:

Problem 11-14:

The last sentence of the second paragraph currently reads “…is the recording functional…” and the last exchange rate currently reads “Dec. 1, Year 1”:

There should be a comma between “recording” and “functional”. The last exchange rate should read “Dec. 31, Year 1”:

Chapter 12

Page 700:

A change to the word “retroactive” within the second marginal not is required. It currently reads:

It should read “prospective”:

The last sentence within the paragraph that begins with “If an NFPO has…” must be replaced. It currently reads:

It should be replaced as the following:

Garrison Managerial Accounting 9th Canadian...

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