Solved: Quantacc Ltd began operations on January 1 2015

and uses

Quantacc Ltd. began operations on January 1, 2015, and uses IFRS to prepare its consolidated
financial statements. Although not required to do so, to facilitate comparisons with companies in
the United States, Quantacc reconciles its net income and stockholders' equity to U.S. GAAP.
Information relevant for preparing this reconciliation is as follows:

1. Quantacc carries fixed assets at revalued amounts. Fixed assets were revalued upward on
January 1, 2017, by $35,000. At that time, fixed assets had a remaining useful life of 10 years.

2. On January 1, 2016, Quantacc realized a gain on the sale and leaseback of an office building
in the amount of $200,000. The lease is classified as an operating lease and has a term of 20
years.

3. Quantacc capitalized development costs related to a new pharmaceutical product in 2016 in

the amount of $80,000. Quantacc began selling the new product on January 1, 2017, and
expects the product to be marketable for a total of five years.

Net income under IFRS in 2017 is $100,000 and stockholders' equity under IFRS at December
31, 2017, is $1,000,000. Ignore income taxes.

Required

a. Prepare a schedule to reconcile Quantacc's 2017 net income and December 31, 2017,
stockholders' equity under IFRS to U.S. GAAP.

b. Provide a brief title/description for each reconciling adjustment made, indicate the dollar
amount of the adjustment, and calculate total amounts for net income and stockholders' equity
under U.S. GAAP.

Quantacc Ltd began operations on January 1 2015 and uses

ANSWER
https://solvedquest.com/quantacc-ltd-began-operations-on-january-1-2015-and-uses/

Reach out to freelance2040@yahoo.com for enquiry.

Powered by TCPDF (www.tcpdf.org)