ADVANCED FINANCIAL ACCOUNTING EXERCISES ON CHAPTER THREE (Attempt 4 out of 8 Question)

1. Green Company is considering acquiring the assets of Gold Company by assuming Gold’s liabilities and by making
cash payment. Gold Company has the following balance sheet on the date of acquisition:
Gold Company
Balance Sheet
December 31, 1994
Assets: Liabilities and Equity:
Accounts Receivable..................................100,000 Total Liabilities.................................... 200,000
Inventory....................................................100,000 Capital Stock (Br10 Par)...................... 100,000
Land...........................................................100,000 Additional PIC..................................... 200,000
Building (Net)............................................220,000 Retained Earnings............................... 300,000
Equipment (Net)........................................280,000
Total Asset.................................................800,000 Total Liabilities and Equity.................. 800,000
Appraisal indicates that the inventory is undervalued by Br 25,000; building is undervalued by Br 80,000; the equipment
is overstated by Br 30,000; and the liability is overstated by Br 10,000. Determine the Goodwill that is recognized if
Green Company pays Br 900,000 cash for the net assets of Gold Company.
2. On December 31, Year 1, META Company (the combinee) was merged into SAXON Corporation (the combinor
or surviving company). Both companies used the same accounting principles for assets, liabilities, revenue, and expenses
and both had a December 31 fiscal year. SAXON exchanged 150,000 shares of its Br 10 par common stock (Current Fair
Value Br 25 a share) for all 100,000 issued and outstanding shares of META’s no-par, Br 10 stated value common stock.
In addition, Saxon paid the following out-of-pocket costs associated with the business combination:
Accounting fees:
For investigation of META Company as prospective combinee......................................Br 5,000
For SEC registration statement for Saxon common stock.................................................. 60,000
Legal Fees:
For the business combination............................................................................................. 10,000
For SEC registration statement for Saxon common stock.................................................. 50,000
Finder’s fee................................................................................................................................... 51,250
Printing charges for securities and SEC registration statement...................................................... 23,000
SEC registration statement fee....................................................................................................... 750
Total out –of- pocket costs of business combination..................................................................... 200,000
There was no contingent consideration in the merger contract. Immediately prior to the merger, META Company’s
condensed balance sheet was as follows:
META COMPANY (Combinee)
Balance sheet (Prior to Business Combination)
December 31, Year 1
Assets:
Current assets Br1,000,000
Plant assets (net) 3,000,000
Other assets 600,000
Total 4,600,000
Liabilities & Stockholder Equity:
Current liabilities 500,000
Long-term debt 1,000,000
Common stock, no par Br 10 stated value 1,000,000
Paid in capital 700,000
Retained Earnings 1,400,000
Total 4,600,000
3. Grant Company has been looking to expand its operations and has decided to acquire the assets of TURNER
Company and MURPHY Company. GRANT Company will issue 25,000 shares of its Br 10 par common stock to
acquire the net assets of Turner Company and will issue 12,000 shares to acquire the net asset of Murphy Company.
The Balance Sheet of the acquired companies (combinees) is as follows:

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 Turner Murphy
Company Company
Assets: In Birr In Birr
Accounts Receivables........................................................ 200,000 80,000
Inventory........................................................................... 150,000 85,000
Land.................................................................................. 150,000 50,000
Building............................................................................. 500,000 300,000
Accumulated Depreciation................................................ (150,000) (110,000)
Total Assets....................................................................... 850,000 405,000
..........................................................................................
..........................................................................................
..........................................................................................
Liabilities and SH Equity:
Current liabilities............................................................... 160,000 55,000
Bonds payable................................................................... 100,000 100,000
Common Stock (Br 10 par).............................................. 300,000 100,000
Retained earnings.............................................................. 290,000 150,000
Total liabilities and equity................................................. 850,000 405,000
The following current fair values (CFV) are agreed upon by the BODs of the combinees companies and Grant Company
while the others have the same book values and current fair values:
Turner Murphy
Company Company
Inventory........................................................................... 200,000 100,000
Land.................................................................................. 200,000 60,000
Building (net).................................................................... 400,000 350,000
Bonds payable................................................................... 80,000 95,000
Grant’s stock is currently traded at Br 40 per share. Grant will incur Br 5,000 direct acquisition cost in Turner Company
and Br 4,000 of direct acquisition cost in Murphy Company. Grant also incurred Br 13,000 other indirect cost of
acquisition and Br 15,000 registration and issue cost.
Required: Record the acquisition cost on the books of Grant Company using Acquisition Accounting principles.
4. On December 31, Year 1, Davis Corporation acquired the net assets of Fairmont Corporation for Br 400,000
cash, in a Acquisition-type business combination. Davis paid legal fees of Br 40,000 in connection with the combination.
The condensed balance sheet of Fairmont prior to the business combination, with related current fair value data, is
presented below:
FAIRMONT CORPORATION (Combinee)
Balance Sheet (Prior to Combination)
December 31, Year 1
Carrying Market
Amounts Values
Assets:
Current assets................................................................................ Br190,000 Br 200,000
Investment in marketable securities............................................... 50,000 60,000
Plant assets (net)............................................................................ 870,000 900,000
Intangible assets (net).................................................................... 90,000 100,000
Total assets.................................................................................... 1,200,000 1,260,000
Liabilities &Stockholders' Equity:
Current Liabilities......................................................................... 240,000 240,000
Long-term debt.............................................................................. 500,000 520,000
Total Liabilities............................................................................. 740,000 760,000
Common stock, Br 1 par ............................................................... 600,000
Deficit (Dr. balance in Retained earnings).................................... (140,000)
Total stockholders' equity.............................................................. 460,000
Total liabilities & stockholders' equity.............................. 1,200,000
5. On January 31, 2004, EDGET Corporation acquired for Br five hundred forty thousands (540,000) cash all the net
assets except cash of HIBRET Company and paid Br 60,000 to a law firm for legal services in connection with the
business combination. The balance sheet of HIBRET Company on January 31, 2004 was as follows:

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 HIBRET Company
Balance Sheet
January 31, 2004

Assets: Liabilities and Shareholders’ Equity

Cash ............................................... 40,000 Liabilities...................................... 620,000
Other Current Assets...................... 280,000 Common Stock.............................................. 250,000
Plant Assets (net)............................ 760,000 Retained Earning............................................
330,000
Intangible Assets ........................... 120,000
Total Assets ................................... 1,200,000 Total Liab. & SHEs........................................
1,200,000
The present value of HIBRET Company’s liabilities on January 31, 2004 was Br 620,000, the current fair values of its
non-cash assets were as follows on January 31, 2004:
Other current assets.................................................................300,000
Plant Assets.............................................................................874,000
Intangible Assets..................................................................... 76,000
Instruction: Prepare journal entries for EDGET Corporation on January 31, 2004 to record the acquisition of net assets
of HIBRET Company’s except cash.
6. The balance sheet and the current fair values of EXCEL Corporation on March 31, 2002 were as follows:
EXCEL Corporation
Balance Sheet
March 31, 2002
Assets Liabilities and Shareholders’ Equity

BV CFV BV CFV

Other Current Assets......................................

500,000 575,000 Current liabilities...........................................
300,000 300,000
Plant Assets (net).............. 1,000,000 1,200,000 Liabilities ..................................... 400,000 450,000
Patent (net).................................
100,000 50,000 Common Stock (10 par).................................
100,000
Retained Earning............................................
800,000
Total Assets..............................
1,600,000 Total Liab. & SHEs........................................
1,600,000
On April 1, 2002, VALUE Corporation issued 50,000 shares of its no-par, no stated value common stock (CFV Br 14 a
share) and Br 225,000 cash for the net assets of EXCEL Corporation in a Acquisition type business combination. Of the
Br 125,000 out-of-pocket costs paid by VALUE Corporation on April 14, 2002, Br 50,000 were legal fees and finder’s
fees related to the business combination and the remaining related to the issuance of common stock.
Required: prepare journal entries for VALUE Corporation on March 31, 2002 to record the business combination with
EXCEL Corporation
7. MOON Corporation agreed to Acquisition net assets of SUN Corporation. Just prior to the acquisition, SUN’s
Balance Sheet is as follows:
SUN Corporation
Balance Sheet
January 31, 2001
Assets: Liabilities and Shareholders’ Equity:
Accounts Receivable......................................
200,000 Current Liabilities..........................................
80,000
Inventory........................................................
270,000 Mortgage Payable..........................................
250,000
Equipment (net).............................................
100,000 Common Stock (Br 10 par)............................
100,000
_______ Retained Earnings..........................................
140,000
Total Assets ..................................................
570,000 Total Liab. & SHEs........................................
570,000
The market values agree with Book Values except for the equipment which has an estimated market value of Br 40,000.
MOON Corporation paid Br 10,000 for direct acquisition costs and Br 15,000 for indirect acquisition cost to
consummate the transaction. Record the Acquisition on the MOON Corporation assuming the cash paid to SUN
Corporation is:
1. Br 180,000 2. Br 140,000

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8. On December 31, 2006, Alpha Corporation issued 18,000 shares of its Br 2 par (current fair value of Br 10 per share)
common stock for all the outstanding common stock of Beta
Corporation in a statutory merger. Out-of-pocket costs of the business combination paid by Alpha on December 31, 2006
are:
Direct costs of the business combination ....................................... Br 22,000
Cost of registering and issuing common stock................................ 15,000
Total out-of-pocket costs of business combination ........................ Br 37,000
Beta had the following balance sheet on December 31, 2006:
Beta Corporation
Balance Sheet
December 31, 2006
Book Market
Value Value
Assets: In Birr In Birr
Inventories......................................................................................... 96,000 110,000
Other current assets........................................................................... 52,000 52,000
Plant assets (net)................................................................................ 172,00 195,000
Total assets........................................................................................ 320,000 357,000
Liabilities & Stockholders' Equity:
Liabilities........................................................................................... 175,000 175,000
Common Stock, Br 5 par................................................................... 20,000
Additional paid-in capital.................................................................. 50,000
Retained earnings.............................................................................. 75,000
Total liabilities & Stockholders' equity.............................................. 320,000

Additional Information: a special copyright was not previously recorded on Beta’s records. The copyright has a current
fair market value of Br 2,000. Beta had also Goodwill from previous business combinations that amounts Br 5,000 on
the date of business combination.
Required: Record the business combination under purchasing accounting. Show the calculation that backs up the
entries

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ADVANCED FINANCIAL ACCOUNTING EXCERCISES ON CHAPTER FOUR (Attempt 4 out of 9 Questions)

1. Balance Sheet of PELLMAN Corporation and SHIRE Company on May 31, 2004, together with
current fair values of SHIRE identifiable Net Assets are shown below:

PELLMAN and SHIRE Company

Balance Sheet (Prior to Combination)
May 31, 2004
Assets: Liabilities and Shareholders’ Equity:
PELLMAN SHIRE PELLMAN SHIRE
Company Company Company Company
Cash ...........................................................................................
500,000 10,000 Current Liabilities......................................................................
500,000 80,000
Trade A/Receivable...................................................................
700,000 60,000 Long-term Debt..........................................................................
1,000,000 400,000
Inventories..................................................................................
1,450,000 120,000 Common Stock (10 Par).............................................................
1,500,000 100,000
Plant Assets (net).......................................................................
2,850,000 610,000 Additional PIC...........................................................................
1,200,000 40,000
Retained Earnings......................................................................
1,300,000 180,000
Total Assets................................................................................
5,500,000 800,000 Total Liab. & SHEs....................................................................
5,500,000 800000
The following current fair values differ from book values for SHIRE Company’s Assets and Liabilities:
Inventories................................................................ 140,000
Plant Assets (net)...................................................... 690,000
Long-term Debt........................................................ 440,000
On May 31, 2004, PELLMAN acquiring all 10,000 shares of SHIRE’s outstanding common stock by
paying Br 300,000 cash to SHIRE’s shareholders and Br 50,000 cash for finders and legal fees related to
the business combinations. There was no contingent consideration and SHIRE became a subsidiary of
PELLMAN Corporation.
Instruction:
1. Prepare journal entries for PELLMAN Corporation to record business combination with SHIRE
Company on May 31, 2004 as a purchase
2. Prepare a consolidated balance sheet on May 31, 2004 showing the workings.
On 31 October 2003, SELALE Company acquires 83% of the common stock of BIRITY Company in
exchange for 50,000 Br 2 Stated Value (Br 10 Current Fair Value a share) shares of common stock. There
was no contingent consideration. Out-of-pocket costs of the business combination paid by SELALE
Company on 31 October 2003 were as follows: Stock Registration Costs 55,250
There was inter-company transaction between the constituent companies prior to the business combination.
BIRITY was to be a subsidiary of SELALE Company. The separate balance sheet of the constituent
companies prior to the Business combination follows:
SELALE AND BIRITY Company
Separate Balance Sheet (Prior to Business Combination)
October 31, 2003
Assets: Liabilities and Shareholders’ Equity:
SELALE BIRITY SELALE BIRITY
Company Company Company Company
Cash 250,000 150,000 Income tax payable 40,000 60,000
Inventories 860,000 600,000 Current Liabilities 390,000 854,000
Other current asset 500,000 260,000 Long-term Debt 950,000 1,240,000
Plant Assets, net 3,400,000 1,500,000 CS, no-par (Br 2 Stated V) 1,5000,000 ––
Patent, net –– 80,000 Common Stock (10 Par) 100,000
Additional PIC 1,500,000 ––
Retained Earnings 630,000 336,000
Total Assets 5,010,000 2,540,000 Total Liab. & SHEs 5,010,000 2,540,000

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 The Current Fair Values of BIRITY’s identifiable net assets were the same as the carrying amounts on
October 31, 2003; except for the following:
Inventories................................................................................
Br620,000
Patent, net.................................................................................
95,000
Plant Assets, net........................................................................
1,550,000
Long-term debt.........................................................................
1,225,000
Instructions:
1. Prepare journal entries in the books of SELALE Company on October 31, 2003 to record the
business combination as a purchase
2. Prepare a working paper elimination (in journal entry) on October 31, 2003 and Consolidated
Balance Sheet of SELALE Company and Subsidiary
3. Great Company has been looking to expand its operations and has decided to acquire the assets of TURE
Company and MURAD Company. Great Company will issue 25,000 shares of its Br10 par common stock
to acquire the net assets of TURE Company and 8,000 shares to acquire 98% of the net asset of MURAD
Company. The Balance Sheet of the three companies on December 31, 2005, the scheduled date of
business combination, is given as follows:
GREAT TURE MURAD
Company Company Company
Assets In Birr In Birr In Birr
Cash.................................................................................
300,000 80,000 30,000
Accounts Receivables......................................................
525,000 120,000 50,000
Inventory..........................................................................
340,000 150,000 135,000
Land.................................................................................
420,000 150,000 150,000
Building...........................................................................
800,000 500,000 150,000
Accumulated Depreciation...............................................
(130,000) (150,000) (110,000)
Total Assets.....................................................................
2,255,000 850,000 405,000
Liabilities and SH Equity:
Current liabilities.............................................................
75,000 160,000 55,000
Bonds payable..................................................................
180,000 100,000 100,000
Common Stock (Br 10 par).............................................
1,000,000 270,000 100,000
Additional PIC.................................................................
400,000 30,000 -0-
Retained earnings.............................................................
600,000 290,000 150,000
Total liabilities and equity...............................................
2,255,000 850,000 405,000
The following current fair values (CFV) are agreed upon by the BODs of the combinee companies and
Great Company while the others have the same book values and current fair values
TURE MURAD
Company Company
Inventory 160,000 150,000
Land 200,000 240,000
Building, net 400,000 60,000
Bonds payable 80,000 95,000
Great Company’s stock is currently traded at Br 40 per share. Great will incur Br 25,000 direct acquisition
cost in TURE Company and Br 14,000 of direct acquisition cost in MURAD Company. Great also incurred
Br 13,000 other indirect cost of acquisition and Br 15,000 stock registration and issue cost in the
acquisition of the two companies.
Required:
1. Prepare elimination journal entries assuming that purchased method is appropriate. Show the necessary
calculation that supports the recording and pass the journal entry of each combinee separately.
2. Prepare Consolidated balance sheet on the date of business combination consolidating all the combines.
4. On December 31, 2011, Pen Corporation purchased 80 percent of the stock of Sut Company at book value.
The data reported on their separate balance sheets immediately after the acquisition follow. At December 31,
2011, Pen Corporation owes Sut $10,000 on accounts payable. (All amounts are in thousands.)

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 Pen Sut
Assets
Cash $ 64 $ 36
Accounts receivable 90 68
Inventories 286 112
Investment in Sut 400
Equipment—net 760 350
$1,600 $566
Liabilities and Stockholders’ Equity
Accounts payable $ 80 $ 66
Common stock, $20 par 920 300
Retained earnings 600 200
$1,600 $566
REQUIRED
1. Prepare a consolidated balance sheet for Pen Corporation and Subsidiary at December 31, 2011.
5. Cobb company’s current receivables from affiliated companies at December 31,2011 , are ( 1) a $75,000
cash advance to Hill corporation ( cobb owns 30 percent of the voting stock of Hill and accounts for the
investment by the equity method) , ( 2) a receivable of $260,000 from vick corporation from
administrative and selling services ( vick is 100 percent owned by cobb and is included in cobb’s
consolidated financial statements) , (3) a receivables $200,000 from Ward Corporation for merchandise
sales on credit (Ward is 90 percent – owned , unconsolidated subsidiary of cobb accounted for by the
equity method ). In the current assets section of its December 31,2011, consolidated balance sheet ,cobb
should repot accounts receivable from investees in the amount of :
A. $ 180,000
B. $ 255,000
C. $ 275,000
D. $ 535,000
Use the following information in answering questions 6 and 7.
On January 1, 2011, Pow Corporation purchase all of sap corporation’s common stock for $2,400,000. On that
date, the fair values of Sap’s assets and liabilities equaled their carrying amount of $2,640,000 and $640,000,
respectively. Pow’s policy is to amortize intangibles other than Goodwill over 10 year, during 2011, sap paid
cash dividends of $40,000 . Selected information from the separate balance sheets and income statements of
Pow and Sap as of December 31, 2011, and for the year then ended follows (in thousands):
Balance sheet accounts Pow Sap
Investment in subsidiary $2,640 ------
Retained earnings 2,480 2,240
Total stock holders’ equity 5,240 2,240
Income statement accounts
Operating income $840 $400
Equity in earnings of sap 280 -----
Net income 800 280
6. In Pow’s 2011 consolidated income statement, what amount should be reported for amortization of
good will?
A. $0 C. $36,000
B. 24,000 D. $40,000
7. In pow’s December 31,2011, consolidated balance sheet, what amount should be reported as total
retained earning?
A. $2,480,000 C. $2,760,000
B. $720,000 D. $3,720,000
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8. On December 31,2011, the separate-company financial statement for pan corporation and its 70
percent –owed subsidiary , sad corporation, had the following accounting balance related to dividends ( in
thousands ):
Pan Sad
Dividends for 2011 $1,200 $800
Dividends payable at December 31,2011 600 200

REQUIRED
1. At what amount will dividends be shown in the consolidated retained earnings statement?
2. At what amount should dividends payable be shown in the consolidated balance sheet?
9. Pob Corporation acquired an 80 percent interest in Sof Corporation on January 2, 2011, for
$1,400,000 on this date the capital stock and retained earnings of the two compares were as follows
thousands.)
Pob Sof
Capital stock $3,600 $1,000
Retained earnings 1,600 200
The assets and liabilities of soft were stated at fair values equal to book value when pob acquired its 80
percent interest. Pub use the equity method account for its investment in sof. Net income and distends for
2011 for the affiliated companies, alias as follows:
Pob Sof
Net income from separate operation $600 $180
Dividends declared 360 100
Dividends payable December 180 50
REQUIRED: calculate the amounts at which the following items should appear in the consolidated balance
sheet on December 31, 2011
1. Capital stock
2. Good will
3. Consolidated retained earnings
4. Non-controlling interest
5. Dividends payable

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 ADVANCED FINANCIAL ACCOUNTING EXERCISES ON CHAPTER FIVE (Attempt 3 out of 7 Questions)

1. On June 17, 2009, worldwide Corporation, which uses the perpetual inventory system, sold merchandise with cost
of ETB 122,000 to a US customer for USD15, 000, with payment due July 16, 2009.

Spot rates (buying):

Transaction date : ETB12.10
Balance sheet date: ETB12.07
Settlement date : ETB12.075
2. Merchant Company had the following foreign currency transactions:
1. On November 1, 20X6, An American Merchant sold goods to a company located in Munich, Germany. The
receivable was to be settled in European euros on February 1, 20X7, with the receipt of €250,000 by Merchant
Company.
2. On November 1, 20X6, An American Merchant purchased machine parts from a company located in Berlin,
Germany. Merchant is to pay €125,000 on February 1, 20X7.
The direct exchange rates are as follows:
November 1, 20X6 €1 = $0.60
December 31, 20X6 €1 = $0.62
February 1, 20X7 €1 = $0.58
3. Delaney Inc. has, an American Com., several transactions with foreign entities. Each transaction is denominated
in the local currency unit of the country in which the foreign entity is located. For each of the following
independent cases, determine the December 31, 20X2, year-end balance in the appropriate accounts for the case.
Write “NA” for “not applicable” in the space provided in the following chart if that account is not relevant to the
specific case.
Case 1. On November 12, 20X2, Delaney purchased goods from a foreign company at a price of LCU 40,000
when the direct exchange rate was 1 LCU = $0.45. The account has not been settled as of December 31, 20X2,
when the exchange rate has decreased to 1 LCU = $0.40.
Case 2. On November 28, 20X2, Delaney sold goods to a foreign entity at a price of LCU 20,000 when the direct
exchange rate was 1 LCU = $1.80. The account has not been settled as of December 31, 20X2, when the
exchange rate has increased to 1 LCU = $1.90.
Case 3. On December 2, 20X2, Delaney purchased goods from a foreign company at a price of LCU 30,000 when
the direct exchange rate was 1 LCU = $0.80. The account has not been settled as of December 31, 20X2, when
the exchange rate has increased to 1 LCU = $0.90.
Case 4. On December 12, 20X2, Delaney sold goods to a foreign entity at a price of LCU 2,500,000 when the
direct exchange rate was 1 LCU = $0.003. The account has not been settled as of December 31, 20X2, when the
exchange rate has decreased to1 LCU = $0.0025.
*Provide the December 31, 20X2, year-end balances on Delaney’s records for each steps
4. Harris Inc., an American com., had the following transactions:
1. On May 1, Harris purchased parts from a Japanese company for a U.S. dollar equivalent value of $8,400 to
be paid on June 20. The exchange rates were
May 1 1 yen = $0.0070
June 20 1 yen = 0.0075
2. On July 1, Harris sold products to a Brazilian customer for a U.S. dollar equivalent of $10,000, to be received
on August 10. Brazil’s local currency unit is the real. The exchange rates were
July 1 1 real = $0.20
August 10 1 real = 0.22

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5. On December 1, 20X1, Rone Imports, a U.S. company, purchased clocks from Switzerland for 15,000 francs
(SFr) to be paid on January 15, 20X2. Rone’s fiscal year ends on December 31, and its reporting currency is the
U.S. dollar. The exchange rates are
December 1, 20X1 1 SFr = $0.70
December 31, 20X1 1 SFr = 0.66
January 15, 20X2 1 SFr = 0.68
6. If $1.5625 can be exchanged for 1 British pound, the direct and indirect exchange rate quotations are:
A. $1.5625 and 1 British pound, respectively
B. $1.5625 and 0.64 British pounds, respectively
C. $1.00 and 1.5625 British pounds, respectively
D. $1.00 and 0.64 British pounds, respectively
7. The accounts of Lincoln International, a U.S. corporation, show $81,300 accounts receivable and $38,900
accounts payable at December 31, 2011, before adjusting entries are made. An analysis of the balances reveals
the following:

Accounts Receivable
$28,500
Receivable denominated in U.S. dollars
Receivable denominated in 20,000 Swedish krona 11,800
Receivable denominated in 25,000 British pounds 41,000
Total
$81,300
Accounts Payable
$ 6,850
Payable denominated in U.S. dollars
Payable denominated in 10,000 Canadian dollars 7,600
Payable denominated in 15,000 British pounds 24,450
Total
$38,900

Current exchange rates for Swedish krona, British pounds, and Canadian dollars at December 31, 2011, are
$0.66, $1.65, and $0.70, respectively.
REQUIRED
1. Determine the net exchange gain or loss that should be reflected in Lincoln’s income statement for 2011
from year-end exchange adjustments.
2. Determine the amounts at which the accounts receivable and accounts payable should be included in
Lincoln’s December 31, 2011 balance sheet.
3. Prepare journal entries to record collection of the receivables in 2012 when the spot rates for Swedish
krona and British pounds are $0.67 and $1.63, respectively.
4. Prepare journal entries to record settlement of accounts payable in 2012 when the spot rates for Canadian
dollars and British pounds are $0.71 and $1.62, respectively.

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 ADVANCED FINANCIAL ACCOUNTING EXERCISES ON CHAPTER SIX (Attempt All)
1. What is segment reporting?
2. How we identify reportable segments?
I. Aggregation criteria,
II. Quantitative thresholds and
III. Consideration of reportable segments with some Example.
3. What are the disclosures of segment reporting?
4. What is Interim Financial Reporting?
5. What is the nature of interim reporting?
6. What are the guidelines for interim reporting?
7. What are the disclosures of Interim reporting?

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