Hilton: Modern Advanced Accounting in Canada, 7ce
Errata
Chapter 1
Page 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
Value of conversion option for
convertible bonds
IFRSs
Record as equity
ASPE
Choice between recognizing
as debt or equity
Page 46 – 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. NormallyIntuitively, the $2,000 gain would be split between the parent and noncontrolling 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.
Page 163 – 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:
Page 163 – 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”:
Page 285 – Problem 5-15:
Under Required, Part B, the last sentense should read: “Compute the cost method
balances of these items” not “equity method”.
Chapter 6
Page 343 – Problem 6-13:
Within the first bullet for “Additional Information”, “cost method” should be changed to
“equity method”.
It should read:
Page 347 – 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:
Page 419 – 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
Page 482 – Problem 8-13:
The second bullet point under “Additional Information” currently reads:
It should read:
Page 483 – 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)”:
Page 687 – 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: