Short Answer questions: You must show your work so we know how you arrived at the answer. You can embed a table from an excel spreadsheet, paste a picture of the excel table or provide the calculation...

International Accounting is the name of the classs


Short Answer questions: You must show your work so we know how you arrived at the answer. You can embed a table from an excel spreadsheet, paste a picture of the excel table or provide the calculation in the word document. The calculations are not complicated and do not require detailed spreadsheet analysis. Case questions: Require a graduate-level response to each case. An acceptable answer consists of a clear and concise solution supported with relevant and specific examples that demonstrates a thorough and comprehensive understanding of the course content. Additionally, each student will self-grade their case solutions using the attached rubric scoring guide. The student's self-graded response will be considered as the examiner grades your case solution. The solution will not be graded from a grammatical perspective. a)Godfrey Company constructed a new, highly automated chemical plant in Year 1, which began production on January 1, Year 2. The cost to construct the plant was $5,000,000: $1,500,000 for the building and $3,500,000 for machinery and equipment. The useful life of the building is 20 yrs and the useful life of the machinery and equipment is 10 yrs. The building has a roof that needs to be replaced every 10 years that will cost $250,000 and the machinery and equipment has a computer system that will need to be replaced every 5 yrs that will cost $500,000. There are no residual values and the company uses straight line depreciation. Determine the amount of depreciation expense that should be recognized related to the plant assets for Year 2 and Year 11. b)Former employees of Dreams Unlimited Inc. filed a lawsuit against the company in Year 1 for alleged age discrimination. At December 31, Year 1, external legal counsel provided an opinion that it was 60 percent probable that the company would be found liable, which would result in a total payment to the former employees between $1,500,000 and $2,000,000, with all amounts in that range being equally likely. Using IFRS, should Dreams Unlimited Inc. recognize a provision in Year 1? If so, what is the amount? If not, explain your reasoning. Using US GAAP, should Dreams Unlimited Inc. recognize a provision in Year 1? If so, what is the amount? If not, explain your reasoning. c)Explain the concept of Direct Foreign Investment (DFI). Describe the most common forms and the benefits and challenges for multinational corporations. Describe an actual example of Direct Foreign Investment made by a US company. d)How does Harmonization differ from Convergence? Explain the benefits and drawbacks of Convergence. e)An entity incurs the following costs in connection with the purchase of a trademark: Purchase price of the trademark……………………………………………………………………….$80,000 Nonrefundable value added tax paid on the purchase of the trademark…………………………..4,000 Training sales department staff on the use of the trademark……………………………….…………2,000 Research expenditures incurred prior to the purchase of the trademark………………….………..15,000 Legal fees to register the trademark…………………………………………………………………….8,000 Salaries of personnel who negotiate the purchase of the trademark during the period of negotiation…………………………………………………………….10,000 Assuming that the trademark meets the criteria for recognition as an intangible asset, at what amount should the trademark be initially measured? f)What are the two most common methods used internationally for the order in which assets are listed on the balance sheet? Which of these two methods is most common in North America and Europe? 3.Case A (15 Points) ============================================================== It’s Monday morning and you’re tired. The CEO of the company, Mrs. Jones, storms into your office and discloses to you that the company was sold on the weekend to a foreign investor from Japan. You are very concerned that your job may be at risk but there are more immediate concerns. Mrs. Jones informs you that the company will now be required to report their financial statements using the International Financial Reporting Standards (IFRS) rather than US Generally Accepted Accounting Principles (US GAAP). She knows very little about accounting and has asked you, the Chief Financial Officer, to send her an email outlining the differences between the IFRS and US GAAP. She wants to understand how it will impact the financial statements and the overall management of the company. The analysis needs to be clear and concise and supported with examples for each difference. ============================================================== 4.Case B ============================================================== You are employed as a senior analyst in a private investment firm that focuses on companies in the information technology industry. The Chief Investment Officer (CIO) has asked you to compare and contrast Apple (www.apple.com) and the Samsung Group (www.samsung.com) as they intend on establishing a significant position in both stocks to capture the growth of the handset market and 5G wireless technology rollout. The investment team understands the competitive dynamics of the marketplace and the thesis for making the investment. You do not need to opine on the merits of the investment. They need your expertise to identify the risks associated with making an investment in these two multinational companies from an accounting and reporting perspective. To minimize the investment risk, they will require you to report the results of Apple and the Samsung Group using the International Financial Reporting Standards (IFRS). The CIO has requested an executive summary outlining the specific risks associated with translating the locally issued financial statements of Apple and the Samsung Group to IFRS. Your first step is to download a copy of the financial statements from the investor relations section of the website for Apple and the Samsung Group. At a minimum, you are aware the executive summary needs to include the following: •A background on how the companies currently account for transactions •An identification of the risks the investment firm will be exposed to related to the differences between local GAAP and IFRS •A discussion of the recognition and measurement differences that exist between the local GAAP and IFRS •Major differences related to disclosure and financial statement presentation •Outlie the specific financial statement differences between IFRS and local GAAP for Apple and the Samsung Group •Comment on issues related to debt agreements and IFRS ============================================================== ==============================================================