MGT223H5 Study Guide - Midterm Guide: Canadian Dollar, Current Liability, Forego
Document Summary
Chapter 11 translation of foreign financial statements. Avatar ltd. is a company registered in a foreign country on january 1, 20x1. Inc. , a canadian company acquired 100% of the shares of avatar on january 1, 20x4. The abbreviated financial statements of avatar on december 31, 20x7 are shown below: Income statement for the year ended december 31, 20x7 (fc"000) Avatar issued fc3 million bonds at par on january 1, 20x1. Avatar purchased property, plant and equipment as follows: on january 1, 20x1 for fc5 million, on january 1, 20x6 for fc2. 6 million. All property, plant and equipment are depreciated on a straight-line basis over 10 years. Avatar declared and paid a dividend of fc600,000 on november 1, 20x7. Avatar values inventory on the fifo basis. 31, 20x6 was purchased on october 1, 20x6. Other purchases during the 20x7 were as follows: january 10, june 24, august 20, december 15. Sale and other expenses occur evenly throughout the year.
