- As a new staff accountant joining McEquity Corporation, an Irish company using IFRS, you have been asked by the senior accountant of financial reporting to assemble the statement of changes in equity for 2012that will be used in the annual report.
After getting various amounts and figures from the prior year financial statements, general ledger and subsidiary ledger, you are able to ascertain the following:
Ending balances as of December 31, 2011, were as follows:
| Share capital | $ 25,000,000 |
| Retained earnings | 10,000,000 |
| Translation of foreign operations | (2,000,000) |
| Available for sale financial assets | (5,000,000) |
| Revaluation surplus | 4,000,000 |
| Treasury stock | (1,000,000) |
| Minority interests | 1,000,000 |
| Total equity | $ 32,000,000 |
The summarized transactions for 2012 are as follows:
| Sold capital shares | $2,000,000 |
| Net income | $6,000,000 |
| Minority interest portion | $500,000 |
| Net foreign currency translation losses, net of taxes | $(1,000,000) |
| Decrease in value of available for sale financial assets, net of taxes | $(1,000,000) |
| Net decrease in revaluation surplus, net of taxes | $(1,000,000) |
| Purchase of treasury shares | $500,000 |
| Dividends | $1,000,000 |
Based on the above information, prepare a statement of changes in equity for 2012. Additionally, describe what presentation differences there might be in the statement of stockholders’ equity if McEquityCorporation reported using US GAAP.
Attachments:
equity questi….docx