Balance sheet format, terminology, and accounting methods. Exhibit 3.5 presents the balance sheet prepared by Ericsson, the Swedish telecommunications firm, for the years
|
Cathay Pacific Airways Limited |
||
|
Year ended December 31, |
||
|
2007 |
2006 |
|
|
ASSETS AND LIABILITIES |
||
|
Noncurrent Assets and Liabilities |
||
|
Fixed Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
HKD 62,388 |
HKD 57,602 |
|
Intangible Assets . . . . . . . . . . . . . . . . . . . . . . . . . |
7,782 |
7,749 |
|
Investments in Associates . . . . . . . . . . . . . . . . . . . |
10,054 |
8,826 |
|
Other Long Term Receivables and Investments . . . . . |
3,519 |
3,406 |
|
HKD 83,743 |
HKD 77,583 |
|
|
Long Term Liabilities . . . . . . . . . . . . . |
HKD(40,323) |
HKD(33,956) |
|
Related Pledged Security Deposits . . . . |
7,833 |
8,164 |
|
Net Long Term Liabilities . . . . . . . . . . |
32,490 |
25,792 |
|
Retirement Benefit Obligations . . . . . . |
268 |
170 |
|
Deferred Taxation . . . . . . . . . . . . . . . . |
6,771 |
6,508 |
|
HKD(39,529) |
HKD(32,470) |
|
|
Net Noncurrent Assets . . . . . . . . . . . . . . . . |
HKD 44,214 |
HKD 45,113 |
|
Current Assets and Liabilities |
||
|
Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . |
HKD 882 |
HKD 789 |
|
Trade and Other Receivables . . . . . . . . . . . . |
11,376 |
8,735 |
|
Liquid Funds . . . . . . . . . . . . . . . . . . . . . . |
21,649 |
15,624 |
|
HKD 33,907 |
HKD 25,148 |
|
|
Current Portion of Long Term Liabilities . . . . . |
HKD (4,788) |
HKD (7,503) |
|
Related Pledged Security Deposits . . . . . . . . |
910 |
1,352 |
|
Net Current Portion of Long Term Liabilities . . |
3,878 |
6,151 |
|
Trade and Other Payables . . . . . . . . . . . . . . . |
14,787 |
10,999 |
|
Unearned Transportation Revenue . . . . . . . . . |
6,254 |
4,671 |
|
Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . |
2,475 |
2,902 |
|
HKD(27,394) |
HKD(24,723) |
|
|
Net Current Assets . . . . . . . . . . . . . . . . . . . . . . . |
HKD 6,513 |
HKD 425 |
|
Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
HKD 50,727 |
HKD 45,538 |
|
CAPITAL AND RESERVES |
||
|
Share Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . |
HKD 788 |
HKD 787 |
|
Reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
49,761 |
44,599 |
|
Funds Attributable to Cathay Pacific Shareholders . . |
HKD 50,549 |
HKD 4 5,386 |
|
Minority Interests . . . . . . . . . . . . . . . . . . . . . . . |
HKD 178 |
HKD 152 |
|
Total Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
HKD 50,727 |
HKD 45,538 |
ended December 31, 2007, and December 31, 2006. Ericsson applies IFRS, and reports its results in millions of Swedish kronor (SEK). In addition to the items reported in Ericsson’s balance sheet, assume the following hypothetical information is available to you:
In 2007 Ericsson revalued land with an acquisition cost of SEK300 million upward, to its current fair value of SEK1,200 million.
In 2007 Ericsson wrote down the value of equipment, with a net carrying value of SEK2,400 million, to its fair value of SEK1,600 million.
Included in current provisions for 2007 is the estimated loss on a lawsuit, which a competitor filed, alleging patent infringement. Ericsson estimates the following range
|
Infosys Technologies |
||
|
2008 |
2007 |
|
|
SOURCES OF FUNDS |
||
|
SHAREHOLDERS’ FUNDS |
||
|
Share capital |
286 |
286 |
|
Reserves and surplus |
13,204 |
10,876 |
|
13,490 |
11,162 |
|
|
APPLICATION OF FUNDS |
||
|
FIXED ASSETS |
||
|
Original cost |
4,508 |
3,889 |
|
Less: Accumulated depreciation |
1,837 |
1,739 |
|
Net book value |
2,671 |
2,150 |
|
Add: Capital work in progress |
1,260 |
957 |
|
3,931 |
3,107 |
|
|
INVESTMENTS |
964 |
839 |
|
DEFERRED TAX ASSETS |
99 |
79 |
|
CURRENT ASSETS, LOANS AND ADVANCES |
||
|
Sundry debtors |
3,093 |
2,292 |
|
Cash and bank balances |
6,429 |
5,470 |
|
Loans and advances |
2,705 |
1,199 |
|
12,227 |
8,961 |
|
|
LESS: CURRENT LIABILITIES AND PROVISIONS |
||
|
Current liabilities |
1,483 |
1,162 |
|
Provisions |
2,248 |
662 |
|
NET CURRENT ASSETS |
8,496 |
7,137 |
|
13,490 |
11,162 |
|
of outcomes for this lawsuit: 10% chance of damages of SEK6,000 million, 10% chance of damages of SEK2,400 million, 30% chance of damages of SEK500 million, 10% chance of damages of SEK40 million, and 40% chance of zero damages. Prepare a balance sheet for Ericsson on December 31, 2007, following the format, terminology and accounting methods required by U.S. GAAP. Ignore any income tax effects of any revisions to reported amounts.