Chapter 7
Corporations: The Financial Statements
359
c) If the company adhered to IFRS , there was no specific rule on how to present the
expenses on the statement of comprehensive income. Is that true or false? Explain.
AP-9B (
2
3
)
The following information was taken from the accounting records of Splinter Inc. at December
31, 2016. Splinter Inc. is a public corporation and follows IFRS.
Line Item
Amount
Common shares, 50,000 outstanding on January 1, 2016
$350,000
Common shares, 70,000 outstanding on December 31, 2016
120,000
Cost of Goods Sold
468,000
Dividends paid
50,000
Gain on Sale of Assets
6,200
General operating expenses
210,000
Income tax expense on continuing operations
29,850
Income tax expense on operating income from discontinued operations
18,600
Interest Expense
8,700
Operating income from discontinued operations
62,000
Prior year error—debit to Retained Earnings
6,000
Retained Earnings, January 1, 2016 (prior to adjustment)
410,000
Sales revenue
780,000
