Intermediate Accounting Case Study Homework Help
Best UK USA UAE Australia Canada China Intermediate Accounting Case Study Homework Help Service Online
Alta Velocidad Esperanza de L’Argentina, Sociedad Anónima (AVE), a high-speed railway operator domiciled in Rio Norte, Argentina, is a Foreign Private Issuer as defined by the U.S. Securities and Exchange Commission. AVE currently files Form 20-F annually with the Commission in which it reconciles its calendar year financial reporting to U.S. GAAP from Argentine GAAP. Rather than waiting until 2012 when Argentina switches to IFRS, AVE is considering early adoption of IFRS. This would allow AVE to take advantage of SEC Release No. 33-8879. Under such a plan, AVE would be eligible to file financial statements with the Commission prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) without reconciliation to generally accepted accounting principles (GAAP) as used in the United States.
Conmuchas Dudas, AVE Chief Financial Officer, has hesitated making the move to IFRS because she is unsure what impact, if any, IFRS adoption will have on the company’s financial position. Ms. Dudas has asked you to determine if there is a difference in the accounting treatment between U.S. GAAP and IFRS for the following transaction:
On April 1, 2011, AVE, entered into a non-cancelable agreement with Gastos Financieros Reál (GFR), to lease five new high-speed locomotives for a period of eight years. The economic life of this type of powered rolling stock is 11 years on average, assuming no residual value. However, there is a significant market for second-hand locomotives that allows AVE to estimate what the expected residual value of the locomotives might be. Ms. Dudas projects that this amount will be 20% of the fair value on April 1, 2011.
The lease term will commence once the locomotives have been delivered to AVE’s train depot and have been accepted by an independent inspection company that will test whether the powered cars meet the minimum conditions. This is expected to take place on the same day as the lease signing — April 1, 2011.
At the beginning of each month, AVE will pay a total monthly lease payment of US$120,000 for the five locomotives. AVE’s incremental monthly borrowing rate is 0.447%. In an uncustomary display of candor, GFR disclosed the monthly implicit interest rate on this lease to be 0.460%.
How it Works?
How it Works?
Step 1:- Want to buy solution for this. Please click on submit your assignment here and then fill all details and please mentioned product code at the end of the case. Product code is extremely important to locate your assignment. You can also mail us by keeping product code as mail subject to firstname.lastname@example.org
Step 2:- As soon as we received your details, we will inform you with through email about quotations of the given assignment. Requesting you to please mention your budget. Also ensure our email email@example.com should not go into your spam folder.
Step 3:- Once you agree with our price, click on pay now and pay the agreed amount and once we received the payment assignment will be delivered before agreed deadline.
Step 4:-You can also call us in our phone no. as given in the top of the home page or chat with our customer service representatives by clicking on chat now given in the bottom right corner.
Our Features for Assignment Help Services
Plagiarism Free Solution
The first and foremost things that we promise to our customer is plagiarism free solution i.e. a complete and unique solution as per customer’s university requirements.
Excellent Customer Care Services
You can feel our responsiveness once you use our service. Our team of excellent and dedicated customer service representatives are always ready to provide best customer care service 24X7 . Just drop a mail to firstname.lastname@example.org and you can receive response in just no time.
Multiple Stage Quality Assurance
We design a unique multiple stage quality assurance team to ensure plagiarism free, original, relevant and as per customer’s requirements. We not only give importance to accurate solutions or writing but also we give equal importance to references style too.
Privacy and Confidentiality
We believe in maintaining complete privacy and confidentiality of all our clients. None of the information furnished to us is shared with anyone else.
We receive requests from clients all over the World. Most of our customers are from USA, UK, Australia, Canada, UAE, Muscat, Oman, Qatar, UAE, New-Zealand, France Germany etc.
- Accounting Homework Help
- Accounting Assignment Help
- Computer Science Homework Help
- Management Homework Help
- Finance Assignment Help
- Online Essay Writing Help
- Strategic management case study help
- Case Study Assignment Help
- Dissertation Writing Help
- Trade finance case study help
- Project Management Assignment Help
- Mechanical Engineering Homework Help
- Online Quiz Help
- Maths homework Help
- Online Exam Help
- Economics Assignment Help
- Economics Homework Help
- English Homework Help
- Macroeconomics Homework Help
- Microeconomics Homework Help
- Statistics Assignment Help
- Australia Taxation Homework Help
- Supply chain management homework help
- Taxation homework help
- USA taxation assignment help
- Advanced accounting homework help online
- Auditing homework writing help
- Human resource management homework help
- Nursing homework help online
- Psychology homework help online
- Sociology homework help online
- Ratio analysis homework help online
- Strategic Management Homework Help Online
- Mba operations management homework help
- Human resource management homework help
- Operations management homework help
At the expiration of the lease agreement, AVE has the option to buy the locomotives at an exercise price of 17% of the fair value determined at the beginning of the lease. On April 1, 2011, the total fair value of the five high-speed locomotives was estimated at US$10.5 million.
According to plan, AVE took possession of the new locomotives on April 1, 2011, when the bullet train engines were delivered, tested and found to be in conformity with specifications.
Ms.Dudas would like you to recommend the proper classification of the lease under both U.S. GAAP and IFRS. As part of your research, she expects you to develop the necessary journal entries for the first month of the lease. If capitalization is recommended, she would like to know what the impact would be on AVE’s classified balance sheet at fiscal yearend (December 31st).
Finally, based on your analysis of the lease agreement, Conmuchas would like to know whether you recommend AVE pursue early adoption of IFRS or wait until 2012 when IFRS becomes mandatory for publicly traded Argentine corporations. AVE has a healthy balance sheet and is currently a “darling” of Wall Street bond traders.
Product Code: ACC351
Looking for Intermediate Accounting Case Study Homework Help , please submit your details here with product code mentioned above.