The Atlantic Refinery Corp (ARC)is a public company headquartered in St, John, Newfoundland On 31 December, 20x5, the post-closing trial balance included the following accounts ( in thousands of Canadian dollars).
Debit | Credit | |
Investment in Mongolian subsidiary | $72,000 | |
Provision for future site restoration | 34,000 | |
Common share | 170,000 | |
Translation differential from Mongolian subsidiary | 12,000 | |
Convertible bonds | 85,000 | |
Equity portion of convertible bonds | 5,000 | |
Contributed surplus-Premium on common hares | 35,000 | |
Goodwill (from purchase of Mongolian subsidiary) | 18,000 | |
Investments in shares of upstream affiliate | 36,000 | |
Retained earnings | 533,000 | |
Trademarks | 6,800 |
The following transactions and events occurred during 20X6.
a. Net income amounted to $47 million.
b. The value of trademarks was written off after ARC lost a patent protection lawsuit.
c.An additional $1.5 million of convertible bonds was transferred from the debt portion to the equity portion.
d. An accounting policy was changed due to a new IFRS taking effect in 20x6, the effect of retrospective restatement was reduced prior year's earnings by an aggregate amount of $31 million.
e.The future liability for site restoration was increased by $5million.
f. Common shares with a stated value of 15 million were repurchases on the open market for $20 Millom and cancelled. The original issue price of the shares amounted to $18, of which $3 million had been credited to contributed surplus
g. A new class of preferred shares was issued to a major public sector pension plan for $85 million to finance future development.
h. Dividends totaling $24 million were issued during the year. Of that amount. $6 million were declared on 24 December 20x6. payable to shareholders of record on January 15, 20x7.
i. The translated amount of ARC's investment in Mongolian subsidiary declined by $2 million due to a rise in the value of the Canadian dollar.
Prepare a statement of change in equity for Atlantic Refinery Corp for the year ended 31 December 20x6. Explain assumption you need to make if any. Hint: Not all of the accounts listed above are relevant to the SCE.
The Atlantic Refinery Corp (ARC)is a public company headquartered in St, John, Newfoundland On 31 December,...
The Atlantic Refinery Corp. (ARC) is a public company headquartered in St. John’s, Newfoundland. On 31 December 20X5, the post-closing trial balance included the following accounts (in thousands of Canadian dollars): Debit Credit Investment in Mongolian subsidiary $ 72,600 Provision for future site restoration $ 34,400 Common shares 176,000 Translation differential from Mongolian subsidiary 12,200 Convertible bonds 86,900 Equity portion of convertible bonds 2,000 Contributed surplus—premium on common shares issued 35,000 Goodwill (from purchase of Mongolian subsidiary) 18,400 Investment in...