Question

File Home Insert Design Layout References Mailings Review View Help Search Below are Financial Statements for Tableau Corporation. Tableau is a private company who is considering going public. They have asked you to determine the impact on the net income and shareholders' equity if they move from ASPE to IFRS. Balance Sheet In 000s Year 7 Assets Cash Accounts receivable Inventory Loan Receivable Property Plant Equipment $ 5,000 185,000 210,000 100,000 375,000 $ 875,000 Liabilities & Shareholders' Equity Accounts Payable Income tax Payable Loan Payable Bonds Payable Common Shares Retained Earnings $179,000 46,000 100,000 180,000 170,000 200,000 $ 875.000 Page 1 of 566 words Focus folders are up to de Connected to Microtch thang 4:03 PM 9/23/2020

Answer 1

Changes in equity

As per ASPE any entity is required to separately disclose the following accounts in equity and any changes therein:

Retained earnings-Any changes to net income and its attribution to owners and non-controliing interests. It shall also disclose other changes in retained earnings

Contributed surplus-Changes in contributed surplus

Share capital and any changes therein

Reserves and changes therein

Other equity components and its changes

The changes as per ASPE shall be disclosed but it’s details are not necessarily like IFRS to be put up on financial statements. It can disclose the details only in the notes of financial statements as well

But, IFRS requires an entity to present a statement of changes in equity showing total comprehensive income for the period attributing it to owner and non-controlling interest.

It also requires presenting a reconciliation statement of end balances with beginning balances along with changes during the year resulting from profit, comprehensive income, etc. This reconciliation shall be on the face of financial statements

Thus statement of retained earnings in ASPE reconciles opening balance to the ending balance this would include net income and dividend whereas under IFRS atatement of changes in equity reports the changes in each individuals equity account as well as overall change in equity along with other comprehensive income. It is presented in columnar format

Income

ASPE does not require specific classification of expenses while in IFRS there shall be specific classification of expenses either according to nature or it’s function

Also, there is nothing as other comprehensive income in ASPE while various items of income statements which does not form part of net income statement are disclosed in other comprehensive income either below income statement or as a standalone statement in IFRS

Other comprehensive income includes income and other gains or losses that are not requird by GAAP to be included in net income example: unrealised gain on revaluation of an asset

Here, in case of tableau

Property plant will be shown at its fair value and its unrealised gain/loss will be part of other comprehensive income statement which is a part of equity on balance sheet

The other comprehensive statements and changes in other equity will be depicted in detail on the face of balancesheet