BE24.13 (LO6) Latta Inc. is preparing its opening IFRS statement of financial position on January 1, 2019. Under its previous GAAP, Latta had deferred certain advertising costs amounting to $37,000, Prepare the entry (if any) needed to record this adjustment at the date of issuance. BE24.14 (LO6) Smitz SpA is preparing its opening IFRS statement of financial position on January 1, 2019. Under its previous GAAP, Smitz did not record a provision for litigation in the amount of €85,000 that would be recognized under IFRS. Prepare the entry (if any) needed to record this adjustment at the date of issuance. BE24.15 (LO6) Porter Company is evaluating the following assets to determine whether it can use fair value as deemed cost in first-time adoption of IFRS, 1, Biological assets related to agricultural activity for which there is no active market. 2. Intangible assets for which there is no active market. 3, Any individual item of property, plant, and equipment. 4, Financial assets that are not held for trading. For each asset type, indicate if the deemed cost exemption can be used Exercises E24.1 (LO2) (Subsequent Events) Keystone Corporation issued its financial statements for the year ended December 31, 2019, on March 10, 2020. The following events took place before the statements were authorized for issue early in 2020. a, On January 10, 10,000 ordinary shares of $5 par value were issued at $66 per share. b. On March 1, Keystone determined after negotiations with the taxing authorities that income taxes payable for 2019 should be $1,320,000. At December 31, 2019, income taxes payable were recorded at $1,100,000, Instructions Discuss how the preceding subsequent events should be reflected in the 2019 financial statements. E24,2 (LO2) (Subsequent Events) Consider the following subsequent events.1. Settlement of a tax case at a cost considerably in excess of the ‘amount expected at year-end. 2. Introduction of a new product line. . Loss of assembly plant due to fire |. Sale of a significant portion of the company's assets. 5. Retirement of the company president. . Issuance of a significant number of ordinary shares. . Loss of a significant customer. . Prolonged employee strike 9, Material loss on a year-end receivable because of a customer's bankruptcy, 10. Hiring of a new president. 14. Settlement of prior year's litigation against the company. 12, Merger with another company of comparable size. Instructions For each event, indicate whether a company should (a) adjust the financial statements, (b) disclose in notes to the financial statements, or (c) neither adjust nor disclose, E24,3 (LO2) (Segmented Reporting) LaGreca SpA is involved in four separate industries. The following information is available for each of the four segments Operating Total Operating Profit Identifiable ‘Segment Revenue (Loss) Assets w € 60,000 €15,000 €167,000 x 10,000 1,500 83,000 Y 23,000 (2,000) 21,000 Zz 9,000 1,000 19,000 €102,000 €15,500 €290,000 Instructions Determine which of the operating segments are reportable based on the: a. Revenue test. b. Operating profit (loss) test. ©, Identifiable assets test. E24.4 (LO5) (Ratio Computation and Analysis; Liquidity) As loan analyst for Murray Bank, you have been presented the following information.