The following is information for Gottlieb Corp. for the year ended December 31, 2020:
The effective tax rate is 25% on all items. Gottlieb prepares in accordance with IFRS. The FV-OCI equity investments trade on the stock exchange. Gains/losses on FV-OCI investments are not recycled through net income.
Instructions
a. Prepare a multiple-step statement of financial performance for 2020, showing expenses by function. Ignore calculation of EPS.
b. Prepare the retained earnings section of the statement of changes in equity for 2020.
c. Prepare the journal entry to record the depreciation expense omitted by mistake in 2019.
d. How should Gottlieb account for the unrealized gain on FV-OCI investments if it prepares in accordance with ASPE? How would Gottlieb’s retained earnings balance at December 31, 2019 be different if in all previous years had been prepared in accordance with ASPE?
