Instructions : Restate Broadwell\'s consolidated financial statements in accorda
ID: 2463532 • Letter: I
Question
Instructions: Restate Broadwell's consolidated financial statements in accordance with U.S. GAAP and enter debit credit entries in Broadwell worksheet using IFRS to US GAAP worksheet
Adjustment notes: IFRS to US GAAP adjustments; current year ending Dec 31
1: Broadwell expenses all interest costs as incurred. U.S. GAAP requires interest costs incurred during the construction of property, plant and equipment to be capitalized. Under U.S. GAAP Broadwell would have capitalized 13 million and amortized 5 million for the current year.
2: During the current year, Broadwell recognized under IFRS restructuring charges totaling 1,726 million. The following schedule illustrates adjustments necessary to reconcile these charges to amounts determined under U.S. GAAP
3: Due to the difference in carrying value of long-lived assets after write-downs described in (2), there is a difference in the amount of depreciation expense taken under IFRS and U.S. GAAP. An adjustment is made for the current year to record an additional 5 million of depreciation under U.S. GAAP.
4: Broadwell has expensed software costs as incurred. For U.S. GAAP purposes external consultant costs incurred in the development of software for internal use have been capitalized. These costs are being amortized over a three year period. The capitalization of software costs accords with common practice in the U.S. telecommunications industry. Broadwell has capitalized, as disclosed in the reconciliation of net income (loss) and shareholders’ equity to U.S. GAAP, 220 million and amortized 37 million in the previous year and capitalized 370 million and amortized 188 million in the current year.
5: During the current year, Broadwell’s share of personnel and other restructuring charges recorded by affiliates amounted to 50 million. These restructuring charges do not meet all the recognition criteria contained in EITF 94-3 and therefore cannot be expensed in the current year, under U.S. GAAP.During the current year, Broadwell’s share of personnel and other restructuring charges recorded by affiliates amounted to 50 million. These restructuring charges do not meet all the recognition criteria contained in EITF 94-3 and therefore cannot be expensed in the current year, under U.S. GAAP.
Broadwell Restatement worksheet (in millions) IFRS Reconciling Debt Adjustments Credit US GAAP Consolidated Statement of Operations Net revenues 9,842 Capitalized cost and changes in inventories 277 Total 10,119 Goods and services purchased 1,666 Personnel expenses 2,584 Other operating expenses 2,090 Depreciation and amortization 1,739 Restructuring charges 1,726 Total operating expenses 9,805 Operating income 314 Interest expense -428 Financial income 25 Income (loss) before income taxes and equity in net loss of affiliated companies -89 Income tax expense 1 Income (loss) before equity in net loss of affiliated companies -90 Equity in net loss of affiliated companies -325 Net income (loss) -415 Consolidated Retained Earnings Statement Retained earnings, 1/1 -151 Net loss -415 Profit distribution declared -1,282 Conversion of loan payable to equity 3,200 Retained earnings, 12/31 1,352 Consolidated Balance Sheet Asset Current assets Cash and cash equivalents 256 Securities available for sale 51 Trade accounts receivable 2,052 Inventories 169 Other current assets 34 Total current assets 2,562 Non-current assets Property, plant and equipment 11,453 Investments 1,238 Other non-current assets 220 Total non-current assets 12,911 Total assets 15,473 Liabilities and shareholders’ equity Current liabilities Short-term debt 1,178 Trade accounts payable 889 Accrued pension cost 789 Other current liabilities 2,213 Total current liabilities 5,069 Long-term liabilities Long-term debt 6,200 Finance lease obligation 439 Accrued pension cost. 1,488 Accrued liabilities 709 Other long-term liabilities 338 Total long-term liabilities 9,174 Total liabilities 14,243 Shareholders’ equity Retained earnings 1,352 Unrealized market value adjustment on securities available for sale 39 Cumulative translation adjustment -161 Total shareholders’ equity 1,230 Total liabilities and shareholders’ equity 15,473Explanation / Answer
The elemental symbol for arsenic.
Assay
An analysis to determine the presence, absence or quantity of one or more elemental components.
Au
The elemental symbol for gold.
Au Eq. g/t
Denotes gold equivalent grades: gold grade plus silver grades which have been converted to gold grades by using a ratio generally based on the prevailing spot prices of gold and silver.
auriferous
Containing anomalous concentrations of gold.
background
The average concentration of an element or typical geophysical response in an area.
breccia
A rock consisting of sharp fragments in fine grained material.
channel sample
A sample which has been collected by continuous sampling across a measured interval, and is considered to be representative of the area sampled.
Cretaceous.
The geologic period extending from 135 million to 63 million years ago.
development
Preparation of a mineral deposit for commercial production including installations of plant and machinery and the construction of all related facilities.
Diamond drill
A type of rotary drill in which the cutting is done by abrasion rather than percussion. The cutting bit is set with diamonds and is attached to the end of long hollow rods through which water is pumped to the cutting face. The drill cuts a core of rock which is recovered in long cylindrical sections, an inch or more in diameter.
dip
The angle which a geological structure forms with a horizontal surface, measured perpendicular to the strike of the structure.
epidote
Calcium, aluminium, iron silicate mineral commonly occurring in hydrothermally altered carbonate-bearing rocks.
epithermal
A term applied to high-level hydrothermal systems which form at depths of ~1 km to surficial hotspring settings.
exploration
The prospecting, mapping, sampling, remote sensing, geophysical surveying, diamond drilling and other work involved in the searching for ore bodies.
FA
Fire assay.
fault
A fracture in a rock across which there has been displacement.
fracture
Breaks in a rock, usually planar.
Gangue
Minerals that occur with ore minerals, but are sub-economic to recover.
Gold Dore
A gold and silver alloy produced at a mine prior to refinement into high purity metal.
GPS
Global Positioning System — a space based satellite positioning system whereby receiver units on the ground or in the air use triangulation from known satellite signals to derive a location in three dimensional space.
graben
A downthrown block between two parallel faults.
grab sample
A sample of selected rock chips collected from within a restricted area of interest.
grade
The concentration of an ore metal in a rock sample, given either as weight percent for base metals (e.g. Cu, Zn, Pb) or in grams per tonne (g/t) or ounces per short ton (oz/t) for precious metals. The grade of an ore deposit is calculated, often using sophisticated statistical procedures, as an average of the grades of a very large number of samples collected from throughout the deposit.
g/t
Grams of per metric tonne. Usually used in association with gold or silver.
Heap leach
A process used for the recovery of metals from crushed ore in heaps using a suitable leaching solution.
ha or hectare
An area totaling 10,000 square metres.
Hg
The elemental symbol for mercury.
highly anomalous
An anomaly which is 50 to 100 times average background.
Host rock
The body of rock in which mineralization of economic interest occurs.
hydrothermal
Pertaining to hot fluids, dominantly water, in the earth’s crust which may carry metals and other compounds in solution to the site of ore deposition or wall rock alteration.
ICP
A type of assay technique.
intrusive
A rock mass formed below earth’s surface from magma which has intruded into a preexisting rock mass
limonite (limonitic)
A mixture of hydrated iron oxides and iron hydroxides. (Pertaining to or containing limonite.)
mesothermal
A hydrothermal ore deposit –typically a vein system- formed at intermediate temperatures (200-300ºC) and pressures/depths.
mineral resource,
measured mineral resource,
indicated mineral resource,
inferred mineral resource
Under CIM standards, a mineral resource is a concentration or occurrence of natural, solid, inorganic or fossilized organic material in or on the earth’s crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge.
The terms “mineral resource”, “measured mineral resource”, “indicated mineral resource”, and “inferred mineral resource” used in this Joint Information Circular are mining terms defined under CIM standards and used in accordance with Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects. They are not defined terms under United States standards and generally may not be used in documents filed with the SEC by U.S. companies. See “Joint Information Circular – Notice to United States Securityholders”.
A mineral resource estimate is based on information on the geology of the deposit and the continuity of mineralization. Assumptions concerning economic and operating parameters, including cut-off grades and economic mining widths, based on factors typical for the type of deposit, may be used if these factors have not been specifically established for the deposit at the time of the mineral resource estimate. A mineral resource is categorized on the basis of the degree of confidence in the estimate of quantity and grade or quality of the deposit, as follows:
inferred mineral resource: Under CIM standards, an inferred mineral resource is that part of a mineral resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.
indicated mineral resource: Under CIM standards, an indicated mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.
measured mineral resource: Under CIM standards, a measured mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape, physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity.
mineralization
Minerals of value occurring in rocks.
Mt
A million tonnes.
ore
A natural aggregate of one or more minerals which, at a specified time and place may be mined, processed and sold at a profit, or from which some part may profitably be separated.
Ounce / oz
Troy ounce, equal to approximately 31.103 grams.
outcrop
An exposure of rock at the earth’s surface.
Paleozoic
The geological era ranging from 600 million to 230 million years ago.
phyllite
A cleaved metamorphic rock having affinities to both schists and slates.
Pleistocene
A division of the Tertiary period.
Pliocene
A division of the Tertiary period.
pseudomorph
One mineral occurring in the crystal form of another.
quartz
A common rock-forming mineral (SiO2) that is frequently a dominant constituent of veins, especially those containing gold and silver mineralization.
Quaternary
The latest period of geological time in the stratigraphic column from 0 to 2 million years ago.
RC
Reverse Circulation drilling.
rhyolite
A silica-rich volcanic rock chemically equivalent to granite. Usually light colored, very fine-grained or glassy-looking.
Sb
The elemental symbol for antimony.
scorodite
A hydrated iron arsenate, oxidation product of arsenopyrite.
sericite
A white variety of muscovite mica.
Silicification / silicified
Complete or partial replacement of a rock by quartz, often during hydrothermal alteration.
Stibnite
An antimony sulphide mineral.
stockwork
A densely packed network of small veins, veinlets or fissures which may be filled with mineralized material.
strike
Azimuth of a plane surface aligned at right angles to the dip of the plane used to describe the orientation of stratigraphic units or structures.
Tertiary
The geological period extending from the end of the Cretaceous (65 million years ago) to approximately 2 million years before the present time.
Tl
The elemental symbol for thallium.
Tonne
A metric tonne, 1000 kilograms or 2,204.6 pounds.
travertine
Calcium carbonate deposited by precipitation from carbonate-saturated waters, particularly from hot springs.
UTM
The UTM (Universal Transverse Mercator) system is a world-wide geographic coordinate system defined in meter
The elemental symbol for arsenic.
Assay
An analysis to determine the presence, absence or quantity of one or more elemental components.
Au
The elemental symbol for gold.
Au Eq. g/t
Denotes gold equivalent grades: gold grade plus silver grades which have been converted to gold grades by using a ratio generally based on the prevailing spot prices of gold and silver.
auriferous
Containing anomalous concentrations of gold.