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Ace Company (BWC), a private company, began its operations on January 1, 2010. It is a US-based company with a December 31 year-end. BWC has kept its accounting records in accordance with US GAAP and all required adjustments to reflect results in accordance with US GAAP have already been correctly recorded. As of January 31, 2011, the statement of financial position, the statement of comprehensive income and some related footnotes have been drafted as part of the year-end financial reporting process, but they are still incomplete. The cash flow statement, the statement of changes in equity and certain footnotes are still being prepared by the accounting staff. The details of accumulated other comprehensive income will be reported on the statement of comprehensive income. Current plans are to issue the first set of externally reported financial statements for the year ended December 31, 2010, by March 15, 2011.
The owners of BWC have just met with their tax advisors. D...
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