Reconciliation of IFRS to U.S. GAAP
Unless they use IFRS, foreign companies with securities
listed in the United Sates (in the form of ADRs) are required to reconcile
their net income and stockholders’equity to U.S. GAAP in the annual report
(Form 20-F) they file with the Securities and Exchange Commission (SEC). List
of foreign SEC registrants are available on the internet at www.adrbnymellon.com; click on DR
Directory & Profiles. Annual reports of foreign SEC registrants may be
accessed through the SEC’s EDGAR system at www.sec.gov
(under Filing Type, search for 20-F). However, not all foreign registrants file
their reports with the SEC electronically. Many non U.S. companies make annual
reports available on their corporate Internet home page. Access a recent annual
report (Form 20-F) for a foreign company listed on the New York Stock Exchange
that does not use IFRS to complete the following requirements.
Required:
a.
Determine the nationality of the company
selected and the accounting rules and regulations it used (company GAAP) to prepare
its financial statements.
b.
Summarize the major differences in measuring net
income between company GAAP and U.S. GAAP.
c.
Compare the company’s profitability using
company GAAP and U.S. GAAP
0 comments