Question

Air France-KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards....

Air France-KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year ended December 31, 2017, are provided here. This material is also available under the Finance link at the company’s website (www.airfranceklm.com).

Required:
Describe the apparent differences in the order of presentation of the components of the balance sheet between IFRS as applied by Air France–KLM (AF) and a typical balance sheet prepared in accordance with U.S. GAAP.

Homework Answers

Answer #1

Under U. S. GAAP , we presen current assets and liabilities before non current assets and liabilities. IAS No. 1 doesnt orescribe the format of balance sheet, but balance sheets prepared using IFRS often report non current items first. AF's Balance sheet presents noncurrent assets and liabilities before current assetsa nd liabilities and also before liabilities.

Another difference is the order of the individual line items within categories. For example:In the United States, current assets generally are listed in order of liquidity, with cash and cash equivalents listed first, followed by short term investments, accounts receivable, and the inventories . AF's current assets appears to be listed in the reverse order of the liquidity.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards....
Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year ended December 31, 2015, are available in Connect. This material is also available under the Finance link at the company’s website (www.airfranceklm.com.) The presentation of financial statements often differs between U.S. GAAP and IFRS, particularly with respect to the balance sheet. Using IFRS, companies discount their pension obligations using an interest rate approximating the average...
Collinsworth LTD., a U.K. company, prepares its financial statements according to International Financial Reporting Standards. Late...
Collinsworth LTD., a U.K. company, prepares its financial statements according to International Financial Reporting Standards. Late in its 2021 fiscal year, a significant adverse change in business climate indicated to management that the assets of its appliance division may be impaired. The following data relate to the division’s assets: (£ in millions) Book value £ 290 Undiscounted sum of estimated future cash flows 280 Present value of future cash flows 206 Fair value less cost to sell (determined by appraisal)...
With regard to reporting contingent liabilities on a balance sheet, financial statements prepared under International Financial...
With regard to reporting contingent liabilities on a balance sheet, financial statements prepared under International Financial Reporting Standards (IFRS) will: Multiple Choice a) Have fewer contingent liabilities accrued than under U.S. GAAP because the IFRS guideline for "probable" is a higher percentage than the U.S. GAAP guideline for "probable". b) Have more contingent liabilities accrued than under U.S. GAAP because IFRS requires all lawsuits, environmental problems, and product warranties that are reasonably estimable to be accrued while U.S. GAAP requires...
Which of the following statements about International Financial Reporting Standards (IFRS) is NOT true? A. IFRS...
Which of the following statements about International Financial Reporting Standards (IFRS) is NOT true? A. IFRS sets out broad and general principles that accountants should follow when preparing financial statements. B. IFRS offers simplicity but also possibly more leeway for accounting malpractice than does GAAP. C. In 2008, the Securities and Exchange Commission (SEC) announced its plan to convert U.S. companies from GAAP to IFRS. D. IFRS leaves LESS room for discretion than GAAP does. 2. Rogue Corp. has sales...
Read the 2015 annual report of Air France – KLM and answer the 20 questions asked...
Read the 2015 annual report of Air France – KLM and answer the 20 questions asked regarding the accounting issues. Link is provided below: http://www.airfranceklm.com/sites/default/files/publications/afkl_registration_doc_2015.pdf 1. Air France-KLM reports ‘Consolidated statement of recognized income and expenses’ for the year ended December 31, 2015. If this statement was a U.S. GAAP statement, what would be the title of this statement? a. Consolidated statement of total net income b. Consolidated statement of other comprehensive income c. Consolidated statement of comprehensive income d....
Read the 2015 annual report of Air France – KLM and answer the 20 questions asked...
Read the 2015 annual report of Air France – KLM and answer the 20 questions asked regarding the accounting issues. Link is provided below: http://www.airfranceklm.com/sites/default/files/publications/afkl_registration_doc_2015.pdf 1. Air France-KLM reports ‘Consolidated statement of recognized income and expenses’ for the year ended December 31, 2015. If this statement was a U.S. GAAP statement, what would be the title of this statement? a. Consolidated statement of total net income b. Consolidated statement of other comprehensive income c. Consolidated statement of comprehensive income d....
The Volkswagen Group adopted International Accounting Standards (IAS, now International Financial Reporting, or IFRS) for its...
The Volkswagen Group adopted International Accounting Standards (IAS, now International Financial Reporting, or IFRS) for its 2001 fiscal year. The following is taken from Volkswagen’s 2001 annual report. It discusses major differences between the German Commercial Code (HGB) and IAS as they apply to Volkswagen. General: In 2001 VOLKSWAGEN AG has for the first time published its consolidated financial statements in accordance with International Accounting Standards (IAS) and the interpretations of the Standing Interpretations Committee (SIC). All mandatory International Accounting...
Financial Reporting and Analysis Assignment #1 Q1. What is IFRS? ? What is the IASB? ?...
Financial Reporting and Analysis Assignment #1 Q1. What is IFRS? ? What is the IASB? ? How widespread is the adoption of IFRS around the world? ? What is the possibility of the Securities and Exchange Commission substituting IFRS for GAAP? ? What are the advantages of converting to IFRS? ? What could be the disadvantages of converting to IFRS? ? What is the difference between convergence and adoption? ? When comparing IFRS and GAAP, what are some overall key...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT