Question

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.

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.