The 2014 financial statements of LVMH Moet Hennessey-Louis Vuitton S.A. are presented in Appendix C of this book. LVMH is a Paris-based holding company and one of the world’s largest and best-known luxury goods companies. As a member-nation of the European Union, French companies are required to prepare their consolidated (group) financial statements using International Financial Reporting Standards (IFRS). After reviewing LVMH’s consolidated income statement and consolidated cash flow statement in Appendix C, prepare answers to the following questions:

a. What differences (if any) do you observe between the format of LYMH’s consolidated income statement under IFRS and what you would expect to see if the company had been using U.S. GAAP to prepare its income statement?

b. What differences (if any) do you observe between the format of LVMH’s consolidated cash flow statement under IFRS and the statement of cash flow for Texas Instruments presented in Exhibit 3.2?

Appendix C:

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EXHIBIT 3.2 Illustration of the Indirect Method for Statement of Cash Flow TEXAS INSTRUMENTS INC. Consolidated Statement of Cash Flow For Fiscal Years Ending December 31 [millions of dollars] Cash flow from operating activities Net income.... Adjustments to net income: Depreciation... Amortization of intangibles and software Stock-based compensation Gain on sales of assets. Deferred income taxes 2014 2013 2012 $2,821 $2,162 $1.759 850 380 277 (73) (61) (49) (53) 65 (194) 89 (81) (79) 957 444 263 130 311 5 162 99 (82) (229) (405) 3,414 (412) (495) (2,802) 2,198 60 (3) (1,039) Increase (decrease) from changes in: Accounts receivable Inventories........ Prepaid expenses and other current assets Accounts payable and accrued expenses Accrued compensation. Income taxes payable. Other Net cash provided by operating activities Cash flow from investing activities Capital expenditures... Proceeds from asset sales Purchases of short-term investments. Proceeds from short-term investments Other. Net cash used in investing activities.. 3,892 (385) 142 (3,107) 2,966 7 (377)