If ZP had prepared its financial statement in accordance with IFRS, the inventory turn over ratio (using average inventory) for 2009 would be:

A. lower.

B. higher.

C. the same.

ZP Corporation is a (hypothetical) multinational corporation headquartered in Japan that trades on numerous stock exchanges. ZP prepares its consolidated financial statements in accordance with U.S. GAAP. Excerpts from ZP’s 2009 annual report are shown in Exhibits J−L.

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EXHIBITJ Consolidated Balance Sheets ( millions) Year Ended 31 December Current assets Cash and cash equivalents E Inventories Total current assets E Total assets I Total current liabilities E Total long-term liabilities Minority interest in consolidated subsidiaries Total shareholders' equity Total liabilities and shareholders' equity 2008 542,849 608,572 4,028,742 1 10,819,440 3,980,247 E 2,663,795 218,889 3,956,509 10,819,440 2009 814,760 E 486,465 E 3,766,309 9,687,346 I 3,529,765 2,624,002 179,843 3,353,736 9,687,346