The annual Form 20-F published by Unilever, which uses IFRS, notes that during a particular year assets

Question:

The annual Form 20-F published by Unilever, which uses IFRS, notes that during a particular year assets were written down by 246 million euros to market value for damaged, obsolete, and lost inventories. It also noted that the market value of certain inventories written down in prior periods was recovered, leading to an increase in the inventory value of 23 million euros.

REQUIRED:

a. Compute the net adjustment recorded by Unilever for inventory market value changes during the year.

b. If Unilever followed U.S. GAAP instead of IFRS, what would have been the net adjustment?

c. Briefly discuss fundamental differences between U.S. GAAP and IFRS.

GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...