Air FranceKLM (AF), a French company, prepares its financial statements according to International Financial Reporting Standards. AFs

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Air France–KLM (AF), a French company, prepares its financial statements according to International Financial Reporting Standards. AF’s annual report for the year ended March 31, 2011, which includes financial statements and disclosure notes, is provided with all new textbooks. This material also is included in AF’s “Registration Document 2010–11,” dated June 15, 2011 and is available at www.airfranceklm.com.


Required:

1. Air France–KLM lists four items in the shareholders’ equity section of its balance sheet. If AF used U.S. GAAP, what would be the likely account titles for the first and fourth of those components?

2. Locate Note 27.4 in AF’s financial statements. What items comprise “Reserves and retained earnings” as reported in the balance sheet? If Air France–KLM used U.S. GAAP, what would be different for the reporting of these items?

3. Describe the apparent differences in the order of presentation of the components of liabilities and shareholders’ equity between IFRS as applied by AF and a typical balance sheet prepared in accordance with U.S. GAAP.


Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Intermediate accounting

ISBN: 978-0077647094

7th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson

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