China Eastern Airlines (CEA) Corporation Limited prepares a set of financial statements in accordance with IFRS (in
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a. Explain the difference between (1) IFRS net income and U.S. GAAP net income and (2) IFRS net assets (owners' equity) and U.S. GAAP net assets that resulted from the accounting difference related to "revaluation of fixed assets."
b. Determine the directional impact (increase, decrease, no effect) the accounting difference described above would have on the following ratios calculated under IFRS and U.S. GAAP:
Current ratio (Current assets/Current liabilities) Debt-to-equity ratio (Total liabilities / Total owners' equity) Total asset turnover (Net sales/Average total assets)
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... Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio. Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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