Group Dance, a French-based food processor that publishes IFRs-based financial statements, reported 2008 net income of 1.5 billion euros. Accumulated currency translation adjustments and net holding gains/losses from securities, both of which directly affected shareholders’ equity but were not reflected on the income statement, together had balances of 311 million euros and negative 955 million euros at the beginning and end of 2008, respectively.

Required

(a) Recognized income and expense under IFRS in similar to what concept under U.S. GAAP?

(b) Prepare a statement of recognized income and expense (SORIE) for Danone.

(c) Which of the financial statements-income statement, balance sheet, statement of cash flows, and/or statement of shareholders’ equity-contain information about the currency translation adjustment and the net holding gains/losses referred to above?