Group Danone, a French-based food processor that publishes IFRS-based financial statements, reported 2014 net income of 1.3 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 negative 1,676 euros and negative 1,928 million euros at the beginning and end of 2014, respectively.

REQUIRED:
a. Recognized income and expense under IFRS is 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 adjustments and the net holding gains/losses referred to above?