ASM International is a Dutch Public liability company domiciled in the Netherlands. Since ASM International?s initial listing
Question:
ASM International is a Dutch Public liability company domiciled in the Netherlands. Since ASM International?s initial listing on Nasdaq, ASMI has followed accounting principles generally accepted in the United States (?US GAAP?), both for internal as well as external purposes. In reconciling its net earnings in accordance with IFRS to US GAAP, two of the reconciling items were as follows:
Required:
A. What are the requirements using IFRS versus US GAAP for write-offs of obsolete inventory? How can the adjustment be positive in one year and negative in the next?
B. What are the requirements for accounting for development expenditures using IFRS versus US GAAP? Would the reconciling amounts ever be positive when adjusting from IFRS to U.S. income? If so, when?
GAAPGenerally 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...
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