The following is a recent consolidated statement of financial position on December 31 of a recent year for LVMH, a French company that markets the Louis Vuitton® and Moët Hennessy® brands.

a. Identify presentation differences between the balance sheet of LVMH and a balance sheet prepared under U.S. GAAP. Use the Mornin’ Joe balance sheet on page 626 as an example of a U.S. GAAP balance sheet. (Ignore minority interests and cumulative translation adjustment.)

b. Compare the terms used in this balance sheet with the terms used by Mornin’ Joe (page 626), using the table below

c. What does the “Revaluation reserves” in the Equity section of the balance sheet represent?

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LVMH Statement of Financial Position December 31 (in millions of euros) Assets € 9,104 Brands and other intangible assets-net Goodwill-net 5,027 Property, plant, and equipment-net 6,733 Investment in associates 223 Non-current available for sale financial assets 3,891 Other non-current assets 319 Deferred tax. 668 Non-current assets €25,965 € 5,991 Inventories. 1,565 Trade accounts receivable Income taxes receivable. 96 1,255 Other current assets Cash and cash equivalents. 2,292 Current assets €11,199 TOTAL ASSETS €37,164 Liabilities and Equity € 147 Share capital Share premium.. 1,782 (607) Treasury shares Revaluation reserves 1,244 Other reserves 11,370 Cumulative translation adjustment 230 Net profit, group share 3,032 Equity, group share €17,198