1. Critically comment on the results reported by CPCC under PRC GAAP, IFRS, and U.S. GAAP. 2....
Question:
1. Critically comment on the results reported by CPCC under PRC GAAP, IFRS, and U.S. GAAP.
2. Identify the main areas of difference for CPCC between:
a. PRC GAAP and IFRS.
b. IFRS and U.S. GAAP.
3. Should UK readers of these financial statements find the information useful?
4. Should U.S. readers of these financial statements find the information useful?
5. Would you recommend that other companies adopt the multiple standards approach taken by CPCC? Explain.
American shareholders, the company also provides a reconciliation of net income and stockholders' equity from IFRS to U.S. GAAP. The following is the section of CPCC's 2003 annual report providing this information.
Effects of major differences between the PRC Accounting Rules and Regulations and IFRS on net profit are analysed as follows:
-1.png)
-2.png)
Step by Step Answer:
1 The net profit figure reported under PRCGAAP is RMB 19011 million This is RMB 2592 million lower than the amountunder IFRS and RMB 6566million lower than the amount under US GAAP They are expected t...View the full answer
