Iptat International Ltd. provided the following reconciliation from IFRS to U.S. GAAP in its most recent annual

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Iptat International Ltd. provided the following reconciliation from IFRS to U.S. GAAP in its most recent annual report (amounts in thousands of CHF):

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a. Explain why U.S. GAAP adjustment (a) results in an addition to net income. Explain why U.S. GAAP adjustment (a) results in an addition to shareholders' equity that is greater than the addition to net income. What is the shareholders' equity account affected by adjustment (a)?
b. Explain why U.S. GAAP adjustment (b) results in a subtraction from shareholders' equity but does not affect net income. What is the shareholders' equity account affected by adjustment (b)?
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International Accounting

ISBN: 978-0077862206

4th edition

Authors: Timothy Doupnik, Hector Perera

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