Swisscom AG, the principal provider of telecommunications in Switzerland, prepares consolidated financial statements in accordance with International
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1. Use the information in Note 27 to restate Swisscom's consolidated financial statements in accordance with U.S. GAAP. Begin by constructing debit/credit entries for each reconciliation item, and then post these entries to columns 2 and 3 in the worksheets provided.
2. Calculate each of the following ratios under both IFRS and U.S. GAAP and determine the percentage differences between them, using IFRS ratios as the base:
Net income/Net revenues
Operating income/Net revenues
Operating income/Total assets
Net income/Total shareholders' equity
Operating income/Total shareholders' equity
Current assets/Current liabilities
Total liabilities/Total shareholders' equity
Which of these ratios is most (least) affected by the accounting standards used?
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