7. [Capitalization versus expensing] Norsk Hydro [NHY). a multinational energy company, produces its financial statements in accordance
Question:
7. [Capitalization versus expensing] Norsk Hydro [NHY). a multinational energy company, produces its financial statements in accordance with Norwegian GAAP but reconciles net income and shareholders' equity to U.S. GAAP. The reconciliation states that three major differences between Norwegian GAAP and U.S. (IAAP are that under Norwegian GAAP: All exploration costs must be expensed, including some that must be capitalized under U.S GAAP. Environmental expenditures incurred prior to 1992 were ex- pensed, including some that were required to be capitalized under US GAAP. All interest is expensed as incurred. Data from the 1998 annual report follow.
Step by Step Answer:
The Analysis And Use Of Financial Statements
ISBN: 9780471375944
3rd Edition
Authors: Gerald I. White, Ashwinpaul C. Sondhi, Haim D. Fried