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23. 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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23. Iptat International Ltd. provided the following reconciliation from IFRS to U.S. GAAP in its most recent annual report (amounts in thousands of CHF): As stated under IFRS U.S. GAAP adjustments (a) Reversal of additional depreciation charges arising from revaluation of fixed assets ... (b) Reversal of revaluation surplus of fixed assets..... As stated under U.S. GAAP Net Income Shareholders' Equity 541,713 7,638,794 85,720 643,099 (977,240) 627,433 7,305,653 Required: 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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