Company Z is a US Based company that prepares its consolidated financial statements in accordance with U.S.GAAP . The company reported income in 2011 of 100000 and Total Assets of 650000 The CFO of Company Z wishes to determine the impact that switch to IFRS would have on its financial statements and has engaged you to prepare a reconciliation of income from to IFRS . You have identified the following area in which Company Z accounting principles based on U.S.GAAP differ from IFRS . Company Z provides the following information with respect to each of these accounting differences Inventory : At year end 2011 , inventory had a historical cost of 250000 , a replacement cost of 180000 net realizable value of and a normal profit margin of 30 from NRV % . 190000, Prepare a reconciliation schedule to convert 2011 income from a U.S.GAAP basis to IFRS . Also , prepare a note to explain each adjustment made in the reconciliation schedule