Explain the type of depreciation method Ikea uses and why they use this method.

1 Identify an example of an adjusting entry (other than depreciation), such as prepaid expenses, supplies, or unearned revenue, and whether or not your company has this account listed on the balance sheet. You could consider why this might not be listed.

2. As the controller of Ikea, compose a memo to the CEO addressing the advantages and disadvantages of transitioning from GAAP to IFRS.

3. As the controller of Ikea, compose a memo to the CEO addressing the following scenario: Your biggest customer has just gone bankrupt, and you must inform the CEO how this will affect your accounts receivable. Assume that the accounts receivable balance is at least $100,000.