Harrington Company S. A.`Harrington Company is & LT. S. - based company that prepares its consolidated financial statementsin accordance with U.S. GAAP . The company reported income in 201 1 of 5.5, god, and andstockholders" equity at December 31 , 2011 , of 540, 0010 . 000 . The CFO Of S. A. Harrington haslearned that the U. S. Securities and Exchange Commission is considering requiring U . S .COITY"panies to use IFRS in preparing consolidated financial statements . The company wishes todetermine the impact that a switch to IFRS would have on its financial statements and hasengaged you to prepare a reconciliation of income and stockholders " equity from U.S. GALAP TOIFRS . You have identified the following five areas in which 5. A. Harrington's accounting *principles based on U. S. GAAP differ from IFR.S .1 . Restructuring*2. Pension plan3. Stock options4. Revenue recognition*5 . Band's payable*The CFO provides the following information with respect to each of these accounting*differences .`Restructuring Provision*The ;company publicly announced a restructuring plan in 201 1 that created a valid expectation onthe part of the employees to be terminated that the company will carry out the restructuring*. Thecompany Estimated that the restructuring would cost $300 , 200. No legal obligation to restructureexists as of December 31 , 2011 .Pension Plan*In Zang, the company amended its pension plan , creating a past service cost of $GO, and . Half ofthe" past service cost was attributable to already vested employees who had an average remainingservice life of 15 years , and half of the past service cast was attributable to nonvested employeeswho , on average , had two more years until vesting . The company has no retired employees .Stock Options*Stack options were granted to key officers on January 1 , 2011 . The grant date fair value peroption was $ 10, and a total of 9. and options were granted ."The options vest in equal installments*over three years . one- third west in 2010 , one - third in 2011 , and one - third in 2012 . The companyuses a straight - line method to recognize compensation expense related to stock options .Revenue Recognition*The company Entered into a contract in 201 1 to provide engineering Services to a long - termcustomer over a 12 - month period . The fixed price is $250 , 000 , and the company estimates with ahigh degree of reliability that the project is 30 percent complete at the end of 2011 .Bonds Parable*On January 1, 2010 , the company issued 510,000, and of 5 percent bands at par value that mature*in fifive years on December 31 , 2014 . Costs incurred in issuing the band's were $500, 000 . Interestis paid on the bands annually .