I need help completing Reconciliations from IFRS to GAAP. Attached is a word Document with a Homework problem labeled Question 1 over Reconciliations! Also attached is an Excel Document labeled Template 1 that goes with Question 1. I need this reconciled over 3 years. 2008, 2009, and 2010. Also I am attaching an example labeled Practice Question with a Practice Solution to give you a better understanding what my professor is looking for. Labeled 4300 Quiz #1 Practice Fall 2015.docx and Practice exam SOLUTION 8-27-15 sec 01.xlsx

PRACTICE Quiz#1 Reconciliation from GAAP to IFRS -- You are the CFO for Gumbo company (reporting using GAAP) and must reconcile your financial statements for the years ending 2008, 2009, and 2010 to IFRS (The Income Statement and Statement Stockholders' Equity). You have identified the following 5 areas where there are differences between IFRS and U.S. GAAP at various dates. Be sure to consider the cumulative effects of prior year transactions for each year. Inventory: At yearend 2008, inventory had the following: Historical Cost Replacement Cost Estimated Selling Price Selling Costs 600,000, 500,000 510, 000 10% of Selling Price Intangible Assets As part of a business combination in January 2006, the company acquired a brand for $4,000,000. The brand is classified as an intangible asset with a 32 year useful life. At year-end 2008, the brand is determined to have a selling price of $4,000,000 with $25,000 of costs to sell. Expected future cash flows from continued use of the brand are $3,500,000 (undiscounted) and the present value of future cash flows is 3,700,000 Research and Development Costs The company incurred research and development costs of $2,000,000 in 2008. Of this amount, 50% related to development activities subsequent to the point at which criteria had been met that an intangible asset existed. The development costs were completed at the end of 2008 and will be amortized over 10 years beginning 2009. Property Plant and Equipment On January 1, 2009 a building that had an original cost of $5,000,000 and (Purchase date January 1 2007) and was being depreciated over 10 years was determined to have a fair value of $5,000,000. The company uses the revaluation model for such assets. Sale Leaseback On January 1, 2005 the company realized a gain on a sales leaseback of $2,000,000. The term of the lease (starting the date of the sale) is 20 years. Net Income Under IFRS Inventory Writedown Impairment of Brand 2008 R&D expenses Gain on Sale Leaseback Net Income Under U.S. GAAP $ 14,000,000 20,000 250,000 (600,000) 25,000 13,695,000 Stockholders' equity under IFRS Inventory Writedown Impairment of Brand 2008 R&D expenses Amortization - Sale Leaseback $ 25,000,000 20,000 250,000 (600,000) (400,000) Stockholders' equity under U.S. GAAP $ 24,270,000 Net Income Under IFRS Inventory Writedown Amortization of Brand Amortization of Dev Costs Depreciation of Building Gain on Sale Leaseback Net Income Under U.S. GAAP 14,000,000 (20,000) (14,706) 60,000 150,000 25,000 $ 14,200,294 Stockholders' equity under IFRS Inventory Writedown Amortization of Brand Impairment of Brand - 2008 Capitalization of Dev costs 2008 Amortization of Dev Costs Revaluation Bldg Depreciation of Building Amortization - Sale Leaseback $ 25,000,000 (20,000) (14,706) 250,000 (600,000) 60,000 (2,700,000) 150,000 (375,000) Stockholders' equity under U.S. GAAP $ 21,750,294 235,294 Net Income Under IFRS Amortization of Brand Amortization of Dev Costs Depreciation of Building Gain on Sale Leaseback 14,000,000 (14,706) 60,000 150,000 25,000 Net Income Under U.S GAAP $ 14,220,294 Stockholders' equity under IFRS Impairment of Brand - 2008 Accumulated Amortization Capitalization of Dev costs 2008 Accumulated Amortization Revaluation Bldg Accumulated Depreciation Amortization - Sale Leaseback $ 25,000,000 250,000 (29,412) (600,000) 120,000 (2,700,000) 300,000 (350,000) Stockholders' equity under U.S.GAAP $ 21,990,588 220,588 GAAP IFRS Inventory Writedown EXP 100,000 120,000 Adjustment 20,000 Impairment of Brand 2008 Amortization of Brand 2009-10 EXP EXP 250,000 250,000 235,294 250,000 (14,706) R&D expenses Expenses 2009-10 EXP 1,000,000 - 400,000 60,000 (600,000) Revaluation surpluss Depreciation 2009-10 SE EXP 300,000 (2,700,000) SE 450,000 (2,700,000) 150,000 Notes Reverses in 2009 Impairment of Brand IFRS Exp GAAP Exp S/E 2008 250,000 2009 235,294 250,000 250,000 250,000 235,294 - 2010 235,294 2011 220,588 205,882 Annual amortization exp difference (14,706) starting in 2009 Sale Leaseback 2005 gain (p&L) IFRS 500,000 Gain (P&L) GAAP S/E 25,000 2006 2007 2008 2009 2010 - - - - - 25,000 25,000 25,000 25,000 25,000 (475,000) (450,000) (425,000) (400,000) (375,000) (350,000) 2012 191,176 Reconciliation from IFRS to GAAP You are the CFO for Jones company (reporting using IFRS) and must reconcile your financial statements for the years ending 2008, 2009, and 2010 to U.S. GAAP (The Income Statement and Statement Stockholders' Equity). You have identified the following 5 areas where there are differences between IFRS and U.S. GAAP at various dates. Be sure to consider the cumulative effects of prior year transactions for each year. Inventory: At yearend 2008, inventory had the following: Historical Cost Replacement Cost Estimated Selling Price Selling Costs 800,000, 600,000 600,000 5% of Selling Price Intangible Assets As part of a business combination in January 2005, the company acquired a brand for $10,000,000. The brand is classified as an intangible asset with a 10 year useful life. At year-end 2008, the brand is determined to have a selling price of $5,500,000 with zero cost to sell. Expected future cash flows from continued use of the brand are $6,200,000 (undiscounted) and the present value of future cash flows is 5,700,000 Research and Development Costs The company incurred research and development costs of $500,000 in 2008. Of this amount, 70% related to development activities subsequent to the point at which criteria had been met that an intangible asset existed. The development costs were completed at the end of 2008 and will be amortized over 10 years beginning 2009. Property Plant and Equipment On January 1, 2009 a building that had an original cost of $5,000,000 and (Purchase date January 1 2004) and was being depreciated over 25 years was determined to have a fair value of $6,000,000. The company uses the revaluation model for such assets. Sale Leaseback On January 1, 2005 the company realized a gain on a sales leaseback of $1,000,000. The term of the lease (starting the date of the sale) is 20 years. VERSION A 12,000,000 Net Income Under IFRS Net Income Under U.S. GAAP $ 12,000,000 Stockholders' equity under IFRS $ 30,000,000 Stockholders' equity under U.S. GAAP $ 30,000,000 Net Income Under IFRS VERSION A 12,000,000 Net Income Under U.S. GAAP $ 12,000,000 Stockholders' equity under IFRS $ 30,000,000 Stockholders' equity under U.S. GAAP $ 30,000,000 Net Income Under IFRS VERSION A 12,000,000 Net Income Under U.S GAAP $ 12,000,000 Stockholders' equity under IFRS $ 30,000,000 Stockholders' equity under U.S.GAAP $ 30,000,000 GAAP IFRS Adjustment Notes