i need to know how to create an IFRS balance sheet using a GAAP balance sheet

GAAP BALANCE SHEET IFRS BALANCE SHEET Assets Assets Jaunty Coffee Company Current assets: Cash 2012 86,100 Short-term investments (available for sale) 15,000 37,000 25,000 75,000 34,500 272,600 Jaunty Coffee Company Current assets: Cash DIFFERENCES BETWEEN GAAP A Assets 2012 Jaunty Coffee Company Current assets: Cash Long-term assets Long-term investments Property, plant, and equipment Less accumulated depreciation Intangible assets Goodwill Copyright Trademark Accumulated amortization Total long-term assets Short-term investments (available for sale) Accounts receivable Notes receivable Inventory Other current assets Total current assets Short-term investments (available for sale) Accounts receivable Notes receivable Inventory Other current assets Total current assets Long-term assets Long-term investments Property, plant, and equipment Less accumulated depreciation Long-term assets Long-term investments Property, plant, and equipment Less accumulated depreciation 28,800 208,000 Intangible assets Goodwill Copyright Trademark Accumulated amortization Total long-term assets Intangible assets Goodwill Copyright Trademark Accumulated amortization Total long-term assets 482,600 Accounts receivable Notes receivable Inventory Other current assets Total current assets Total assets Total assets 100,000 116,000 (34,800) 12,000 7,000 17,000 (7,200) Total assets 81,200 Liabilities and stockholders' equity Current liabilities Accounts payable Accrued expenses Short/Current long-term debt Taxes payable Other current liabilities Total current liabilities Liabilities and stockholders' equity Liabilities and stockholders' equity 30,000 20,000 8,000 12,000 12,000 82,000 Current liabilities Accounts payable Accrued expenses Short/Current long-term debt Taxes payable Other current liabilities Total current liabilities Current liabilities Accounts payable Accrued expenses Short/Current long-term debt Taxes payable Other current liabilities Total current liabilities Long-term liabilities Notes payable Bonds payable 17,000 34,500 Long-term liabilities Notes payable Bonds payable Long-term liabilities Notes payable Bonds payable Deferred long-term liability charges Other long-term liabilities 12,000 13,000 Deferred long-term liability charges Other long-term liabilities Deferred long-term liability charges Other long-term liabilities Total long-term liabilities 76,500 Total long-term liabilities Total long-term liabilities 158,500 Total liabilities Total liabilities Stockholders' equity Common stock Retained earnings Total stockholders' liability 200,000 124,100 324,100 Stockholders' equity Common stock Retained earnings Total stockholders' liability Stockholders' equity Common stock Retained earnings Total stockholders' liability Total liabilities and stockholders' equity 482,600 Total liabilities and stockholders' equity Total liabilities and stockholders' equity Total liabilities Additional Information 1. Short-term Investments (Available for Sale): In 2012 there were $4,000 in short-term investments, which was attributed to a gain in the exchange rate; this amount was included in the beginning value of $15,001. 2. Jaunty Coffee Company uses the LIFO method for inventory valuation. At the end of 2011 the inventory reserves were $35,000, and at the end of 2012 the reserves were $45,000. 3. Long-term contingencies lawsuit most likely will be awarded for $10,000. 4. The tax rate is 35%. 5. FMV- Goodwill is $15,000; Copyright is $10,000; and Trademark is $20,000. 6. Flood damage, which is considered extraordinary, created a loss of $15,000. 7. PPE & Intangible assets - Straight-line depreciation/amortization method; 10 years useful life; no salvage value 8. Impairments: 2010 Copyright $4,400 ; 2011 Goodwill $5,400; 2009 Trademark $6,400 6,400 N GAAP AND IFRS rs' equity 2012 Jaunty Coffee Co. Income Statement For year ending Dec. 31, 2012 Sales Cost of goods sold Gross profit 290,000 100,000 190,000 Operating Expenses Selling Expenses Administrative Expenses Depreciation Expense Amortization Total Operating Expenses 20,000 25,000 11,600 3,600 60,200 Income from Operations 129,800 Other Income Interest Income Dividend Income Income before Income Taxes 5,000 10,000 144,800 Federal Income Tax Tax rate 35% 50,680 Income before extraordinary items Extraordinary items (loss) net taxes -$5,250 94,120 (9,750) Net Income 84,370 GAAP BALANCE SHEET IFRS BALANCE SHEET Assets Assets Jaunty Coffee Company Current assets: Cash 2012 86,100 Short-term investments (available for sale) 15,000 37,000 25,000 75,000 34,500 272,600 Accounts receivable Notes receivable Inventory Other current assets Total current assets Long-term assets Long-term investments Property, plant, and equipment Less accumulated depreciation Intangible assets Goodwill Copyright Trademark Accumulated amortization Total long-term assets 100,000 116,000 (34,800) 81,200 Jaunty Coffee Company Current assets: Cash Total assets 15,000 37,000 25,000 75,000 34,500 272,600 100,000 116,000 (34,800) Intangible assets Goodwill Copyright Trademark Accumulated amortization Total long-term assets Total assets Liabilities and stockholders' equity Current liabilities Accounts payable Accrued expenses Short/Current long-term debt Taxes payable Other current liabilities Total current liabilities 86,100 Long-term assets Long-term investments Property, plant, and equipment Less accumulated depreciation 28,800 210,000 Assets 2012 Short-term investments (available for sale) Accounts receivable Notes receivable Inventory Other current assets Total current assets 482,600 12,000 7,000 17,000 (7,200) DIFFERENCES BETWEEN GAAP 81,200 Jaunty Coffee Company Current assets: Cash Short-term investments (available for sale) Accounts receivable Notes receivable Inventory Other current assets Total current assets Long-term assets Long-term investments Property, plant, and equipment Less accumulated depreciation 42,000 223,200 Intangible assets Goodwill Copyright Trademark Accumulated amortization Total long-term assets 495,800 12,000 10,000 20,000 - Total assets Liabilities and stockholders' equity 30,000 20,000 8,000 12,000 12,000 82,000 Current liabilities Accounts payable Accrued expenses Short/Current long-term debt Taxes payable Other current liabilities Total current liabilities Long-term liabilities Notes payable Bonds payable Liabilities and stockholders' equity 30,000 20,000 8,000 27,750 12,000 97,750 Current liabilities Accounts payable Accrued expenses Short/Current long-term debt Taxes payable Other current liabilities Total current liabilities 17,000 34,500 Long-term liabilities Notes payable Bonds payable 17,000 34,500 Long-term liabilities Notes payable Bonds payable Deferred long-term liability charges Other long-term liabilities 12,000 13,000 Deferred long-term liability charges Other long-term liabilities 12,000 13,000 Deferred long-term liability charges Other long-term liabilities Total long-term liabilities 76,500 Total long-term liabilities 76,500 Total long-term liabilities Total liabilities 158,500 Total liabilities Stockholders' equity Common stock Retained earnings Total stockholders' liability Total liabilities and stockholders' equity 174,250 Total liabilities 200,000 124,100 324,100 Stockholders' equity Common stock Retained earnings Total stockholders' liability 200,000 99,600 299,600 Stockholders' equity Common stock Retained earnings Total stockholders' liability 482,600 Total liabilities and stockholders' equity 473,850 Total liabilities and stockholders' equity Additional Information 1. Short-term Investments (Available for Sale): In 2012 there were $4,000 in short-term investments, which was attributed to a gain in the exchange rate; this amount was included in the beginning value of $15,001. 2. Jaunty Coffee Company uses the LIFO method for inventory valuation. At the end of 2011 the inventory reserves were $35,000, and at the end of 2012 the reserves were $45,000. 3. Long-term contingencies lawsuit most likely will be awarded for $10,000. 4. The tax rate is 35%. Err:509 Err:509 Err:509 - 5. FMV- Goodwill is $15,000; Copyright is $10,000; and Trademark is $20,000. 6. Flood damage, which is considered extraordinary, created a loss of $15,000. 7. PPE & Intangible assets - Straight-line depreciation/amortization method; 10 years useful life; no salvage value 8. Impairments: 2010 Copyright $4,400 ; 2011 Goodwill $5,400; 2009 Trademark $6,400 6,400 N GAAP AND IFRS 2012 Err:509 Err:509 Err:509 Err:509 Err:509 45,000 Err:509 Err:509 Err:509 Err:509 Err:509 Err:509 Err:509 Err:509 Err:509 Err:509 6,000 rs' equity Err:509 Err:509 Err:509 Err:509 15,750 Err:509 Err:509 Err:509 Err:509 Err:509 Err:509 15,750 Err:509 Err:509 Err:509 Err:509 Err:509 Jaunty Coffee Co. Income Statement For year ending Dec. 31, 2012 Sales Cost of goods sold Gross profit 290,000 100,000 190,000 290,000 145,000 145,000 Operating Expenses Selling Expenses Administrative Expenses Depreciation Expense Amortization Total Operating Expenses 20,000 25,000 11,600 3,600 60,200 Err:509 Err:509 Err:509 Err:509 Err:509 Income from Operations 129,800 84,800 Other Income Interest Income Dividend Income Income before Income Taxes 5,000 10,000 144,800 5,000 10,000 99,800 Federal Income Tax Tax rate 35% 50,680 34,930 Income before extraordinary items Extraordinary items (loss) net taxes -$5,250 94,120 (9,750) 64,870 (9,750) Net Income 84,370 55,120 Err:509 Err:509 Additional Information 1. Short-term Investments (Available for Sale): In 2012 there were $4,000 in short-term investments, which was attributed to a gain in the exchange rate; this amount was included in the beginning value of $15,001. The realized and unrealized currency gains or losses go under nancial expenses The gain on short-term investments is not relevant because the asset listed on the Balance Sheet does not change under IFRS. The gains are recorded on the Income Statement, in Other Comprehensive Income. 2. Jaunty Coffee Company uses the LIFO method for inventory valuation. At the end of 2011 the inventory reserves were $35,000, and at the end of 2012 the reserves were $45,000. The use of a LIFO inventory model is not allowed under IFRS. The inventory valuation is adjusted by subtracting the value of the LIFO funds from the inventory total. The adjustments deferred tax liability and income. The values came from the adjusted income statement. 3. Long-term contingencies lawsuit most likely will be awarded for $10,000. IFRS does not record lawsuit contingencies. Therefore, it will not appear in the Balance Sheet. the expense is also removed from the Income Statement, causing an increase in Retained Earnings. 4. The tax rate is 35%. This tax rate pertains to LIFO inventory reserves; tax is applied into their applicable entries. 5. FMV- Goodwill is $15,000; Copyright is $10,000; and Trademark is $20,000. These values did not match the values stated by the Balance Sheet under GAAP, so it seems that a revaluation has occurred. A revaluation is not done under GAAP. Since there is no indication of active transactions, no adjustment is made. 6. Flood damage, which is considered extraordinary, created a loss of $15,000. Natural disaster damage is not recognized by the IFRS, could not be deducted like in GAAP. Consequently, the tax liability will increase and income is reduced. 7. PPE & Intangible assets - Straight-line depreciation/amortization method; 10 years useful life; no salvage value The use of the straight-line depreciation method in GAAP is identical to IFRS method, and no changes occurred on the Balance Sheet. Intangible assets with an indenite useful life are not amortized and have impairment testing on an annual basis. 8. Impairments: 2010 Copyright $4,400 ; 2011 Goodwill $5,400; 2009 Trademark $6,400 The goodwill impairment, does not need any adjustment IFRS and GAAP have similar treatment. For the goodwill impairment of $2000, there is no adjustment necessary as both US GAAP and IFRS have similar treatment. IFRS applies annual impairment tests, the values are just a distraction. No other information was given. Only when there is a good negotiating reason to further present a more detailed calculation, this would be relevant. Trademark impairment: GAAP and IFRS want impairment losses for intangible assets entered on the income statement. Resulting in a lower value on the balance sheet. No correction is needed. The impairment testing process entails that impairments would occur earlier for IFRS. IFRS impairment losses could reverse when the reason for the impairment is no longer present. I would recommend that Jaunty Coffee starts using IFRS, since the governing entities prefer and can facilitate data exchange and analysis. GAAP uses LIFO inventory which reduces tax liabilities. It is only benecial in times of inflation. Tax deferral is benecial when the company is protable and book value of assets is also used to delay tax liability. Regulation IAS: IFRS (IAS 2) DOES NOT ALLOW \"LIFO\": The items in inventory usually have lower cost subsequently net income will be higher. This requirement will not affect as much in a medium size company. The tax liability is not going to hurt prots and the cost of operation. IFRS 14: IFRS 14 applies to: -rst-time adopters of IFRS -rate regulated transactions -assets and liabilities under GAAP These entities have the option to apply GAAP accounting policies for recognition, measurement and impairment of assets and liabilities arising from rate regulation. IFRS 14 allows for a smooth transition. The company has the opportunity to update the systems that can offer a better comparison with other international companies and foreign investors. Evaluation Results Author: Edgar Mejia Date Evaluated: 03/09/2016 07:11:33 AM (MST) DRF template: Accounting Research (GR, C245, WKT20514) Program: Accounting Research (GR, C245, WKT20514) Evaluation Method: Using Rubric Evaluation Summary for Accounting Research: WKT Task 2 Final Score: Does not Meet Overall comments: 3/8/16: A completed IFRS balance sheet and differences section is provided however, several amounts are incorrect. The eight additional items are discussed but additional clarification is needed for some of the items. Please review aspects A1, A2, B1 and B2. Detailed Results (Rubric used: WKT Task 2) Articulation of Response (clarity, organization, mechanics) (0) 0=Unsatisfactory/Not present (1) 1=Does Not Meet Standard (2) 2=Minimally Competent (3) 3=Competent (4) 4=Highly Competent The candidate provides unsatisfactory articulation of response. The candidate provides weak articulation of response. The candidate provides limited articulation of response. The candidate provides adequate articulation of response. The candidate provides substantial articulation of response. Criterion Score: 3.00 Comments on this criterion: 3/5/16: The submission includes some minor subjectverb agreement errors. 02/28/2016 An organized numerical outline is apparent. Articulation concerns are evident with conventionscomma usage, capitalizationand sentence fluencyrun on sentence(s) and sentence fragment(s). The attached document (see above) includes only a few examples of the articulation errors found within the submission. Review the entire document to verify the articulation errors are identified and corrected prior to resubmission. For assistance with addressing articulation concerns and accessing available writing resources, please contact the WGU Writing Center at the following link: WGU Writing Center. For direct access to The Guide to Academic Writing Learning Resource, please use the following link: The Guide to Academic Writing Learning Resource. 02/04/2016: Capable spelling is evidenced by the writing. Sentence fluency and conventions errors are concerning and center on faulty sentence structures and punctuation. The attached document (see above) includes only a few examples of the articulation errors found within the submission. Review the entire document to verify the articulation errors are identified and corrected prior to resubmission. For assistance with addressing articulation concerns and accessing available writing resources, please contact the WGU Writing Center at the following link: WGU Writing Center. For direct access to The Guide to Academic Writing Learning Resource, please use the following link: https://lrps.wgu.edu/provision/27641407. A1. \"IFRS Balance Sheet\" (0) 0=Unsatisfactory/Not present (1) 1=Does Not Meet Standard Printed on: 03/09/2016 07:28:52 PM (EST) (2) 2=Minimally Competent (3) 3=Competent (4) 4=Highly Competent The candidate does not complete the \"IFRS Balance Sheet\" section using the numbers provided in the \"GAAP Balance Sheet\" section. Not applicable. The candidate inaccurately completes the \"IFRS Balance Sheet\" section using the numbers provided in the \"GAAP Balance Sheet\" section. Not applicable. The candidate logically and accurately completes the \"IFRS Balance Sheet\" section using the numbers provided in the \"GAAP Balance Sheet\" section. Criterion Score: 2.00 Comments on this criterion: 3/8/16: The IFRS balance sheet is provided however, the amounts for inventory, accumulated amortization and retained earnings are incorrect. 3/5/16: A completed IFRS balance sheet could not be located with this submission. 02/26/2016: The IFRS column of the balance sheet is completed however, the amount in the IFRS column for inventory does not appear to reflect a change from the GAAP amount. Additionally, correct amounts cannot be located in the IFRS column for taxes payable, long term liabilities, retained earnings, and the totals rows. Please update the IFRS column. 02/03/2016: The document contains a table of a completed IFRS balance sheet however, the amount of inventory ($30,000), taxes payable ($1,500) and other long term liabilities reported in the submission are incorrect. Please consider using the Excel template provided in the task directions and accurately complete the IFRS balance sheet. A2. Completion of \"Differences Between GAAP and IFRS\" (0) 0=Unsatisfactory/Not present (1) 1=Does Not Meet Standard (2) 2=Minimally Competent (3) 3=Competent (4) 4=Highly Competent The candidate does not complete the \"Differences Between GAAP and IFRS\" section. Not applicable. The candidate inaccurately completes the \"Differences Between GAAP and IFRS\" section. Not applicable. The candidate logically and accurately completes the \"Differences Between GAAP and IFRS\" section. Criterion Score: 2.00 Comments on this criterion: 3/8/16: A difference section is completed however, the accurate amounts are not evident and the section does not balance. 3/5/16: The differences section of the GAAP to IFRS balance sheet was not evident in this submission. 02/26/2016: The differences column in Excel correctly notes a $45,000 increase in inventory, and acceptably provides a $3,000 increase in copyright, a $3,000 increase in trademark, and a $15,750 increase in taxes payable however, the reporting of no change in accumulated amortization in the differences column appears to be inconsistent with the removal of accumulated amortization when converting the GAAP balance sheet to the IFRS column. Additionally, correct amounts for changes in retained earnings and in the cells for applicable totals cannot be located. Please update the differences column to reflect account changes. 02/03/2016: The submission provides an IFRS balance sheet however, amounts of "Differences Between GAAP and IFRS" cannot be located. Please consider using the Excel template provided in the task directions and accurately complete the differences column. B1. Impact of \"Additional Information\" on Balance Sheets (0) 0=Unsatisfactory/Not present (1) 1=Does Not Meet Standard (2) 2=Minimally Competent (3) 3=Competent (4) 4=Highly Competent The candidate does not provide a logical discussion of how the information found in the \"Additional Information\" section would impact the balance sheets. The candidate provides a logical discussion, with no support, of how the information found in the \"Additional Information\" section would impact the balance sheets. The candidate provides a logical discussion, with limited support, of how the information found in the \"Additional Information\" section would impact the balance sheets. The candidate provides a logical discussion, with adequate support, of how the information found in the \"Additional Information\" section would impact the balance sheets. The candidate provides a logical discussion, with substantial support, of how the information found in the \"Additional Information\" section would impact the balance sheets. Printed on: 03/09/2016 07:28:52 PM (EST) Criterion Score: 2.00 Comments on this criterion: 3/8/16: The eight additional items are discussed but additional detail is needed and several discussions are incorrect. Please expand the discussion of inventory and tax rate using the numbers from the IFRS balance sheet. The discussion on long term contingencies and extraordinary losses is inaccurate. The discussion for FMV of intangibles, amortization, and extraordinary loss does not match the IFRS balance sheet provided. 3/5/16: A logical discussion is provided for the eight additional items however, the support is limited and several inaccuracies were found. Please expand the discussion for LIFO inventory, tax rate, and FMW of intangibles. The use of journal entries or explanation of IFRS balance sheet adjustments would be helpful. Additionally, the information on long term contingencies and extraordinary losses is inaccurate. 02/26/2016: Logical discussion of each of the additional eight items is present however, it is unclear whether the response proposes a "subtraction of LIFO funds" from the FIFO inventory base (or from the LIFO amount of inventory allowed under US GAAP). Additionally, limited support is provided for which framework (GAAP or IFRS) is more likely to report the longterm loss contingency. Finally, the discussions of intangibles (fair market value and prior impairment) indicate no adjustment, which is appropriate given the discussion that there is no actively traded market however, the position appears to be inconsistent with the Excel attachment that displays an alternatively correct addition to the copyright and trademark (based on an active market). Please provide additional support of IFRS impact on the balance sheets. 02/03/2016: Each of the additional items are mentioned in terms of potential to change the balance sheet, and a valid distinction is made that the intangible assets are not actively traded however, an accurate discussion of the balance sheet impact of the LIFO inventory adjustment and of the extraordinary flood cannot be located. Please revise the response to provide a logical discussion of how the additional information would impact the balance sheet. B2. Similarities and Dissimilarities (0) 0=Unsatisfactory/Not present (1) 1=Does Not Meet Standard (2) 2=Minimally Competent (3) 3=Competent (4) 4=Highly Competent The candidate does not provide a logical summary of the similarities and the differences found in the eight items of the \"Additional Information\" section. The candidate provides a logical summary, with no detail, of the similarities and the differences found in the eight items of the \"Additional Information\" section. The candidate provides a logical summary, with limited detail, of the similarities and the differences found in the eight items of the \"Additional Information\" section. The candidate provides a logical summary, with adequate detail, of the similarities and the differences found in the eight items of the \"Additional Information\" section. The candidate provides a logical summary, with substantial detail, of the similarities and the differences found in the eight items of the \"Additional Information\" section. Criterion Score: 2.00 Comments on this criterion: 3/8/16: The submission presents the similarities and differences for each of the eight additional items the detail is limited or inaccurate. Please review long term contingencies, tax rate, extraordinary losses, and intangible assets. 3/5/16: Similarities and differences for the eight additional items are provided however, detail is limited or inaccurate. Please review and expand the discussion on long term contingencies, tax rate, FMW for intangibles and extraordinary losses. 02/26/2016: GAAP other comprehensive income treatment of short term investments is correctly discussed as a difference, and similarities are appropriately noted for PPE, depreciation, and goodwill however, it is unclear whether the amount of flood damage will be reclassified or removed in the income statement during conversion to IFRS. Additional similarities and differences will resolve when the accounts addressed in Aspect B1 are revisited. Please provide additional detail to support the similarities and differences. 02/03/2016: The response logically discusses IFRS treatment of some of the additional information (short term investments, tax rate, impairments, intangible assets, and PPE) however, an accurate description of the inventory valuation adjustment, discussion of whether the long term contingency is a gain or loss contingency, and correct treatment of the extraordinary flood damage cannot be located. Please review the inventory valuation, long term contingency, and extraordinary loss, and consider the potential impact on taxes payable and retained earnings. B3. GAAP or IFRS Justification (0) 0=Unsatisfactory/Not present (1) 1=Does Not Meet Standard Printed on: 03/09/2016 07:28:52 PM (EST) (2) 2=Minimally Competent (3) 3=Competent (4) 4=Highly Competent The candidate does not provide a logical justification of the use of GAAP or IFRS in accordance with the calculations from part A. The candidate provides a logical justification, with no support, of the use of GAAP or IFRS in accordance with the calculations from part A. The candidate provides a logical justification, with limited support, of the use of GAAP or IFRS in accordance with the calculations from part A. The candidate provides a logical justification, with adequate support, of the use of GAAP or IFRS in accordance with the calculations from part A. The candidate provides a logical justification, with substantial support, of the use of GAAP or IFRS in accordance with the calculations from part A. Criterion Score: 3.00 Comments on this criterion: 02/26/2016: In accordance with Aspect A, the response provides that the LIFO treatment currently allowed under US GAAP facilitates a reduction in taxes during times of inflation. Additionally, the response provides that removing the LIFO advantage will not hurt profits or the cost of operation (onetime tax effect is noted), and that the switch to IFRS is preferable for governing (international) agencies. 02/03/2016: The response recommends the company switch to IFRS, stating that the GAAP (LIFO) approach is only beneficial in times of inflation and that tax deferrals can benefit a profitable company however, it is not clearly evident whether a switch to IFRS is required in order to accomplish switching to FIFO, and support cannot be located for the use of GAAP or IFRS in accordance with aspect A. Please provide logical justification for the use of GAAP or IFRS in accordance with the calculations in aspect A. C1. Recommendation for IFRS or GAAP (0) 0=Unsatisfactory/Not present (1) 1=Does Not Meet Standard (2) 2=Minimally Competent (3) 3=Competent (4) 4=Highly Competent The candidate does not provide a logical recommendation of whether Jaunty Coffee Company should convert to IFRS or continue use of GAAP. The candidate provides a logical recommendation, with no support, of whether Jaunty Coffee Company should convert to IFRS or continue use of GAAP. The candidate provides a logical recommendation, with limited support, of whether Jaunty Coffee Company should convert to IFRS or continue use of GAAP. The candidate provides a logical recommendation, with adequate support, of whether Jaunty Coffee Company should convert to IFRS or continue use of GAAP. The candidate provides a logical recommendation, with substantial support, of whether Jaunty Coffee Company should convert to IFRS or continue use of GAAP. Criterion Score: 3.00 Comments on this criterion: 02/26/2016: The response logically explains that a facilitation of comparability in data exchange and analysis is desirable. Additionally, the response provides support for the switch to IFRS based on a better comparison with other international companies and for foreign investors. The assumption that Jaunty is not a U.S. company is consistent with the task directions, and the statement that IFRS is the preference of governing agencies is appropriate. Lack of letter format (to the board of directors) does not affect overall competency. 02/03/2016: The response makes a logical recommendation for Jaunty to switch to IFRS however, a letter to Jaunty's board of directors and support for the statement that the governing entities prefer IFRS cannot be located. Additionally, it appears that the submission incorrectly equates GAAP with LIFO. Please provide adequate support of whether Jaunty should convert to IFRS or stay with GAAP. C2. Justification of Recommendation (0) 0=Unsatisfactory/Not present (1) 1=Does Not Meet Standard (2) 2=Minimally Competent (3) 3=Competent (4) 4=Highly Competent The candidate does not provide a logical justification of the recommendation, using the given points. The candidate provides a logical justification of the recommendation, using 1-2 of the given points. The candidate provides a logical justification, with limited support, of the recommendation, using at least 1 of each of the given points. The candidate provides a logical justification, with adequate support, of the recommendation, using at least 1 of each of the given points. The candidate provides a logical justification, with substantial support, of the recommendation, using at least 1 of each of the given points. Criterion Score: 3.00 Comments on this criterion: 02/26/2016: The response provides logical justification of the switch to IFRS utilizing a regulation (IAS 2), a ruling for first time adopters of IFRS (IFRS 14), and several policies (e.g. GAAP versus IFRS treatment or impairments and impairment reversals). Printed on: 03/09/2016 07:28:52 PM (EST) 02/03/2016: The response provides a logical justification of the switch to IFRS however, a ruling, a regulation, and a policy cannot be located in support of the recommendation as required by the task directions. Please use at least one ruling, one regulation, and one policy to logically justify the recommendation to Jaunty. D. Submission of Completed \"Jaunty Coffee Company Balance Sheet and Income Statement\" (0) 0=Unsatisfactory/Not present (1) 1=Does Not Meet Standard (2) 2=Minimally Competent (3) 3=Competent (4) 4=Highly Competent The candidate does not submit the completed \"Jaunty Coffee Company Balance Sheet and Income Statement.\" Not applicable. Not applicable. Not applicable. The candidate submits the completed \"Jaunty Coffee Company Balance Sheet and Income Statement.\" Criterion Score: 4.00 Comments on this criterion: 02/26/2016: An IFRS income statement is provided in the Excel attachment. 02/03/2016: An IFRS balance sheet is present however, an IFRS income statement cannot be located. Please consider using the Excel template provided in the task directions and accurately complete the IFRS income statement. E. Sources (0) 0=Unsatisfactory/Not present (1) 1=Does Not Meet Standard (2) 2=Minimally Competent (3) 3=Competent (4) 4=Highly Competent When the candidate uses sources, the candidate does not provide intext citations and references. When the candidate uses sources, the candidate provides only some intext citations and references. When the candidate uses sources, the candidate provides appropriate intext citations and references with major deviations from APA style. When the candidate uses sources, the candidate provides appropriate intext citations and references with minor deviations from APA style. When the candidate uses sources, the candidate provides appropriate intext citations and references with no readily detectable deviations from APA style. Criterion Score: 4.00 Comments on this criterion: 02/26/2016: Outside sources do not appear to be used, other than reference to commonly found standards (GAAP and IFRS) which do not appear to be paraphrased or directly quoted. 02/03/2016: Sources are not cited in the current response however, this aspect can be more fairly assessed once the other aspects are passing. Printed on: 03/09/2016 07:28:52 PM (EST)