Income statement information for adidas Group, a German footwear, apparel, and accessories manufacturer, for the year ended December 31, 2013, follows. The company applies IFRS. as adopted by the European Union, and reports its results in millions of euros. Prepare its calendar year 2013 (1) multiple-step income statement and (2) single-step income statement. Identify whether each description best applies to a periodic or a perpetual inventory system. Updates the inventory account only at period-end. Requires an adjusting entry to record inventory shrinkage. Markedly increased in frequency and popularity in business within the past decade. Records cost of goods sold each time a sales transaction occurs. Provides more timely information to manager. Contrasting periodic and perpetual systems Refer to QS 4-4 and prepare journal entries to record each of the merchandising transactions assuming that the periodic inventory system is used. Recording purchases-periodic system Refer to QS 4-7 and prepare journal entries to record each of the merchandising transactions assuming that the periodic inventory system is used. Recording purchase periodic system Answer each of the following questions related to international accounting standards. Explain how the accounting for merchandise purchase and sales is different between accounting under IFRS versus U.S GAAP. Income statements prepared under IFRS usually report an item titled finance costs. What do finance costs refer to? U.S. GAAP prohibits alternative measures of income reported on the income statement. Does IFRS permit such alternative measures on the income statement? International accounting standards