Mooney Inc. is a U.S. subsidiary of an Italian entity that prepares its financial statements in accordance with (1) IFRS in reporting to its parent and (2) U.S. GAAP for reporting to its U.S. based lender. Mooney and its parent company have a May 31^st year end. Mooney has engaged in the following transactions with Fitch Corporation.

• Sold $350,000 on credit of inventory to Fitch, Corporation on May 25^th, 2019
• Purchased $100,000 on credit of supplies from Fitch, Corporation on May 29^th, 2019

Mooney and Fitch have contractually agreed that a net payment of $250,000 from Fitch, Corporation will be due by June 15^th, 2019. (Both Mooney and Fitch have excellent credit so collectibilty is not an issue). The controller of Mooney believes that the net amount of the receivable/payable can be presented in the balance sheet while the accounting manager believes the gross amount of the receivable/payable should be presented in the balance sheet.

Accounting Issue: How should Mooney present the outstanding receivable and payable in its balance sheet under U.S. GAAP and IFRS for the year ending May 31, 2019?

GAAP Codification Reference: _______________________

Guidance: (cut and paste the guidance)

Your answer/interpretation of how the outstanding account receivable and account payable should be presented on the balance sheet under U.S. GAAP?

IFRS Reference: (make sure you list the standard/paragraph) _______________________

Guidance: (cut and paste the guidance)

Your answer/interpretation of how the outstanding account receivable and account payable should be presented on the balance sheet under IFRS?