Ron Abrams, VP Operations for Wilson Bros. has come wandering into your office muttering under his breath (clearly exasperated) after reading the financial statements for one of the plants in Western Europe.After composing himself somewhat he says, "How can a Canadian finance executive sign off on these statements? They look nothing like any statement I've seen in Canada before!I know we paid a translator to present these in English, but I cannot make heads or tails of these.Are we profitable there or not?"

Knowing what you have read about financial statements briefly describe if these financial statements could be correct, and if so why? (8 marks)

Provide constructive feedback to at least two other students' postings. (2 marks)

Carol's Tips and Tricks

You do not have the actual financial statements nor do you need them to answer this question.You should take a high-level theoretical approach: Think about GAAP and Accounting standards and how/why these statements might be different than Canadian statements.

• Does that make them wrong?
• Do you have any advice for Ron about how he can begin to decipher what he has been given?

Demonstrate to me that you know what accounting standards in general are and that they can be different around the world.No need to dig any deeper than that.