The financial statements of Konda Enterprises, based in Scythia, have been prepared in accordance with Scythian GAAP. As a financial analyst, your boss has tasked you with the responsibility of restating Konda's financial statements from Scythian GAAP to U.S. GAAP in order to assess Konda's financial position and profitability on a U.S. GAAP basis. Konda's Scythian GAAP financial statements are as follows:

Konda Enterprises

Income Statement

Year Ended December 31, 2018

(Amounts in thousands of foreign currency units (FC))

SalesFC 2,000

Cost of sales1,000

Selling, general and administrative expense200

Other expenses (income) (100)

Income before taxes800

Income taxes (10% income tax rate) 80

Net incomeFC 720

Konda Enterprises

Statement of Retained Earnings

Year Ended December 31, 2018

(Amounts in thousands of foreign currency units (FC))

Retained earnings, January 1, 2018FC500

Net income 720

Retained earnings, December 31, 2018FC 1,220

Konda Enterprises

Balance Sheet

December 31, 2018

(Amounts in thousands of foreign currency units (FC))

CashFC500

Inventory600

Property, plant, and equipment, net970

Total assetsFC 2,070

Accounts payableFC130

Other current liabilities70

Deferred liabilities50

Pension liabilities600

Total liabilities FC850

Retained earnings 1,220

Total liabilities and equity FC 2,070

Relevant differences between Scythian GAAP and U.S. GAAP are as follows:

Under U.S. GAAP, the current pension liability costs are FC 40 higher and the beginning balance in the pension liability account is FC 100 higher. Current pension liability costs are accounted for as a selling, general, and administrative expense.

Cash realized of FC 20 during the current year is considered a deferred liability under U.S. GAAP and is accounted for as other income under Scythian GAAP.

Required:

Restate Konda's financial statements from a Scythian GAAP basis to a U.S. GAAP basis.