The following financial information is available for Simmer Company,a hypothetical non-U.S.firm with shares listed on a U.S.stock exchange:
If Simmer were following U.S.GAAP,development costs would be expensed when incurred.
According to U.S.GAAP,the possible obligation for severance benefits would not be recognized until it had become probable.
Prepare a reconciliation of Simmer's reported stockholders' equity and net income to the amounts of these items under U.S.GAAP.

Question

The following financial information is available for Simmer Company,a hypothetical non-U.S.firm with shares listed on a U.S.stock exchange:
  If Simmer were following U.S.GAAP,development costs would be expensed when incurred.
According to U.S.GAAP,the possible obligation for severance benefits would not be recognized until it had become probable.
Prepare a reconciliation of Simmer's reported stockholders' equity and net income to the amounts of these items under U.S.GAAP.

Quizplus · Accepted Answer

The Answer of The following financial information is available for Simmer Company,a hypothetical non-U.S.firm with shares listed on a U.S.stock exchange:
  If Simmer were following U.S.GAAP,development costs would be expensed when incurred.
According to U.S.GAAP,the possible obligation for severance benefits would not be recognized until it had become probable.
Prepare a reconciliation of Simmer's reported stockholders' equity and net income to the amounts of these items under U.S.GAAP.

The Following Financial Information Is Available for Simmer Company,a Hypothetical