Chapter 12, Problem 12.3IFRS

(a)

To determine

International Financial Reporting Standards:

They are commonly known as IFRS. It is a set of accounting standards which are developed by independent (Non-profit) organization called as International Accounting Standards Board (IASB). It is universally accepted set of standards which states the rules and practice for accounting practice.

Generally Accepted Accounting Principles:

They are commonly known as GAAP. It is a collection of generally practiced and followed rules and standards of accounting. GAAP provides global guidelines for preparation and disclosure of financial statements of public companies. It is created and developed by International Accounting Standards Board (IASB).

To State: the section of reporting of interest paid (finance costs) by LV Company.

(b)

To determine

To State: the section of reporting of dividends received by LV Company.

(c)

To determine

To explain: The treatment of bank overdrafts is LV Company reports under GAAP rather than IFRS.