Chapter 2, Problem 3EP

Using their most recent annual reports, access the financial statements of two foreign companies located in the same country to complete this assignment.

Required:

1. a. Determine the GAAP the two foreign companies use to prepare financial statements.
2. b. Determine whether the financial statements provided by the two foreign companies include the same components (e.g., consolidated balance sheet, consolidated income statement, consolidated cash flows statement, and so on).
3. c. List any format differences (up to five) in the companies’ income statements.
4. d. List any format differences (up to five) in the companies’ balance sheets.
5. e. Note any terminology differences (up to five) that exist between the two companies’ income statements and balance sheets.
6. f. In very general terms, assess whether the scope and content of the information provided in the notes to the financial statements is similar between the two companies.
7. g. Provide your overall impression (no detail) of how the two companies’ sets of financial statements compare.