Chapter 8, Problem 1AFKC

To determine

IFRS: International Financial Reporting Standards is a set of accounting guidelines formulated by an independent non-profit organization known as International Accounting Standards Board. These guidelines provide the accounting knowledge to the investors and auditors as to how the accounting transactions should be reported in the financial statements.

U.S.GAAP: United States Generally Accepted Accounting Principles provides a framework of accounting rules for financial reporting in order to obtain uniformity. It contains the accounting concepts and principles required for proper presentation of financial statements.

Financial disclosures: Financial disclosures are the reports which provide financial information about the company to its investors for investment decision making.

To State: the method that the company uses to value its inventory and the other alternatives that are available under IFRS and under U.S. GAAP.