The objectives of the assignment are to give you hands on experience examining the financial statements of companies that use IFRS and to introduce IAS 1, Presentation of Financial Statements. Obtain the most recent Form 20-Fs for three non-US companies. At least two of the companies must use IFRS. (You may obtain this from the company’s website (investor relations) or from the SEC website (www.sec.gov). Prepare a type-written response (Two pages minimum, in 12-point Times New Roman font with top, bottom, left and right borders of no more than one inch , maximum length of 5 pages) – to be turned in and graded – addressing the following:
Assignment 2 – Footnote Disclosure
The purposes of the assignment are to give you hands-on experience in the following: (a) locating certain information in accounting standards, (b) examining selected disclosures of companies that use IFRS.
Use the same three companies used for Assignment 1.
Prepare a type-written response (Two pages minimum, 12 point font, double spaced, 1 inch margins, maximum length of 5 pages) – to be turned in and graded – addressing the following:
1. Where are the main disclosure requirements for PPE, intangible assets, and inventories found in IFRS and in the Accounting Standards Codification? (Provide detailed references.)
2. For each of the three companies, answer the following questions:
a. According to the footnote in which the company summarizes its significant accounting policies, what method(s) — historical cost, revaluation (fair value) — does each company use for measuring its property, plant and equipment, intangible assets other than goodwill, and goodwill? What inventory valuation method does each company use? Basically, what do the notes say about these assets?
b. In which footnote does each company make its detailed disclosures about goodwill and other intangible assets? For each company, is the footnote number indicated on the face of the balance sheet? How many pages long is the goodwill footnote and basically, what does the note say about this asset?
c. Did any of the companies recognize any impairment charges against property, plant and equipment, goodwill or other intangible assets, and if so, how much? Did the company record any reversals of prior impairment charges, and if so, how much? Basically, what does the note say about impairment.
d. Do any of the companies report a revaluation surplus for any assets, and if so, were there any changes in the revaluation surplus? If so, how much and what does the note basically say about it?
