1air france klm af a french company prepares its financial

Question

1.Air France KLM (AF), a French company, prepares its financial statements according to International Financial Reporting Standards. AF's annual report for the year ended March 31, 2011, which includes financial statements and disclosure notes, is provided with all new textbooks. This material also is included in AF's Registration Document 2010-11, dated June 15, 2011 and is available at www.airfranceklm.com.

Required:
1. Air France KLM lists four items in the shareholders' equity section of its balance sheet. If AF used U.S. GAAP, what would be the likely account titles for the first and fourth of those components?
2. Locate Note 27.4 in AF's financial statements. What items comprise Reserves and retained earnings as reported in the balance sheet? If Air France KLM used U.S. GAAP, what would be different for the reporting of these items?
3. Describe the apparent differences in the order of presentation of the components of liabilities and shareholders' equity between IFRS as applied by AF and a typical balance sheet prepared in accordance with U.S. GAAP.

Answer 1

Be sure to properly read the case scenario provided in the assignment above and on the basis of the information provided, respond answers as per APA guidelines. Q1. Air France KLM lists 4 items in the shareholders' equity section of the balance sheet. If AF employed U.S. GAAP, determine what would be the probable account titles for the first and fourth of such components? Q2. Locate Note 27.4 in the AF's financial statements. What items include Reserves and retained earnings as reported in the balance sheet? If Air France KLM employed U.S. GAAP, what would be diverse for the reporting of such items? Q3. Explain the apparent differences in the order of presentation of the elements of liabilities and shareholders’ equity between the IFRS as applied by AF and a typical balance sheet made in accordance by U.S. GAAP.