Assignment Choice 1: IFRS and U.S. GAAP Balance Sheets
Beech Corporation has three finished products (related to three different product lines) in its ending inventory at December 31, Year 1. The following table provides additional information about each product:
|
Product
|
Cost
|
Replacement Cost
|
Selling Price
|
Normal Pro?t Margin
|
|
101
|
$130
|
$140
|
$160
|
20%
|
|
202
|
$160
|
$135
|
$140
|
20%
|
|
303
|
$100
|
$ 80
|
$100
|
15%
|
Beech Corporation expects to incur selling costs equal to 5% of the selling price on each of the products.
1. Determine the amount at which Beech should report its inventory on the December 31, Year 1, balance sheet under (1) IFRS and (2) U.S. GAAP.
2. Write a 2-page evaluation, which compares and contrasts the two balance sheets and how these differences impact reporting. Support your statements with three references.