Chapter 17, Problem 1AFKC

(1)

To determine

International Financial Reporting Standards (IFRS): IFRS are a set of international accounting standards which are framed, approved, and published by International Accounting Standards Board (IASB) for the preparation and disclosure of international financial reports.

Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to create accounting principles for the implementation of financial information reporting in the Country U.

To mention: Whether the past service cost reported by Corporation AF under IFRS is same as the reporting of prior service cost followed under GAAP.

(2)

To determine

To mention: The changes in retirement benefits and explain if the accounting method reported by Corporation AF under IFRS is same as the reporting under GAAP.

(3)

To determine

To mention: The financial statement in which re-measurement cost related to pension cost is reported and also indicates how the same is reported under GAAP.

(4)

To determine

To mention: Whether Corporation AF reported net interest cost or net interest income in the year 2013 and explain the method in which the amount is determined, as per Note 23.