Chapter 2, Problem 2EP

a.

To determine

Explain the accounting principle used by the foreign and domestic companies to prepare the financial statements.

b.

To determine

Whether the foreign and domestic companies provide a set of financial statements that includes the same components.

c.

To determine

List any five differences between the formats of income statement of companies.

d.

To determine

List any five differences between the formats of balance sheet of companies.

e.

To determine

List any terminologies difference that exists between the companies’ income statements and Balance sheet.

f.

To determine

Assess whether the scope and content of the information provided in the notes to the financial statements is similar between the two companies.

g.

To determine

Compare the overall presentation of the financial statements and notes to the financial statements between the companies.