Access the financial statements form the most recent annual report of a foreign company and a domestic company with which you are familiar to complete these instructions as follow (use companies to compare within the same industry).
a. Determine the accounting principles (US GAAP) and domestic companies use to prepare financial statements.
b. Determine whether the foreign and domestic companies provide a set of financial statements that includes the same components (e.g., consolidated balance sheet, consolidated income statements and consolidated cash flows statements)
c. List five format differences in the companies’ income statements.
d. List five format differences in the companies’ balance sheets (statements of financial position)
e. Note any terminology differences that exist between the two companies, income statements and balance sheet/statements of financial position.
f. Assess whether the scope and content of the information provided in the notes to the financial statements is similar between the two companies.
g. Compare the overall presentation of the financial statements and notes to the financial statements between the two companies.