Required a. b. Instructions: Carefully read the prompts and requirements. When formulating your answers, consider using the examples at the end of chapters 10 and 11 in your Advanced Accounting textbook as a guide. The use of Microsoft Excel is strongly suggested. Pay careful attention to years and dates mentioned in the prompts. Prepare a schedule to reconcile Vandelay Industries’s 2018 net income and December 31, 2018, stockholders’ equity under IFRS to U.S. GAAP. Provide a brief title and description for each reconciling adjustment made, indicate the dollar amount of the adjustment, and calculate total amounts for net income and stockholders’ equity under U.S. GAAP. (See Chapter 11 Comprehensive Illustration, pp. 547-549 for guidance.) Kramerica, a U.S. company, has a foreign subsidiary, Vandelay Industries, in France. Vandelay Industries uses IFRS to prepare its financial statements. When Kramerica prepares its consolidated financial statements, it requires Vandelay Industries to reconcile its net income and shareholder equity to U.S. GAAP. Information relevant for preparing this reconcilation is as follows: Vandelay Industries carries fixed assets at revalued amounts. Fixed assets were revalued upward on January 1, 2017, by €28,000. At that time, fixed assets had a remaining useful life of 7 years. On January 1, 2017, Vandelay Industries realized a gain on the sale and leaseback of an office building in the amount of €50,000. The lease is classified as an operating lease and has a term of 20 years. Vandelay Industries capitalized development costs related to a new product in 2017 in the amount of €65,000. The new product went to
