The Following Financial Information Is for DC Company, a Non-U

question 1

Essay

The following financial information is for DC Company, a non-U.S. firm with shares listed on a U.S. stock exchange:

If DC Company were following U.S. GAAP, the minority interest would have been classified as a liability instead of as part of stockholders' equity. In addition, minority interest income of $4,000 for the year would have been excluded from the computation of net income. Under U.S. GAAP the investment securities would have been classified as trading securities and the interest on financing of self-constructed assets would have been capitalized rather than expensed.
Prepare reconciliations of DC's reported stockholders' equity and net income to U.S. GAAP.

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Definitions:

Hot/Cold Theory

A traditional belief system in some cultures that classifies diseases and substances by hot or cold properties to restore balance in the body.

Humors

In historical medicine, refers to the four body fluids (blood, phlegm, black bile, and yellow bile) believed to determine health and temperament.

Definition of Health

A state of complete physical, mental, and social well-being and not merely the absence of disease or infirmity.

Cultural Beliefs

The shared ideas, values, and practices that characterize a group of people and influence their behaviors and perceptions.