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

question 11

Essay

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

If Olaf 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 $3,000 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 Olaf's reported stockholders' equity and net income to U.S. GAAP.

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Definitions:

Aggressively

Characterized by or tending toward unprovoked offenses, attacks, or hostility.

Antisocial Personality Disorder

A psychiatric disorder manifesting as a chronic inclination to neglect or breach other people's rights.

Cognitive-behavioral

Pertains to a therapeutic approach that addresses dysfunctional emotions, behaviors, and cognitions through a goal-oriented, systematic process.

Psychodynamic

A psychological theory or approach that emphasizes unconscious psychological processes (e.g., desires, thoughts, and motivations) and their effects on human behavior and relationships.