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

question 50

Essay

The following financial information is for Pasha Company,a non-U.S.firm with shares listed on a U.S.stock exchange:
If Pasha 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 $5,000 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 Pasha's reported stockholders' equity and net income to U.S.GAAP.

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Definitions:

Terms Of Sale

The conditions under which a sale is conducted, detailing payment terms, delivery times, warranties, and prices.

Product Perishability

Indicates how quickly a product will lose its value if not sold or consumed within a short period.

Credit Periods

The duration of time allowed by a seller for a buyer to pay for a product or service after the sale has been made, usually expressed in days.