The Following Financial Information Is Available for Simmer Company,a Hypothetical

question 35

Essay

The following financial information is available for Simmer Company,a hypothetical non-U.S.firm with shares listed on a U.S.stock exchange:
If Simmer were following U.S.GAAP,development costs would be expensed when incurred.
According to U.S.GAAP,the possible obligation for severance benefits would not be recognized until it had become probable.
Prepare a reconciliation of Simmer's reported stockholders' equity and net income to the amounts of these items under U.S.GAAP.

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Definitions:

People Person

An individual who is particularly skilled at interacting positively with others, often characterized by strong interpersonal skills and emotional intelligence.

Honesty And Integrity

Moral principles guiding a person to act truthfully and consistently with strong ethical values.

Coercive Power

The capacity to force someone to perform a task or behave in a certain way through threats, punishment, or negative consequences.

Reward Power

The capability of an individual to offer incentives to others for performing certain actions or behaviors.