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:

Goal Structures

The organization and arrangement of objectives that guide individuals' or groups' behavior towards achieving desired outcomes.

Cooperate

The act of working together toward a common goal or interest.

Intergroup Conflict

A psychological phenomenon where conflict occurs between groups due to competing interests, beliefs, or resources.

Productive Farmland

Land that yields a significant amount of agricultural crops or livestock, making it valuable for food production.