commencing in 2007 foreign companies that were using ifrss did not have to reconcile 737166
Commencing in 2007, foreign companies that were using IFRSs did not have to reconcile their reported shareholders’ equity to shareholders’ equity under U.S. GAAP. Access the 2011 and 2010 annual reports for Goldcorp Inc., a Canadian gold producer. Answer the questions below for each of the two years. Round percentages to one decimal point. For each question, indicate where in the financial statements you found the answer, and/or provide a brief explanation.
(a) In what currency are the financial statements presented?
(b) GAAP from what country or jurisdiction was used in preparing the financial statements?
(c) What was the percentage difference between the reported shareholders’ equity under Canadian GAAP and shareholders’ equity under U.S. GAAP?
(d) What three items caused the biggest change in shareholders’ equity between the two different GAAPs?
(e) If a reconciliation to U.S. GAAP were not provided, how would a financial analyst deal with this situation when comparing Goldcorp to another company reporting under U.S. GAAP?
(f) What was the percentage difference in reported shareholders’ equity under Canadian GAAP versus shareholders’ equity under IFRSs?
(g) What three items caused the biggest change in shareholders’ equity between the two different GAAPs?