Read and review the selected case study from the required text, and answer the analysis questions.
After reviewing the background section of the Swisscom AG in your textbook, provide answers to the following questions:
1. Use the information in Note 27 to restate Swisscom’s consolidated financial statements in accordance with U.S. GAAP. Begin by constructing debit/credit entries for each reconciliation item, and then post these entries to columns 2 and 3 using the worksheets provided in the textbook.
2. Calculate each of the following ratios under both IFRS and U.S. GAAP, and determine the percentage differences between them, using IFRS ratios as the base:
- Net income / Net revenues
- Operating income / Net revenues
- Operating income / Total assets
- Net income / Total shareholders’ equity
- Operating income / Total shareholders’ equity
- Current assets / Current liabilities
- Total liabilities / Total shareholders’ equity
3. Which of these ratios is most (least) affected by the accounting standards used?
From: Doupnik, T., & Perera, H. (2014). International accounting (4th ed.) (pp. 535–536). New York, NY: McGraw-Hill Education.