International Financial Reporting Standards

Running head: INTERNATIONAL FINANCIAL REPORTING STANDARDS
International Financial Reporting Standards
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1INTERNATIONAL FINANCIAL REPORTING STANDARDS
Bessrawl Corporation
The Reconciliation of the financial statements will be done by the following the
underlying principles of the International Financial Reporting Standards. The adjustments will be
done on the basis of the accounting adjustments and principals laid down by the IFRS (Gordon &
Hsu, 2017).
Inventory: The recording of Inventory will be as per the IAS 2, which will provide the basis of
recording the inventory where the inventory will be measured at the cost value or at the net
realizable value from the same. The subsequent loss will be recorded at the OCI.
Plant and Machinery: The plant and machinery will be valued at the historical cost and the
impairment charges will be reported at the Other Comprehensive Income (O.C.I). The plant and
machinery will be reported at the carrying value and the relevant gain will be transferred to the
OCI account. The carrying value of the property will be around 2,783,000, the fair value of the
equipment was around 3,575,000, and the gain/loss will be reported under the Other
Comprehensive Income.
Intangible Assets: The intangible assets of the company are reported at the value of $44,000 in
the year 2014. The carrying value of the assets in the year was reported to have a fair value of
around 38,500 and the present value of the expected future cash flows was around 37,400. The
lower of the values will be reported in the balance sheet and the income loss derived will be
reported in the Income Statement.
Research and Development: The research and development expenses incurred by the company
will be fully recorded as a n expenses under the IAS 38 as the development of the product is not
certain and the feasibility and the expected future cash flow is not certain. Hence, the