International Reporting Standards (IFRS) has become the required framework for most of the world financial market economies as of January 1, 2011. This includes, in a non-comprehensive listing, the many European Union countries - Canada, Australia and New Zealand. In the United States, US Generally Accepted Accounting Principles (GAAP) is still required. However, plans are presently in place by the SEC to abandon US GAAP and to adhere to IFRS requirements by as early as for the period ending December 31, 2014. As such, it is important to introduce IFRS accounting rules in the college curriculum and make it a major component of accounting classes. This case study takes a US GAAP Prepared Cash Flow Statement and, based on the facts of the case, requires students to prepare an IFRS-based Cash Flow Statement. The need to understand both US GAAP and IFRS rules is required to adequately address this case study, which is most suitable for an Intermediary Accounting, Accounting Theory and a Financial Statement Analysis class, as well as an Investment Finance course, at the graduate level.
Ruckman, Inc.Consolidated Balance SheetDecember 31, 2009(in $ thousands)AssetsCash and cash equivalents$71,943 Accounts receivable 33,490 Inventories45,095 Available-for-sale securities9,025 Deferred tax assets59 Other current assets4,831 Total current assets164,443 Property, plant and equipment35,119 Investment property4,908 Deferred tax assets4,773 Goodwill14,747 Other intangible assets11,160 Other non-current assets747 Total non-current assets71,454 Total assets$235,897 Liabilities and shareholders' equityShort-term debt1,251 Accounts payable23,761 Accrued income taxes254 Other accrued liabilities2,820 Other current liabilities4,878 Deferred revenues24,877 Total current liabilities57,841 Debt10,103 Other noncurrent liabilities16,475 Total noncurrent liabilities26,578 Total liabilities84,419 29,713 and outstandingAdditional paid in capital71,228 Retained earnings52,906 Accumulated other comprehensive loss (2,369)Total equity151,478 $235,897 issued Total liabilities and shareholders' equity