The adoption of FAS 141R and FAS 160 will significantly impact financial ratios and acquisition strategies. Ratios involving assets, liabilities, and equity will be affected by the requirement to revalue them at fair value. Noncontrolling interests will also be classified exclusively as equity rather than between liabilities and equity. Acquisition accounting will change as in-process R&D will need to be capitalized and previously acquired equity interests remeasured at fair value upon gaining control. Direct acquisition costs will also be expensed immediately under the new standards. Overall, the changes aim to converge U.S. GAAP with IFRS.

1. Account Number
Amount Enclosed
Pay This Amount
Pay This Amount
Account Number
Bill Date
$______________________
Make check payable to: National Grid
Mail to: Processing Center, Woburn MA 01807-0005 • See
reverse side.
To Reach Us
Customer Service: 1-800-322-3223
Credit Department: 1-866-395-0315
E-mail: [email protected]
Website: www.nationalgrid.com
Duplicate
DEC 05 99999 99999 99 $74.08
____
____
#BWNFKKP **C021

2. #999999999999999
____ SAMPLE BILL
1 MAIN ST
ANYTOWN MA 01234-5678
9999999999999 0000007408
07
2 1 B2
PAYMENTS POSTED BY JAN 9 WILL APPEAR ON YOUR
NEXT BILL
SERVICE ADDRESS LOAD ZONE SEMASS
70599999999999 _______________
1 MAIN ST ANYTOWN MA
SAMP, CY. 07
------------------------------------------------------------
---------
$74.08 SERVICE PERIOD TYPE OF
METER READING ______________
_____________________
NOV 03 TO DEC 07 2005 34 DAYS
ACTUAL
METER READING
KWH
99999 99999 99 METER NUMBER RATE PRESENT
PREVIOUS USAGE
____________ ____ _______ ________ ______
012345678 R-1 557 0
557
------------------------------------------------------------
---------
NATIONAL GRID
DEC 08 2005 RATE: RESIDENTIAL REGULAR R-1

3. NEXT METER PREVIOUS BALANCE
$ 33.05
READING DATE PAYMENT-THANK YOU
12/07/05 -33.05
__________
BALANCE FORWARD
.00
JANUARY 09
DELIVERY SERVICES:
_________________
CUSTOMER CHG 5.81
DISTRIBUTION CHG .02377 X 557
KWH= 13.24
TOTAL TRANSITION CHG .00862 X 557
KWH= 4.80
MONTH KWH TRANSMISSION CHG .00819 X
557 KWH= 4.56
ENERGY CONSERVATION .00250 X 557
KWH= 1.39
D 05 557 RENEWABLE ENERGY CHG .00050 X
557 KWH= .28
__________
N 659
O 590 TOTAL CURRENT DELIVERY SERVICES
$ 30.08
TOTAL DELIVERY SERVICES
$ 30.08
------------------------------------------------------------
---------
EXPLANATION OF GENERAL BILLING TERMS:
KWH Kilowatt-hour, a basic unit of electricity used.
Off-Peak Period of time when the need or demand for electricity

4. on the Company’s system is low,
such as late evenings, weekends and holidays.
Peak Period of time when the need or demand for electricity on
the Company’s system is high,
normally during the day, Monday through Friday, excluding
holidays.
Estimated Bill A bill which is calculated based on your typical
monthly usage rather than on an actual
meter reading. It is usually rendered when we are unable to read
your meter.
Meter Constant A number by which the usage on certain meters
must be multiplied by to obtain the total
usage.
Demand Charge The cost of providing electrical transmission
and distribution equipment to accommodate
your largest electrical load.
Delivery Service Charges are comprised of the following
components:
Customer Charge The cost of providing customer related service
such as metering, meter reading and
billing. These fixed costs are unaffected by the actual amount of
electricity you use.
Distribution Charge The cost of delivering electricity from the
beginning of the Company’s distribution
system to your home or business.
Transition Charge Company payments to its wholesale supplier
for terminating its wholesale arrangements.

5. Transmission Charge The cost of delivering electricity from the
generation company to the beginning of the
Company’s distribution system.
Energy Conservation The cost of demand side management
programs offered by the Company.
Renewable Energy A charge to fund initiatives for
communicating the benefits of renewable energy
Charge and for fostering formation, growth, expansion and
retention of renewable energy
and related enterprises.
Supplier Service Charges are comprised of:
Generation Charge The charge(s) to provide electricity and
other services to the customer by the supplier.
Questions: If you have general questions about this bill, please
contact Customer Service at 1-800-322-3223.
You may also call the Massachusetts Department of
Telecommunications and Energy, Consumer Division at
617-305-3531 or toll free at 1-800-392-6066.
RESIDENTIAL CUSTOMERS ONLY
Aviso importante! Si usted no entiende este aviso, llame a la
compania al: 1-800-322-3223
Right To Dispute Your Bill
If you believe your bill is inaccurate or you wish to dispute all
or part of any bill, contact National Grid at
1-800-322-3223 to request an investigation by a Company
Complaint Officer. If you are not satisfied with the
written decision or do not receive a written decision within 30

6. days, you have the right to appeal to the Massachusetts
Department of Telecommunications and Energy, Consumer
Division, One South Station,
Boston, MA 02110. Telephone 617-305-3531 or 1-800-392-
6066.
Department of Telecommunications and Energy (DTE)
regulations provide that a company may not terminate
electric service for failure to pay any portion of a bill when a
customer complaint or appeal is pending.
Payment Plans are Available for Four or More Months. Please
Contact Us at 1-866-395-0315.
Right To Electric Service
If you have a financial hardship you (or anyone presently and
normally living in your home) have a Right to Electric
Service in the following situations:
● During serious illness: Contact your physician or Board of
Health and have them telephone the Company imme-
diately at 1-866-395-0315. Within seven (7) days of the phone
call your physician or Board of Health must certify
in writing, to the Company, that serious illness exists. The
certificate protects against termination
for 30 days (90 days if chronic illness) and may be renewed.
Your failure to renew such certification of serious
illness as set out above may result in your service being
terminated.
● You have a child under twelve months old living in that
home.
● Between November 15 and March 15 if your service is heat
related.

7. ● Elderly Household: If all residents in your household are 65
years of age or older, the Company cannot terminate
your service for failure to pay a past due bill without the
approval of the Massachusetts Department of
Telecommunications and Energy (DTE).
For additional information on the Right To Electric Service,
please contact our Credit Department at 1-866-395-0315.
Account Number
Amount Enclosed
Pay This Amount
Pay This Amount
Account Number
Bill Date
$______________________
Make check payable to: National Grid
Mail to: Processing Center, Woburn MA 01807-0005 • See
reverse side.
To Reach Us
Customer Service: 1-800-322-3223
Credit Department: 1-866-395-0315
E-mail: [email protected]
Website: www.nationalgrid.com

8. Duplicate
DEC 05 99999 99999 99 PAGE: 2
____
____
____
#BWNFKKP **C021
#99999999999999#
____ SAMPLE BILL
1 MAIN ST
ANYTOWN MA 01234-5678
999999999999 0000007408
07
2 1 B2
SERVICE ADDRESS LOAD ZONE SEMASS
705999999999999 _______________
1 MAIN ST ANYTOWN MA
SAMP, CY. 07
------------------------------------------------------------
---------
$74.08 SERVICE PERIOD TYPE OF
METER READING ______________
_____________________
NOV 03 TO DEC 07 2005 34 DAYS
ACTUAL
METER READING
KWH
99999 99999 99 METER NUMBER RATE
PRESENT PREVIOUS USAGE
____________ ____ _______ ________ ______
012345678 XYZ 557 0

9. 557
------------------------------------------------------------
---------
XYZ SUPPLIER,INC. FOR
QUESTIONS CALL: 1-800-123-1234
DEC 08 2005 RATE: XYZ
NEXT METER PREVIOUS BALANCE
$ 49.38
READING DATE PAYMENT-THANK YOU
12/01/05 -49.38
__________
BALANCE FORWARD
.00
JANUARY 09
SUPPLIER SERVICES:
_________________
GENERATION CHARGE
TOTAL ENERGY CHARGE .07900 X 557
KWH= 44.00
__________
MONTH KWH TOTAL COST OF ELECTRICITY
$ 44.00
D 05 557
N 659 TOTAL SUPPLIER SERVICES
$ 44.00
O 590
ACCOUNT BALANCE
$ 74.08
------------------------------------------------------------
---------
EXPLANATION OF GENERAL BILLING TERMS:
KWH Kilowatt-hour, a basic unit of electricity used.

10. Off-Peak Period of time when the need or demand for electricity
on the Company’s system is low,
such as late evenings, weekends and holidays.
Peak Period of time when the need or demand for electricity on
the Company’s system is high,
normally during the day, Monday through Friday, excluding
holidays.
Estimated Bill A bill which is calculated based on your typical
monthly usage rather than on an actual
meter reading. It is usually rendered when we are unable to read
your meter.
Meter Constant A number by which the usage on certain meters
must be multiplied by to obtain the total
usage.
Demand Charge The cost of providing electrical transmission
and distribution equipment to accommodate
your largest electrical load.
Delivery Service Charges are comprised of the following
components:
Customer Charge The cost of providing customer related service
such as metering, meter reading and
billing. These fixed costs are unaffected by the actual amount of
electricity you use.
Distribution Charge The cost of delivering electricity from the
beginning of the Company’s distribution
system to your home or business.
Transition Charge Company payments to its wholesale supplier

11. for terminating its wholesale arrangements.
Transmission Charge The cost of delivering electricity from the
generation company to the beginning of the
Company’s distribution system.
Energy Conservation The cost of demand side management
programs offered by the Company.
Renewable Energy A charge to fund initiatives for
communicating the benefits of renewable energy
Charge and for fostering formation, growth, expansion and
retention of renewable energy
and related enterprises.
Supplier Service Charges are comprised of:
Generation Charge The charge(s) to provide electricity and
other services to the customer by the supplier.
Questions: If you have general questions about this bill, please
contact Customer Service at 1-800-322-3223.
You may also call the Massachusetts Department of
Telecommunications and Energy, Consumer Division at
617-305-3531 or toll free at 1-800-392-6066.
RESIDENTIAL CUSTOMERS ONLY
Aviso importante! Si usted no entiende este aviso, llame a la
compania al: 1-800-322-3223
Right To Dispute Your Bill
If you believe your bill is inaccurate or you wish to dispute all
or part of any bill, contact National Grid at
1-800-322-3223 to request an investigation by a Company

12. Complaint Officer. If you are not satisfied with the
written decision or do not receive a written decision within 30
days, you have the right to appeal to the Massachusetts
Department of Telecommunications and Energy, Consumer
Division, One South Station,
Boston, MA 02110. Telephone 617-305-3531 or 1-800-392-
6066.
Department of Telecommunications and Energy (DTE)
regulations provide that a company may not terminate
electric service for failure to pay any portion of a bill when a
customer complaint or appeal is pending.
Payment Plans are Available for Four or More Months. Please
Contact Us at 1-866-395-0315.
Right To Electric Service
If you have a financial hardship you (or anyone presently and
normally living in your home) have a Right to Electric
Service in the following situations:
● During serious illness: Contact your physician or Board of
Health and have them telephone the Company imme-
diately at 1-866-395-0315. Within seven (7) days of the phone
call your physician or Board of Health must certify
in writing, to the Company, that serious illness exists. The
certificate protects against termination
for 30 days (90 days if chronic illness) and may be renewed.
Your failure to renew such certification of serious
illness as set out above may result in your service being
terminated.
● You have a child under twelve months old living in that
home.

13. ● Between November 15 and March 15 if your service is heat
related.
● Elderly Household: If all residents in your household are 65
years of age or older, the Company cannot terminate
your service for failure to pay a past due bill without the
approval of the Massachusetts Department of
Telecommunications and Energy (DTE).
For additional information on the Right To Electric Service,
please contact our Credit Department at 1-866-395-0315.
%35
%8
SafeAssign Originality Report
CSU SafeAssign Plagiarism Check Tool • SafeAssign
Originality Report Generator I
%43Total Score: High risk
LaTanya Lester-Hayes
Submission UUID: d037cd63-007f-1ff5-6a8b-2391597b0c23
Total Number of Reports
1
Highest Match
43 %
Unit VII IFRS vs GAAP.docx

14. Average Match
43 %
Submitted on
05/11/20
08:18 PM EDT
Average Word Count
988
Highest: Unit VII IFRS vs GA…
%43Attachment 1
Institutional database (9)
Student paper Student paper Student paper
Student paper Student paper Student paper
Student paper Student paper Student paper
Internet (2)
studydaddy fasb
Top sources (3)
Excluded sources (0)
View Originality Report - Old Design
Word Count: 988
Unit VII IFRS vs GAAP.docx

15. 4 6 3
2 9 7
10 8 1
11 5
4 Student paper 11 studydaddy 6 Student paper
Running Head: IFRS vs GAAP 2
IFRS vs GAAP
La Tanya Lester-Hayes
Columbia Southern University
May 09, 2020
All financial ratios that are computed using the company’s
assets or liabilities would be directly affected by the adoption
of FAS 141R and FAS
160. In particular, the firm’s liquidity ratios that include the
current ratio and the acid test ratio will change upon the
approval of FAS 141R and FAS
160. While previous calculations revalued assets and liabilities
based on the ownership percentage of the parent company, the
new approach
required firms to undertake such revaluation to fair market
value at the date of acquisition (100%revaluation) (James,
2010). This requirement will
affect the calculation of other financial ratios such as the total
asset turnover that depend on the valuation of assets. Secondly,
by adopting FAS
141R and FAS 160, all ratios that depend on the firm’s equity

16. such as the equity ratio will change in value. The firm’s
noncontrolling interest would
no longer be classified as a liability or between liabilities and
equity. The new approach categorizes noncontrolling interest
(NCI) exclusively as equi-
ty. In addition, the NCI valuation will be carried at fair market
value of the net assets of subsidiaries, before the NCI
percentage is factored in.
This deviates from the previous approach where the NCI
valuation was carried to book value. The forthcoming changes
will ultimately affect acquisi-
tion strategies in terms of in process research and development
(R&D). Previously, these costs could be expensed at the time of
acquisition. The up-
coming changes require such costs to be capitalized at the time
of acquisition. Second, the acquisition stages will be affected
by the intended
changes. In particular, measurement of the previously acquired
equity interest will change with the adoption of the new
standards. The changes dic-
tate that instead of measuring the previously acquired equity
interest based on values at time of individual equity acquisition,
the acquiring firm
1
2
2
3
4
https://online.columbiasouthern.edu/webapps/mdb-sa-
bb_bb60/originalityReport?attemptId=f2c36adc-b11a-4088-

17. 847f-
e69c0997e542&course_id=_65335_1&includeDeleted=true&pri
nt=true&force=true
La Tanya Lester
La Tanya Lester
La Tanya Lester
La Tanya Lester
Source Matches (15)
Student paper 92%
Student paper 100%
Student paper 70%
should remeasure such values when it achieves control.
Losses and gains are recognized in the income statement. Third,
when it comes to the cost of business combinations, the
adoption of the new stan-
dards implies that direct costs would be expensed in the same
year of acquisition. This would be a change from the previous
approach where the
direct costs were taken (capitalized) as part of the acquisition
cost (James, 2010). For FASB, the primary objective regarding
the issuance of FAS
141R and FAS 160 was to achieve convergence between the
IFRS and IASB. In addition, the FASB focus was to improve the
way in which information
about business combinations was reported. In this process, the

18. FASB worked in collaboration with IASB to ensure that
international accounting stan-
dards were achieved. By working closely with IASB, it was
possible to introduce important variations/changes to improve
the scope of financial re-
porting and accounting for consolidated entities (Tavakoli,
n.d.). Qualifying Special Purpose Entities are defined as off
balance sheet, bankruptcy
remote entities FASB, 2009). In other words, they comprise of
“assets placed presumptively beyond the reach of the bank
transferor’s creditors
through a true sale” (James, 2010). They may be used by
organizations for a number of purposes such as structured
management of risk. In elimi-
nating the concept of Qualifying SPEs, FAS 166 requires
qualifying SPES to evaluate the remote entities for possible
consolidation. It also stipulates
additional disclosures and changes the criteria for derecognizing
assets. FAS 166 also dictates that firms must provide additional
information related
to the transference of financial assets that include securitization
activities, and in instances where the companies face continuing
risks emanating
from the transferred financial assets (FASB, 2009).
By adopting IFRS, it would be important to understand the
various provisions that enhance convergence between GAAP
and IFRS. In this case, GAAP
rules would still apply to the company’s financial reporting and
accounting within the United States while IFRS applies to its
international activities.
With this in mind, the company must understand the
implications of FASB’s FAS 141R and FAS 160. According to
James (2010), these relate to;
subsidiaries’ assets and liabilities, negative goodwill, balance
sheet classification of noncontrolling interest (NCI), Income

19. statement presentation of
NCI’s share of income, NCI valuation, Cost of business
combinations, acquisition in stages. In the definition of control,
firms that use GAAP standards
focus on the controlling financial interest that’s understood to
be the majority voting interest. On the other hand, IFRS is
oriented towards the man-
date to govern financial and operating policies with the primary
objective of running activities that guarantee benefits for the
controlling entity. Sec-
ond, when it comes to shares for determining control, GAAP is
concerned with only the existing voting rights. The use of IFRS
allows for the inclusion
of exercisable shares.
4
5
6
Third, in the calculation of NCI, GAAP requires firms to
measure interest at fair value of the company’s net assets with
an allowance for inclu-
sion of share of goodwill (James, 2010). On the other hand,
IFRS allows accountants to make a choice between the fair
value of the company’s
net assets and the proportionate share of fair value. In
calculating goodwill at the time of acquisition, GAAP
presupposes that if goodwill exists,
it includes share attributed to NCI. The IFRS rules imply that if
a second choice is taken, goodwill can only be attributed to
controlling interest. Lastly,
in goodwill impairment test, subscribers of the US GAAP rules
adopt a two-step method while IFRS is based on a one step
approach.

20. References
FASB. (2009). FASB Issues Statements 166 and 167 Pertaining
to Securitizations and Special Purpose Entities. Retrieved from
https://www.-
fasb.org/jsp/FASB/FASBContent_C/NewsPage&cid=117615624
0834
James, M. L. (2010). Accounting for business combinations and
the convergence of International Financial Reporting Standards
with U.S. Gener-
ally Accepted Accounting Principles: A case study. Journal of
the International Academy for Case Studies, 16(1), 95-108.
Tavakoli, J. Introduction
to Special Purpose Entities. Retrieved from
https://www.tavakolistructuredfinance.com/special-purpose-
entities/
7
8
9
4 10
11
4
1
Student paper
IFRS vs GAAP 2 IFRS vs GAAP
Original source

21. IFRS vs GAAP IFRS vs GAAP
2
Student paper
Columbia Southern University
Original source
Columbia Southern University
2
Student paper
All financial ratios that are computed
using the company’s assets or liabili-
ties would be directly affected by the
adoption of FAS 141R and FAS 160.
Original source
There are two main financial ratios
that are likely to be directly affected
by the adoption of FAS 141R and FAS
160
La Tanya Lester
La Tanya Lester
Student paper 66%

22. Student paper 73%
Student paper 67%
fasb 62%
Student paper 83%
Student paper 65%
Student paper 71%
Student paper 68%
Student paper 100%
Student paper 100%
studydaddy 100%
Student paper 91%
3
Student paper
While previous calculations revalued
assets and liabilities based on the
ownership percentage of the parent
company, the new approach re-
quired firms to undertake such
revaluation to fair market value at
the date of acquisition (100%revalu-
ation) (James, 2010).

23. Original source
For instance previously the assets
and liabilities were revalued based
on the parent’s ownership percent-
age whereas now all assets and lia-
bilities are revalued to fair market
value at acquisition date (100%
revaluation) (James, 2010)
4
Student paper
In addition, the NCI valuation will be
carried at fair market value of the
net assets of subsidiaries, before the
NCI percentage is factored in.
Original source
Finally, the NCI Valuation will be car-
ried at fair market value of sub-
sidiaries net assets multiplied by the
NCI percentage instead of at book
value of subsidiaries
4
Student paper
For FASB, the primary objective re-
garding the issuance of FAS 141R
and FAS 160 was to achieve conver-
gence between the IFRS and IASB.

24. Original source
The primary reasons for the issuing
of FAS 141R and FAS 160 were due
to the efforts between the FASB and
IASB to bring about convergence be-
tween US GAAP and IFRS
5
Student paper
Qualifying Special Purpose Entities
are defined as off balance sheet,
bankruptcy remote entities FASB,
2009).
Original source
Qualifying special-purpose entities
(QSPEs) generally are off-balance-
sheet entities that are exempt from
consolidation
6
Student paper
subsidiaries’ assets and liabilities,
negative goodwill, balance sheet
classification of noncontrolling inter-
est (NCI), Income statement presen-
tation of NCI’s share of income, NCI
valuation, Cost of business combina-
tions, acquisition in stages.

25. Original source
Cost of the business combinations,
subsidiaries assets/liabilities, Nega-
tive Goodwill, Balance Sheet Classifi-
cation of Noncontrolling Interest
(NCI), Income statement presenta-
tion of NCI’s share of the NCI valua-
tion (Marianne.J.L.,2010)
7
Student paper
Third, in the calculation of NCI, GAAP
requires firms to measure interest at
fair value of the company’s net as-
sets with an allowance for inclusion
of share of goodwill (James, 2010).
Original source
Additionally, with GAAP, “NCI interest
is measured at fair value of total net
assets and includes share of good-
will” (James, 2010, 103)
8
Student paper
On the other hand, IFRS allows ac-
countants to make a choice between
the fair value of the company’s net
assets and the proportionate share
of fair value.

26. Original source
Choice between fair value and pro-
portionate share of fair value of
identifiable net assets
9
Student paper
In calculating goodwill at the time of
acquisition, GAAP presupposes that
if goodwill exists, it includes share
attributed to NCI. The IFRS rules im-
ply that if a second choice is taken,
goodwill can only be attributed to
controlling interest.
Original source
Under GAAP goodwill (if it exists)
also includes share attributed to NCI
Under IFRS if a second option is cho-
sen, goodwill is only attributed to
controlling interest (parent)
4
Student paper
FASB Issues Statements 166 and 167
Pertaining to Securitizations and
Special Purpose Entities.
Original source

27. FASB Issues Statements 166 and 167
Pertaining to Securitizations and
Special Purpose Entities
10
Student paper
Retrieved from
https://www.fasb.org/jsp/FASB/FAS-
BContent_C/NewsPage&cid=117615
6240834
Original source
Retrieved from
https://www.fasb.org/jsp/FASB/FAS-
BContent_C/NewsPage&cid=117615
6240834
11
Student paper
Accounting for business combina-
tions and the convergence of In-
ternational Financial Reporting Stan-
dards with U.S. Generally Accepted
Accounting Principles: A case study.
Journal of the International Academy
for Case Studies, 16(1), 95-108.
Original source
Accounting for business combina-

28. tions and the convergence of In-
ternational Financial Reporting Stan-
dards with U.S Generally Accepted
Accounting Principles A case study
Journal of the International Academy
for Case Studies, 16(1), 95-108
4
Student paper
Introduction to Special Purpose Enti-
ties. Retrieved from https://www.-
tavakolistructuredfinance.com/spe-
cial-purpose-entities/
Original source
Special Purpose Entities Retrieved
from https://www.tavakolistruc-
turedfinance.com/special-purpose-
entities/