Case Study

International
Finance

Group - 10
Rishti Gambhir (A018)

Harsh Sangoi (B053)

Yashovardhan Kanodia (B037)

Krati Rathi (C068)

Pawan Pandey (B049)

Sanchit Jhunjhunwala (D022)

Introduction to Case
Publicly traded multinational high-technology products
and services company
Follows the IFRS system for financial reporting

About
Batson
Internation
al, S.A.

Come to be known as a growth stock

Over the last year, stock price has gone up
considerably
Q1FY10 reported an EPS of 52 cents a share
Q1FY11 has analyst projections of EPS at 58 cents a
share v/s management estimate of 51 cents
In the event of EPS falling below analyst projections, the
strong P/E position is likely to weaken

IFRS vs US GAAP
Areas

IFRS

US GAAP

Period record method

Entities are recorded via Discreteperiod-method

Entities are recorded via

Integral-period-method

Inventory Write down

Inventory write-down can be

reversed

Any reversal in inventory

write-off is prohibited

Deferred Tax

Deferred taxes are shown as

separate line items on the balance
sheet

Deferred taxes are included

with assets and liabilities

Intangible Assets

Intangible assets are recognized if

the asset has a future economic
benefit

Intangible assets are

considered at fair value

Uncommon Expenses

Uneven cost incurred in interim

periods should be deferred only if
deferral is also done at the end of
financial period

Uneven Cost should be

charged at an appropriate
amount in all the interim
periods in which it is
expensed.

Advertisement Cost

Advertising cost must be taken into

the provisional period.

Advertising cost can be

deferred to multiple periods.

Exhibit -1
Record sales in the first quarter of last year
exceeding performance
EPS per share rose to 52 cents per share compared to
45 from the first quarter Y-O-Y
Company declares the reason being increased demand
and increased shareholder value through strategic
acquisition
Management committed to growth through
diversification
Good sign for the shareholders- expecting higher eps
in the upcoming quarters

Exhibit -2
Talks about IAS 34
Financial reporting period VS Interim period
Treatment of non regular flow of income and uneven
incurred expenses
Tax rate for the Interim period
Planned maintenance and overall expenses treatment
Measurement procedures to be followed

Exhibit -3
Talks about Accounting Standards Codification Topic 270
Interim Reporting
Different types of views of interim reporting
Treatment of costs that benefit more than one period
Quantity discounts to customers if based on annual sales
volume
Accounting treatment of Property taxes
Advertisement Costs incurred within a fiscal year
Difference between IAS 34 and ASC 270