GlaxoSmithKline PLC: Identifying And Analyzing IFRS Vs. U.S. GAAP Differences
- ASU Author/Contributor (non-ASU co-authors, if there are any, appear on document)
- Dr.. Ken S. Brackney, Professor (Creator)
- Institution
- Appalachian State University (ASU )
- Web Site: https://library.appstate.edu/
Abstract: GlaxoSmithKline plc (GSK), headquartered in the United Kingdom, is a global leader in the pharmaceutical industry. Like much of the rest of the world outside the U.S., GSK uses International Financial Reporting Standards (IFRS) to prepare its financial statements. Despite more than two decades of convergence progress, IFRS and U.S. Generally Accepted Accounting Principles (U.S. GAAP) continue to differ in a number of areas. This case helps students develop a better understanding of specific differences with U.S. GAAP that GSK exhibits in its reporting. The case focuses on the core financial accounting processes of recognition, measurement, and classification of information. GSK’s IFRS basis reporting reflects more than 25 differences with U.S. GAAP. This case asks students to identify a total of 11 differences and determine how each one affects four key financial statement line items. For six of the differences identified, students must determine the direction and magnitude of effect on each financial statement metric. For five more differences where the magnitude of effect might not be evident from GSK’s reporting, students must determine the direction of effect on each metric. To successfully complete this case, students must document each difference from the IFRS and U.S. GAAP standards, and they must carefully analyze each one to determine the effect(s) on the financial statement metrics.
GlaxoSmithKline PLC: Identifying And Analyzing IFRS Vs. U.S. GAAP Differences
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Created on 9/2/2022
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Additional Information
- Publication
- Brackney, K. and Downen, T. (2022). GlaxoSmithKline plc: Identifying and analyzing IFRS vs. U.S. GAAP differences. Journal of Business Cases and Applications, co-authored with Tom Downen, September 2022 issue (Volume 35), pages 1-30. NC Docks permission to re-print granted by author(s). Publisher version of record available at: http://www.aabri.com/jbca.html
- Language: English
- Date: 2022
- Keywords
- IFRS, IFRS vs. U.S. GAAP differences, direction of effect, magnitude of effect, foreign registrant