Swisscom AG, the principal provider of telecommunications

Swisscom AG, the principal provider of telecommunications in Switzerland, prepares consolidated financial statements in accordance with International Financial Reporting Standards (IFRS). Until 2007, Swisscom also reconciled its net income and stockholder’s equity to US GAAP. Swisscom’s consolidated financial statments from a recent annual report are presented in their original format in Column 1 of the following worksheet. Note 27, Differences between IFRS and US GAAP, which includes Swisscom’s US GAAP reconciliation, also is provided.
1. Use the information in NOte 27 to restate Swisscom’s consolidated financial statments in accordance with US GAAP. Begin by constructing debit/credit entries for each reconcilation item, and then post these entries to columns 2 and 3 in the worksheets provided.
2. Calculate each of the following ratios under both IFRS and US GAAP and determine the % differences between them using IFRS raties as the base:
Net income/net revenues
Operating income/net revenues
operating income/total assets
net income/total shareholder’s equity
operating income/total shareholder’s equity
current assets/current liabilities
total liabilities/total shareholder’s equity
Which of these ratios is most (least) affected by the accounting standard used?