Reference no: EM132479929

Point 1: As an operations and regulatory compliance manager at Medical Best Company (MBC), a publicly traded company, you've been asked to join a committee that is tasked with helping management determine whether your company should expand its operations overseas. Currently, MBC operates in the US only but is considering expanding to select foreign countries since market research performed in these countries indicates strong demand for quality medical products MBC manufactures and services. At a recent executive meeting, concerns were raised about costs of compliance for cross-listing MBC's stock on US stock exchange and foreign stock exchanges since this course of action would involve preparing a reconciliation of net income and stockholders' equity from IFRS to US GAAP.

Point 2: To get the committee started on this project, you were asked to research annual reports of foreign competitors in the healthcare field. Visit the New York Stock Exchange's (NYSE) web site and locate a list of foreign companies currently cross-listed on US stock exchange in any one of the following foreign stock exchanges: China, Germany, Japan, Mexico or the United Kingdom. Select a company from this list that provides healthcare products or services and locate its most recent publicly available annual report.

Question 1: Carefully examine the annual report of a chosen company for a reconciliation of net income and stockholders' equity from IFRS to US GAAP. Discuss pertinent issues from this analysis to your company, MBC. In addition to this analysis, what issues would you recommend the committee investigate in order to reach a decision on overseas expansion? What preliminary results will you offer to the committee based on your analysis?

Question 2: If reconciliation is not available, critically comment on main differences you'd identified based on the company's current reporting and IFRS or U.S. GAAP.