Retained earnings 1,220
Total liabilities and equity FC 2,070
Relevant differences between Scythian GAAP and U.S. GAAP are as follows:
· Under U.S. GAAP, the current pension liability costs are FC 40 higher and the beginning balance in the pension liability account is FC 100 higher. Current pension liability costs are accounted for as a selling, general, and administrative expense.
· Cash realized of FC 20 during the current year is considered a deferred liability under U.S. GAAP and is accounted for as other income under Scythian GAAP.
Restate Konda’s financial statements from a Scythian GAAP basis to a U.S. GAAP basis.