A Review of the Persistent Reconciling Items Between Financial Statements Using U.S. GAAP and International Financial Reporting Standards for Three Auto Manufacturers

Document Type



Published by American Scholars Press in International Management Review, volume 6 issue 1, 2010. Bryant users may access this article here.


IFRS; U.S.; GAAP; auto manufacturer’s financial reporting; accounting standard convergence


American Scholars Press

Publication Source

International Management Review


This paper investigates differences between the financial statements of Volvo Corporation, Daimler AG, and Fiat SPA as prepared under International Financial Reporting Standards (IFRS) and U.S. Generally Accepted Accounting Principles (U.S.GAAP) from 2004-2006. The application of IFRS generally resulted in higher net income than U.S. GAAP. Many differences have already been resolved by the convergence projects of the Financial Accounting Standards Board and the International Accounting Standards Board. However, significant and persistent reconciling items that are likely to affect U.S. automakers' financial statements include: pension and other post-retirement benefits expenses, capitalization of development costs, and minority interests reporting.