Question:
China Easter Airlines (CEA) Corp prepares a set of financial statements in accordance with IFRS (in Chinese renminbi-RMB). Until 2007, the company also provided a reconciliation of IFRS net income and net assets to US GAAP. The attached excerpt was taken from a recent annual report.(see attachment)
Explain the difference between 1. IFRS net income and US GAAP net income and 2. IFRS net assets (owners' equity) and US GAAP net assets that resulted from the accounting difference related to "revaluation of fixed assets."