Subsequent valuation of property, plant, and equipment; comparison of U.S. GAAP and IFRS; GlaxoSmithKline
Response to the following problem:
GlaxoSmithKline is a global pharmaceutical and consumer health-related products company located in the United Kingdom. The company prepares its financial statements in accordance with International Financial Reporting Standards.
Required:
1. Use the Internet to locate GlaxoSmithKline's most recent annual report. The address is www.gsk.com/investors. Locate the significant accounting policies disclosure note.
2. How does the company value its property, plant, and equipment? Does the company have any other options under IFRS for valuing these assets? How do these options differ from U.S. GAAP?
3. What are the company's policies for possible reversals of impairment losses for goodwill and for other noncurrent assets? How do these policies differ from U.S. GAAP?