Corrugated Boxes Inc. is a U.S. based company that develops its financial statements under GAAP. The total amount of the company's assets shown on its December 31, 2013, balance sheet was approximately $305 million. The president of Corrugated is considering the possibility of relocating the company to a country that practices accounting under IFRS. The president has hired an international accounting firm to determine what the company's statements would look like if they were prepared under IFRS. One striking difference is that under IFRS the assets shown on the balance sheet would be valued at approximately $345 million.
Required:
a. Would Corrugated Boxes assets really be worth $40 million more if it moves its headquarters?
b. Discuss the underlying conceptual differences between U.S. GAAP and IFRS that cause the difference in the reported asset values.