The and expenses. Specifically, Kesko discloses the

importance of understanding the differences between financial statements
produced under IFRS and VAS can be identified through the analysis and comparison
of financial statements produced in 2013 from two businesses operating in the
food industry. In particular, Kinh Do Corporation, preparing its statements
according to VAS and Kesko Group, in conformity with IFRS.

IAS 1, Kesko are required to disclose any assumptions or judgements made by the
manager concerning the future and any cause of estimation uncertainty that may
influence the carrying amount of asset and liabilities or income and expenses.
Specifically, Kesko discloses the impairment test conducted for goodwill in
their notes, where the variable of EBITDA has been emphasised in Note 12 as it
has significant influence on the resultant impairment test (Appendix A). No
disclosures are made in the statements of Kinh Do as VAS 21 does not identify
the requirement for the disclosure of such assumptions or judgements. In
addition, the statement of changes in equity is presented as a primary
component in the statements of Kesko, whereas, VAS 21 requires such a statement
to be included in the notes (Appendix B).

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reference to property, plant and equipment, PPE, the assets of Kesko are
recorded in accordance with IAS 16, where they are measured at their historic cost
and the related depreciation and impairment losses are recognised. Within this
scope of measurement are asset dismantle, removal and repair costs, where such
costs are accounted for in Note 11 as “Additions.” (Appendix C) Under VAS 3,
the statements of Kinh Do are only able to include the costs incurred in
installing the item, where, the impairment write down of PPE is not permitted
unless approval is obtained from the Government. The dismantle, removal and
repair costs are accounted for as an expense in the income statement (Appendix
D). There is a significant difference when considering goodwill. At Kesko, the
amortisation of goodwill is not accepted, instead impairment is tested annually
(Appendix E). In comparison, Kinh Do is permitted to amortise goodwill over the
maximum period of ten years (Appendix F)