Arctic Automotive Co. Case: EVs, EV Batteries and IFRS
Academic Article
Overview
Overview
Abstract
The Arctic Automotive Co. case calls for students to convert a foreign company’s International Financial Reporting Standards (IFRS) basis financial statements to a U.S. Generally Accepted Accounting Principles (U.S. GAAP) basis. The case is set in the electric vehicle (EV) manufacturing industry. A fictitious U.S. auto manufacturer is seeking to acquire a manufacturer of EV batteries. One of several possible target companies is based outside the U.S. and uses IFRS for reporting purposes. To properly evaluate the foreign target from a financial perspective, the U.S. auto maker must perform a conversion of the target’s IFRS financial statements to a U.S. GAAP basis. The case aims to provide students with some experience in: (1) Identifying differences between IFRS and U.S. GAAP; (2) Researching and applying the IFRS and U.S. GAAP standards; and (3) Converting a foreign company’s IFRS balances to a U.S. GAAP basis.
