However, under IFRS, Bessrawl Corporation had the option to report inventory on its December 31, 2011 balance sheet at lower of cost of $250,000 and net realizable value of $190,000. Since the net realizable value is lower than the cost, the company would have reported $190,000 on its balance sheet for December 31, 2011 and a loss of $60,000 on its income statement for the same period. Thus, under IFRS, Bessrawl Corporation income would be $10,000 larger than reporting under U. S. GAAP, stockholder equity will also be $10,000 larger under IFRS than under U. S. GAAP. 2). Building: – Under U. S. GAAP, Bessrawl Corporation reported depreciation expense of $100,000 each on 2010 and 2011 financial statements. Depreciation expense = ($2,750,000 – $250,000)/25 yrs = $100,000/yr. Under IFRS revaluation model, the depreciation expense on the building was $100,000 in 2010 and the carrying value was $2,650,000 beginning 2011. The building was then revalued to $3,250,000, at the beginning of 2011 resulting in revaluation surplus of $600,000. The depreciation expense for 2011 would be ($3,250,000 – $250,000)/24 yrs = $125,000.