You are comparing the financial statements of two companies, Ready PLC and Marlet Inc., which operate in the same industry but different countries. Ready, Inc. is a British company and prepares its financial statements using British accounting rules. Marlet is a U.S company and prepares its statements using U.S. GAAP.
The following differences in accounting methods are noted:

\begin{array}{c}\begin{array}{|l|c|}\hline&\text { Ready }\\\hline \text { Goodwill } & \begin{array}{l}\text { Goodwill is immediately } \\\text { written-off directly to } \\\text { stockholders' equity }\end{array} \\\hline \text { Inventory costing } & \begin{array}{l}\text { FIFO is used for financial } \\\text { reporting and tax purposes }\end{array} \\\hline \begin{array}{l}\text { Research and } \\\text { Development costs }\end{array} & \text { Capitalized and amortized } \\\hline\end{array}\begin{array}{l|}\hlineMarlet\\\hline\text{Goodwill is capitalized and amortized over 40 years}\\\\\\\hline\text{LIFO allowed for tax and financial reporting purposes}\\\\\hline Expensed\\\\\hline\end{array}\end{array}

You want to restate the financial statements of Marlet in order to make them comparable with Ready PLC. Identify the adjustments you would make, and the effect on the financial statements.

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