Revenue Recognition Policies

SUPERVALU Inc., a large US retail grocer, had $40.6 billion in sales for its fiscal year ended February 27, 2010. SUPERVALU currently reports using US GAAP. The controller of SUPERVALU Inc. has expressed an interest in the differences between US GAAP and IFRS and the possible impact of converting to IFRS as it relates to revenue recognition. The approach the controller recommended is to compare SUPERVALU’s revenue recognition accounting policies to three similar companies, one reporting under US GAAP (Kroger) and two reporting under IFRS (Ahold and Carrefour Group). Kroger, based in the US, had sales of $76.7 billion during fiscal year ending January 31, 2010. Ahold, based in the Netherlands, operates retail food stores and had sales of €27.9 billion for its fiscal year ended December 31, 2009. Carrefour Group, based in France, operates hypermarkets (a combination department store and grocery store) and supermarkets and had sales of €87.0 billion in 2008.
Required
Obtain and review the accounting policies and disclosures related to revenue recognition for each of the companies:

http://ir.kroger.com/phoenix.zhtml?c=106409&p=irol-reportsAnnual

http://phx.corporate-ir.net/phoenix.zhtml?c=93272&p=irol-reportsAnnual

https://www.ahold.com/Financial-information/Annual-reports.htm

http://www.carrefour.com/content/annual-reports

Based upon the reported information prepare a report that addresses the following items.
• Compare the US GAAP revenue recognition policies and disclosures contained in the SUPERVALU and Kroger financial statements. Identify similarities and differences in revenue recognition policies, disclosure content, and style. 
• Compare the IFRS revenue recognition policies and disclosures contained in the Ahold and Carrefour Groupfinancial statements. Identify similarities and differences in revenue recognition policies, disclosure content, and style. 
• Compare the US GAAP policies and disclosures to the IFRS policies and disclosures. Identify similarities and differences in revenue recognition policies, disclosure content, and style. 
• Identify a list of matters for consideration that may result in changes in SUPERVALU’s accounting policies.
• Identify any additional observations regarding the other companies’ accounting policies. Remember that determining revenue recognition policies under IFRS requires significant judgment. Discuss any potential challenges of adopting IFRS for revenue recognition.