Included in net income is amortization expense

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1. Sophia Co., a cellular phone company based in Italy, prepares its financial statements in accordance with iGAAP. In 2010, it reported average assets of €12,500 and net income €1,125. Included in net income is amortization expense of €120. Under U.S. GAAP, Sophia's amortization expense would have been €325. Briefly discuss how analysis of Sophia's 2010 return on total assets (and comparisons to a company using U.S. GAAP) would be affected by differences in intangible asset amortization between iGAAP and U.S. GAAP.  

Reference no: EM131114477

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