In the Interactive Lecture materials for this module, you will review the history of the convergence process between the US GAAP and IFRS, including the status of convergence today. You also will review readings included in this module showing the differences which still exist today between the US GAAP and IFRS on various key accounting subjects.
Below is a list of some particularly important or significant accounting subjects where differences still exist today between the US GAAP and IFRS:
- inventories
- goodwill and other intangible assets
- contingencies
- accounting for income taxes including uncertainty in income taxes
- impairment of long-lived assets to be held or used or to be disposed of by sale
- research and development ‘development’ expenses
- statement of cash flows and discontinued operations
- investments in debt and equity securities
Select one of above accounting subjects (or one of your own accounting subject choices not listed above), preferably a subject of personal or professional interest to you, and answer the following questions related to that topic in your initial response.
Copy and paste each question below in bold type in your initial response to ensure that you answer each question in your initial response.
The subject line of your initial posting should be the accounting subject you have decided to address (for example: Inventories):
- Briefly explain the reason this accounting subject was of interest to you;
- Describe in an appropriate level of detail the major differences that exist, today, between US GAAP and IFRS for that subject;
- Research if any progress has been made to date on converging the accounting and/or financial reporting for that subject between the FASB and the IASB. If so, describe the progress, and if not, describe why progress has not yet been made, either from your research or in your opinion, or both;
- Provide the class with a specific and detailed computational-based example of how the differences in the accounting and financial statement treatment of this subject could potentially affect the comparability of both the balance sheet and the income statement prepared under US GAAP and IFRS; and
- State your opinion if eventually the FASB and the IASB will reach convergence on this subject or not, and why or why not, including an explanation of your opinion and what are/may be some other considerations preventing or delaying convergence on this subject.
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