Part 1
Consider the following statement:
“Experience shows that the needs of national and international markets, for international harmonization in particular, are better served by self-regulation and development than by government regulation”.
Based on what you have read this week, argue for or against this statement. Develop a 200-to-300-word explanation supporting your position.
Part 2
Prior to beginning work on this discussion, Chapter 5 of your course text. Read EY’s US GAAP Versus IFRS: The Basics (Links to an external site.) guide and be sure to review the “Financial Presentation” section on pages two through six of the guide.
The United States uses Generally Accepted Accounting Principles (GAAP) as the basis of financial reporting. The International Financial Accounting Standards (IFRS) is an alternative way to report financials. EY’s US GAAP Versus IFRS: The Basics (Links to an external site.) guide compares the two methods of financial reporting.
After reading the guide from Ernst and Young, answer the following questions:
- How does the GAAP reporting method cause cash flows to differ from net income?
- How are the features of the income statement, balance sheet, and statement of cash flow utilized in both the GAAP and the IFRS reporting methods?
- Does it make sense to adapt a worldwide standard for financial reporting? Should this be mandated or voluntary?
- Provide some of the potential costs and benefits of switching from GAAP to IFRS.
Resources,
Doupnik, T., Finn, M., Gotti, G., & Perera, H. (2020). International accounting (5th ed.). McGraw-Hill.
- Chapter 4: International Financial Reporting Standards: Part 1
- Chapter 5: International Financial Reporting Standards: Part 2
- The full-text version of this ebook is available through your online classroom through the RedShelf platform. This book is a comprehensive text on how to manage accounting and financial reporting requirements for international companies. Chapter 4 will assist you in your Who Should Regulate? discussion forum and Case 4-1 Jaguar Land Rover PLC assignment this week. Chapter 5 will assist you in your GAAP Versus. IFRS discussion forum this week.
SUPPLEMENTAL MATERIAL
EY. (2018, February). GAAP versus IFRS: The basics</em><span class=”screenreader-only” style=”box-sizing: border-box;”><span> </span>(Links to an external site.)</span>’>US GAAP versus IFRS: The basics (Links to an external site.) [Financial reporting guide]. https://www.ey.com/Publication/vwLUAssets/IFRSBasi…
- This guide reviews the similarities and differences between U.S. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) in accounting and will assist you in your GAAP Versus IFRS discussion forum this week.
Accessibility Statement (Links to an external site.)
Privacy Policy
0 comments