ACCT 6230 Week 1&2

This is for Professor Berry. You have to answer 4 questions listed and also answer the questions that are attached in the pdf file. It is a long assignment so I am paying more for this. It is due by 2/2/18 at 10am.

1. Assume that IFRS is adopted and GAAP is replaced. Discuss the potential costs and changes that will be experienced by US companies.

2. Do you think there are benefits to the US adopting IFRS?

3. If the US adopts IFRS, how will this affect the external users of the financial statements? Some examples would be banks, investors, analysts, rating agencies (such as Standard & Poor’s, Moody’s, ect.).

4. Assuming that IFRS is adopted in the US, the transition will take place over a number of years. Some companies may choose to adopt early, most large public companies will required to convert in the first stages, followed by smaller public companies, then private companies and non-profit companies. What confusion might this cause and how do you think users of the financial statements will cope?

Week1 Assignments-IFRS

DUE DATE: Saturday midnight of Week 1, submitted in a MS Word document with

filename format:

Last First_Week 1 hwk Make sure your name appears on each page of the homework

using the header function.

I. Homework questions:

1. Identify the major players in the United States’ conversion to IFRS and explain their

roles.

2. List at least 3 major obstacles US companies will encounter as they move towards

and convert from US GAAP to IFRS. Elaborate on why they are obstacles and what

strategies could be employed to overcome them.

3. Explain the main differences between US GAAP and IFRS and what these changes

will mean to the readers of the financial statements (at least 4 differences).

4. What will be some of the advantages and drawbacks for US companies will

experience in converting to IFRS? What will be some of the advantages and

drawbacks for the users of these financial statements? What opportunities will be

presented for both preparers and users?

Week2 Assignments-IFRS

DUE DATE: Sunday midnight, submitted in a MS Word or Excel document with filename

format:

Last First_Week X hwk or .xls Make sure your name appears on each page of the

homework using the header function.

I. Homework questions:

1. You are a CFO who wishes to early convert to IFRS. Explain to your CEO and

Board of Directors the benefits from converting (assume that they are a multinational

company currently preparing both GAAP and IFRS statements). Also outline some of

the costs that may be incurred and why you think that it is money well-spent. The

board members, who are not very familiar with the subject, have asked you to help

them understand how the financial statements will differ in appearance and content,

from the GAAP statements they have received from you each quarter. Highlight some

of the formatting differences and explain 3 items that have significantly different

treatment under IFRS than GAAP.

2. Pick a business partner or investor such as a bank, creditor, bond rating agency,

individual or pension fund (basically any external user of the financial statements)

and identify 2 areas of financial statements reported under IFRS that will differ from

GAAP. Explain what the user will have to know about the differences, how it might

impact their analysis of the company and find 2 key ratios that could change.

3. What is the likely future of the FASB once (if) IFRS is adopted in the US?

4. Discuss the impact to the users of financial statements, if publicly traded companies

are required to adopt IFRS, but for some period of time, private companies and non-

profits remain on GAAP. What kind of effect could this have on the credit markets?

How might multiple standards in the US affect the auditing industry?