International Financial Reporting and Accounting – IFRS and GAAP
Assignment Part 1 – 1000 word minimum
There are many differences with the measurement of assets between IFRS and U.S. GAAP. For each of the following topics, please describe how it would be handled with both sets of standards, and provide a minimum of 2 examples of issues surrounding the first time adoption of IFRS:
- Inventories (IAS 2)
- Expense recognition
- Costs included in inventory
- Property, plant, and equipment (IAS 16)
- Cost elements
- Cost measurements
- Depreciation (component)
- Investments (IAS 40)
- Fair value model (FVM) versus cost model
- Borrowing costs (IAS 23)
- Intangible assets (IAS 38)
Assignment Part 2 – 1000 word minimum
Choose a company from the Securities and Exchange Commission (SEC) EDGAR Web site for your Key Assignment to evaluate for the impact of convergence to IFRS.
Review the financial reports and notes for the company that you have chosen from the EDGAR Web site. Using this company as your point of reference, provide general information on the following:
- Create an overview on IFRS.
- What will be some of the main concerns for your company as it moves from U.S. GAAP to IFRS?
- Generate a list of differences that you would expect to see on your income statement and your balance sheet after the convergence process is complete.
- Describe what impact the convergence will have on your company’s inventory account (IAS 2).
- Describe some of the differences between IFRS and U.S. GAAP regarding the accounting for financial instruments.
- Give a minimum of 2 examples of how your company will be impacted by the conversion process (IAS 32, IAS 39, and IFRS 7).