This individual assignment focuses on the convergence between Generally Accepted Accounting Principles (GAAP) in the United States and International Financial Reporting Standards (IFRS). Prepare a memo that addresses the following topics.
• Brief background about the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB). (2 points)
• Comparison between rules-based and principles-based accounting standards, including pros and cons of each. Discuss at least 2 examples showing that GAAP (IFRS) are more consistent with rules-based (principles-based) standards. (5 points)
• Convergence between US GAAP and IFRS. Discuss at least 2 examples of joint projects between the Financial Accounting Standards Board (FASB) and the IASB. (3 points)
• Pros and cons of requiring US firms to follow IFRS when preparing financial statements. Discuss potential pros and cons from the point of view of firms (issuers), investors, auditors, and any other party that may be affected. (6 points)
• The roadmap issued by the SEC and the current status in the US. (2 points)
• Your opinion about whether the SEC should require US firms to follow IFRS when preparing financial statements. (2 points)
References: You can search the following sources for relevant information.
• The textbook used in this course.
• Readings posted to Titanium under the Writing Assignment topic.
• The University library, accessible through fullerton.edu
• Online search engines, such as Google (especially Google Scholar) and SSRN.
• Regulator and standard-setter websites such as sec.gov, fasb.org, and ifrs.org.
You should use at list six references. Your memo should include a list of all references used, including journal articles, working papers, professional publications, webpages, and other references. Proper citation of these references should be included in the text of the memo.
Format: Your memo should be double-spaced, written in Times New Roman size 12.
Grading: This assignment is worth 20 points allocated as indicated above. Your grade will depend on how well you cover each topic, citing relevant references to support your arguments, and using appropriate examples when necessary.