Discussion Boards and Responses for Unit 4 Only
Unit 4 DB
Foreign Statement Translation – The Transition to International Financial Reporting Standard (IFRS)
Discussion Board
½ to 1 page:At a minimum, each student will be expected to post an original and thoughtful response to the DB question and contribute to the weekly dialogue by responding to at least two other posts from students. The first contribution must be posted before midnight (Central Time) on Wednesday of each week. Two additional responses are required after Wednesday of each week. Students are highly encouraged to engage on the Discussion Board early and often, as that is the primary way the university tracks class attendance and participation.
The purpose of the Discussion Board is to allow students to learn through sharing ideas and experiences as they relate to course content and the DB question. Because it is not possible to engage in two-way dialogue after a conversation has ended, no posts to the DB will be accepted after the end of each unit.
There is ongoing pressure for the SEC to set a date for the U.S. transition to the International Financial Reporting Standard (IFRS).
• Discuss the advantages and disadvantages of the United States adopting IFRS and its ramifications for American firms.
• Explain at least two technologies that would have to change to accommodate the adoption of IFRS.
• Do you feel that the United States should adopt IFRS?
• Explain your rationale.
In your own words, post a substantive response to the Discussion Board question(s) and comment on other postings. Your response should address the DB question(s) and move the conversation forward. You will be graded on the quality of your postings, including mastery of the concept as well as critical thinking. If asked for your opinion, do not simply state that it is a good or bad idea; elaborate on your reasons and argument. Include enough detail to substantiate your thinking as well as your position on the questions or comments.
Grading Criteria
Discuss the advantages and disadvantages of the United States adopting IFRS and its ramifications for American firms. 20%
Explain at least two technologies that would have to change to accommodate the adoption of IFRS. 20%
Do you feel that the United States should adopt IFRS? 20%
Explain your rationale. 20%
Responses to other students’ postings. 20%
Responses Needed:
NOTE: please keep response on a positive note and don’t just say yes it was a good post because she answered all questions. My Professor is asking that we state if why we agree with her post and why we agree or simply just chime into the discussion.
Response to student #1: Amy
What is IFRS, IFRS is the International Financial Report Standard which originally named as IAS-International Accounting Standard issued between 1973 and 2001. The purpose of this standard is to create a globally acceptance procedure to be used in Financial Reporting. With this standard, every business is complying with one GAAP rule. Information retrieved from: (Investopedia.com, n.d.)
The benefit of using IFRS (1) no special knowledge is required for businesses who operate internationally if all businesses are comply with the same regulation, (2) quality improvement for financial reporting if all companies around the world are adopting the same reporting standard, no confusion or lack of knowledge relate to treatment of a certain transaction, and (3) comparability, it is easy to compare between financial statements because they are comply with the same standard. Information retrieved from: (Investopedia.com, n.d.)
The Disadvantage of adopting IFRS, (1) this conversion is complicated because other part of the countries have adopted it own GAAP standard, it required a missive effort to converse from its GAAP to the IFRS, (2)”flexibility” if all businesses are comply with the same GAAP standard it takes away the benefit of choices and flexibility, (3) the transition from GAAP to IFRS is expensive and labors intensives. (4)”inconvenience” not every country has adopts this standard, therefore for those who have implemented this standard will face some inconvenience and will require additional work when dealing with different requirement. Information retrieved from: (Investopedia.com, n.d.).
Even the percentage for multinational companies who adopted the IFRS is growing, but the US firms still refuse to this implementation because the US firms are so used to our GAAP standards. Plus they are also concerning the underlying affect of this change will lost some of the benefits that they currently have. In addition, since IFRS has not been around long enough, therefore it is hard to determine if it is feasible. Information retrieved from: (IFRS.com, n.d.)
The majority impact to the technology is “Information System”. It’s required significant changes to the current accounting system and it processes in order to comply with the new standards. In additional, if the company is large and the accounting system is complex with multiple data warehouses and reporting systems, then it can take years to complete. Information retrieved from: (Deloitte Consulting LLP, n.d.).
I believed the United States should adopt the IFRS especially during the 21st Century where many businesses are operating internationally. It is easy to have one GAAP rule as it is more reliable and comparable. In addition, there are many parts of the world have already adopted these standards, therefore to be consistent we may think about making this change. I know you may argue that it will be very expensive, time consuming, labor intensive, complication, and much more, but it is worthwhile after making this change as it can reduce the confusion when dealing businesses in other countries. Information retrieved from: Information retrieved from: (Investopedia.com, n.d.)
References
International Financial Reporting Standards: What you need to know, Retrieved from:
http://www.investopedia.com/articles/fundamental-analysis/12/international-financial-reporting-standards.asp
Technology implications of IFRS adoption for U.S. companies, Retrieved from:
https://www.deloitte.com/view/en_us/us/7c7a9342e630e110VgnVCM100000ba42f00aRCRD.htm
International Financial Reporting Standards (IFRS) – an AICPA Backgrounder, Retrieved from:
http://www.ifrs.com/Backgrounder_Two_Sides.html
Unit 5 DB
Differences in International Accounting Methods – Goodwill Transactions under IFRS versus GAAP
Discussion Board
½ to 1 page:At a minimum, each student will be expected to post an original and thoughtful response to the DB question and contribute to the weekly dialogue by responding to at least two other posts from students. The first contribution must be posted before midnight (Central Time) on Wednesday of each week. Two additional responses are required after Wednesday of each week. Students are highly encouraged to engage on the Discussion Board early and often, as that is the primary way the university tracks class attendance and participation.
The purpose of the Discussion Board is to allow students to learn through sharing ideas and experiences as they relate to course content and the DB question. Because it is not possible to engage in two-way dialogue after a conversation has ended, no posts to the DB will be accepted after the end of each unit.
There are numerous differences between U.S. corporate financial statements and foreign corporate financial statements. For example, U.S. companies present goodwill as an asset on the balance sheet, and goodwill is reviewed annually to determine if there is a need to write down the value (impairment), while Japanese corporations amortize goodwill over its estimated life, and in Germany, goodwill is often subtracted from shareholders’ equity on the purchaser’s books.
• Identify 4 specific accounting transactions or financial reporting that is handled differently under IFRS versus GAAP.
• Explain which treatment in each transaction you feel is the better approach. Provide your reasons for each.
In your own words, post a substantive response to the Discussion Board question(s) and comment on other postings. Your response should address the DB question(s) and move the conversation forward. You will be graded on the quality of your postings, including mastery of the concept as well as critical thinking. If asked for your opinion, do not simply state that it is a good or bad idea; elaborate on your reasons and argument. Include enough detail to substantiate your thinking as well as your position on the questions or comments.