Intended to assess students’ overall understating of global business and International Financial Reporting Standards (IFRS).
You will assume the role of “international accounting consultant”. You are expected to respond all of the discussion issues listed below and write a memo that presents your arguments and conclusions to the audit committee members of the client firm.
Your memo should be 2 pages in length and typed. The use of a professional, business format is required.
IFRS are currently used in over 120 countries. Yet, there are still discussions regarding the benefits and costs of adopting IFRS.
List some of the fundamental challenges of global business, including the financial impacts of operating globally (from the perspective of firms and investors)? Do you think that the adoption of IFRS by many countries helps mitigate those challenges? Why?
What are some of the issues faced by multinational companies (MNCs)? How would MNCs benefit from using IFRS?
Who are the major actors behind the creation of IFRS and its adoption around the world? Briefly discuss the historical roots of IFRS.
Countries differ with respect how they adopt IFRS. While some countries require all the public and private firms to use IFRS, others allow (rather than require) public companies to use IFRS. Which approach do you think makes more sense for potential adopters of IFRS? Why?
Discuss the importance of IFRS for the future of US companies? What are some of the important milestones achieved in the process of US GAAP-IFRS convergence? Is there a timetable for the adoption of IFRS by the US?
Why do you think that American retail firms would resist adopting IFRS? Be specific in terms naming the relevant accounting topic and the related international accounting standard.
