Question: 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?