Assignment
In the Interactive Lecture materials for this module, you read various articles and/or materials and listened to various videos which described the history of the convergence process between the US GAAP and IFRS, including the status of convergence today. You also reviewed readings included in this module showing the differences which still exist today between the US GAAP and IFRS on various accounting subjects.
Below is a list of some particularly important or significant accounting subjects where differences still exist today between the US GAAP and IFRS:
1. inventories
2. goodwill and other intangible assets
3. contingencies
4. accounting for income taxes including uncertainty in income taxes
5. impairment of long-lived assets to be held or used or to be disposed of by sale
6. research and development "development" expenses
7. statement of cash flows and discontinued operations
8. investment in debt and equity securities
Select one of the above accounting subjects, preferably a subject of a personal or of a professional interest to you, and answer the following questions related to that topic in your initial response. Copy and paste each question below in bold type in your initial response to ensure that you answer each question in your initial response. The subject line of your initial posting should be the accounting subject you have decided to address (for example: Inventories):
1. Briefly explain the reason this subject was of interest to you.
2. Describe in an appropriate level of detail the major differences that exist today between the US GAAP and IFRS for that subject.
3. Research whether any progress has been made to date on converging the accounting and/or financial reporting for that subject between the FASB and the IASB. If so, describe the progress, and if not, describe why progress has not yet been made, either from your research or in your opinion, or both
4. Provide the class with a specific and detailed computational-based example of how the differences in the accounting and financial statement treatment of this subject could potentially affect the comparability of both the balance sheet and the income statement prepared under the US GAAP and IFRS, and
5. State your opinion whether the FASB and the IASB will eventually reach convergence on this subject, and why or why not, including an explanation of your opinion and what are/may be some other considerations preventing or delaying convergence on this subject.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.