Assignment: Case Scenario: U.S. Adoption of IFRS/IAS
Imagine that the U.S. approved an adoption to use IFRS/IAS for consolidated statements starting in January 2016. Johnson & Johnson, a company in the United States, is concerned about implementing the new standards into its company. All of its executives are proficient in understanding U.S. GAAP, but do not know much about the new standards that will be implemented in 2016. Imagine you are the CEO of Johnson &Johnson. Mr. Lesli. You call together a meeting with the controller and your accounting department.
Requirements:
1. Create an agenda for this meeting. In other words, what issues do you feel are most important to address? (This can serve as an outline for the report below.)
2. Create your own task plan for adoption IFRS/IAS in your company that you will introduce at the meeting.
3. Prepare a report that answers the following questions:
• What are the most important things to do first?
• Should you adopt IFRS/IAS all at once, implement IFRS/IAS standards one by one, or try to use both standards until you can switch?
• How should you educate your employees on the new standards?
• What other problems are you likely to face and how might you mitigate them?
Your 3-5 page report should outline the key points you would include in your advice to this accounting oversight body. Support your comments with a minimum of three scholarly sources and project the positive implications of applying your advice to tackle the major issues. Your sources should be cited according to the CSU-Global Guide to Writing and APA Requirements. The CSU-Global Library is a good place to find these references.