2 Separate Discussion Questions
1st Discussion Question
Provide a statement explanation supporting your position with the statement below.
Experience shows that the needs of national and international markets, for international harmonization in particular, are better served by self-regulation and development than by government regulation”.
2nd Discussion Question
This article Ernst & Young’s US GAAP vs. IFRS: The Basics (Links to an external site.) compares the two methods of financial reporting.
After reading the article from Ernst and Young, answer the following questions:
- How does the GAAP reporting method cause cash flows to differ from net income?
- How are the features of the Income Statement, Balance Sheet, and Statement of Cash Flow utilized in both the GAAP and the IFRS reporting methods?
- Does it make sense to adapt a worldwide standard for financial reporting? Should this be mandated or voluntary?
- Provide some of the potential costs and benefits of switching from GAAP to IFRS.
