Choose a company from the SEC EDGAR Web site for your Key Assignment to evaluate for the impact of convergence to IFRS.
Part 1
Review the financial reports and notes of the company you have chosen from the EDGAR Web site. Using this company as your point of reference, provide general information on the following questions:
- Create an overview on IFRS.
- What will be some of the main concerns for your company as they move from U.S. GAAP to IFRS?
- Generate a list of differences that you would expect to see on your Income Statement and your Balance Sheet after the convergence process is complete.
- Describe what impact the convergence will have on your company's inventory account (IAS 2).
- Describe some of the differences between IFRS and US GAAP regarding the accounting for financial instruments
- Give a minimum of two examples of how your company will be impacted by the conversion process (IAS 32, IAS 39 & IFRS 7)
Part 2
For this assignment, use the company you have chosen from the EDGAR Web site as your point of reference.
After the reporting period has ended, you could potentially encounter other events that will have impacts on your company (IAS 10).
- Describe the recognition and measurement differences currently existing between IFRS and U.S. GAAP.
- What impacts could these differences have on disclosure requirements?
Create an overview of considerations regarding income taxes that the company may encounter.
- Give 2 examples of areas you see as the greatest concern.
- What impact will the convergence process have on your company's tax planning?
A key area of contention between IFRS and U.S. GAAP lies in the classification and measurement of leases.
- Describe the 2 main types of leases and where the differences lie.
- What impact will this have your company?
Give your opinion on the U.S. moving into IFRS.
- For the company you have selected, what do you see as the major advantages and disadvantages of convergence?
- Provide a minimum of 3 examples of each supported by your research.