Problem: With the globalization of corporate business and cross border security listings, the need for a common set of accounting standards to be applied worldwide emerged to the surface. Both the IASB and the FASB have taken steps towards this goal.
As a result, the SEC recently has abolished the reconciliation to US GAAP required from foreign firms listing on US exchanges, allowing them to file using the IFRS.
Required to do:
A. Analyze the costs and benefits of cross border security listings.
B. Discuss major expected costs and benefits of US firms adopting IFRS.