10 pages paper

Maximum word count: 3,500

The SEC is aware that global markets and US investors would be best served by the convergence of accounting standards, as this would lead to high quality financial statements with greater comparability internationally. The SEC appears committed to moving global convergence project forward.

1) Where does this global convergence project stand? What changes have been made to US GAAP to be more in line with IFRS? How has this affected US companies and their economic environment?

2) What differences remain? What needs to be done to eliminate these differences?

3) List at least two differences between US GAAP and IFRS for each of the following components of the financial statement: a) Income Statement b) Balance Sheet c) Notes to the Financial Statement

4) How have other countries (besides the US) adapted their standards to IFRS? Provide at least one example.

5) Forecast whether a complete convergence is on the horizon and make recommendations on how the US and other countries can make it a reality. Provide sources. You need to list at least two sources other than the textbook and the pwc guide.

Please write at least 10 pages, using simple words and grammar.

Solution Preview

Global convergence project has reached a standstill despite the support that it had gained from the Securities and Exchange Commission. Previously, a memorandum had been signed back in the year 2002 which would make sure that the reporting standards would meet the requirements stipulated and that work programs which would be implemented in the future would be compatible with the standards (Sun, 2007).

(3,455 words)