A manager of a medium- sized, private company recently complained to you as follows: Im very confused!

Question:

A manager of a medium- sized, private company recently complained to you as follows: I’m very confused! I thought that all companies had to comply with IFRS starting in 2011. Now, after all our work to convert our systems to be IFRS- compliant, I hear that there are many companies that don’t use IFRS and that there may be are circumstances in which different versions of may be appropriate! Now what should we do?

Required:
Respond to the manager’s concern, and be sure to distinguish between general purpose and special purpose financial statements.

GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...