SFAS No. 115 prescribes the accounting treatment for investments in equity securities having readily determined fair values

Question:

SFAS No. 115 prescribes the accounting treatment for investments in equity securities having readily determined fair values for which the equity method and consolidation do not apply. IAS No. 39 prescribes international accounting practice for similar securities.

Required:
a. Compare and contrast U. S. for investments in equity securities under SFAS No. 115 with the provisions of IAS No. 39.
b. Discuss whether U. S. under SFAS No. 115 or the requirements of IAS No. 25 are more consistent with the following concepts:
i. Conservatism
ii. Comparability
iii. Relevance
iv. Neutrality
v. Representational faithfulness

vi. Physical capital maintenance

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...