Up until 2007 non-U.S. firms that published IFRS-based financial statements and wished to raise capital on the

Question:

Up until 2007 non-U.S. firms that published IFRS-based and wished to raise capital on the U.S. stock markets (e.g., New York Stock Exchange) were required to file with the SEC a Form 20-F that included reconciliations of both net income and shareholder's equity as measured under U.S. and IFRS. The reconciliations provided a detailed explanation of the different ways in which net income and shareholders' equity were measured under the two systems.

REQUIRED:
Assume that you are an analyst attempting to compare the financial condition and performance of Nike, which publishes U.S. -based and Adidas, which publishes IFRS-based Would you be pleased with the SEC's decision to drop the reconciliation requirement? Explain.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... 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...