From the IFRS website (www.ifrs.org), locate reports relating to the convergence between U.S. GAAP and IFRS. These

Question:

From the IFRS website (www.ifrs.org), locate reports relating to the convergence between U.S. GAAP and IFRS. These reports provide a picture of the extent to which convergence is being achieved on significant accounting and reporting issues. Some of the significant differences between U.S. GAAP and IFRS are related to the perceived rules-based approach taken by the United States compared with the principles-based approach of IFRS.

Instructions

Review the reports and respond to the following questions:

a. In your own words, state the differences between a rules-based approach and a principles-based approach.

b. Refer to the updates related to the revenue standard. What are the reasons provided for needing convergence on this standard? Have the differences been resolved in the converged revenue standard?

c. Refer to the updates on the work undertaken on the impairment model within the financial instruments standard. Identify whether the proposed amendments resulted in a converged impairment standard.

d. Refer to the updates on the leases project. What are the reasons provided for needing convergence on this standard? Have the differences been resolved in a converged lease standard?

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...

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