Any move to switch from generally accepted accounting principles to the International Financial

Reporting Standards (IFRSs) in the United States is likely to benefit investors and multinationals.

The [former] chairman of the International Accounting Standards Board, David Tweedie, provided

the SEC with evidence that IFRSs were better at uncovering problems during the global financial

crisis. Australian CEOs believe that the value of Australian standard setters moving to adopt IFRSs is diminished by the United States not adopting the standards. A switch to IFRSs in the United States is likely to also benefit US companies with Australian operations including General Electric, Citigroup and ExxonMobil.

1)Outline some reasons the US regulators are likely to accept financial reports prepared under IFRSs rather than US GAAP for listing purposes.

2)What would you perceive to be negative aspects of convergence between the FASB and IASB? Explain your answer.

3)How do you think the agreement to accept IFRSs will impact on US companies?