Your friend who is taking his first accounting course says to you, We live in the United
Question:
Your friend who is taking his first accounting course says to you, “We live in the United States. I thought that companies in the United States would follow U.S. accounting rules for preparing their financial statements. I also thought that foreign companies would follow international accounting rules. Now I hear something about the “convergence” of U.S. accounting rules and international accounting rules. And, I hear that the SEC is thinking about requiring U.S. companies to use international accounting rules for financial statements filed with it. What is going on and how will it be resolved?”
Required
Prepare a memo that provides an in-depth answer to your friend’s question.
Financial StatementsFinancial 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...
Step by Step Answer:
Intermediate Accounting
ISBN: 978-0324659139
11th edition
Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones