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Development of Global Accounting Standards

Ask CPAs to name a top priority in the development of accounting standards, and some will answer, "Convergence." Many others, though, will say the quest for global standards has little relevance for them. But international accounting standards and U.S. GAAP increasingly influence each other, making it important for all CPAs to understand how FASB's conforming a U.S. GAAP standard to an international financial reporting standard (IFRS) can significantly affect American companies--whether or not they do business internationally.

1. Would the foregoing position assist or detract from your request to attend the conference? How would you present this position to the President?

2. Assume that the President focused on the "little relevance" comment - how would you respond?

Solution Preview

1. Would the foregoing position assist or detract from your request to attend the conference?

FASB conforming a US GAAP standard to an international financial reporting standard will assist in my request to attend this conference. The reason is that the conference will communicate to me the implication of the modified/changed standard. The conference will also consider the manner in which the modified standard will affect American companies' financial statements irrespective of their affecting American companies.

The American companies have to prepare their financial statements in conformation with the US GAAP standard having being conformed to an international financial reporting standard. It has been communicated ...

Solution Summary

The solution discusses accounting standards for CPAs like the US GAAP standard and how they affect the job. 401 words with two references per question.

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