Please use attached template.
U.S. GAAP vs. IFRS Writing Assignment
ACC 310, Intermediate Accounting 1
While there is a move toward one set of globally recognized accounting standards, U.S. GAAP continues to be different from IFRS. U.S. GAAP has been and continues to move toward convergence with IFRS, though. This process has been difficult, time consuming, and imperfect.
Based on the concepts covered in the course, students will discuss commonalities and identify differences between U.S. GAAP and IFRS standards. The research will be based on textbook readings and individual research in the authoritative literature. This assignment also provides a more thorough understanding of the current state of convergence to enable students to evaluate and record transactions appropriately. The information and research skills gleaned by this assignment can be applied to future courses and career paths.
To help you navigate the differences between these two sets of standards, use the template provided to prepare the following:
Part 1 – Chart of Differences: Students will use the template provided and prepare a chart (or matrix) detailing the differences between U.S. GAAP and IFRS. You will evaluate the concepts related to all of the chapters covered in this course. The chart will be split into four sections:
1. General Rule or Principle – Provide a few words or a phrase to identify the topic where differences occur (e.g. Inventory Cost Flow Assumptions).
2. Summary of Requirements under U.S. GAAP – Provide a summary of the requirements outline by U.S. GAAP related to the topic. The written structure will vary based on the topic. You may need paragraph form for some items and/or bullet points for others. Use the writing format that is most appropriate for the topic and its complexity (e.g. U.S. GAAP allows companies to choose from …).
3. Differences between U.S. GAAP and IFRS – Identify the ways in which IFRS differs from U.S. GAAP. Align those differences with the appropriate U.S. GAAP requirement in Item 3 so they are next to each other in the chart. Be specific in identifying all of the differences including areas such as conceptual differences, calculation differences, disclosure differences, etc. (e.g. IFRS does not allow companies to use…).
Part 2 – In Depth Analysis of One Difference:
As you identify the numerous differences between U.S. GAAP and IFRS throughout the course as noted in Part 1 of this assignment, you will select one of those differences for a more in depth evaluation and analysis. Compare and contrast the standard under U.S. GAAP and IFRS for similarities and differences. Include appropriate information related to the FASB Conceptual Framework for additional insight into the causes and reasons behind the differences. Also discuss the plan for convergence of the U.S. GAAP standard with IFRS. If the standard is not converged, discuss the plan for and/or obstacles to convergence. If the standard is converged, discuss the rationale behind any remaining differences between the two sets of standards.
Part 2 should be approximately four (4) pages, double spaced. Your analysis should include the following headings (and each heading should be this approximate length) as provided in the template:
1. Name of Standard (1 – 2 sentences)
2. Brief Summary of Standard under U.S. GAAP (1 paragraph)
3. Similarities with IFRS (2 – 3 paragraphs)
4. Differences from IFRS (2 – 3 paragraphs)
5. Relationship of Standard to U.S. GAAP Conceptual Framework (2 – 3 paragraphs)
Plan for Convergence (2 – 3 paragraphs)