International versus U.S. Standards Essay

In 2007, the SEC modified its position on the Form 20-F requirement when it issued; â€Å"Acceptance from Foreign Private Issuers of Financial Statements Prepared in Accordance with International Financial Reporting Standards without Reconciliation to GAAP.† This rule amends Form 20-F to accept from foreign private issuers in their filings with the SEC financial statements prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board without reconciliation to generally accepted accounting principles as used in the United States. _Required:_ What was the SEC’s rationale for this decision? How did the American Accounting Association respond to the SEC proposal? CASE 3-8 IASB VS. FASB CONCEPTUAL FRAMEWORKS Discuss the similarities and differences between the FASB and IASB conceptual frameworks with respect to the definitions of the elements of financial statements. CASE 3-9 IASC HOME PAGE Log onto the World Wide Web and enter the International Accounting Standards Board’s home page. _Required:_ a. What general categories of information are contained on the IASB’s home page? b. What current issues is the IASB reviewing? FINANCIAL ANALYSIS CASE GAAP vs. International Accounting Standards _Required:_ Find a foreign company that is selling securities in the U.S. securities markets and comment on the change in net income that was caused by changing from the company’s domestic accounting standards to U.S. GAAP.