Can you identify at least five differences between “model” U.S. GAAP financial statements and “model” IFRS financial statements? Would any of these differences affect your assessment of a firm?
Does the IFRS approach in measuring impairment put BP at a “disadvantage” relative to Exxon? If so, how? Would BP be able to reverse the impairment? If Exxon had an impairment, would it be able to reverse it? Exactly what is the “time value” component of the analysis these days?
Hoogervorst is exasperated at the latest delay in the efforts to converge accounting for financial instruments with the FASB. Is his exasperation justified in your opinion? Or, is the delay justified because it shows Seidman wanting to incorporate constituents’ concerns over a difficult accounting issue? Does this particular “spat” affect your opinion about convergence in general?
E&Y states: “The inconsistent application of IFRS undermines its value as a single set of global standards.” Why are IFRS inconsistently applied? Will they ever be consistently applied? Why or why not? Who is going to monitor their application?
Why is so-called principles-based accounting (IFRS) problematic for the U.S. in light of its perceived litigiousness?
If special accommodations are made for Islamic law, how would this contravene the goal of a single set of global standards?
If it is a single, global accounting language that is desired, why should not IFRS firms adopt US GAAP, rather than the other way around? Can you say that IFRS is “better”? How could one support such assertion were it to be made? Is “we are running out of patience” a threat? What was the point of that statement?
What’s the point of conversion to IASB (from U.S. GAAP) if there is an escape hatch as implied by the SEC’s Chief Accountant? (FASB could decide not to apply an IASB rule that “does not improve financial reporting for U.S. investors.”)
If universally adopted financial standards is the goal, why not have other countries adopt U.S. GAAP? Why is the burden placed upon the U.S. to adopt IFRS? Is IFRS really “better”? How so, and who says?
Assuming the goal of a single (universal) accounting language is a goal worthy of pursuit, in your opinion, how should it be done? What are the possible unintended consequences of your implementation plan?
Re: the long awaited IFRS decision, what do you think the chances are of: a) convergence, b) condorsement, c) postponing a decision?
What is an advantage and a disadvantage of convergence of U.S. GAAP with IFRS through endorsement of one standard at a time?
What “changes in the auditing and regulatory environments” would be needed in the U.S. so that “second guessing of preparers and auditors” can be minimized, if IFRS is adopted? Do you think these changes can occur concurrently with IFRS adoption, especially in a litigious society, such as the U.S.?
