There are many advantages and disadvantages to converging with IFRS. Businesses, investors, and accountants in the United States and abroad will all experience significant challenges as well as benefits as convergence draws near. In this discussion, you will be assigned by your instructor to argue FOR or AGAINST convergence.
Group A is assigned to research and argue FOR convergence; Group B is assigned to research and argue AGAINST convergence.
If assigned to the FOR convergence side: Your initial post should outline the key benefits of converging U.S. GAAP with IFRS. Consider the benefits to all parties involved, including small and large businesses, local and global businesses, investors, and accountants.
If assigned to the AGAINST convergence side: Your posts should outline the key disadvantages of converging U.S. GAAP with IFRS. Consider the challenges to all parties involved, including small and large businesses, local and global businesses, investors, and accountants.
Your initial post should thoroughly address the question prompt and be supported with research. Be sure to properly cite your reference(s).
YOU ARE ANSWERING FOR GROUP A
EXAMPLE OF AN ANSWER(BELOW)
The U.S. GAAP and IFRS convergence would be a good move. One reason for this is the ability to have one set of accounting standards used globally. There would not have to be any converting to one standard or another when reporting on the financial statements for companies. Merging and acquisition of other foreign companies would be easier and less expensive as well. Foreign companies would also want to invest more in U.S. markets because of the decrease in costs this convergence would lead to, as well as not having to deal with a different accounting standard as they do. U.S. GAAP is considered a set of rules that must be followed, but the convergence with IFRS would allow for more of a guideline type set of standards.