1. What are assets, liabilities, and equity? Define each.

2. How does the IFRS balance sheet equation differ from the one used in the United States?

3. What are revenues and expenses? Define each.

4. What are recognition, derecognition, and measurement? Define each and explain how they relate to each other.

5. List the two sections that all proposed financial statements should contain

6. Off-Shore Jewelry, Inc. is a relatively small but fast-growing U.S.-based private com-pany. It designs, manufactures, and distributes fine jewelry in the United States. To reduce costs, it has manufacturing facilities in several countries, including Malaysia and Mexico. Off-Shore Jewelry, Inc. also maintains relations with global banks and has considered a merger with a large jewelry company in Europe. A member of the Audit Committee of the companys Board of Directors has asked you, as CFO of the company, to report to the board on whether the company should adopt IFRS. Develop a recommendation to the board; include reasons to support your recommendation and discuss possible downsides.