Accounting graders: use points by question to assign points. 20 points total.

Communication grader: 10 points for communication.

1. What is meant by convergence? (2pts.)

2. Briefly describe at least two major benefits of a single set of financial standards. (4 pts.)

3. What might explain the fact that different accounting standard-setters have developed accounting standards that are quite different in nature? (4 pts.)

4. Discuss the difference between a rules-based approach and a principles-based approach to developing financial accounting standards; which set of standards is more rules-based and which is more principles-based? Which do you think is better and why? (6 pts.)

5. Give two examples of specific differences between IFRS and U.S. GAAP. (4 pts.)