After reading the article from Ernst and Young, answer the following questions:

• How does the GAAP reporting method cause cash flows to differ from net income?
• How are the features of the Income Statement, Balance Sheet, and Statement of Cash Flow utilized in both the GAAP and the IFRS reporting methods?
• Does it make sense to adapt a worldwide standard for financial reporting? Should this be mandated or voluntary?
• Calculate some of the potential costs and benefits of switching from GAAP to IFRS.