As an accountant for ElTwansey Accounting Services, you have been assigned to a client who owns an international business. Your client is opening a new office in the United States and is uncertain if she should use International Accounting Standards. During the latest consultation session, you inform your client that the US uses GAAP, but you also alert your client of the importance of having uniform financial statements. After the consultation, your client has emailed you several questions. Your task is to write a twopage memo that addresses the questions and points of clarification that your client desires. In your memo, address the following:

Page

What are the differences between IFRS reporting and US GAAP?

Why is an understanding of the differences important to businesses operating in the global marketplace?

How can these differences affect the overall financial statements?

What is the effect on the financial statements using the revenue recognition method?

Page

What is the role of the International Accounting Standards Board IASB in establishing International Financial Reporting Standards IFRS

What role does IASB play in efforts to converge accounting standards between itself and Financial Accounting Standard Board FASB