Consider the following scenario: You are the new chief financial officer of ABC Corp., a company in the United Kingdom, and youve been asked to help with the consolidation of your new U.S. subsidiary. ABC Corp. uses International Financial Reporting Standards (IFRS) accounting practices, while the subsidiary used U.S. Generally Accepted Accounting Principles (GAAP).

In your initial post, describe and compare the process when a subsidiary is consolidated under IFRS versus U.S. GAAP. Also, explain how goodwill is determined under each practice.