Hello,

Need to answer the questions below with clear explanation . Thanks!

a.) I am hearing a lot about International Accounting and U.S Accounting Standards being different. Given that we operate in a Global Economy, it makes sense to have one set of Accounting Standards for everybody. I know the U.S. and IFRS folks are talking but is this ever going to happen or are their issues?

b.) We purchased a new truck last year for $50,000 and traded in the old one worth about $5,000, so we paid $45,000. I thought we would record this at $45,000 (our cost paid) but was told because of the trade-in, we would have to account for this as a Nonmonetary transaction. How does that work?

c.) We recently were sued by someone who slipped and fell outside our office and claimed they were injured. I was told whether or not we record a liability for this depending on the accounting contingency rules because uncertainty exits. What are these rules?