Question
In consolidation, the income statement, inventory, earnings per share calculations, and development costs could be challenging for organizations because GAAP is rule-based and IFRS is
In consolidation, the income statement, inventory, earnings per share calculations, and development costs could be challenging for organizations because GAAP is rule-based and IFRS is principle-based.
1. How do multinational companies who must follow both US GAAP and IFRS overcome these challenges?
2. Should the US GAAP and IFRS aim for convergence regarding the consolidation process?
3. What would be gained, and what would be lost if they converged?
Please explain briefly with examples. Thanks.
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Financial Accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
7th Edition
978-0470477151, 978-0-470-5562, 470556242, 0-470-55624-2, 9780470556245, 978-0470507018
