Q1 Continental European countries historically relied upon capital provided by the state, banks or families whereas other countries, such as the United States, the United Kingdom, Canada and Australia have relied on receiving funding from a large number of external investors. How would this difference in funding sources impact the type of reporting undertaken and the expertise of the local accounting profession (Q 4.7 from Deegan textbook)?

QUESTION 3:

a)Outline some reasons the US regulators are likely to accept financial reports prepared under IFRSs rather than US GAAP for listing purposes.

b)What would you perceive to be negative aspects of convergence between the FASB and IASB? Explain your answer.

c)How do you think the agreement to accept IFRSs will impact on US companies?