The FASB and IASB have worked together to align U.S. GAAP and IFRS. As we examined at the end end of this semester, some aspects of the two sets of standards still differ significantly, such as in the valuation of Property, Plant, and Equipment (PP&E). Required: (i) Briefly describe how companies can value property on their balance sheets using IFRS. What effect do these changes in the value of property have on the Fundamental Accounting Equation (Assets = Liabilities + Equity) at these companies applying IFRS? (ii) Relative to the principles of U.S. GAAP, do the accounting principles for property in IFRS increase or decrease the grey area that companies' executives and accountants can use to manage earnings? How so? (iii) What advantages to financial statement users basing decisions on an IFRS Balance Sheet offset some potential risks identified in part (iii)? The FASB and IASB have worked together to align U.S. GAAP and IFRS. As we examined at the end end of this semester, some aspects of the two sets of standards still differ significantly, such as in the valuation of Property, Plant, and Equipment (PP&E). Required: (i) Briefly describe how companies can value property on their balance sheets using IFRS. What effect do these changes in the value of property have on the Fundamental Accounting Equation (Assets = Liabilities + Equity) at these companies applying IFRS? (ii) Relative to the principles of U.S. GAAP, do the accounting principles for property in IFRS increase or decrease the grey area that companies' executives and accountants can use to manage earnings? How so? (iii) What advantages to financial statement users basing decisions on an IFRS Balance Sheet offset some potential risks identified in part (iii)