Using two different reporting policies will create challenges when consolidating the reports. GAAP requires companies to be more detailed in their statements, while IFRS is lenient and leaves room for interpretation (Ross, 2021). Looking at the reports that the facility in Ireland will report following IFRS guidelines will give us a better understanding of the transactions. Although, it will also leave a lot of information out of the reports needed for reports submitted through GAAP. Gathering all the required information when consolidating requests will take time and back and forth communication with the facility in Ireland. Having to translate the IFRS reports to meet the standards of the SEC will be challenging if the statements received are left with room for interpretation. The different reports from the US and Ireland may contain discrepancies because of the policies creating confusion amongst managers that will have to be further looked into to find the accurate numbers.

Another challenge to be aware of is that not everyone in the company will fully understand the differences between GAAP and IFRS. A difference in how inventory is treated, for example, will cause confusion between people if they are expecting the same methods to take place in all facilities. A misinterpretation of financial statements will cause issues if they do not align with what the company is going through.

Agree or Disagree and Why?