You have been asked by the managing audit partner, Muriel, in the accounting firm where you work to brief a new client who has some questions on accounting regulation in Australia. The client is a large food producer based out of the USA called Cambel, who are contemplating establishing large-scale growing and processing operations in South Australia. Cambel are based in Idaho (US) and have complied with US GAAP and their accounting team who are assessing all regulatory requirements, are concerned about the different accounting standards in use in Australia and would like your expert advice including the following:

why and how the convergence to IFRS is taking place in Australia and what this means for the US, assuming US GAAP does not converge

an example of a particular IFRS application to demonstrate how IFRS might affect Cambels investment decisions