You have been approached about doing a consulting job for Choi Hung Company, which is based in

Question:

You have been approached about doing a consulting job for Choi Hung Company, which is based in southern China. Choi Hung reports its financial results using International Financial Reporting Standards. The consulting job involves sorting through Choi Hung’s purchases and sales of investment securities for the past three years to make sure that the reported results are in conformity with international standards. An acquaintance has advised you not to take this consulting job because “you are trained in U.S. and don’t know anything about international standards.” How might you respond?

GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...