Conduct research using Excelsior’s library or the Internet to find information regarding the Convergence Project between GAAP and IFRS.
Include the history of the Project since 2002, progress made, current status, and future goals of the project.
Research the differences between principles-based accounting rules (IFRS) and rules-based accounting rules (GAAP) and form an opinion on what method is better.
Research what the Securities and Exchange Commission’s current opinion is with regards to the potential adoption by U.S. publicly-listed companies of IFRS in the future.
When conducting your research, identify and make note of five major differences which still exist, today, between GAAP and IFRS. Some areas to consider here include the accounting for inventories, fixed assets, or any subject areas of personal interest to you. Hint: Check out the Big 4 accounting firm websites for publications produced by these firms listing examples of these major differences.
Finally, state your opinion, after performing the above research, whether you believe convergence will occur or not in the future, between GAAP and IFRS, and if so, why and if not, why not, in your opinion.