Generally Accepted Accounting Principles

Read the case study indicated below, and answer the following questions:
Marianne, J- L- (2010)- Accounting for business combinations and the convergence of International Financial Reporting Standards With US.
Generally Accepted Accounting Principles: A case study. Journal of the International Academy for Case Studies, 16(1), 95-108-
1- What Key financial ratios will be affected by the adoption of FAS 141 R and FAS 160? What will be the likely effect?
2- Could any of the recent and forthcoming changes affect the company’s acquisition strategies and potentially its growth?
3- What were FASB’s primary reasons for issuing FAS 141 R and FAS 160?
4- What are qualifying SPEs? Do they exist under IFRS? What is the effect of FAS 166 eliminating the concept of
qualifying SPEs on the convergence of accounting standards?
5- If the company adopts IFRS, What changes should management be aware of?
6- What are the principle differences between IFRS and US. GAAP?




Sample Solution