Paper, Order, or Assignment Requirements
Your firm has asked you to examine a client’s financial statements and to make a recommendation for the appropriate treatment to convert them from GAAP to IFRS. The client is seeking financing from an international bank and they require the statements to be reported under IFRS. The firm has assigned teams to review various areas that may be impacted. The partner-in-charge has directed you to select a specific area that you’ll be researching.
Your assignment is to write a four page executive briefing memo to provide guidance on what changes will be required to convert the statements from GAAP to IFRS for the item you’ve selected. Your memo should cover the following:
1. Open your paper with a general discussion of the specific area you’ll be addressing so that the client (who is not familiar with convergence issues) can understand the issue.
2. Discuss the current treatment under GAAP and cite the appropriate codification that governs the treatment of the item.
3. Discuss the treatment required under IFRS and cite the appropriate codification that governs the treatment of the item.
4. Discuss the change that will be required to convert the statements from GAAP to IFRS. Be specific with respect to adjustments required, if any, to the balance sheet and/or the income statement, financial disclosures, etc.
5. Provide a clear and concise example of how the item is currently presented (under GAAP). The example should be shown in U.S. dollars.
6. Provide a clear and concise example of the change that will be required to convert the statements from GAAP to IFRS. The example should be shown in U.S. dollars. You may wish to present a journal entry as well.
7. Provide a short conclusion that ties the paper together.
8. Be sure to clearly identify jargon (terminology) that you use in your paper. The owner of the company did not have the benefit of attending Temple and is unfamiliar with accounting.
Your paper should specifically follow the format noted below. The paper should be four pages in length, numbered in the bottom center of the page, double spaced, and in Times Roman 12 point font.
Purpose of the memo and what the memo will cover.
Discussion – This section will comprise the bulk of the paper
Closing – Summary paragraph on the fourth page