Discuss recent changes in the financial reporting environment
Recent changes in the financial reporting environment include the following:
1 . The adoption or planned adoption of IFRS, or standards based on IFRS, for financial
reporting in over 100 countries.
2 . The willingness of the Securities and Exchange Commission in the United States to permit
non-U.S. firms that list and trade their securities in the United States to report using
IFRS without a reconciliation to U.S. GAAP.
3 . The requirement to measure certain assets and liabilities at fair value instead of acquisition
cost, and in some cases, to include the changes in fair value in net income instead of
other comprehensive income.
4 . The codification of U.S. GAAP into a single body of literature.
Change will likely continue. Any attempt to synthesize financial reporting is analogous to describing a moving target. Yet, synthesizing the material covered provides an integrated review. Indicating the issues currently under discussion by standard-setting bodies and the possible direction they will take in addressing those issues provides a sense of future changes.
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