Introduction The Securities and Exchange Commission (SEC) recently disclosed a plan whereby all U.S. companies would switch to International Financial Reporting Standards (IFRS) beginning in 2014. The SEC feels the change will help the United States to compete globally since many other nations already use IFRS or have plans to convert in the near future. SEC Chairman Christopher Cox stated that “The increasing world-wide acceptance and U.S. investors’ increasing ownership of foreign companies make it plain that if we do nothing and simply let these trends develop, comparability and transparency will decrease for U.S. investors and issuers.” Required In a paper of approximately 4-5 typewritten pages (double spaced, Times New Roman 12pt. font, 1 inch margins), please address the following: 1. What are IFRS? What body issues IFRS? Why is conversion to IFRS important for U.S. companies? What are some issues involved in the conversion from GAAP to IFRS? 2. Review the following three IFRS {http://www.iasb.org ? IFRS Summaries} • Framework for the Preparation and Presentation of Financial Statements • IAS1 Presentation of Financial Statements • IAS8 Accounting Policies, Changes in Accounting Estimates and Errors Cite the similarities and differences between the IFRS above and U.S. GAAP which we have covered in this course. Do you feel conversion to IFRS will enhance the quality of reported financial information? Why and how?