Experience shows that the needs of national and international markets, for international harmonization in particular, are better served by self-regulation and development than by government regulation”.

Who Should Regulate? [CLOs: 4, 5]. 1st Post Due by Day 3. Consider the following statement:

“Experience shows that the needs of national and international markets, for international harmonization in particular, are better served by self-regulation and development than by government regulation”.

Based on what you’ve read this week, form an argument for, or against, this statement.

Develop a 200 – 300 word explanation supporting your position. Respond to at least two of your classmates’ posts.

DQ2 GAAP vs. IFRS [CLOs: 3, 4, 5]. 1st Post Due by Day 3. The United States uses Generally Accepted Accounting Principles (GAAP) as the basis of financial reporting. The International Financial Accounting Standards (IFRS) is an alternative way to report financials. This article Ernst & Young’s US GAAP vs. IFRS: The Basics compares the two methods of financial reporting.

After reading the article from Ernst and Young, answer the following questions:

How does the GAAP reporting method cause cash flows to differ from net income?

How are the features of the Income Statement, Balance Sheet, and Statement of Cash Flow utilized in both the GAAP and the IFRS reporting methods?

Does it make sense to adapt a worldwide standard for financial reporting? Should this be mandated or voluntary?

Provide some of the potential costs and benefits of switching from GAAP to IFRS.

Respond to at least two of your classmates’ posts.