I’m working on a accounting discussion question and need an explanation to help me understand better.
Here in the United States, financial statements must be prepared using a set of principles called Generally Accepted Accounting Principles (GAAP). However, there has been an international movement toward the adoption of a common set of principles for the preparation of financial statements called International Financial Reporting Standards (IFRS). There are significant differences between GAAP and IFRS. The adoption of IFRS here in the United States would dramatically impact financial reporting in this country.
There has been much written about the differences between the two sets of principles. There has also been much written as to whether IFRS should be adopted here in the United States.
Should IFRS be adopted in the United States?
If employee-investors are unsophisticated and unlikely to be materially influenced by educational efforts, the best way to improve the welfare of employee-investors is pension design. Discuss.