Case Study

Read the case study indicated below, and answer the following questions:

James, M. L. (2010). Accounting for business combinations and the convergence of International Financial Reporting Standards with U.S. Generally Accepted Accounting Principles: A case study. Journal of the International Academy for Case Studies, 16(1), 95-108.

• What key financial ratios will be affected by the adoption of FAS 141R and FAS 160? What will be the likely effect?

• Could any of the recent and forthcoming changes affect the company’s acquisition strategies and potentially its growth?

• What were FASB’s primary reasons for issuing FAS 141R and FAS 160?

• What are qualifying SPEs? Do they exist under IFRS? What is the effect of FAS 166 eliminating the concept of qualifying SPEs on the convergence of accounting standards?

• If the company adopts IFRS, what changes should management be aware of?

• What are the principle differences between IFRS and U.S. GAAP?

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Your submission should be a minimum of three pages in length in APA style; however, a title page, a running head, and an abstract are not required. Be sure to cite and reference all quoted or paraphrased material appropriately in APA style.