Trabeck prepares for IFRS: An IFRS case study

The growing acceptance of International Financial Reporting Standards (IFRSs) as a basis for US financial reporting represents a fundamental change for the US accounting profession. IFRS and US generally accepted accounting principles (GAAPs) both are based on principles; however, US GAAP largely uses rules to apply the principles. In contrast, IFRS relies heavily on the use of judgment in deciding how transactions should be recorded. This fictional case is designed to help students identify some fundamental differences between US GAAP and IFRS and apply this knowledge to general-purpose financial statements.

► This fictional case is designed to help students understand and apply differences between US GAAP and IFRS.
► Students are required to analyze specific situations where US GAAP and IFRS differ.
► Students are required to prepare IFRS-based financial reports.
► Students are required to analyze differences between US GAAP-based and IFRS-based reports.