1. Summarize the events of a recent accounting scandal.
2. Identify how the illegal/unethical act was detected and the punishments that resulted (fines, prison terms, etc.).
3. What could have been done to detect this act earlier.
4. What could have been done to prevent this from happening in the first place.

Topic 2

In this week’s discussion, we will be looking at some of the differences between U.S. GAAP and IFRS, which is the set of accounting rules followed by just about every industrialized nation outside the U.S. While there are many similarities between the two systems, there are also some significant differences. After learning a little bit about some of the similarities and differences, please reflect somewhat on how these differences might impact financial statement analysis, or if you think they actually would.

Review the sections on international accounting (IFRS) (See pages 9, 10, 59, 184, 267, 339, 376, 431, 489, 556, 568, 571, 668, 701.)

1. Discuss the major similarities and differences between U.S. GAAP and IFRS.
2. Which of the differences do you find most interesting?
3. If there is a convergence between U.S. GAAP and IFRS, would you choose the U.S. GAAP or IFRS method? Why?