accounting question 495181

Ch. 6 – New Accounting Standards and LIFO An important change is coming to Accounting Standards in the United States – especially important to accounting majors  The U.S. is going through a major transition in terms of financial accounting standards. You learned in Chapter 1 that American companies follow accounting standards followed by the Financial Accounting Standards Board (FASB). Virtually every other developed country follows standards set by the International Accounting Standards Board (IASB), or a close variation of those standards. For about eight years, the FASB has been working with international standard-setters that will ultimately result in the U.S. adoption of International Financial Reporting Standards. By 2011, the United States will be the only country not using IFRS (Theobald, 2010). American companies are scheduled to be required to adopt IFRS by 2016 (Thacker, 2010). The reason these facts are relevant to the materials presented in Chapter 6 is that one of the inventory methods, LIFO, will be phased out. In fact, this is one of the issues that delayed the faster adoption of IFRS (White, 2008). Our discussion for this week will be based on a few articles on IFRS and LIFO phase-out. Those of you who plan to become CPAs should note that questions related to IFRS will begin to show up on the CPA exams, starting in 2011. Most financial accounting textbooks will need to be re-written or will need supplements to reflect changes in how standards will be applied based on the new standard-setting body’s requirements. Everyone will need to learn a little about this change in American Accounting standards. You will have some questions on your Final Exam related to IFRS.  REFERENCES   Thacker, Sam. Moving from GAAP to International Accounting Standards. 2010. Retrieved from http://www.allbusiness.com/company-activities-management/company-structures-ownership/13196001-1.htmlon 11/7/2010   Theobald, Paul. Transitioning to IFRS in SAP ERP…