Publically traded companies will be required to adopt IFRS at the end of the convergence of IFRS and US GAAP. Companies adopting IFRS for the first time will be required to follow IFRS 1 (First-time Adoption of International Financial Reporting Standards) as well as all other IFRS standards in force at that time. For example, in May 2014, The IASB and FASB published IFRS 15: Revenue from Contracts with Customers, to be effective in January 2017.
Complete the following tasks for the company you have selected as the subject of your impact analysis: Identify the major requirements of IFRS 1 for companies adopting IFRS for the first time. Identify the key impacts of IFRS 15 on US Companies during the transition from the current US GAAP to the new revenue recognition pronouncement What effect will adoption of IFRS 15 have on the Statement of Cash Flows, considering both the direct and the indirect method? Make any necessary updates to the financial statements based on your understanding of the new IFRS. Update your impact analysis chart with the new information you have for your company regarding IAS 1 and IAS 7.
Further instruction for tasks for paper:
a. 2-4 pages of word document on discussion of IFRS 1, 15 and IAS 1 and 7.
b. Update IA chart with key provisions of the standards (IFRS 1, 15 and IAS 1 and 7) that you discuss.
c. Review the financial statements of the company you chose from SEC EDGAR website, explain what accounts would be affected by IFRS 1, 15 and IAS 1 and 7 that you discussed above. How would company make changes to modify the financial statements? (400-600 words discuss