The SEC is considering proposals regarding the accounting principles companies may use for their financial statement filings. The SEC could require that U.S. companies use only U.S. GAAP in their financial statement filings. Alternatively, the SEC could allow, or even require, U.S. companies to use IFRS in their financial statement filings. Many issues and complexities surround the use of IFRS. The SEC must consider these and many other issues as it deliberates whether it should continue to require the use of U.S. GAAP or whether it should require the use of IFRS.
Required:
Identify and discuss three of the potential problems to be considered by the SEC in deliberating these proposals.

Question

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The Answer of The SEC is considering proposals regarding the accounting principles companies may use for their financial statement filings. The SEC could require that U.S. companies use only U.S. GAAP in their financial statement filings. Alternatively, the SEC could allow, or even require, U.S. companies to use IFRS in their financial statement filings. Many issues and complexities surround the use of IFRS. The SEC must consider these and many other issues as it deliberates whether it should continue to require the use of U.S. GAAP or whether it should require the use of IFRS.
Required:
Identify and discuss three of the potential problems to be considered by the SEC in deliberating these proposals.

The SEC Is Considering Proposals Regarding the Accounting Principles Companies