What impact will the convergence process have on your company’s tax planning?Discuss.

Instructions:  

For this assignment, use the company you have chosen from the EDGAR Web site as your point of reference.

(Note: I selected Apple Inc.company for this assignment). After the reporting period has ended, you could potentially encounter other events that will have impacts on your company (IAS 10).

  • Describe the recognition and measurement differences currently existing between IFRS and U.S. GAAP.
  • What impacts could these differences have on disclosure requirements?

Create an overview of considerations regarding income taxes that the company may encounter.

  • Give 2 examples of areas you see as the greatest concern.
  • What impact will the convergence process have on your company’s tax planning?

A key area of contention between IFRS and U.S. GAAP lies in the classification and measurement of leases.

  • Describe the 2 main types of leases and where the differences lie.
  • What impact will this have your company?

Give your opinion on the U.S. moving into IFRS.

  • For the company you have selected, what do you see as the major advantages and disadvantages of convergence?
  • Provide a minimum of 3 examples of each supported by your research.