1)discuss which accounting treatment (IFRS, U.S. GAAP,or another new treatment from your own insight) is best fordecision usefulness in terms of assessing an entity’s cash flowprospects. You may want to think critically about pro(s) and con(s)of each accounting treatment per IFRS vs. per U.S.GAAP.
Be sure to provide specific justifications to supportyour answers. These justifications should be based uponthe following.
Potential effects of an accounting treatment on economicresources, claims to these resources and changes in these resourcesand claims. Do such effects better enable capital providers toassess amount, timing and uncertainty of future cashflows?
Discuss which specific characteristics of usefulfinancial information in Conceptual Framework.doc your favoredaccounting treatment supports. (Feel free to read ConceptualFramework for IFRS.pdf) There are three groups of thesecharacteristics.
