International Financial Reporting Standards are gaining support around the globe

1) International Financial Reporting Standards are gaining support around the globe. In 2007, the SEC eliminated the requirements for foreign companies that issue stock in the United States to include in their financial statements a reconciliation of IFRS to U.S. GAAP. There also is serious discussion of allowing U.S. companies to choose whether to prepare their financial statements according to U.S. GAAP or IFRS.Required:Do you think U.S. companies should be allowed the choice of reporting under either U.S. GAAP or IFRS? Provide arguments both for and against this idea.2)Many outside the United States claim that a problem with U.S. GAAP is that there are too many rules. They argue for principles-based accounting standards in which the broad principles of accounting are emphasized and less emphasis is placed on detailed implementation rules. Americans counter that IFRS may lack quality and rigor. Additional rules are necessary to provide adequate guidance to users.Required:Explain the difference between principles-based and rules-based accounting standards.What are the advantages of principles-based standards?What are the advantages of rules-based standards?Do you think that future international accounting standards will need to be more principles-based or more rules-based?