separate Introduction, Analysis and Conclusion sections.
IFRS Case Study:
LaLiny, Inc. (Warfield, 2010) is a publicly-traded company that develops, manufactures, and distributes professional quality exercise equipment. The firm was established in 1965 in Burlington, Vermont and went public in 1975. Sales were initially from only the Northeast region of the United States, but since going public the company has grown significantly and now supplies exercise equipment in all fifty states. In 2008 the company reported a market capitalization of $350 million. LaLiny, Inc.?s CFO, Jack Johnson, has been with LaLiny, Inc. for 20 years and has held the position of CFO for the past 5 years.
Assume that you are the Financial Accounting Controller for LaLiny, Inc. You report directly to Mr. Johnson, the CFO. Recently, Mr. Johnson came to you with an article (https://www.cfo.com/article.cfm/13517383 ) that he found on CFO.com that deals with adoption of International Financial Reporting Standards (IFRS). Mr. Johnson wants to know more about the implications of IFRS adoption. Specifically, he has asked you do some research and find answers to the following questions (focus topics in our book?s chapters 1-14 which include Income Statement and Balance Sheet along with Cash, Inventories, Receivables, Property, Plant and Equipment, and Liabilities):
1. What are the primary benefits of IFRS adoption for US firms in general? Describe at least three benefits.
2. What are the primary costs of IFRS adoption for US firms in general? Describe at least three costs.
3. Mr. Johnson does not understand how IFRS differs from current US GAAP. Briefly describe two areas of LaLiny?s financial statements that could be reported differently under IFRS.
4. Based on your research, do you think that Mr. Johnson should be in favor of or opposed to IFRS adoption? Provide support for your opinion.
You are to research answers to Mr. Johnson?s questions using outside sources, such as the AICPA website, etc. Respond to the questions in an APA style paper and be sure to cite all resources used to support your answers.
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