Overview
Full details in the attached word document. This is a 3 part assignment on CM Corporation.
Part 1-SWOT Analysis
Presentation Mechanics should be as follows:
- Prepare a 5-8 slide PowerPoint presentation, including slide notes.
- Summarize the strengths, weaknesses, opportunities, and threats for CMC under each purchase option.
- Explain the advantages and disadvantages of each option under both US GAAP and IFRS standards.
- Explain how either the “goodwill recognition” or “bargain purchase” can impact an acquisition.
Part 2-Memorandom
Research the following topics and prepare a memorandum on your findings:
- What are the major factors in converging from US GAAP to IFRS Standards?
- Will switching accounting standards be costly for the firm? Explain your reasoning.
- How does IFRS differ from GAAP regarding international transactions? Are there issues in accounting for international transactions?
- What is your final recommendation on whether CMC should converge to IFRS or GAAP? Explain your reasoning.
Part 3-Foreign Currency
Presentation Mechanics should be as follows:
- Prepare a 5-8 slide PowerPoint presentation, including slide notes.
- Summarize foreign currency's impact on a firm expanding internationally.
- Explain the advantages and disadvantages to foreign currency translation of financial statements.
- Explain different reasons for the firm to continue with accounting under US GAAP or switch to IFRS standards.