Determine the objectivity measurement systems

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Assume that three accountants have been selected to measure the net income of a firm under U.S. Generally Accepted Accounting Principles (U.S. GAAP) and International Financial Reporting Standards (IFRS). The results under U.S. GAAP (M1) were net incomes of $15,000, $13,000, and $11,000. Under IFRS (M2), results were $25,000, $20,000, and $15,000.

Required:

Determine the objectivity of each of the two measurement systems for the year under consideration. On the basis of your examination, which of the two systems would you prefer? Explain.

Reference no: EM13340765

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