U.s. companies to use international accounting rules

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Your friend who is taking his first accounting course says to you, We live in the United States. I thought that companies in the United States would follow U.S. accounting rules for preparing their financial statements. I also thought that foreign companies would follow international accounting rules. Now I hear something about the convergence of U.S. accounting rules and international accounting rules. And, I hear that the SEC is thinking about requiring U.S. companies to use international accounting rules for financial statements filed with it. What is going on and how will it be resolved?

Required:
Prepare a memo that provides an in depth answer to your friend's question.

Reference no: EM13875227

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