Advanced Accounting 12th Edition by Joe Ben Hoyle,Thomas Schaefer , Timothy Doupnik

Exercise 29

In November 2008, the SEC released its "Roadmap for the Potential Use of Financial Statements Prepared in Accordance with International Financial Reporting Standards by U.S. Issuers." The Roadmap originally proposed allowing U.S. companies that meet certain criteria to adopt IFRS on a voluntary basis several years before requiring the use of IFRS. Conglomerate Company meets the criteria for early use of IFRS. As the company's external auditor, you have been asked to provide a recommendation as to whether the company should adopt IFRS early on a voluntary basis if it were given the opportunity to do so.
Required
Draft a memo to the CEO of Conglomerate Company describing the potential benefits and the potential risks associated with the early use of IFRS.