Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

Exercise 38

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 is available online at http://www.sec.gov/rules/proposed/2008/33-8982.pdf.) The Roadmap proposes allowing U.S.companies that meet certain criteria to adopt IFRS on a voluntary basis as early as 2010.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 early adopt IFRS on a voluntary basis.
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.