Write 3 pages thesis on the topic accounting methods. “Implications of IFRS Conversion on US Tax Accounting Methods” is an article written by Christine Turgeon.This paper discusses the impacts of conv

Write 3 pages thesis on the topic accounting methods. “Implications of IFRS Conversion on US Tax Accounting Methods” is an article written by Christine Turgeon.This paper discusses the impacts of conversion of Generally Accepted Accounting Principles to International Financial Reporting Standards In the view of Turgeon, Rabinowitz, and Wong (2008), IFRS conversion causes a change in book and tax accounting methods which will have a direct effect on the company’s income tax reporting, cash taxes payable, and tax compliance. Many scholars are of the opinion that IFRS conversion would lead to hundreds of book accounting method changes. In contrast, some experts argue that most of these book changes would not result changes in tax accounting methods. However, it has been observed that IFRS conversion mandatorily requires certain changes with tax accounting methods. For instance, IFRS does not allow the use of GAAP and hence it necessitates the mandatory replacement of some old practices such as LIFO method. The tax accounting method issues associated with IFRS conversion may cause difficulties to companies’ cash taxes. The IFRS system does not permit the application of LIFO inventory method and this situation may cause the recapture of the tax LIFO reserve over four taxable years even though longer spread periods have been suggested. The structural difference between GAAP and IFRS also creates problems in the leasing process. Accounting practitioners opine that IFRS conversion would hasten the recognition of advance payments.