CompetenciesEvaluate the reasons business combinations occur and the accounting implications of such transactions.Critique the development of International Accounting Standards and the implications for US corporations.Measure the accounting for foreign currency and its translation.Assess the proper accounting for transactions with respect to deferred taxes and leases using the accounting codification and other accounting research tools.Justify the proper accounting for transactions with respect to accounting changes and error corrections using the accounting codification and other accounting research toolsEvaluate the proper accounting for transactions with respect to interim and segment reporting using the accounting codification and other accounting research tools.ScenarioSwift Cycles is a publicly held, mid-sized manufacturer, with $40 million dollars in annual revenue. Swift has been producing high-end custom cycles currently in the US for the past ten years. Swift has decided to start operations in various locations in Europe in the next five years. In a recent board meeting, the CEO and CFO faced difficult questioning from outside members of the board regarding the impact that adoption of International Financial Reporting Standards might have on the company. Both officers lack a depth of knowledge on the subject and their preparedness for the changes that may be presented.The CFO has asked you as the Controller to do some preliminary research about the possible transition from US GAAP principles to IFRS standards. The company is publicly held; therefore, it must follow all reporting requirements of the Securities and Exchange Commission (SEC).Prepare an analysis and presentation of the impact that adoption of International Financial Reporting Standards would have on the company's financial statements and its investors. Also, prepare an analysis and operational plan of how this adoption may be accomplished by the company.InstructionsAnalysis of Adopting IFRS:Create an executive summary that analyzes the impact that adoption of International Financial Reporting Standards would have on Swift's financial statements and its investors. For your analysis, consider that IFRS will be adopted in their current form. Consider the effects on each of the account groupings (such as foreign currency transactions, deferred taxes, and leases in different countries) for each of the financial statements (balance sheet, income statement, change in equity statement, and statement of cash flows). Explain the implications of consolidating reporting to the parent company versus segment reporting over major areas of the company.Operational Plan:Within the executive summary, write a proposal that provides an operational plan of how this adoption may be accomplished in the company. Consider the following in your Operational Plan:Resources.What policies and procedures should be modified in order meet IFRS requirements?How the project should be managed.What organizational structures, policies, or procedures should be in place to ensure that the implementation is ethical and compliant with all IFRS requirements?Presentation to the Executive Board:For the executive leadership team, create a PowerPoint presentation, 5-10 slides, including slide notes to summarize the essential information regarding the impact of the adoption of IFRS on financial statements and investors of the company, which includes the information from the operational plan. At the end of your executive summary, give your strongest recommendation on the convergence to IFRS.Use the FASB Codification and IFRS to address all technical accounting issues presented in the questions, being certain to reference the applicable sections of the Codification and IFRS in your report.Any other sources used to support your responses should similarly be properly documented. You should have other credible sources in addition to the Codification and IFRS.