Jones Enterprises: A comparison of U.S. GAAP and IFRS in a REIT Transaction

• In Event: Teaching, Learning and Curriculum 4

Abstract

This case introduces students to acquisition accounting under US GAAP and IFRS, provides an industry perspective on real estate investment trusts (REITS), and investigates a US vs. Canadian Initial Public Offering (IPO). You are asked to record a portfolio purchase, prepare IFRS and US GAAP balance sheets in order to grasp major REIT reporting differences between US GAAP and IFRS, and denote key U.S versus Canadian exchange reporting differences plus consider all ongoing exchange reporting options within each form of GAAP. Finally, you are asked to provide a recommendation for the IPO location (US or Canada). Completing the case shows how US GAAP and IFRS can lead to different financial decisions, thereby strengthening critical thinking skills.

Authors

• Natalie T Churyk, Northern Illinois University

• Alan Reinstein, Wayne State University

• Lance Smith, Ernst & Young