(a)

One potential reason for their differences is that IFRS is used in more than 110 countries
around the world while US GAAP is only used within the United States. In order for IFRS to
be adopted by so many countries, it has to remain acceptable and flexible for each nation
which can impact the decision making involved in the accounting standards while GAAP is
only implemented in the US.  

Another potential reason is the sources of funding between FASB and IASB. This is because
FASB is independently funded by the US SEC, while IASB is funded through private donors
and corporations(including firms that are obliged to use their accounting standards). 

(b)

The US SEC is interested in the activities of the IASB to decide on whether to converge with
IASB. US SEC are assessing the legitimacy of the organisation, as there concerns on the
transparency of the funding received to IASB and whether it is unethically benefiting donors
and have possible political influence. US SEC wants to ensure that if it does converge it can
be confident that the global accounting standards will provide US investors fair reliable
disclosures.    

(c)

I understand that the US SEC wants to protect US investors over concerns on the legitimacy
and consistency of IFRS, however I personally believe that by the US adopting IFRS, this
will allow investors to compare investments and financials globally more efficiently while
reducing their risk of errors in judgment. By being able to compare the financials of
companies from different countries, this can help small investors to evaluate international
options who don’t have the resources to convert financials to the same reporting standards.