Date of Completion

Spring 5-2-2016

Thesis Advisor(s)

Arthur Schmeiser

Honors Major



“Accounting for Automobiles: GAAP vs. IFRS for Record Setting Recalls” leads an investigation into two of the most recent automobile scandals from automotive giants. Toyota went first in 2010 with its sudden unintended acceleration scandal and Volkswagen in 2015 with its diesel car emissions cheating scandal. This explores the various issues affecting these companies during these times and applying codification for contingent liabilities from both IFRS and US GAAP as well as assessing the stock and economic losses of these companies. It continues to report a forecasted income statement for Volkswagen, assessing which codifications would improve the two companies’ economic hit as well as return to normalcy best. As the two methods continue to converge, the research on the differences in contingent liability reporting depicts a way to continue the convergence.