Explain disadvantages of having diverse accounting standards

Reference no: EM13197125

Patricia Duong, having recently obtained her MBA, has been hired by one of the last of the large investment banking firms. As part of her responsibilities, she is required to make recommendations on investing in securities of foreign companies.

During her lunch hour, Patricia runs into a colleague and complains about the difficulties she encounters with the lack of comparability in the financial statements of firms from different countries. She is puzzled by the inability of national accounting standardsetting bodies to agree on and implement a uniform accounting regime globally since, in her view, this would represent a win-win situation for all concerned.

1. Pretend you are the individual that Patricia is talking to. Explain why only one uniform accounting and reporting standard may not necessarily represent a winwin situation for all concerned.
2. Discuss the advantages and disadvantages of having diverse accounting standards that are the product of each country's national environment.
3. Discuss the issues raised when a country or region adopts some, but not all of the International Financial Reporting Standards.
4. In your opinion, should convergence be pursued?

Reference no: EM13197125

Questions Cloud

Charge for depreciation and amortization : Pearson Brothers recently reported an EBITDA of 7.5 million and net income of 1.8 million.?It had 2.0 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization?

Compute the concentration molarity of agcl : calculate the concentration (molarity) of AgCl in a saturated solution.

Calculate the firms average collection period : Calculate the firm's current receivables balance. Calculate the firm's new receivables balance if Milwaukee Surgical toughened up on its collection policy, with the result that all non-discount customers paid on the 30th day.

State the barometric pressure in the laboratory : The water temperature was 24 degrees Celsius, and the barometric pressure in the laboratory was 30.50 in. Hg. After the student immersed the yeast in the peroxide solution

Explain disadvantages of having diverse accounting standards : Patricia Duong, having recently obtained her MBA, has been hired by one of the last of the large investment banking firms. As part of her responsibilities, she is required to make recommendations on investing in securities of foreign companies.

How to describe a fictitious organization : Prepare an employee usage policy for your organization's information systems and assets. Your policy should include, but not necessarily be limited to, email and web usage. Please include a basic description of the organization as an attachment.

State measurement of the concentration of fe : Measurement of the concentration of Fe3+ ions in a saturatedsolution of iron(III) chloride was found to be 0.35M. Calculate the Ksp of iron(III) chloride

How several nonrooom departments would use rooms forcast : The rooms forecast is a tool for managers throughout the hotel; it is not for the front office alone. List and discuss how several other nonrooom departments(housekeeping, food and beverage, ect.) would use the rooms forcast.

Define energy for the human : To provide energy for the human, the O2 is reduced to H2O duing food oxidation by the following reaction: Recall that 1 ampere is equal to a charge of 1 coulomb per second flowing past a point in a circuit.

User Account

All Pages