How can multinational corporations respond to a demand on the part of foreign shareholders for financial accounting information?

Question

Quizplus · Accepted Answer

Multinational corporations can choose from a variety of responses to meet the demands of foreign shareholders for financial accounting information. They might do nothing if they believe their current reporting meets legal requirements and adequately serves their shareholders' needs. Alternatively, they could provide convenience translations of their financial statements into other languages, prepare supplementary financial statements based on International Accounting Standards (IAS) to cater to international investors, or prepare supplementary financial statements based on U.S. accounting standards if their investors are accustomed to or prefer those standards. Each option represents a potential strategy to address the diverse needs of a global shareholder base.

How Can Multinational Corporations Respond to a Demand on the Part