How can foreign corporations alleviate the accounting diversity problem related to comparing foreign financial statements?
A)Presenting multiple sets of financial statements under various GAAP
B)Selecting a widely used set of accounting standards for their financial reporting
C)Providing adequate disclosure in notes to the financial statements to allow analysts to make conversions to another country's GAAP
D)All of the above

Question

Quizplus · Accepted Answer

To alleviate the accounting diversity problem related to comparing foreign financial statements, foreign corporations can present multiple sets of financial statements under various GAAP, select a widely used set of accounting standards for their financial reporting, and provide adequate disclosure in notes to the financial statements to allow analysts to make conversions to another country's GAAP. By doing all of the above, foreign corporations can minimize the accounting diversity problem and provide investors with more relevant and comparable financial information.

How Can Foreign Corporations Alleviate the Accounting Diversity Problem Related