Harlow Ltd. operates in both Canada and the United States. The company wants to improve the qualitative characteristics of its financial statements. Which of the following would most likely improve the comparability of Harlow's financial statements?
A) the restatement of its financial statements from Canadian GAAP to US GAAP for its American investors
B) the preparation of monthly financial statements
C) the introduction of a policy that specifies how Harlow's capital assets should be depreciated
D) the use of U.S.-trained accountants

Question

Quizplus · Accepted Answer

Restating financial statements from one GAAP to another improves comparability between the financial statements of different countries. This helps investors and stakeholders understand the financial information better and make informed decisions. Monthly financial statements, a policy for capital asset depreciation, and the use of U.S.-trained accountants may improve other qualitative characteristics of financial statements, but they do not directly improve comparability between statements prepared under different accounting standards.