Multinational corporations do not have the responsibility nor the incentive to follow international accounting standards as there still is no particular set of global standards that are generally accepted worldwide.

Question

Quizplus · Accepted Answer

This statement is incorrect. Multinational corporations do have the responsibility to follow international accounting standards, and in fact, many countries have adopted the International Financial Reporting Standards (IFRS) as their national standards. Additionally, many multinational corporations choose to voluntarily adopt IFRS in order to enhance their financial reporting transparency and comparability. While there may be some differences in accounting standards across countries, the trend towards harmonization and convergence of international accounting standards continues to grow.

Multinational Corporations Do Not Have the Responsibility nor the Incentive