The Chapter 17 Reaching Beyond Our Borders box discusses the future of international accounting standards.In summary,the message is:
A)GAAP Generally Accepted Accounting Standards)created and established in the U.S.will be adopted worldwide by 2014.
B)Accounting professionals do not see an immediate need to standardize accounting practices globally due to the fact that patents and other legal measures are not standardized.
C)Due to the fact that global markets continue to rise in economic importance,the accounting field is working on integrating GAAP with IFRS International Financial Reporting Standards).
D)It has been established that most U.S.accountants will refuse to acknowledge the IFRS standards because U.S.accounting firms mostly represent companies that do business domestically.

Question

Quizplus · Accepted Answer

The chapter discusses how global markets are becoming increasingly important, and therefore, the accounting field is working on integrating GAAP with IFRS. This suggests that there is a need to standardize accounting practices globally to better serve the global markets that companies are operating in. Option A is incorrect because it suggests that only GAAP will be accepted worldwide, which is not accurate. Option B is also incorrect because the need for standardization is not contingent on legal measures being standardized. Option D is incorrect because there is no evidence to support the claim that most U.S. accountants will refuse to acknowledge IFRS standards due to the nature of the companies they represent.

The Chapter 17 Reaching Beyond Our Borders Box Discusses the Future