Which of the following are issues when dealing with the financial statements of international firms?
I.Many countries allow firms to set aside larger contingency reserves than the amounts allowed for Canadian firms.
II.Many firms outside Canada use accelerated depreciation methods for reporting purposes,whereas most Canadian firms use straight-line depreciation for reporting purposes.
III.Intangibles such as goodwill may be amortized over different periods or may be expensed rather than capitalized.
IV.There is no way to reconcile the financial statements of non-Canadian firms to GAAP.
A) I and II
B) II and IV
C) I,II,and III
D) I,III,and IV
E) I,II,III,and IV

Question

Quizplus · Accepted Answer

International financial statements can differ due to varying practices like larger contingency reserves, different depreciation methods, and varying treatment of intangibles. However, financial statements can often be reconciled to GAAP, so IV is incorrect.

Which of the Following Are Issues When Dealing with the Financial