Accounting standards and the interests of the users of financial statements. Three solutions have been proposed for resolving the problems associated with filing financial statements across national borders:

(a) mutual recognition (also known as reciprocity),

(b) reconciliation and

(c) use of International Financial Reporting Standards (IFRS).

Required:

Present a concise evaluation of each of the three approaches. What do you expect is the preferred approach from the perspective of each of the following interested groups: (1) investors;

(2) company management; (3) regulatory authorities; and (4) stock exchanges.