1. Why is it difficult to compare the financial statements of a U.S. company with those of...
Question:
1. Why is it difficult to compare the financial statements of a U.S. company with those of a company in India or Germany?
2. How would McDonald’s benefit if IFRS were adopted for use in all countries worldwide?
McDonald’s Corporation operates in more than 100 countries. As a multinational business, McDonald’s must comply with the rules and regulations of the countries where it operates. The UN is concerned that globalization of business makes it difficult for external stakeholders, including governments, to verify a multinational firm’s data. IFRS has been developed and can be used for financial reporting by companies in countries around the world.
Financial StatementsFinancial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Stakeholders
A person, group or organization that has interest or concern in an organization. Stakeholders can affect or be affected by the organization's actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees,... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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1 Financial reporting in the US differs from that in other countries ...View the full answer
Introduction to Global Business Understanding the International Environment & Global Business Functi
ISBN: 978-1305501188
2nd edition
Authors: Julian Gaspar, James Kolari, Richard Hise, Leonard Bierman, L. Smith, Antonio Arreola Risa
