In its 2003 annual report, Honda Motor Company LTD states that its manufacturing operations are principally conducted in 25 separate factories, including 5 in Japan; the Japanese factories maintain their books of account in conformity with financial accounting standards in Japan, while the subsidiaries in foreign countries generally maintain their books of account in conformity with accounting standards in the countries of their domicile; and the consolidated financial statements have been prepared in conformity with the accounting principles generally accepted in the U.S. REQUIRED: Discuss the possible reasons for Honda to prepare its consolidated financial statements in conformity with U.S. GAAP. (4 Marks) Question 2 What is the IASB's principles-based approach to accounting standard-setting? (2 Marks) Question 3 What is the current status of convergence between the FASB and the IASB?