Makgadikgadi is a small developing country which currently has no accounting standards and in which a new professional accounting body was recently created.

Makgadikgadis government has asked the new professional accounting body to prepare a report setting out the country's options for developing and implementing a set of high quality financial reporting standards.

Required:

As an advisor to the professional accounting body, outline THREE options open to Makgadikgadi for the development of financial reporting standards. Identify any advantages or disadvantages for each option. [9 Marks]