Question 3.

As a U.S.-listed foreign company, which must file financial reports with the SEC, Alibaba Group had the choice between U.S. GAAP and IFRS. Although its subsidiaries had once prepared financial statements under IFRS, Alibaba Group decided to prepare its financial statements under U.S. GAAP. a. What are the pros and cons for Alibaba Group preparing its financial statements in accordance with U.S. GAAP instead of IFRS? b. Does the adoption of high-quality accounting standards such as U.S. GAAP or IFRS ensure high-quality financial reporting by companies on a global scale? Why or why not?