Scenario: A multinational conglomerate, XYZ Corporation, operates in diverse industries including manufacturing, technology, and services across several countries. In recent years, the company has expanded its global footprint and diversified its product and service offerings. XYZ Corporation faces intricate accounting challenges due to the complexity of its operations, which involve intricate intercompany transactions, currency exchange risks, and evolving international financial reporting standards. Part 1: In light of the complex international operations of XYZ Corporation, how does the company address the accounting treatment of intercompany transactions within its various subsidiaries and affiliates? What specific accounting standards and guidelines does the company adhere to when recording these transactions, and how does it ensure compliance with both local and international regulations? Furthermore, how does the company manage the intricacies of consolidating financial statements when subsidiaries operate in different currencies and report under varying accounting principles? Part 2: Considering the multinational nature of XYZ Corporation's operations, how does the company assess and mitigate the risks associated with currency fluctuations? What sophisticated hedging strategies does the corporation employ to minimize the impact of exchange rate volatility on its financial performance and maintain stable cash flows? Additionally, how does the company disclose these hedging activities in its financial statements, ensuring transparency for stakeholders and compliance with relevant accounting standards such as International Financial Reporting Standards (IFRS) or Generally Accepted Accounting Principles (GAAP)? Part 3: Given the dynamic landscape of international financial reporting standards, how does XYZ Corporation adapt its accounting policies and practices to stay abreast of the evolving regulatory environment? What challenges does the company face in interpreting and implementing new accounting pronouncements, and how does it ensure a seamless transition while maintaining the integrity and comparability of its financial statements? Moreover, how does the corporation handle the assessment and recognition of intangible assets, such as goodwill, in its financial reporting, especially in the context of business combinations and mergers and acquisitions, complying with the relevant accounting standards and providing meaningful information to investors 4/4