Description
Hey clarito, can you answer the first question and have it back to me by today? Answer the other by Wednesday afternoon.
undefined1. What are the major problems caused by worldwide accounting diversity for a multinational corporation?
undefined2. How do you think technology will affect international business and financial reporting over the next 20 years?
Explanation & Answer
View attached explanation and answer. Let me know if you have any questions.
1
What are the major problems caused by worldwide accounting diversity for a
multinational cooperation?
Worldwide accounting diversity is an automaton process that seeks to provide similar
accounting techniques to different businesses with varying policies and objectives. There are
myriad problems caused by worldwide accounting diversity for a multinational cooperation.
Firstly, worldwide accounting diversity leads to additional intricacy for multinational
cooperation (MNCs) in preparing coalesced financial statements based on the parental
institution’s generally acceptable principles. Secondly, each foreign subordinate company is
mandated to keep two sets of books reflecting financial activities. Notably, accounting diversity
thwarts multinational cooperation by gaining access to foreign capital markets, since
stakeholders and lenders in overseas states might require financial statements prepared based on
generally acceptable principles. The third problem is the lack of comparability of financial
statements when assembling foreign acquisition assessments.
How do you think technology will affect inte...
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