Asked by Delores Perry on May 20, 2024
Verified
Why do countries have their own unique set of financial reporting practices?
Financial Reporting Practices
The standards and rules that companies follow to accurately report their financial position and performance.
Countries
Nation states defined by geographical boundaries and governance.
- Familiarity with multinational accounting systems and their repercussions.
Verified Answer
DO
DIAYI ORTEGAMay 23, 2024
Final Answer :
Five commonly accepted factors influence financial reporting practices: (1) legal system, (2) taxation, (3) financing system, (4) inflation, and (5) political and economic ties. Because of the differences in these five factors from one country to another, and because international standards had not been created when many individual country's standards were created, countries continue to have unique financial reporting practices and standards.
Learning Objectives
- Familiarity with multinational accounting systems and their repercussions.
Related questions
What Are the Two Primary Methods Used by Countries to ...
State the Two Major Types of Legal Systems Used Around ...
Management Consulting Includes Examining the Financial Statements of Companies and ...
Which of the Following Isnota Reason One Set ...
A ________ Account Is an Account Linked with Another Account,having ...