Unformatted text preview: Discuss the factors that would influence your decision. Given the information that was provided, and taking into consideration that IFRS is not suitable for Mazoa’s fragile economy, I would suggest that they set up their own accounting system first. This would give Mazoa the time to grow their economy into a more suitable position (to gain more resources) where the strain of keeping up with rules and regulations would not destroy their economy. I do believe that once the economy is strong enough to bare the strain that at that time, Mazoa should adopt and conform to international accounting standards. Having Mazoa adopt an international accounting system before creating their own, would put undo strain on an undeveloped economy. If Mazoa were to adopt international accounting system first, before testing to see which system works best for them, it would be like putting a child behind the wheel of the car and telling them to drive....
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This note was uploaded on 04/30/2011 for the course ECON 101 taught by Professor Smith during the Spring '11 term at University of Phoenix.
- Spring '11