Unformatted text preview: companies whom they are competing with for capital which creates difficulties for investors who are endeavoring to compare companies; and if US companies have subsidiaries operating in foreign countries, they may be required to prepare their subsidiaries’ financial statements according to local IFRS. Since the two reporting standards differ, this could result in costly inefficiencies. Investors, creditors, and financial analysts will have to retrain in order to evaluate the financial statements of companies using IFRS and analysts who have more resources are at a competitive advantage over analysts newly learning IFRS....
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- Spring '11
- Finance, Corporation, Types of business entity, Generally Accepted Accounting Principles