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1 - T Suzanne works for a large multinational company IBN...

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T Suzanne works for a large multinational company, IBN Limited (IBN). IBN’s shares are traded on the two stock exchanges. The company has operations in six countries and sells its product around the world. Suzanne’s friend Joel owns and operates a rare-book store that specializes in comics. Joel started his business with his personal savings and has an outstanding bank loan that he uses to finance his inventory. Required Explain how the objectives of financial reporting would be different for IBN and Joel’s bookstore. IBN’s listing on the public stock exchanges will require an unqualified audit opinion. As a result, GAAP is a constraint for the company. However, IBN will try to adopt accounting policies that are acceptable in both of the countries in which it is traded to reduce recordkeeping and reporting costs. IBN will be most concerned about stewardship reporting. Its creditors and shareholders will be interested in cash flow prediction and performance evaluation. IBN’s management will want to maximize
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