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Unformatted text preview: nal m otiv es. As long as these factors continue to v ary across com panies,
industries and countries, reporting practices w ill differ, too. Worldw ide, I FR S adoption w ould narrow
the set of accounting rules and treatm ents that inv estors need to follow , w hich w ould y ield sav ings for
inv estors. But it w on't bring true com parability of reported num bers across com panies and countries.
The argum ent that I FR S adoption w ould allow U .S. m ultinationals to m ov e to a single reporting
sy stem for their global operations, leading to substantial cost sav ings, has lim itations as w ell. Foreign
subsidiaries of U .S. firm s still hav e statutory reporting requirem ents to the local authorities that often
aren't based on I FR S. This m eans separate accounts or som e reconciliation to local standards
regardless of the com pany ’s global reporting sy stem . Thus, w hile there can be cost sav ings for U .S.
m ultinationals, they w ill be lim ited until I FR S are m ore w idely accepted for statutory reporting
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This document was uploaded on 03/06/2014 for the course MGMT 4369 at Texas Pan American.
- Spring '14