View the step-by-step solution to:

Case 2: Variety is the Spice of Life! Patricia Duong, having recently obtained her MBA, has been hired by one of the last of the large investment...

Case 2: Variety is the Spice of Life!

Patricia Duong, having recently obtained her MBA, has been hired by one of the last of the large investment banking firms. As part of her responsibilities, she is required to make recommendations on investing in securities of foreign companies.

During her lunch hour, Patricia runs into a colleague and complains about the difficulties she encounters with the lack of comparability in the financial statements of firms from different countries. She is puzzled by the inability of national accounting standardsetting bodies to agree on and implement a uniform accounting regime globally since, in her view, this would represent a win-win situation for all concerned.

1. Pretend you are the individual that Patricia is talking to. Explain why only one uniform accounting and reporting standard may not necessarily represent a winwin situation for all concerned.
2. Discuss the advantages and disadvantages of having diverse accounting standards that are the product of each country's national environment.
3. Discuss the issues raised when a country or region adopts some, but not all of the International Financial Reporting Standards.
4. In your opinion, should convergence be pursued?

This question was asked on Jan 25, 2013.

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors and customizable flashcards—available anywhere, anytime.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access or to earn money with our Marketplace.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
  • -

    Flashcards

    Browse existing sets or create your own using our digital flashcard system. A simple yet effective studying tool to help you earn the grade that you want!

    Browse Flashcards