Question

For more than a century, financial accounting has followed many paths throughout the world. Each country established its own standard-setting body to codify generally accepted accounting principles (GAAP) for entities operating in that country. (Click the icon to view additional information.) Requirement Evaluate the merits (both for and against) of having one set of financial accounting standards across the world. Select the arguments for having one set of financial accounting standards across the world. Decreases costs to users; they don't need to learn many different GAAPs. Decreases the efficiency when developing new accounting standards. Decreases the going concern issue for certain companies Increases comparability of financial reports for companies in different countries. Increases reliability of financial reports for companies in different countries. Increased geographical diversification of investments reduces risk and lowers the cost of capital. Investors need to be less sophisticated to understand financial statements, increasing the size of the pool of potential investors. Reduces the timeliness of the issuance of the auditor's report. Resources can be focused on developing and refining one set of standards, resulting in a superior set of standards

Please help me to figure out which 5 are correct answers. Thanks

Answer 1

the following 5 statements merit attention for moving towards a global set of accounting standards:

increases comparability of financial reports for companies in different countries

increases reliability of financial reports for companies in different countries

increased geographical diversification of investments reduces risk and lowers the cost of capital

investors need to be less sophisticated to understand financial statements, increasing the pool of potential investors

resources can be focused on developing and refining one set of standards, resulting in a superior set of standards.