What are at least three advantages in all companies around the world using the same accounting standards?

What are at least three advantages in all companies around the world using the same accounting standards?

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September 3, 2023
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What are at least three advantages in all companies around the world using the same accounting standards?

Answer and ExplanationSolution by a verified expert

Explanation
1. Comparability

If companies around the world use a uniform set of accounting standards, comparability between financial statements is enhanced. Enacting a set of global accounting standards will make it easier for businesses to compare their financial status with others. The users of the financial statements can analyze and compare the financial performances of various companies globally.

2. Assist Preparers

It will be a big help for accountants in their work since there won't be various accounting standards to follow if ever they are relocated from one country to another. They only have to follow a uniform guide in preparing the financial statements. This will also enhance their performance in preparation efficiently.

3. International Expansion

If there is a presence of a set standard for accounting globally, it will ease international barriers for the expansion of big companies. It will be easier for them to expand their businesses overseas since they do not have to comply with a new set of accounting standards to meet the statutory requirements per country.

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