Concept introduction:
International financial reporting framework (IFRS):
International
United States Generally Accepted Accounting Policies (US GAAP):
United States generally Accepted Accounting Policies is the accounting framework/ accounting standards followed in the United States to prepare the financial statements. US GAAPS are issued by Financial Accounting Standards Board (FASB).
To choose:
The best description statement of convergence of U.S. GAAP and IFRS.
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Cornerstones of Financial Accounting
- What term is used to describe the process of reducing foreign exchange risk? Choose the correct. A)international accounting B)exposure C)hedging D)harmonizationarrow_forwardDifferentiate between Uruguay Round, the Failed Doha Round, and Bilateral Agreements?arrow_forwardWhat does Accounting harmonization mean? Differentiate harmonization from convergence or adoption. Explain few benefits of global adoption of IFRSs.arrow_forward
- What is the important differences that exist between U.S. GAAP and IFRS?arrow_forwardA primary result of the Bretton Woods Agreement was: A. the establishment of the European Monetary System (EMS). B. establishing specific rules for when tariffs and quotas could be imposed by governments. C. establishing that exchange rates of most major currencies were to be allowed to fluctuate 1% above or below their initially set values. D. establishing that exchange rates of most major currencies were to be allowed to fluctuate freely without boundaries (although the central banks did have the right to intervene when necessary).arrow_forwardProvide a detailed discussion on the benefits and risks of international diversification. Use evidenceor examples to support your arguments.arrow_forward
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