Question

Reporting Alternatives and International Harmonization Accounting procedures for business combinations historically have differed across countries. Pooling-of-interests, for many years a preferred method in the United States, was not acceptable in most countries. In some countries, accounting standards permit goodwill to be written off directly against stockholders’ equity at the time of a business combination.

Should U.S. companies care about accounting standards other than those that are generally accepted in the United States? Explain.

Answer 1

Answer:

U.S. organizations must be worried about accounting standards in different nations and about international standards ( for example those issued by the international  accounting standards committee ) .Companies work in a worldwide economy to day . In addition to the fact that they buy and sell items and services in different nations ,yet they may raise capital and have activities or operations situated in other countries.Such organizations may need to meet remote or foreign reporting standards and these necessities vary from U.S. reporting standards .In recent years ,the acknowledgment of international  accounting standards has become across the board ,and universal measures are in any event, picking up acknowledgment in the US . Consequently ,numerous U.S. organizations ,and not simply the biggest ,may discover foreign and worldwide reporting standards significant in the event that they are going to operate globally .

U.S. organizations or companies additionally a few times procure foreign organizations , particularly on the off chance that they wish to move into another geographic territory or ensure a supply of crude materials .For the obtaining organization to perform its due perseverance as for a remote securing , it must be comfortable with universal financial reporting standards.