Achieving Comparability in Financial Reporting Is Important to the Analysis

question 14

Essay

Achieving comparability in financial reporting is important to the analysis of multinational firms.However,the data from the reconciliation of foreign firm's financial statement to U.S.GAAP must be carefully interpreted.What types of things complicate the analysis of multinational firms?

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Definitions:

Ambiguity

The quality of being open to more than one interpretation; inexactness or uncertainty in language or meaning.

Semantic Level

Pertaining to the meaning of words and language, especially the relationship between signifiers and what they signify or represent.

Case Markers

Grammatical markers that indicate the role of a noun, pronoun, or adjective in a sentence, such as subject, object, or possessive.

Semantic Role

The part that each phrase plays in the “who did what to whom” drama described by a sentence. One word takes the role of being the cause of the action, another, its effect, and so on.