What Does "Harmonization" Mean in the Context of International Accounting

question 18

Multiple Choice

What does "harmonization" mean in the context of international accounting?

• A)The process of combining the financial statements of foreign subsidiaries into the parent company's financial statements
• B)Reducing the diversity of accounting standards
• C)Disclosing the accounting methods used in preparing the financial statements
• D)Assessing the exposure resulting from inadequate internal controls

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Definitions:

Kantian Theory

A moral philosophy asserting that decisions should be based on whether the action would be acceptable as a universal law and respecting individuals as ends in themselves.

Deontological Theory

A moral philosophy where the morality of an action is based on its adherence to rules or duties, rather than the consequences of the action.

Utilitarian Theory

A normative ethical theory that suggests that the best action is the one that maximizes utility, often defined as maximizing happiness and reducing suffering.

Deontological Theory

An ethical framework that judges the morality of an action based on its adherence to a set of rules, rather than the consequences of the action.