If a Company Is a Multinational Company with Operations in Several

question 139

Multiple Choice

If a company is a multinational company with operations in several different countries, one way to achieve comparability of historical-cost based ROIs for facilities in different countries is to

• A)restate the results of operations using the cash basis method of accounting.
• B)use ASPE/IFRS for all reporting and calculations.
• C)restate the results of all operations in dollars.
• D)identify the rate of inflation in the most inflationary division and restate the other divisions' results using that rate.
• E)do nothing, the ROIs are comparable without adjustments.

---

Definitions:

Trade Restrictions

Trade restrictions are governmental policies or regulations that limit international trade, including tariffs, quotas, and non-tariff barriers, with the aim of protecting domestic industries.

World Price

The international market price of a good or service, determined through the global supply and demand forces.

World Demand

The total demand for goods and services from all countries around the globe.

World Supply

The total amount of a particular good or service that is available to consumers globally.