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:

Diencephalon

An area of the brain encompassing components like the thalamus and hypothalamus, which play a role in sensory and automatic body functions.

Hindgut

Caudal or terminal part of the embryonic gut.

Cloaca

In early embryos, the endodermally lined chamber into which the hindgut and allantois empty.

Coelom

The fluid-filled cavity within the body of most multicellular animals, surrounded by a mesothelium, that houses and protects internal organs.