Discussion Post (2)- Agree/Disgree - Why/Why Not

Cultures that differ from our own have different kinds of accounting standards. The financial reporting standards of a different country, like the United Kingdom for example, end up using different standards than we do. "Two types of use of non-national standards in the consolidated accounts presented to the public are considered: adoption of “international” standards instead of national standards, and supplementary use where “international” standards are used in conjunction with national standards. “International” standards are defined as US GAAP or IAS (now IFRS)" (Tarca, 2004). A study done by Tarca tested whether there was a preference for either one of the standards. The study examined the reporting practices of the United Kingdom, France, Germany, Japan, and Australia. The study concluded that "companies using “international” standards are likely to be larger, have more foreign revenue and to be listed on one or more foreign stock exchanges. US GAAP is the predominant choice, but IAS are used by many firms in Germany and some in Japan. Firms listed in the United States' regulated markets (NYSE and NASDAQ) are more likely to choose US GAAP, but companies traded in the OTC market often select IAS" (Tarca, 2004).

***I NEED YOU TO RESPOND TO THIS DISCUSSION BOARD POST IN ONE PARAGRAPH. JUST GIVE YOU'RE OPINION WETHER YOU AGREE/DISAGREE AND WHY OR WHY NOT.