Answer
One set of accounting standards would enable access to comparable financial information. Companies operating in the same industry, regardless of which continent they are located, would get high-quality financial information that would result in credible investment decisions. Consequently, capital markets across the globe would benefit from the comparability. Similarly, investors would easily compare the financial performance of companies in various markets because they all comply with the same standards.
Work Step by Step
One set of accounting standards would enable access to comparable financial information. Companies operating in the same industry, regardless of which continent they are located, would get high-quality financial information that would result in credible investment decisions. Consequently, capital markets across the globe would benefit from the comparability. Similarly, investors would easily compare the financial performance of companies in various markets because they all comply with the same standards.
