Multinational corporations do not have the responsibility or the incentive to follow international accounting standards as there still is no particular set of global standards that are generally accepted worldwide.

Question

Quizplus · Accepted Answer

This statement is incorrect. Multinational corporations have the responsibility to follow international accounting standards, as many countries require adherence to these standards for financial reporting. Additionally, multinational corporations often have a strong incentive to follow these standards in order to maintain the trust of stakeholders and attract investors. While there may not be a completely universal set of accounting standards, many multinational corporations follow the standards set by the International Accounting Standards Board (IASB).

Multinational Corporations Do Not Have the Responsibility or the Incentive