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)use GAAP for all reporting and calculations.
B)restate the results of all operations in the currency of the home country.
C)restate the results of operations using the cash basis method of accounting.
D)All of these answers are correct.

Question

Quizplus · Accepted Answer

Restating the results of operations in the currency of the home country will adjust for any differences in exchange rates and provide a comparable basis for historical-cost based ROIs. Using GAAP for reporting and calculations is important but may not address the issue of currency differences, and using cash basis accounting may not provide as accurate a representation of the company's financial performance.

If a Company Is a Multinational Company with Operations in Several