Financial Statement Framework for Multinational Companies, Preparation, Translation and Analytical Issues: A Critique

摘要

This study focused on critiquing the framework for financial statements of multi-national companies (MNCs), translation and analytical issues. To achieve this, some extant literature on Generally Accepted Accounting Principles (GAAPs) as well as environment factors and accounting system affecting MNCs were examined. This paper presented the issues that besiege the MNCs: issues that border on the inability to develop internationally recognized accounting standards for MNCs. Nevertheless, some reforms were made, that would allow the MNC, s users of MNCs’ financial statements and investors make informed investment and business decisions on the basis of reports that are comparable across the globe. Such reforms presented include an advocacy for a sustainable global framework and regional mutual agreements that could be reached on the basis of defined similarities in accounting systems that may exist amongst these companies, among others. Key word : Framework Environment Factor GAAP, MNCs, Financial Reporting.