Question

Believing it will make it easier for investors to compare firms across countries and make it easier to raise capital globally, most large accounting firms and multinational firms favor the switch from GAAP to IFRS.

True / False.

Answer 1

True

Step-by-step explanation:

Generally Acceptable Accounting Principles (GAAP) is only applicable in the United States of America whereas International Financial Reporting Standards (IFRS) has been adopted by most countries on the globe. This makes Report prepared on IFRS more comparable and make it easier to raise capital globally.