Problem
The directors of multi-national companies are confused over the financial reporting requirements as they see a variety of local GAAPs and reporting practices including the preparation of reconciliations to alternative local GAAPs (Generally Accepted Accounting Practice) such as that of the United States of America, the United Kingdom and the use of the accounting standards of the International Accounting Standards Board (IASB).
Task
Explain a report suitable for presentation to the directors on the variety of local accounting standards, financial reporting standards (FRSs) and reporting practices currently in use by multi-national companies, setting out brief possible reasons why the companies might prepare their financial statements utilising a particular reporting standard.