(a)
Accounting Standards: For uniformity and transparency, all the companies and business entities are required to maintain their accounting records under the frame work of rules and guidelines set by the Accounting standards setting bodies in consultation with the professional accountants and the business.
To describe: The objective of financial reporting, and explain how this objective meet or not meet the needs of Incorporation Y’s investors.
(b)
To explain: The reason behind the interest of the investor in buying the shares of Incorporation Y, even its financial report shows loss continuously for last few years.
(c)
To comment: On the change in reporting information from Country C dollars to Country U dollars likely affected the readers of Incorporation Y’s financial statement.
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Financial Accounting
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