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Further, investors in these multinationals have trouble evaluating financial statements formed from a multitude of unusual (to the investor) accounting standards, forcing them to make less informed decisions. The benefits of a set of uniform accounting standards include greater comparability of financial information for investors, greater willingness on the part of investors to invest across borders, lower cost of capital, more efficient allocation of resources, and higher economic growth .
Drivers for Uniform Standards
1. The International Accounting Standards Board (IASB)
In 2001, the IASB was created, replacing the International Accounting Standards Committee (IASC)...
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