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FASB Project related to global reporting financial standards

What is the issue of the project and why is it currently relevant. What action has been taken to date and what are the next steps going to be? What potential challenges are faced by the FASB?

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The globalization of business has been highly effective in making use of regional resources and expertise to minimize costs while enhancing profits. On the marketing side, globalization has provided extended consumer markets for products and services. While it is true that some economies are better providers of resources and others are better consumers, it is noteworthy that there is enough diversity in world markets to accommodate both in efficient business transactions.

This is nothing new, but the extent of cross-cultural business activities has grown immensely in recent decades. The formation of the EU probably centered on minimizing trading barriers for member nations. The standardization of the currency was only one of the consequences of forming a trading bloc of countries. The world of business has come a long ways towards figuring out the logistics and the financing of global ...

Solution Summary

The solution briefly discusses how the situation of international reporting standards arose, and the necessity to consolidate reporting on a similar basis for international business.