Many accountants believe that generally accepted accounting principles in the United States, especially those developed by the Financial Accounting Standards Board, are superior to International Accounting Standards or to the accounting standards of other countries. In their view, foreign enterprises wanting to have their securities traded on U.S. stock exchanges should prepare financial reports that comply with U.S. accounting standards. However, the U.S. Securities and Exchange Commission is a member of the International Organization of Securities Commissions (IOSCO), which has considered the possibility of allowing foreign enterprises to prepare financial reports that incorporate International Accounting Standards in requesting permission to have their securities traded in any country.

Instructions

Do you support or oppose the SEC’s participation in the work of the IOSCO? Should or should not foreign enterprises meet financial reporting standards applicable to U.S. enterprises if the foreign enterprises want their securities to be traded on U.S. stock exchanges? Explain.