‘If markets are to function properly and capital is to be allocated efficiently, investors require transparency and must have confidence that financial information accurately reflects economic performanee. Investors should be able to make comparisons among companies in order to make rational investment decisions. In a rapidly globalising world, it only makes sense that the same economic transactions are accounted for in the same manner across various jurisdictions’ (from a statement by Paul Volcker, former chairman of the US Federal Reserve Board and former chairman of the IASC Foundation, before the Capital Markets, Insurance and Government Sponsored Enterprises Subcommittee of the US House of Representatives in Washington, 7 June 2001). 

Do you agree? Explain why.