In its 2003 annual report, Honda Motor Company LTD states (p. 59) that its manufacturing operations are

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In its 2003 annual report, Honda Motor Company LTD states (p. 59) that its manufacturing operations are principally conducted in 25 separate factories, including 5 in Japan; the Japanese factories maintain their books of account in conformity with financial accounting standards in Japan, while the subsidiaries in foreign countries generally maintain their books of account in conformity with accounting standards in the countries of their domicile; and the consolidated financial statements have been prepared in conformity with the accounting principals generally accepted in the U.S. 


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Discuss the possible reasons for Honda to prepare its consolidated financial statements in conformity with U.S. GAAP.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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International Accounting

ISBN: 978-1260466539

5th edition

Authors: Timothy Doupnik, Mark Finn, Giorgio Gotti, Hector Perera

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