There are many reasons one would want to analyze the financial statements of foreign companies. The most important reasons relate to making investment decisions, portfolio investments by individuals and mutual fund managers, and acquisition investments by multinational companies. But then there exist numerous problems that an analyst might encounter in analyzing foreign financial statements. Fortunately, there are measures that a preparer company could implement in their financial reporting to reduce some of those problems leaving some other problems for the analyst him/herself to deal with on his or her own. What are the problems faced by an analyst that a preparer company can help reduce? And which problems that an analyst has to cope with as much as possible on his or her own?

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Solution Various problems can be encountered by the analysts in the analysis of the financial ... View the full answer