Umuofia is a developing Country within the sub-Saharan African Region. Two years ago, it passed legislation to bring into existence, a professional accounting body. During the same time the professional accounting body was formed, new regulations pertaining to financial reporting for entities were passed. Currently, there are no accounting standards in Umuofia. However, Umuofia’s government has tasked the new professional body to prepare a report setting out the country's options for developing and implementing a set of high-quality local accounting standards. The government request also referred to the work of the IASB and its International Financial Reporting Standards. 

Required: 

(a) As an advisor to the professional accounting body, outline THREE options open to Umuofia in the application of accounting standards for companies operating in that country.

(b) Identify FOUR advantages available to Companies in Umuofia for adopting IAS/IFRS.

(c) Identify THREE disadvantages of adopting any of the options in (a) above.

Answer rating: 100% (QA)

Generally accepted accounting principles or GAAP are standards that encompass the details complexities and legalities of business and corporate accounting The Financial Accounting Standards Board FASB ... View the full answer