What would be an advantage of having all countries adopt and follow the same accounting standards? A) Agreement

We know that accounting standards are set of principles which provides guidance on preparation of financial statements. Every country have its own authority which issues accounting standards and all businesses are required to comply with them.

These are called local GAAP.

However local GAAP have some limitations and different GAAPs for different countries make consolidation of financial statements difficult.

Now a days when corporation are not limited to geographic boundaries, it is necessary that the financial statements are prepared in such a way that they can be easily compared, consolidated and provide similar disclosures.

This can be achieved if all counties follow the same accounting standards.

The benefits would include comparability and lower preparation costs as if there would be single accounting standards then the company would require less investment in resources used for preparation of financial statements.

Hence the correct answer is (D) Comparability and lower preparation costs.