Running head: WEEK THREE LT CAST STUDY ASSIGNMENT 1Week Three LT Cast Study AssignmentACC/497WEEK THREE LT CAST STUDY ASSIGNMENT 2Week Three LT Cast Study Assignmenta) Discuss the qualitative concept of comparability. In your opinion, would the financial statements of companies operating in one of the foreign countries listed above be comparable to a U.S. company’s financial statements? Explain.In regards to the qualitative concept of comparability, information is becoming more and more useful to companies as a whole. When individuals are able to see two separate items and or similarities and differences in an item this is referred to as comparability. Therefore, with this process financial statements become more understood with the data at hand, and the reports tend to be more dependable. For example, if a company needs to sell an industrial piece of equipment that is 10, 15, or 20 years old they might find this difficult to do because the equipment is a specialized machine and is hard to replace so the equipment value is very expensive, When users use the qualitative concept, they use to compare assets, and liabilities Although many of the countries do not have accounting systems like or similar to the United States, Australia has financial statements that have been influenced from the United States. With Australia sitting their accounting standards similar to the United States the SEC has developed guidelines and standards for their accounting process which has assisted them in achieving fair, liquid, and efficient markets. This information allows the investors to be more comparable, reliable, and transparent in this process.WEEK THREE LT CAST STUDY ASSIGNMENT 3b) Discuss the concept of reliability. In your opinion, would the amounts reported by U.S. companies for property, plant, and equipment be more or less reliable than the current cost amounts reported by companies in England, Mexico, or elsewhere?The concept of reliability as relating to financial statements means that the material presented is free from error. It means that financial statement users can depend on the information given to be accurate and fairly represent the financial information. Both arguments for how property, plant, and equipment are reported in the financial statementsfor the United States and for other countries including Australia, Brazil, England, and Mexico are valid, however I would agree more with the U.S. form of reporting. United States’ argument is that valuing the property at fair value when determined to be impairedis because as assets age they cannot be compared to current assets available for replacement. I agree with this argument because as technology improves and assets, such as machinery are continuously improved, the older assets are just no longer comparable.c) Discuss the concept of relevance. In your opinion, would the amounts reported by U.S. companies for property, plant, and equipment be more or less relevant than the current cost amounts reported by companies in England, Mexico, or elsewhere?The concept of relevance as relating to financial statements means that the information is useful to users in that it influences the economic decisions they make. In my opinion the values assigned to the property, plant, and equipment assets of U.S. companies are more relevant than those of such places as England and Mexico. I say this because of the same reasons as the arguments for this form of reporting on assets, theWEEK THREE LT CAST STUDY ASSIGNMENT 4assets cannot be compared to what is available due to technology advances and the improvements made to