In Germany there is a two-tier board structure for all the registered companies and for the ones who have more than 500 employees. Which clearly means that the supervisory board and the management board are the two different bodies of the corporation, in which the first one has the authority and duty to control and regulate the second one? Hence, the task of supervision and management are clearly demarcated by law. It is clear that German Legislation foreshadows the regulation of the United States of America (Koch, Weber, & Wustemann, 2007).
It is certainly very significant to understand that the financial statements from Multi National Organizations and the related disclosures from them are imperative for sound decision making. These financial statements and disclosures directly impact not only the economic market globally but also the wellbeing of the millions of investors who trust and depend their financial current situation and the future on these companies. Thus the quality of information certainly gears and dictates the trends taken by the global financial markets. And this quality is dependent upon the standards followed by the managers in the company operations (Pacter, 2011). Thus we understand that the topic that has been taken by the authors is certainly untouched but at the same time very grave for the economic health of the world and irrespective of its some drawbacks it gives a wonderful insight and understanding of the need and current scenario in consistent accounting methods.