Question: In its 2003 annual report, Honda Motor Company Ltd. states: Honda's manufacturing operations are principally conducted in 25 separate factories, 5 of which are located in Japan. Principal overseas manufacturing factories are located in the United States of America, Canada, The United Kingdom, France, Italy, Spain, India, Pakistan, the Philippines, Thailand, Vietnam, Brazil, and Mexico. The company and its domestic subsidiaries maintain their books of account in conformity with financial accounting standards of Japan, and its foreign subsidiaries generally maintain their books of account in conformity with those of the countries of their domicile. The consolidated financial statements presented herein have been prepared in a manner and reflect the adjustments which are necessary to conform them with accounting principles generally accepted in the United States of America.
Required: Discuss the possible reasons for Honda to prepare its consolidated financial statements in conformity with U.S. GAAP.