Read the following case and then discuss your thoughts with classmates:

An imaginary new country called Mazoa is attempting to establish a capitalistic society with free markets but maintain some discretion over price control and market regulation. Since the country is new, private enterprise is generally not controlled by the government and accounting standards do not currently exist. Leaders of the private sector and government officials are meeting in an attempt to determine the best course of action in regard to accounting standards. Some have suggested adopting international accounting standards while others want the country to develop their own standards because IFRS is not suitable for Mazoa’s fragile economy. Regardless of what step is taken, accounting standards must be developed to show the rest of the world that Mazoa has a stable economy and to encourage foreign investment.

Based on the above scenario, what type of accounting system would you recommend for Mazoa? Discuss the factors that would influence your decision.

Please respond in two or more paragraphs and cite all sources.