Take a publicly traded company (Nestle -- see attached) that conducts business in both the U.S. and in a foreign country and discuss the challenges the company faces with respect to GAAP accounting requirement differences because they do business in a foreign country.

To understand the challenges faced by a publicly traded company like Nestle in dealing with the differences in Generally Accepted Accounting Principles (GAAP) when conducting business in a foreign country, we need to follow a step-by-step approach:

Step 1: Research the Accounting Standards in the US and the Foreign Country
Conduct research to understand the accounting standards followed by the US, which is typically governed by the Financial Accounting Standards Board (FASB), and those followed by the foreign country in question. In the case of Nestle, since it is a Swiss multinational food and beverage company, Switzerland's accounting standards will be the primary focus.

Step 2: Identify the Differences in Accounting Principles
Compare the accounting principles and standards followed by the US and the foreign country, specifically focusing on the differences in key areas such as revenue recognition, inventory valuation, depreciation, lease accounting, and financial statement presentation. The International Financial Reporting Standards (IFRS) are used in Switzerland, which may diverge from US GAAP in certain areas.

Step 3: Understand the Impact on Financial Reporting
Analyze and determine how the identified differences in accounting principles impact the company's financial reporting. Some potential areas of impact could include variations in revenue recognition timing, different approaches to cost allocation, and divergent reporting requirements for certain financial instruments.

Step 4: Evaluate Regulatory Compliance
Assess the regulatory requirements imposed by the Securities and Exchange Commission (SEC), as Nestle is publicly traded in the US. Determine the extent of compliance required with US GAAP for financial reporting purposes. This evaluation should also consider the relevant disclosure requirements for any significant differences that may exist between the US GAAP and foreign accounting standards.

Step 5: Implement Accounting Adjustments
Develop strategies for addressing the challenges posed by accounting requirement differences. This may involve performing reconciliation between the foreign accounting standards and US GAAP, making adjustments to the financial statements, or providing additional disclosures as required by regulatory authorities.

Step 6: Monitor and Update
Continuously monitor changes in both US GAAP and the foreign accounting standards to ensure that the company remains compliant with the applicable regulations. Regularly update accounting policies and procedures to reflect any changes in the accounting standards or business environment.

By following these steps, a company like Nestle can navigate the challenges presented by the differences in GAAP accounting requirements while conducting business in a foreign country. However, it is important to note that detailed analysis and expert advice from professionals in the field of accounting and finance would be necessary to address the specific challenges faced by Nestle or any other multinational company.