In 2010 LinkedIn reported trade payable obligations totaling $10.8 million in other accrued expenses within accrued liabilities instead of accounts payable. In 2011, note 2 in the 10-K financial statements described the use of accrued liabilities instead of accounts payable as a classification. Do you believe LinkedIn’s accounting qualifies as a financial shenanigan? Why or why not?
Answer to relevant QuestionsComment on the statement that what a company’s income statement reveals is interesting but what it conceals is vital.Explain how the use of available-for-sale securities can lead to managed earnings.1. Auditors are required to assess fraud risks as part of their ethical and professional responsibilities. What characteristics of Nortel might have caused it to be identified as a high-risk audit? Use the fraud triangle in ...1. A variety of definitions of earnings management are given in this chapter. Discuss the accounting techniques used by North Face by evaluating whether and why earnings management exist educing the definitions provided by: ...Critics of the IFRS argue that the more principles-based IFRS is not as precise and therefore is easier to manipulate than the more rules-based U.S. GAAP. The reason being is that IFRS requires more professional judgment ...
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