Management of a cellular phone company learns that a new technological advance will occur within the next

Question:

Management of a cellular phone company learns that a new technological advance will occur within the next year that will make the company’s current phones and related products obsolete. As a result, there is a strong chance that the company will close. When appear for auditors, management does not reveal its knowledge of the new technology. In this case, what accounting concepts are involved?
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...