Question: The 2007 2008 meltdown of the market for asset backed
The 2007– 2008 meltdown of the market for asset- backed securities is often blamed on lax mortgage lending practices, poor risk controls by financial firms, greedy managers, and inadequate regulation. However, the meltdown also has important implications for financial accounting and reporting practice. Give two such implications and, for each one, explain why accountants should be aware of it and take it seriously (see also Section 1.3 ).
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