Question: As a result of the recent mortgage crisis, many banks reported record losses to their mortgage receivables and other assets based on the decline in

As a result of the recent mortgage crisis, many banks reported record losses to their mortgage receivables and other assets based on the decline in these assets’ fair values.

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1. What would the effect be to if such losses were not reported in a timely way?
2. If a business chooses not to report these losses, is there an ethical issue involved? Who is hurt?

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