1. What are the key 2 or 3 accounting issues that Kathmandu faces? Better responses will refer to the actual accounting rules that are relevant. Consider this from the perspective of the financial year ending 31 July 2020.

2. Does Kathmandu have any flexibility or discretion in the way it deals with its key accounting issues that you identified in question above? Explain why.

3. Do you think that Kathmandu has any incentives to bias its reported earnings (either upwards, or downwards, or some other way, for example, to achieve a 'smoother' pattern' of earnings).