Consider the following accounting changes: Decrease in the estimated life of depreciable assets Decrease in doubtful...
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Consider the following accounting changes: Decrease in the estimated life of depreciable assets Decrease in doubtful debts as a percentage of gross receivables Recognition of revenue from gold mining from when it was extracted rather than when gold is delivered Capitalisation of a higher proportion of R&D costs 1. If management reports truthfully, what economic events are likely to prompt the above accounting changes? 2. If potential earnings management had taken place how would the above accounting changes impact the financial statements? Consider the following accounting changes: Decrease in the estimated life of depreciable assets Decrease in doubtful debts as a percentage of gross receivables Recognition of revenue from gold mining from when it was extracted rather than when gold is delivered Capitalisation of a higher proportion of R&D costs 1. If management reports truthfully, what economic events are likely to prompt the above accounting changes? 2. If potential earnings management had taken place how would the above accounting changes impact the financial statements?
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Related Book For
Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver
Posted Date:
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