Question: Consider the following accounting changes: Decrease in the estimated life of depreciable assets Decrease in doubtful debts as a percentage of gross receivables Recognition

Consider the following accounting changes: Decrease in the estimated life of depreciable assets Decrease in doubtful debts as

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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