Question: Throughout the years, there have been many instances in which companies have had to restate previously issued financial statements after investigations by security regulators. Usually,

Throughout the years, there have been many instances in which companies have had to restate previously issued financial statements after investigations by security regulators. Usually, the restatements involve adjustments to reverse overstated assets or income. About half of these overstatements involve revenue recognition.
Required:
In light of this evidence, evaluate whether revenue recognition criteria should he changed to the cash basis.

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