1) Using earning management concept, discuss why the timing of recognising events that impact income, revenue or profit or expen
1) Using earning management concept, discuss why the timing of recognising events that impact income, revenue or profit or expen
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The corporate disclosure practice will help all the stakeholders to understand and measure business operation. Annual financial statement and particularly income statement is one of the most important ones. However, a company's reported profits will be impacted by different factors, including when particular transactions and events are recognised and how such transactions and events are measured.
Requirement:
1) Using earning management concept, discuss why the timing of recognising events that impact
income, revenue or profit or expenses are important for managers?
"Maximum 1000 words."
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