The corporate disclosure practice will 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

The corporate disclosure practice will 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 recognized and how such transactions and events are measured. Requirement: 1) Using earning management concept, discuss why the timing of recognizing events that impact income, revenue or profit, or expenses are important for managers?

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