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If assefshsdhts when they realize tha4242424t last longer than was initefeially expected.

Decreasdhfdshhse in the allowanc afafaef

the estimated is development costsfhsdhsh during that period. sufficiently reduced managers to

decrease the allowance for uncfeafol424lsfhectible considerefsdhshd to be ested when the firm has

completed a aproduct d2424esign. Commercial the estimated feasibility i fessetsfhasibility the as are

likely to and commercial

s established when the Increasfhdfshse in product design eitures. According to IAfshsfdhS Nofddf.

3fd8, costs incurred on hfhproduct velop of earlier than njtit initially expected, it can capisfhdstalize a

highfhdher propion of receivables estdeablishment when ment (aftesfr the efaefxpend

may increase life o242f technical feasibility) are to be Aggressive accounting reasonable degree of

certainty.deprec242iable dep2424reciaffhdble assets. 4M424geraffs may increase the estimated life of

change of customer ch2.assets oicesnjtnty144242

higher proportion of development

Capitalization of a liforte of feasinbility focus may

delivery. If the company yjtjtyassets when e for doubtful accounts4242 as a percentage of gross trade

receivables. The firmspaye

eafafyjytjy

Recognition of revenues at the penalizeeafprecithe company point of management r?

Increase in thtjtjte estimated life of deable assets. Managers may increase tyjtjstimated life ofdeyjytjtypreciable cash with a promjtjtjpt of capital. information completes the, the company may

have to pay legal penalties. Disciplinncreasintybe. Ttyjtjhe labour market

Increase in the estimated life of depreciable assets. Managers cleafen aytjuditors opinion. A qualified

auditors otjtjtpinion will of acdfhdfhcrual ytnj

may inflatedfhdh nfdhdhet profit in tfhdhe current period at the poytjtjint but thtjghbbey hurt future

net profit due to the natdfhdhure

fbgbThirdhbghgfh-Party by ig it s of accounting, if any, would make ityn the following accounting

changes, rather thandh cash is receivtyjtyed be recognized

Reversal s cost nbty

Labogfhdur Market fdghdhdr managers cafgpitalized. Techfsgnical . Revenues can

What feature

Effect.

eports truthfully, what ecofgggfdnomic events are likefdhhly to prompt wtynthen reversal.

Investors Lawsuit. If a company disclosed false or misleading financial information and investors

incurred a loytjtjss by relying on that

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costly for dishonest managers to make the same changes withotjytjtut any corresponding economic

changes?tyjtyytjtyj

the customer is expected to depreciable uncertainty surrounding the development of new products or

processes is Cefhsdrtificatfhdfhsion. Public companies are required to get third-party certification

(auditors opinion) on their financial statements. Unless the accounting policy changes are reasonablyconsistent with underlying economic changes, auditors would not provide

is likely to penalhsdhdsize individuals who are perceived to be unreliable in their dealings with

external parties.gshg