Case Study is attached below Answer each and every highlighted question listed belowcase study "An...

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Case Study is attached below Answer each and every highlighted question listed below

case study "An Exercise in Accounting for Marketable Securities" (Lynch, XXXXXXXXXXNext, using outside sources that you may seek and your professional experience,develop and write a 3- to 4-page paper concisely answering the following questions:

(A1.1) What might the company's financial reporting objective(s) be with respect to the marketable securities?

(A1.2) What potentially constrains management from meeting the objective(s)?

(A1.3) How can management meet the objective(s) given the constraint(s)?

(A1.4) What is the process used by accountants to consider such objectives and constraints when advising management?

(A1.5) How should accountants communicate their advice to management and what should be included in that communication?

uv1132-pdf-eng-ikavb0dj.pdf

Neenisha · Accepted Answer

Developing Financial Reporting Objectives
A1.1 Company’s financial reporting objectives with respect to marketable securities
The major objectives of financial reporting is to report the business income to analyse the business performance. Financial Reporting helps the investor to analyse the performance of the company and to make informed decisions about their investments in the company. Marketable securities are the securities which are bought and sold within a year. The purpose of these marketable securities is threefold: 
· Investment purpose to earn from short term gains
· Influence the control of other company
· Controlling purpose
The company needs to report these marketable securities in order to convey the purpose of these marketable securities and the potential gains and losses made on them. The first objective is to inform the stakeholders about the losses and gains realized from these marketable securities. The second objective is to covey the purpose of the influencing the other company. The third and final objective is to convey the controlling purpose of the investment.
Therefore, the purpose of the reporting marketable securities in financial statements is to convey the purpose of the securities to inform the stakeholders about the income and business performance of the company.
A1.2 Potential constraints in meeting the objectives
Company needs to follow the requirements of reporting the financial statements and marketable securities according to the standards of GAAP. These standards mentioned in GAAP,

Case Study is attached below Answer each and every highlighted question listed below case study "An Exercise in Accounting for Marketable Securities" (Lynch, XXXXXXXXXXNext, using outside sources that...

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