Read Accounting Headline 7.12 , which discusses the accounting practices used at the Australian company Harris Scarfe.

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Read Accounting Headline 7.12

, which discusses the accounting practices used at the Australian company Harris Scarfe. It has been shown that Harris Scarfe reported results that inappropriately overstated its assets and understated its liabilities. Discuss whether this is consistent with the opportunistic perspective provided by PAT and explain from a contracting perspective why an organisation might want to overstate its assets and understate its liabilities.

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Financial Accounting Theory

ISBN: 9780071013147

4th Edition

Authors: Craig Deegan, H. Bierman

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