3. (10 points) The following statements are about Embedded Value (EV) reporting and Reserve Recognition Accounting (RRA). Choose either Ture or False for each of the following statements Greater relevance requires more estimates. But, more estimates decrease reliability reliability must be traded off ( Ture / False) . Relevance and b. Whether to report embedded value is a firm's voluntary choice (Ture /False) Embedded value reporting is expected to decrease relevance of accounting information increase reliability of accounting information ( Ture / False) C. and to We discussed Serafeim, G. (2011) [Consequences and institutional determinants of unregulated corporate financial statements: Evidence from embedded value reporting. Journal of Accounting Research, 49(2), 529-571]. d. Bid-ask spread is lower for firms with high information asymmetry (Ture / False ) e. The author showed that firms adopting EV reporting (compared to firms not lower bid-ask spreads. This means that EV reporting increases relevance of accounting information (Ture adopting EV reporting) have False fIn general, RRA, which applies to oil and gas companies, aims to increase relevance of accounting information (Ture / False) g SFAS 69 requires that () RRA applies to proved reserves mandated discounted rate of 10%, (3) revenue is recognized as reserves are proved and (4) firms must use historical oil and gas prices only, (2) firms must use a for the period These requirements for RRA are intended to increase relevance of accounting information (Ture / False)