Assume there is a large firm operating in the telecommunications sector. For many years now, this firm has reported very large earnings in its income statement, which has not gone unnoticed. In particular, the media has been very quick to criticise the level of the firms reported earnings. However, in the current year, the firm reports a significantly lower earnings than previous years.

Required

Referring to your lecture notes, discuss a hypothesis (or an argument) that you are familiar with on the theory of accounting choices that could explain this situation.

(The andwer alreadh avaialble on chegg is wrong. so please dont copy that. thanks)