CA 1-3 Verity Retail Limited is a private company experiencing cash flow difficulties. It hired new management to turn the company around. The company then went public and the shares sold at $15 per share. However, within months the share price plummeted, and Beatle Clothing Inc. acquired the company for $1 per share when Verity was close to bankruptcy. Instructions Which GAAP should the company have followed when it went public? Explain. Who were the stakeholders in this situation, and how were they affected when the share price plummeted?