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conduct some research and prepare a report for her, outlining the following: i. Possible motivations for an ?earnings bath? ii. How an ?earnings bath? may

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conduct some research and prepare a report for her, outlining the following:

i. Possible motivations for an ?earnings bath?

ii. How an ?earnings bath? may be achieved

iii. Whether an ?earnings bath? has implications for a firm?s share price[RN1]

iv. Whether an ?earnings bath? has implications for the value of a firm?s stock options

image text in transcribed ACCT 1077 Financial Accounting Theory, Semester 2, 2015 WIL Report B The following assessments involve Work Integrated Learning (WIL) activities. The focus of RMIT's WIL policy is for you to 'learn by doing in context and with feedback' in realistic contexts. This assessed WIL experience makes a significant contribution to development of your work-readiness capabilities by deepening your knowledge of, and skills at, core accountancy practices concerning the practical application of contemporary financial accounting regulation in the workplace. Background Information and Reporting Task You are a junior accountant with Factional Ltd, a large, publicly-listed company operating in the high-tech sector. Factional Ltd has recently appointed a new chief Executive Officer (CEO), Mr Magnus Bouche, who is due to take up his appointment very shortly. Last night, at the invitation of a friend, you attended a prestigious charity function which, coincidentally, was also attended by Mr Bouche. At one point during the night, you found yourself standing quite close to (but unobserved by) Mr Bouche and overheard a part of his conversation with friends, including his comment that the first thing he intended to do as CEO of Factional Ltd was to \"take a bath\". You are not sure of what it means to \"take a bath\ACCT 1077 Financial Accounting Theory, Semester 2, 2015 WIL Report B The following assessments involve Work Integrated Learning (WIL) activities. The focus of RMIT's WIL policy is for you to 'learn by doing in context and with feedback' in realistic contexts. This assessed WIL experience makes a significant contribution to development of your work-readiness capabilities by deepening your knowledge of, and skills at, core accountancy practices concerning the practical application of contemporary financial accounting regulation in the workplace. Background Information and Reporting Task You are a junior accountant with Factional Ltd, a large, publicly-listed company operating in the high-tech sector. Factional Ltd has recently appointed a new chief Executive Officer (CEO), Mr Magnus Bouche, who is due to take up his appointment very shortly. Last night, at the invitation of a friend, you attended a prestigious charity function which, coincidentally, was also attended by Mr Bouche. At one point during the night, you found yourself standing quite close to (but unobserved by) Mr Bouche and overheard a part of his conversation with friends, including his comment that the first thing he intended to do as CEO of Factional Ltd was to \"take a bath\". You are not sure of what it means to \"take a bath\

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