I need the complete answer for question C

Gatharpo Bhd Gasharpo Bhd is a publicly traded entity involved In the production and trading of natural gas and oil. The entity is currently struggling to maintain its previous trend in revenues and profitability due to the current economic environment. The chief financial officer, Mr Darzy, has recently become concerned about issues involving the accounting policy for revenues. He remembers discussions with the auditors about specific application of previously used criteria in recognizing revenues for Gasharpo Bhd. The auditors highlighted the requirements of MERS 15 Revenue from Contracts with Customers and the implications on the current policy on revenue in Gasharpo Bhd. Me Darzy is concerned that Gasharpo Bhd's current revenue policy may not be in compliance with the requirement of MERS 15. He is also concerned that the accounting department may engage in creative accounting or earningsmanagements due to pressure to maintain the previous trend in revenues and profitability. In addition, many employees are also aware of managements plan to do some restructuring in minimizing the overall expenditures of the entity The chief financial officer has discussed this matter with the chief accountant, Mr Belo Gasharpo Bhd's current accounting policy is to recognize revenue once a contract has been signed. Mr Darry is particularly concerned with the following contract entered into recently Gasbarpo Bhd entered into a contract on 5 January 201 to construet an oil and gas storage facility on a customer's premisesfora consideration of RM1,500,000 with a bonus of RM500,000 it can be completed within 24 months At the inception of the contract, Sasharpo Bhd is aware that the completion of the storage facility is Nighly susceptible to the supply of certain components that is outside the entity's intence However, Mr Belo insists on the recognition of the revenue at the inception date of the contract. Mr Belo also as Darty that sharpo Bhd aceste risk of not being paid by the customers He further argues that if any of the current and future contracts with their customers are not recognized, it may comnicate to the public that Gosharp Bhd is not able to maintain its previous trends in revenues and profitability, attract butter employees and meet investors analysts expectations Required (A) Discuss the possibilities of creative courting and/or coming management practices by Cashpohd Explain two maior consequences that could bellashapotearningsmanagement has been engaged by the management Discuss the mechanisms that can be applied to reduce the incidence of creative accounting and/or cannings Dractices in Gasharon Gatharpo Bhd Gasharpo Bhd is a publicly traded entity involved In the production and trading of natural gas and oil. The entity is currently struggling to maintain its previous trend in revenues and profitability due to the current economic environment. The chief financial officer, Mr Darzy, has recently become concerned about issues involving the accounting policy for revenues. He remembers discussions with the auditors about specific application of previously used criteria in recognizing revenues for Gasharpo Bhd. The auditors highlighted the requirements of MERS 15 Revenue from Contracts with Customers and the implications on the current policy on revenue in Gasharpo Bhd. Me Darzy is concerned that Gasharpo Bhd's current revenue policy may not be in compliance with the requirement of MERS 15. He is also concerned that the accounting department may engage in creative accounting or earningsmanagements due to pressure to maintain the previous trend in revenues and profitability. In addition, many employees are also aware of managements plan to do some restructuring in minimizing the overall expenditures of the entity The chief financial officer has discussed this matter with the chief accountant, Mr Belo Gasharpo Bhd's current accounting policy is to recognize revenue once a contract has been signed. Mr Darry is particularly concerned with the following contract entered into recently Gasbarpo Bhd entered into a contract on 5 January 201 to construet an oil and gas storage facility on a customer's premisesfora consideration of RM1,500,000 with a bonus of RM500,000 it can be completed within 24 months At the inception of the contract, Sasharpo Bhd is aware that the completion of the storage facility is Nighly susceptible to the supply of certain components that is outside the entity's intence However, Mr Belo insists on the recognition of the revenue at the inception date of the contract. Mr Belo also as Darty that sharpo Bhd aceste risk of not being paid by the customers He further argues that if any of the current and future contracts with their customers are not recognized, it may comnicate to the public that Gosharp Bhd is not able to maintain its previous trends in revenues and profitability, attract butter employees and meet investors analysts expectations Required (A) Discuss the possibilities of creative courting and/or coming management practices by Cashpohd Explain two maior consequences that could bellashapotearningsmanagement has been engaged by the management Discuss the mechanisms that can be applied to reduce the incidence of creative accounting and/or cannings Dractices in Gasharon