Identify the effectsof governmentregulationsand accrual accounting on financial statements.

Step 1Considerthe following.

Government regulations are constantly changing with regards to the environment. There are many fines assessed for pollution and damaging the environment. More states are imposing laws holding companies responsible, and as more courts levy pollution-related fines, it becomes increasingly likely that companies will have to pay large amounts in the future.Also, many companies have potential pollution or environmental-disposal problems. These problems are not only for electronic gadgets, but also for the lead paint or asbestos they sold.

Step 2

Post and respond to the following and, if appropriate, include personal experience as part of your answers.

Should any of these future expenses be accrued? Are there liabilities that companies should report on their financial statement now?