In 20X4, the company came under scrutiny from the securities regulators. The government notified the securities commission of a criminal investigation into alleged accounting irregularities. In addition, there were several class-action lawsuits outstanding against the company by shareholders alleging that TI had provided misleading information to them in the financial statements for 20X2 and 20X3. Once news of this was released, credit-rating agencies significantly downgraded the ratings of TIs securities. As a result of this negative activity, the company did not release its financial statements for 20X4 and is now in breach of stock exchange requirements to file financial statements. Although the stock exchanges did not do so, they have the power to delist TIs shares

Adopt the role of controller and analyze the financial reporting issues.

What does GAAP say about this issue?

Any quantitative impact on this issue?

What is the impact to the Income statement and the balance sheet?