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The relevance of reported asset values is linked (with few exceptions like cash, held-to-maturity investments, and land) with their ultimate recognition as reported expenses. Provisions
The relevance of reported asset values is linked (with few exceptions like cash, held-to-maturity investments, and land) with their ultimate recognition as reported expenses. Provisions and liability values on the balance sheet may also affect earnings quality. Give an example of an understated asset and explain its impact upon cumulative earnings.
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