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urgently required Draw Erase QUESTION ELEVEN (2+4-6 marks) Australian Financial Review 7 May 2020 Crown wants to report most expenses incurred after March 23 -
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Draw Erase QUESTION ELEVEN (2+4-6 marks) Australian Financial Review 7 May 2020 Crown wants to report most expenses incurred after March 23 - the day it ceased gaming, food and beverage, conference facilities and the like - below the line at its upcoming result for the 2020 financial year In doing so, it says costs incurred running its main businesses Crown Melbourne, Crown Perth, Crown Aspinalls, head office and all equity accounted results during the lockdown should be treated as significant items and not count against the company. EY partner Michael Collins will be asked to sign off on the treatment as part of his team's year-end audit. A) Give two potential motivations for why Crown, an Australian Casino company, wants to report most expenses incurred after March 23 "below the line" (2 marks) B) Will whether Crown reports most expenses incurred after March 23 "below the line" or "above the line" affect the share markets valuation of Crown? Why or why not? ( 4 marks)Step by Step Solution
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