you are a accountant, your boss is unhappy with the accounting income calculated by you. he want you to increase the net income by changing the accounting methods, policies or estimates and address all issues or effect (tax, audit, Financial Reporting Standard, future profits, etc)
For eg: changing the useful life of an asset will result in lower/higher depreciation expense which in term increase/decrease the net profit.
(this is one of the example and I'm told that there are many others, so I would like to know what are the other ways.)
Thanks you for you help! =)How to increase/decrease the net income by changing the accounting methods, policies or estimated?You could capitalise expenses such as R %26amp; D or renovation costs because they would bring future benefits. This will increase revenue. Another method is to decrease provisions, e.g. the provision for doubtful debt.
