Accounting Pronouncements. The Financial Accounting Standards Board has issued accounting pronouncements that affect how accounting transactions should be treated. These pronouncements may affect all companies or just specific industries, but no pronouncements have been issued that affect social media companies, like Zynga and Facebook. In the Forbes article, “Social Media’s Phony Accounting,” written by Francine McKenna, the author discusses how these new rules are being invented. Read the article and then:
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Get Help Now!a. Discuss the methods that have been invented and how management estimates can manipulate the resulting income from these transactions. Provide examples to support your opinion.
b. Should these invented rules be implemented without authoritative approval?
c. Should these new rules be labeled as Generally Accepted Accounting Principles (GAAP)?
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