Discuss how a company can use intercompany transactions to manipulate corporate earnings. Using any company, evaluate how the company has treated its intercompany transactions and whether or not you agree with this treatment. Explain (1 paragraph)
Given the difference in US GAAP and IFRS related to intercompany activities, discuss which approach provides the best information to the financial statement users. Explain your rationale. Propose an alternative to the current US GAAP and IFRS accounting regulations for intercompany activity. (1 paragraph)
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