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1. Read ASU (Accounting Standard Update) 2014-08.2. Summarize key points of this update. (30 points)3. Why did FASB issue this update? (20 points)4. What is the likely effect of this update on the frequency of reporting discontinued operations? (10 points)5. What are the expected benefits of this update for financial statement preparers? (10 points)6. Refer to earnings quality section (p.177) of Chapter 4 of the textbook. How does the textbook define earnings quality? How would you think this update affect earnings quality of income from continuing operations and bottom line net income? (30 points)
(1) No more than double-spaced 5 pages (1′′ margin for all sides) excluding cover page, appendix and reference list(2) Clearly write last name, first name and ID on cover page(3) 12-point Time New Roman(4) If you need to provide additional analyses or insights that are not relevant to the essay questions above, provide them in the appendix.(5) You should refer to and/or read other relevant materials and list them in the reference list following your essay
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