Managers must make decisions with respect to the financial reporting necessary to apply accounting standards. Consider the article “Halliburton: Accounting for Cost Overruns and Recoveries” (Tayan & McNichols, 2007). Next, using outside sources that you may seek and your professional experience, develop and write a 3- to 4-page paper concisely answering the following questions:
(A5.1) What is Halliburton management trying to achieve through decisions with respect to financial reporting for long-term projects?
(A5.2) What accounting standards must Halliburton consider when making its decisions?
(A5.3) Did Halliburton management meet its financial reporting objectives?
(A5.4) What knowledge, estimates, or assumptions did Halliburton accountants (and management) use in making decisions? Were their decisions appropriate?
Refer to The Research Process page in the left navigation bar to guide your research for this Application. Be sure to support your work with specific citations from this week’s Learning Resources and any additional resources.