a. Who are Duthil’s stakeholders and what use do they have for the financial statements?
b. What objectives of financial reporting might Duthil’s management consider when preparing the financial statements? Explain.
c. How would you recommend the objectives be ranked? Explain.
d. Prepare a report to Duthil’s management explaining how to account for the costs in curred to increase the number of subscribers. In your answer, be sure to consider your responses to (a), (b), and (c) above. Also consider whether the costs incurred should be classified as assets or expenses when incurred, and if considered assets when incurred, over what period the asset should be expensed. Explain your response.