RECOMMENDED!!BUSINESS 24790-Kieran Read is the CEO of Plummet Airways

  

Kieran Read is the CEO of Plummet Airways, and to provide an appropriate incentive the Board of Directors have approved a management compensation contract whereby Kieran receives a bonus of $1m for every 1 percent that the return on equity (ROE) exceeds 12% in the financial year 2016/7.Required1. Describe how this might influence the accounting policy choices Kieran makes.2. Identify one accounting policy choice Kieran might make.3. Explain how this choice would be made and why.

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