Abstract This paper discusses ethical financial reporting and what organizations are involved in monitoring and regulating financial statements of public companies. This paper reports that in the United States, these rules are called Generally Accepted Accounting Principles (GAAP). Although they are not laws, the Securities and Exchange Commission requires public companies to follow them. The Financial Accounting Standards Board is the most important organization in setting Generally Accepted Accounting Principles. Although not part of GAAP, Statements of Financial Accounting Concepts provide the basis for Statements of Financial Accountant Standards, which are the most important GAAP-establishing publications.
From the Paper "The framework for corporate financial management has changed significantly over the past few decades as more corporations move away from a checks and balances systems towards more of a juggling act. Recent ethical scandals including the Bre-X, Enron, and Worldcom debacles, has translated into increased scrutiny of corporate financial reporting. Some financial analysts argue that a company's ethical standards affects profitability, and those businesses that demonstrate unethical behaviour will suffer from decreased market share and profit potential, as well as increased government regulation. Increased competition between businesses has forced corporate finance managers to juggle more than one set of balance sheets depending on whether the reporting is going to the Internal Revenue Service (IRS) or shareholders."
Abstract This paper presents a financial analysis of General Motors financial statements as found in its annual financial statement (10-K) release to its shareholders and the general public. This analysis includes liquidity ratios, inventory ratios, asset ratios, equity ratios, and a host of other typical financial analysis tools. A brief overview of General Motors' current industry position introduces the analysis.
From the Paper "General Motors Corporation sells automobiles and other related parts and equipment, operates a diverse portfolio of business operations. In fact, it is as much of a finance company as it is a vehicle manufacturer. The most recent annual 10-K filing is for the 2004 financial year providing the relevant data regarding income on operations, net income for the most recent years, as well as a host of other financial related information necessary to complete a financial analysis of the company. The 10-K also contains relevant auditor, internal and external data, as well as the personal signoff of the executive officers committing to the validity of the financial reports forcing them to take a vested interest in the validity of the company's numbers. This last is required by the Sarbaanes-Oxley Act of 2001."
Abstract This paper answers in detail several questions relating to the financial audit committee as well as to a fictional audit of a given company. The paper examines several accounting and reporting practices on the part of the fictional company in relation to their income statements and balance sheets. The conclusion is that the company is considerably lax in its reporting standards.
Abstract In this paper, the writer shows that the problems that weigh against students loans is greatly outdone by the positive affects of allowing an unfortunate student to attend college. The writer discusses that financial aid, in this manner, is by far the most important aspect of allowing a student to better him or herself, through a no money down student loan to pay for tuition and other costs. The writer notes that a student may be left with a large debt after college, due to failure to finish or succeed at their education. The writer concludes that in this manner, a student loan is a form of financial aid that allows poor or monetarily troubled students to gain the same education.
Outline:
Introduction
Financial Aid Benefits
Background History of Student Loans
Student Loan's Get the Underprivileged Student into School
Problems with Student Loans and Debt
Conclusion
From the Paper "This argumentative essay persuades the reader to realize how financial aid for students is a positive and supportive financial solution to attend college. In this regard, the student who is unable to afford college tuition can get a student loan, which allows them to gain the education they need for a good job. Although, the debt from loans can be burdensome after college in some cases, the ability through an education to find a job nullifies the inability to the debt accrued."
Abstract This paper considers the relatively new costing model called activity-based costing, developed in the 1980s and then refined through use by various organizations since. This approach is designed to focus attention on the causes behind indirect costs. The ABC system is directed largely at the issue of allocation, placing an emphasis on activities rather than traditional organizational departments as a way of isolating the causes of costs, or the factors that are most likely to cause or contribute to the accumulation of costs.
From the Paper "Activity Based Costing (ABC) was developed in the 1980s and has been refined through use by various organizations since. This approach is designed to focus attention on the causes behind indirect costs. The ABC system is directed largely at the issue of allocation, placing an emphasis on activities rather than traditional organizational departments as a way of isolating the causes of costs, or the factors that are most likely to cause or contribute to the accumulation of costs (Lewis, 1993, 12). The elements of this system can be applied to the working of a given business to help identify what may be driving costs upward. ABC can also be described as "a costing model that identifies the cost pools, or activity centers, in an organization and assigns costs to products and services (cost drivers) based on the number of events or transactions involved in the process of providing a product or..."
Abstract This paper discusses Cendant's failure to complete a thorough due diligence procedure during its merger with CUC in 1998. This merger resulted in severe losses for Cendant's shareholders because CUC was, shortly after the merger was completed, found to be involved in accounting and financial scandals that cost Cendant over $2 billion to settle without accepting fault or blame. The paper observes that the problem is two fold with one aspect being a management problem and the other being an ethical problem.
From the Paper " As CEO, Silverman completely failed in his fiduciary capacity to ensure that proper procedures were followed in the CUC merger. On the ethical side, Silverman's massive accumulation of wealth from 1998 to 2003 coincided with the severe decline of the company's stock price and the subsequent loss of value for its shareholders."
Abstract This paper discusses how the open market operations of the Federal Reserve affects money supply and interest rates. The writer notes that such operations are called open market operations because they involve the buying and selling of government debt instruments on the open market. Further, the writer points out that the purpose of such sales is to influence the size of the money supply and the levels of interest rates.
From the Paper "The Federal Reserve conducts open market operations that involve the purchase and sale of government bonds and has done so for decades. First, this raises the question of the purpose of such operations, aside from the method. Such operations are called "open market operations" because they involve the buying and selling of government debt instruments on the open market. The purpose of such sales is to influence the size of the money supply and the levels of interest rates. The reason this works is that when the Fed buys U.S. government securities, payment is by check drawn on the Fed's own account with itself. The sellers of the securities deposit these checks in their own accounts at the Federal Reserve Bank. This gives the private banks extra reserves they may use to extend additional loans to customers, and this expands the money supply and helps lower interest rates. "
Abstract In this essay, the writer reviews the case of Enron and the financial scandal which rocked the financial management and accounting communities when the company fell. The role that accounting played in the debacle is highlighted and some suggestions for fixing accounting problems are made. Ultimately, in this article it is suggested that an accounting system is only as good as its enforcement.
From the Paper "In the wake of the Enron financial scandals in 2001 and 2002, one of the world's largest companies declared bankruptcy due to accounting irregularities and the company's accounting firm, the well-known and respected firm of Arthur Andersen, disintegrated following public debates about accountability and transparency in financial management. Ultimately, accounting practices in the U.S. received a large part of the blame for the problem arising in the first place, even with the public acknowledgement of executive corruption and corporate fraud that drove the Enron collapse. The reverberations were felt throughout the world of financial management and accountancy, as the practice and oversight of accounting became a topic of intense interest in the business community and the policy arenas where business is regulated."
Briefly looks at the differences between auditing for a non profit organization and auditing for a business and then focusses on the auditing process for a non profit organization.
2,025 words (approx. 8.1 pages), 4 sources, 2006, $ 80.95
Abstract The accounting function is central to the conduct of business for profit-making organizations and non-profit organizations alike, though clearly with a different focus for each. In both cases, the purpose of accounting is to compare the money coming in and the money going out and to do so following clear accounting rules set down by the profession and by legislators. This paper discusses auditing and the non profit organization.
Abstract This paper reviews the case of O'Reilly Associates, an ad agency -- in order to determine whether it should retain a seemingly unprofitable account: T&D International. The brief paper reviews the problem, the nature of the service provided, the alternatives available to management to being the account in line with profitability, and the specific facts. It is concluded that the account should be terminated.
From the Paper "Following the findings of a recent profit audit, it has come the attention of the management of O'Reilly Associates that the company's relationship with a long-term business client, T&D International, may not be a profitable one for the advertising agency. In fact, in an income statement dated 12/31/89, it is clear that the agency has lost $72,000 in the previous calendar year, on an account in which commissions and fees to the agency were only $154,000."
Abstract This document discusses a series of descriptive statistics questions. These range from the four types of errors related to measurement as well as response and non-response related errors. Finally, the paper makes several statistical calculations in order to establish the efficacy and practicality of descriptive statistics. Specifically, these problems rectify issues of accuracy and estimation.
From the Paper "The four major sources of measurement error are respondent, situation, measurer, and instrument. Respondent errors might occur through respondent misinterpretation of a given question or, in the case of a written survey or questionnaire, actual response error (Lomax, 2001, pp.29-31). A situational error would occur when, for example, a political survey for a given district was being taken in another district. Measurer originated errors can occur in several ways from construction and design of the actual study to poor selection of participants as well as misinterpretation of study results or actual errors in compilation of results. Instrument, such as surveys or questionnaires, often occur because they question or respond to something other than what is being tested or researched. "
Abstract The paper relates that money has present and future values as demonstrated in a sequence of equal payments made at equal periods, which is called annuity. The author points out that the present value of an ordinary annuity is its value at the beginning of the term, the value of one period before the first payment or the sum of discounted payments at the beginning of the term. The paper relates that future and present value analysis is a method of comparing the value received or expected to be received at different time periods.
Table of Contents
Effects of Annuities on PVM Problems and Investment Outcomes
Interest Rates and Compounding
PV (Future Payments Received)
FV (Investment)
Opportunity Cost (Amortization and the Rule of 72
From the Paper "Generally, interest is specified in terms of a percentage rate for a period of time, usually a year. For example, interest at 10% means an annual cost of borrowing an amount of money, called the principal, is equal to 10% of that amount. The interest rate and the time period are assumed to be stated in common units. If $100 is borrowed at 10% annual interest, the total to be repaid is $110 - the amount of the principal, $100, and the interest for a year, $10 ($100x.10x1), using the simple interest formula i=prt where i=interest, p=principal, r=rate and t=time. "
Abstract This paper explains that, given the Sarbanes-Oxley Act of 2002, in January, 2003, the FASB issued Interpretation Brief No. 46, Consolidation of Variable Interest Entities, which provides guidance to CPAs and financial professionals in the consolidation of variable interest entities (VIE). The author points out that the article's main points define how to choose if a VIE should be consolidated into a given firm's financial statements, provide the definition of primary beneficiaries of a VIE as well as provide guidance on how to account for a joint venture's creation of a VIE as in the case of Dell Financial Services and CTI Group. The paper states that the complexities of consolidating VIEs will increase significantly over time as joint ventures, mergers and acquisitions become the fuel of industry consolidations in manufacturing specifically.
Table of Contents:
Article Summary
Conclusion
From the Paper "The author states the example of Dell Financial Services (DFS) and CIT Group (CIT), and the assignment of VIE consolidation to the former due to their role in the joint venture of assuming liability for losses. CIT acts as the financial intermediary that enables transactions between DFS and customers acquiring Dell products and services. Dell owns a 70% stake in CIT and had invested as of January 31, 2003 a total of $35M in its operations. The joint venture is structured such that losses generated by DFS are fully allocated to CIT, while network incomes are allocated 70% to Dell and 30% to CIT."
Abstract The paper discusses the Enron scandal from a mainly financial standpoint and deals with what the Arthur Anderson accounting firm did wrong and the consequences that came from their accounting errors. The paper looks at the concept of business ethics that is still unclear to many companies and employees and shows how companies must learn from the mistakes of Enron and have a sound policy in place. The paper also examines the responsibility businesses have for society and the lack of Enron's social responsibility.
From the Paper "Business ethics do not require understanding from a managerial standpoint only. Employees should be aware of what business ethics really mean, and what the ethical rules of their company are. Most employees would agree that it is wrong to steal money from the company they work for. However, those same employees would think nothing of taking home a pen they stuck in their shirt pocket, or a notepad they took with them when they went out to talk to a client. While small items such as pens and notepads may seem very insignificant, even small items are part of the ethical dilemmas that face companies today."
Abstract In this article, the writer explains that the Certified Public Accountant (CPA) statutory title is conferred on accountants qualified by passing the Uniform Certified Public Accountant Examination. The writer points out that the Generally Accepted Auditing Standards (GAAS) are a set of ten auditing standards developed in 1947 by the American Institute of Certified Public Accountants (AICPA), referring to general standards, standards of field work and standards of reporting. The writer discusses that the general auditing standards state that the person or persons performing the audit must have adequate technical training and proficiency as an auditor. In addition, the writer notes that the auditor must keep at all times an independent mental attitude; and finally, professional care must be exercised when planning and performing the audit and when preparing the report.
From the Paper "Other requirements needed to be fulfilled for a license as a CPA are stated in Section 7404, Article 149, Title 8 of New York's Education Law: in the first place, an application must be filed with the department; then, after the candidate's education and experience have been found satisfactory, a written examination must be passed; also, the fees issue must not be forgotten, as a two hundred twenty dollars fee must be paid to the department for admission to a department conducted examination and a one hundred fifteen dollars fee for each reexamination for an initial license, and also a two hundred ten dollars fee for each triennial registration period."
