Accounting Theory 4 - 1063 Words

Fair value or false accounting 1. How are assets and liabilities measured under IAS 39? Answer: According to IAS 39, Financial Instruments: Recognition and Measurement, financial instrument are to be stated at their ‘fair value’- defined as ‘the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction’. ‘If the market for a financial instrument is not active, an entity establishes a fair value by using valuation technique†¦.(including) discounted cashflow analysis and option pricing models,’ says IAS 39. ‘A gain or loss on a financial asset or financial liability classified as at fair value through profit or loss shall be recognized†¦show more content†¦This assumes that it has some liquidity and market value (some use and value to someone else) and that it trades in a reasonably efficient market. Otherwise, the asset is not an investment, but merely a possession, which may bring great happiness but will not serve as a store of wealth. Assets may be used to store wealth, create income, and reduce future expenses. Assets Store Wealth If the asset is worth more when it is resold than it was when it was bought, then you have earned a capital gaincapital gainWealth created when an asset is sold for more than the original investment.: the investment has not only stored wealth but also increased it. Assets Create Income Some assets not only store wealth but also create income. For example, an investment in a share of stock stores wealth and also perhaps creates dividend income. A deposit in a savings account stores wealth and creates interest income. Some investors care more about increasing asset value than about income. For example, an investment in a share of corporate stock may produce a dividend, which is a share of the corporation’s profit, or the company may keep all its profit rather than pay dividends to shareholders. Reinvesting that profit in the company may help the company to increase in value. If the company increases in value, the stock increases in value, increasing investors’ wealth. Further, increases in wealth through capital gains are taxedShow MoreRelatedFinancial Accounting Theory, Chapter 4 Answers Essay1146 Words   |  5 PagesAssignment 4-2: Week 4 Analysis Write-Up Kylie Keener ACCT715-Q1WW Financial Accounting Theory Michael Miller 13 June 2012 1. Chapter 4:  Problem 8 (GM) The article â€Å"GM to Take Charge of $20.8-Billion† here reproduced from The Globe and Mail (February 2, 1993) describes the potential impact of SFAS 106, â€Å"Accounting for Postretirement Benefits Other Than Pensions,† on General Motors and Ford. For example, it appears that General Motors will be required to record a liability of $20.8 billionRead More3101AFE Seminar Questions from Seminars 1 6 Sem 1 20151558 Words   |  7 Pagesï » ¿3101AFE Accounting Theory and Practice Seminar Questions for Seminars 1- 6: Semester 1 2015 SEMINAR 1 - Semester 1 2015 Deegan Topic 1: Introduction to financial accounting theory QUESTION 1 – Question 1.2: If you developed a theory to explain how a person’s cultural background influences how they prepare financial statements, would you have developed a positive theory or a normative theory? QUESTION 2 - Question 1.3: What is a conceptual framework, and would it be considered to be a positiveRead MoreAgency Theory and Accounting Choice1142 Words   |  5 Pages CHAPTER ONE INTRODUCTION 1.1 BACKGROUND TO THE STUDY This study analyses the effect of the agency theory and accounting choice usually been made by managers of Nigeria listed companies. It (agency theory and accounting choice) can be demonstrated in the modern day companies where management is usually separated from the ownership of business. The professional managers are supposed to make decisions and take actions that are consistent with the objective of maximising shareholders wealth. But thisRead MoreFinancial Management1486 Words   |  6 Pagesof Contents Introduction 2 Summary of the Article 2 Overview of Positive Accounting 2 Research Question 3 Theoretical Framework: 3 The Significance and Limitations of the Article: 4 Findings of Article 4 Conclusions 5 Bibliography 5 References 6 Introduction The main purpose of this report is to focus the positive accounting theory â€Å"Towards a Positive Theory of the Determination of Accounting Standards† and written by (Watts Zimmerman, 1978) Ross L. Watts and JeroldRead MorePSYC310 Portfolio Project Rollins Essay1575 Words   |  7 Pagesï » ¿ A Psychological Approach to Working in the Accounting Field Sarah Rollins Bryant and Stratton College PSYC310: Organizational Psychology Professor Achim June 18, 2014 The United States Census Report from 1870 indicated â€Å"the occupations of females, an analysis of the numbers reported†¦ shows a curious, though probably not significant, rate of progression† (Walker, 1870, para. 7). Little did the United States Government realize that less than a century later women in the workforce wouldRead MoreAcc 541 Accounting Standards Board Paper1116 Words   |  5 PagesAccounting Standards Boards Leslie Brian ACC/541 November 14, 2011 Delphine Agnor Wolsker Accounting Standards Boards The field of accounting is constantly evolving. This is true not only for the theory of accounting itself but also the entities that govern its theory and practice. Presently, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are faced with some of the biggest challenges to date. To understand the significanceRead More7101AFE Financial Accounting Theory And Practice Essay970 Words   |  4 Pagesï » ¿7101AFE Financial Accounting Theory and Practice Tutorial Questions for Tutorials 1- 6: Semester 1 2015 TUTORIAL 1 - Semester 1 2015 Deegan Topic 1: Introduction to financial accounting theory QUESTION 1 – Question 1.2: If you developed a theory to explain how a person’s cultural background influences how they prepare financial statements, would you have developed a positive theory or a normative theory? The first of all, it is important to understand the mean by a ‘theory’. According to ContemporaryRead MoreResearch on the Influence of Informatization1698 Words   |  7 PagesRunning head: RESEARCH ON THE INFLUENCE OF INFORMATIZATION 1 Research on The Influence of Informatization On The Accounting Theories and Practices and Real-time Control in China Yang Lu Fairleigh Dickinson University RESEARCH ON THE INFLUENCE OF INFORMATIZATION 2 Abstract The 21st century is an information age of rapid development and the computer is more and more widely used in everyRead MoreMeasurement Approach to Decision Usefulness1497 Words   |  6 Pagesincorporate CURRENT VALUE ACCOUNTING directly in to the F/S Provided â€Å"reasonable (37) reliability† iv. v. a. b. As part of an â€Å"increased obligation† of the accounting profession â€Å"To assist investors to predict future performance and value† Performance = N.I. Value = share price vi. Via a â€Å"more informative information system† †¢ QUALIFIERS i. ii. (185) â€Å"Beta is the only relevant risk measure according to the CAPM† â€Å"there is evidence that accounting variables †¦ do a betterRead MoreManagerial Accounting Hilton Quiz1 Answers1526 Words   |  7 Pagesmanagement team. | | | D) | The activities performed by the management accountant are administrative in nature and typically do not add value to the company. | | | E) | A and D are both true. | | | | | | Feedback: The role of managerial accounting is very different now than it was even a decade ago. In the past, managerial accountants operated in a strictly staff capacity, usually physically separated from the managers for whom they provided reports and information. Nowadays, managerial accountants

Public Speaking Informative Essay - 1212 Words

Specific Purpose Statement: To inform my audience about how the Dutch go about in dealing with their social problem Central Idea: When it comes to dealing with its social problems the Dutch do so with an attitude of tolerance and respect Introduction: I. Imagine the reaction if George Bush announced tomorrow that he was planning to legalize prostitution, marijuana, gay marriages and Euthanasia there probably would be uproar. II. People would say hed lost his mind, arguing that his plans would be nothing but a recipe for disaster possibly resulting in social anarchy. III. Yet there is a country that not only practices these policies, but also has had huge success in doing so. A. This Country is Holland and like any†¦show more content†¦/ol D. Also the countrys Municipal Health Services run free clinics where both women and clients can go get an anonymous checkup. (Transition: This tolerant, pragmatic attitude towards prostitution is prevalent in how the Dutch deal with all its social problems) I. Take Pot for example II. Im sure many of you have heard all about Hollands many coffee shops A. But for those who know nothing about them. These coffee shops are places where people Can openly and legally purchase Marijuana. ol li value=1 They began about in the mid 70s but only really took off ten years ago, prompted by the idea that places selling marijuana and hash would help keep young people away from hard drugs. li value=2 By getting it from these places, they are not exposed to sellers who peddle hard drugs. /ol B. There are a total of 1,000 throughout the country. The government limits the number of licenses it give out to no more than that number. 1. The rules are firm too, no more than 5 grams per person, no hard drugs, no alcohol, no advertising, no under-18 customers, everybody must show an I.D. if asked. (Transition: While the basis of them legalizing marijuana is to try and reduce the possible `gateway to harder drugs, There is sympathy to those who are addicted to hard drugs and the Dutch government still treat them with certain degree of tolerance) I. Machal Zenden, aShow MoreRelatedInformed Consent1247 Words   |  5 PagesLAW AND ETHICS | IS INFORMED CONSENT AN ABSTRACT CONCEPT IN HEALTH TODAY? | | This essay will focus on both negative and positive attributes on ‘Is informed consent an abstract concept in health today’. For this essay we have interpreted the topic as Medical staff in health care has to use abstract means, such as word books or demonstrations to promote patients having understanding whilst vulnerable for informed consent. | | | 16th November 2010 | | With the development of medicalRead MoreGender: Annotated Bibliography Essay1480 Words   |  6 PagesGender Matters is a collection of various essays on feminist linguistic texts analysis, by Sara Mills. Mills develops methods of analyzing literary and non-literary texts, in addition to conversational analysis based on a feminist approach. The author draws on data from her collection of essays gathered over the last two decades on feminism during the 1990s. The essays focus on gender issues, the representation of gender in reading, writing, and in public speaking. Furthermore, it highlights the importanceRead MoreSpoken Language1446 Words   |  6 PagesSpoken Language Spoken Language in my opinion follows a different set of rules to written language in this essay I am going to explore the ways spoken language is used by television interviewers. I will be using the political chat show This Week as an example of the spoken language on TV chat shows. This Week is a political and current affairs chat show broadcasted every Thursday night on BBC one. The show is presented by former editor of the Sunday Times Andrew Neil and is accompanied every weekRead MoreHow Communication Impact Leadership And The Decision Making Process Of Management1130 Words   |  5 Pages Denhardt, Aristigueta, 2013). Given these considerations, the purpose of this essay is to examine how communication impacts leadership and the decision-making process of management. Communication is the transmission of information from one party to another (Denhardt, Denhardt, Aristigueta, 2013). Denhardt, Denhardt, Aristigueta, (2013) further explains that clear and constructive communication within public organizations is essential for agencies to effectively accomplish task (DenhardtRead MoreTragedy : A Great Topic1061 Words   |  5 Pageswhat wants in blood and spirit, swelled with wind: Pride, where Wit fails, steps in to our defence, and fills up all the mighty Void of sense.† (Page 702 Lines 1-10). This is a quote from Alexander Pope’s An Essay on Criticism. Alexander Pope wrote poetry. His favorite topic was informative. In this poem the first fourteen lines are about pride, stanza two is about the lack of learning. He also talks about wit, judging a book by the cover, how hard it is to please, being partial to groups the criticRead MoreI Am The Product Of Clark County Educational System Essay1503 Words   |  7 Pageshow to write essay s correctly. I am the product of Clark County Educational system. I have always struggled through my last classes and hoped to get out of my struggles this semester. One the greatest challenges that I faced was the distinction that existed among different types of writings that are performed within the English language. I did not understand how the distinction between a narrative essay, report essay and an analytical essay, argumentative essay, and reflective essay among other typesRead MoreThe Signs Of Shopping By Malcolm Gladwell1203 Words   |  5 Pageswant you to buy. Anne Norton, author of â€Å"The Signs of Shopping† is a heavily published author, and has earned many awards in her field. In her essay, she explains how businesses use advertisement techniques to increase the profits in a retail store. Malcolm Gladwell, the author of â€Å"The Science of Shopping† is a staff writer for the New Yorker. In his essay, he explains how Paco Underhill, a retail expert, taught many Forbes 500 companies how to create more opportunities to up-sale to their customersRead MorePublic Services : Public Sector1561 Words   |  7 PagesThis essay will provide an analysis of the public sector in public relations, identifying its key concepts, challenges and an example of an organisation which follows its structure. The public sector PR is described as â€Å"driven by the need for transparency in how an organisation carries out its public duties, accountability to the public, on how money from taxes is spent and increasingly, public consultation and involvement in the services provided† (Tench Yeomans 2009). Public sector organisationsRead MoreArt of Public Speaking5805 Words   |  24 PagesLucas: The Art of Public Speaking, 8/e PREFACE If it is true, as Walter Pater said, that â€Å"a book, like a person, has its fortunes,† then fortune has indeed smiled upon The Art of Public Speaking. As the book enters its eighth edition, I am deeply appreciative of the students and teachers who have made it the leading work on its subject at colleges and universities across the United States. In preparing this edition, I have retained what readers have identified as the main strengths ofRead MoreIs Recreational Therapy Is Based Off Of Recreational Exercises1143 Words   |  5 Pagesfocus of forum number 1, titled Initial Investigation of Comfort Levels, Motivations, and Attitudes of Volunteers During Therapeutic Recreation Programs is about the hardships that individuals with disabilities are forced to overcome. The general public s negative attitudes of individuals with disabilities continues to be a problem . Therefore it is wise for there to be recreation programs in the community in order to encourage or promote the development of integration between individuals with and

Business Professionals Must laws Function â€Myassignmenrthelp.Com

Question: Discuss About The Business Professionals Must Laws Function? Answer: Introducation The System of laws principles under which the corporate and business professionals must function in a way which is beneficial to the people of the society and country as a whole. Its a broad topic which covers bribery, corporate governance, corporate social responsibility, insider trading, tax avoidance, corruption, political contribution, discrimination fiduciary responsibilities. When ethical principles are followed trust develops between workers management also between public corporation leading to more productive workplace vice versa. The case study will discuss a macro ethics issue related to Volkswagen diesel scandal of 2015. This study helps us to identify the possible ethical dilemma between the greater public need and researchers access to vehicle software code against the manufactures wish to keep the code proprietary (Wardord,2016). This study explains the utilitarian, individualism, virtue, justice moral approaches to better understand the ethical dilemmas that arose in this case study. Volkswagen case Volkswagen is one of the worlds leading auto maker and it always had the aim of becoming the world largest by selling more number of cars than Toyota. The combination of imperious leadership and lack of proper control led to a scenario which proved fertile for bad decisions. Apart from this aim of becoming the worlds leading it also help Germany ameliorate the aftermath of great recession of 2008 by exporting more cars. By the year 2007, when Martin winterkorn, who became the CEO of the company, targeted U.S to take the company to new heights. For achieving this, VW had to increase its sales of motors to thrice then its present motor sale in U.S. Further to come to this position, the German giant had to do something which have never happened before. It had to produce cars which are not only powerful and superior than its competitors but also friendly to the environment. The organisation then aimed the U.S market which had very less diesel engine cars in comparison to gas other engin es . Martin winterkorn thought that diesel cars are more fuel efficient without any impact on power. But the diesel cars produce more pollutants than cars which are powered on gas (Lynch Santos,2017). The company under the leadership of Winterkorn were very aggressive in its approach. The seniors bullied the lower or sub ordinates and even fired the engineers or executives who did not obey them. The employee never had the courage to pass any bad news to Winterkorn, as he never welcomed them. They only approached him when they had some good news (lynch santos,2017). The Cheat device: Once Winterkorn started with the company expansion plans, he approached Daimler, another player in the market whose Blue Tec discovered a substance called urea which greatly reduced the nitrogen oxide , one of the most toxic substance and main by-product found in car emissions. The Volkswagen technical research team had a tough job ahead to work from scratch under the demanding leadership who insisted on success. The technical team finally found their way and created a cheat device with an aim of installing them to the cars which will be exported to U.S. The software had the function of detecting whether the vehicle is being tested indoors ( labs) because in labs not of its wheels were used. In labs only two of its wheels were used. At that point of time it self-activates its emissions controlling devices while on road the same was not being replicated. So, during the test it passed the test while on road, where the cheat device automatically turned off and the emissions levels were much higher than allowed (lynch santos,2017). Sometimes the levels were 35 times higher than permitted. This revolutionary device made researchers all over the world to think as the diesel engine cars which were used in U.S were less pollutant than that of Europe. Impacts of this scandal on the company This ruined the goodwill of the company and moreover made the consumers feel cheated who bought diesel engine by thinking that they were less pollutant. The company announced a sum of $9.6 billion only for the claims they were receiving from its regulators and consumers. The company lost $1.6 billion in its third quarter and operating profits in 2015 fell significantly. Its ordinary share value fell by 23% after the scandals were revealed. Lastly there was a fall in the market value of the company which fell by 31 percent from its previous 52.75 billion euros. The consequences can be summarised (lee,2016): The share price of company plunged by 1/3rd since September 2015. The companys CEO resigned, Martin Winterkorn resigned taking all responsibilities of the fall out. Several law suits and claims from different car owners are expected. The company declared an amount of 3.7 billion of provision to cover the cost of aftermath but market analyst predicts the actual sum would be much higher than that. Loss of companys reputation. Billions of dollars of fine penalties more to come from the U.S regulators. The factors which led to this drastic situation made by the technical team of the company are: Pressure The was huge pressure on the staffs from the top officials. Every employee of Volkswagen was so obsessed with companys code of conduct that at one point it seemed irrelevant when management only goal was to succeed by any means.s Prospect There was this chance for company to become the worlds leading by producing a fuel-efficient diesel engine car and take the maximum market share than Toyota, the Japanese giant. This led to buying of a software which had this unique function of finding whether the vehicle is tested indoors (labs) because at that it would turn the emission controlling software which reduced the emission levels. Although it was sold only for testing purpose as use of such software commercially was not legal. Rationalization: In 1970, the engineers came to know that Volkswagen installed defeat devices. The consequences at that time were minimal, as there was a mere fine of 120,000 $. The punishment at that time were light that they may have rationalized. This gave the belief that it can used for the betterment of the company. These three factors together can bring a situation when employee may begin to engage in unethical behaviours. Ethical analysis The main issue in the case is whether the information about the software should be transparent to the consumers and the researchers or remain reserves under the DMCA act. This section shows how the case raised the issues of ethical dilemmas ( warford, 2016). These issues are explained below: Utilitarian approach: The utilitarian approach here brings the issue open code made accessible to the owners and software researchers so that the fraud of this nature is detected sooner. This would the mean better health of the public and environment as the affected cars either would be modified or taken off the roads sooner reducing the harmful emissions. Additionally, the security vulnerabilities could be identified or patched sooner preventing the hackers taking advantage of the situation. The more eyes on the code would reduce the number of bugs in the software, which could reduce other safety risks due to flawed software. Moral Rights: The auto maker may find that making their software code public would restrict on their right to own intellectual property. Due to this there is code protection under DMCA, as there is significant commercial interest at stake. However, having right over this would enable public towards the safe products which can be achieved by having more eyes on the code which out weights the right to intellectual property. Justice: This may not a major role over the debate of open software code but the way Volkswagen acted was not fair as it put other diesel car manufactures which used expensive emissions control devices at competitive disadvantage. Additionally, it also forced the public to inhale the poor air quality while it benefitted by deceiving the public Virtue: Although, this may not directly but the way Volkswagen in antithesis tried to portray in its television commercials as engineers sprouting angel wings did not act virtuously in deceiving its regulators and the public with its cheat device. This resulted in plummeting stock prices and loss in sale due to public loss of trust in organisation (warford,2016) Solution: The Volkswagen group main issue is facing problem of credibility from its consumers. Although its takes decades to establish the trust among the consumers and stakeholders, a single instance puts back the company to its initial level from where it started (Zhou,2016) The three possible solutions to this scenario are: Rebranding: In the last 6 decades, Volkswagen have become one of the leading auto maker of the world. Many believed that instances like this will be overlooked soon but Volkswagen top management have started planning to establish the company from a nascent stage. If its starts by renaming the company then it may re-establish the image it had because of this scandal. The rebranding of the company will also help the company to function efficiently and may potentially save the company. The company can choose to establish the one which is greener and focuses on corporate social responsibilities. Hiring an autonomous agency for Verification: Hiring an autonomous agency for testing purpose of vehicle emission can bring back the trust of customers as previously Volkswagen had its own team for the same. Posting a bond: A final solution can be a bond that acts as a credibility between the Volkswagen and the consumer. The bond should state that, if anything like the past happens again then the company would be liable. Conclusion: The above case study can be summarised that when an organisation tries to maximize its profits by keeping its reputation at stake then it may not only lead to huge financial loss but will also lead to a situation where it may not regain its trust back from its consumers and stakeholders. An organisation should operate by following all the standards set aside by the government for the betterment of the company. References: Warford, E. (2016). Ethics in classroom: The Volkswagen diesel scandal. New Orleans Publisher. Zhou, A.(2016). Analysis of the Volkswagen scandal possible solution for recovery. UCSD-GPS CASE 16-12. Retrieved from https://gps.ucsd.edu/_files/faculty/gourevitch/gourevitch_cs_zhou.pdf Lee, J. (2016). The Volkswagen Turing scandals: Lessons learned. Retrieved from https://www.accaglobal.com/in/en/student/sa/features/vw-turing.html Lynch, L., Santos, C. (2016). VW emissions the 3 factors that drive ethical breakdown. University of Virginia: Darden Business Publishing. A look at the Volkswagen emissions scandal. Retrieved from https://indiatoday.intoday.in/auto/story/a-look-at-the-volkswagen-emisions-scandal/1/520067.html Mansouri, N (2016). A case study of Volkswagen unethical practice in diesel emission test(5th vol). International Journal of Science and Engineering application

NBA Lockout Essays - National Basketball Players Association

NBA Lockout The National Basketball Players Association lockout greatly affected the United States economy. Greedy team owners and greedy players fighting over large amounts of money caused the lockout. In March of 1998, team owners felt that they were paying players too much money, causing clubs to lose money, so they voted to reopen discussions on the collective bargaining agreement. The players on the other hand felt that any team financial problems were the owners doing, not how much money players were being paid. When the two sides could not settle their differences and the collective bargaining agreement expired, the owners decided to lockout the players until they reached an equal agreement. Lasting six months and into the NBA season, the lockout had a huge effect on those businesses or people associated with the games. First of all, since the games were not taking place this meant that employees were not able to work in the stadiums. Those employees who are usually hired to work the concession stands or sell food, drinks, and souvenirs around the stadium were out of work while the lockout persisted. Lack of work meant less income for the old stadium employees, thus lowering the demand for other goods that these people would normally buy. Lower incomes make people purchase fewer amounts of goods from stores, restaurants, and other recreational activities. In an article entitled "Playing With Fire: A NBA Lockout Could Leave Fans Out in the Cold," a Phoenix Suns fan, Phil Lester, discusses the NBA lockout and how much money he spends on game nights. Phil says that "he can easily spend between $50-$100 on a night when the Suns are in town, counting dinner before the game, then some snacks and a couple of adult beverages during it. And that doesn't include the money spent on the tickets." Without the NBA, the money usually spent by fans will go unspent, greatly affecting businesses, workers, and the economy as a whole. Restaurants near the basketball stadiums lost money because of the NBA lockout. Basketball fans eat or drink at restaurants and bars before and/or after games, but these fans were absent from the restaurants and bars because there were not any games to go watch. In an article entitled "Check, Please," John Donovan writes that when the Suns are playing at their home arena in Phoenix, people crowd the city. He says that on game nights an owner of a bar or restaurant, A.J. Sulka, can expect to serve at least 1000 people when on non-game nights, Sulka would serve 200 people. The NBA lockout would cause Sulka, and other restaurants and bars in town, to lose several thousands of dollars per game night. Fewer people to serve results in restaurant owners and employees having a lower income. Less food and drinks are demanded, which decreases owners profit and at the same time, waitresses are not needed to work as many hours and are not paid as much in tips. Lower incomes affect the economy as a whole because business owners and workers will spend less money on other goods and services. Lower incomes lower the demand for other goods and services and affect the businesses offering those "other" goods and services. Businesses rely on basketball games to bring them people who will buy goods and services from them. Although the lockout results in less income for businesses related to basketball, it does mean that fans who normally go to games and spend money will not be spending the money or would spend the money elsewhere. Basketball fans have more money to spend on other goods, services, or activities. For example, if a basketball fan could not go to a basketball game, they might decide to go to a movie instead. This would bring more business to the movie theater that would not exist if the NBA lockout were not taking place. Also, since basketball fans would not be spending money on a game, they might decide to spend the money at the grocery store and buy some extra snacks. This would bring greater amounts of income to the grocery store. The NBA lockout would then increase the demand for other goods, services, and activities, which would increase the income of non-related basketball businesses. Owners and players suffered from a lower income because of the lockout. Owners of teams have rent contracts with stadium owners that are paid in advance. The owners rent the stadiums the teams play in and even if there are no players, the rent is still paid by the