While the traditional accounting methods are good to measure past performance and financial stature, it does not allow for managers to see the impact or value that marketing has on the bottom line. For a manager to evaluate the impact of marketing they will need view the current marketing expenditures, sales, and profits to make a conscious decision on what methods are working. While I think placing marketing as an investment is a good concept, determining the value is too biased without a common measurement between all companies in a similar industry. Without understanding the current value of marketing, the marketing budget will be one of the first items cut when the business is in a downturn. Technology in all industries has increased dramatically over the past 10 years so being able to understand the current value of marketing methods should not be as strenuous as it has been in the past.
Integrity is under section 110. This fundamental principles is most important element in accounting profession. This is because integrity need accountant to be straightforward and honest in all professional and business relationships. In this principles also restricted accountants from any benefits or advantages for themselves only. That why ethics should be taught in accounting subject so accountant will be honest, candid and forthright with financial
Enron Corporation did not give the CFO’s factual or expected benefits from these previous transactions or provide financial statements in its entirety. Not changing the original structure could have been completely different. Enron made a huge decision by hiring people that was outside the company and giving them the power to make critical decisions that would affect the organization. The reward system within the company changed and gave the Top performers more opportunity for bonus and stock options. Since this system was organized by an internal authority, it did not work too well.
An obstructive company does not make social responsibility an effort, instead making profits the most important aspect of its business. Some people view obstructive businesses as immoral since they may exploit their employees, pollute natural lands or deceive customers. Joseph Smith Student ID 61755 Defensive In most cases, companies that take a defensive stance towards social responsibility are not particularly responsible. These companies may consider themselves neutral, and they make profits a more important motive than performing actions in a socially responsible way. These companies make a point of following the law to ensure that others cannot take legal action against them.
Many times companies break accounting procedures and falsify their financial statements in order to please both internal and external users. Even though this is a violation of the SOX act of 2002, corporations still chose to engage in these activities. The final thing we learned about is the ethical decisions made behind financial reporting. The AICPA Code of Professional Conduct was put in place to make sure companies have a standard to follow when creating financial statements. Legality Financial reporting activities and standards Earnings management has been used as the manipulation of the current standard of financial reporting established by G.A.A.P.
They typically use this method because it requires fewer journal entries for closing an accounting period and creating financial statements. I feel this method only gives the owner or company a view on the cash coming in and out but does not give the company a long term view on the overhead cost and revenue for services in order to show the company where improvements can be made or where costs
An efficient, effective, and successful accountant must be prepared to adhere to a steadfast code of ethics. At some point in their career, most accountants will encounter challenges that will test their resolve. There will inevitably be pressure from clients and others to manipulate financial statements or to reveal confidential information they feel may give them an economic advantage. Therefore it is important that accountants learn to practice with impeccable ethics and maintain a level of professionalism that is beyond reproach. According to the American Institute of Certified Public Accountants Code of Professional
As a business owner I would use accrual method only because it recognizes Receivables and payable. When using the cash basis a company can appear that it is earning profit when in fact it is loosing funds. Cash basis does not acknowledge money that is owed which make is very difficult to keep accurate records. The IRS generally requires companies to use the cash accrual basis of accounting on their tax return. The Internal revenue service does allow the cash method of accounting if certain criteria are met because tax laws change frequently it is essential to contact a CPA if a business owner decides to use cash basis of accounting.
These are all positive values. But these values were not balanced by genuine attention to corporate integrity and the creation of customer – and not just shareholder – value. Because the Enron corporate culture was not well grounded, a single scorecard – maximized price per share of common stock – became its reason for being, and even its positive values became liabilities” (Schuler, 2002, para. 3). Unethical professional values were symptoms of systemic problems for Enron.
What Union Carbide failed to see was without the employees and the local community , there will not be profit because how can a corporation run without people to help it function or run . When we ignore the rights of people and the laws that regulate acceptable behavior as, indeed, ethical egoism asks us to do when it is profitable, the necessary result is disastorous . 2) Are the differing economic circumstances of an indian worker compared to that of an indian worker compared to that of a US worker sufficient