If Sheryl Conan uses the direct method as her supervisors wants her to it will distort the cost of goods sold and hides the decline in market value. Investors and stockholders in the company would be harmed if Dick Wright’s preference is used. By using the direct method to write down inventory it would be manipulating critical information that would be used to figure out costs of goods sold; which in turn would give wrong calculations to determine selling prices and to establish profit margins. These incorrect calculations would also mislead possible future investors in the company by not clearly showing the decline in market value. Sheryl Conan should use the allowance method that would reflect that would clearly disclose the decline in market value and not use the other method as her supervisor wants her to.
Also, with even higher liabilities, it may be difficult to meet the debt service agreements if the company doesn’t have enough cash flow from operations. 1(c) What potential income tax ramifications exist for Mr. Johnson personally if he purchases the stock of Smithon and converts it to an S corporation? If the Mr.Jones decides to convert Smithon to a subchapter S Corporation, it will enable the corporation itself to avoid paying taxes, but the profit and losses will be passed to shareholders as personal income and losses. Now we should consider the expected losses from the huge investment in equipment purchase. Net operating losses cannot be used to shelter personal income but can be carried forward by a C corporation to provide tax benefit in future when the business expects profit.
In fact, like other professions, personal values come into play in the accounting decisions and judgments made by the decision makers, so full disclosure might mean different things to different people. Legal checklists have mandatory items, but the financial picture might still be vague or lack numbers to give an accurate financial representation of the company at any given time, as shown in the financial statements. For example, if it was totally “objective,” Enron’s accountant would not have been able to “cook” the books to make the company appear to be in a better financial position than it actually was. The accountant and other Enron professionals would not have ended up in court for fraud and the likes. Even though the accounting profession has guiding principles (GAAP), they are not absolute, but subject to human judgment and interpretation and, at times, the lack of compliance leads to fraud (e.g., Enron, WorldCom, and others).
Instead there should be questions geared towards business customers and a different set of questions for individual customers. It is detrimental to lump all customers into one set and assign a satisfaction rating based on the requirements of the entire group. The design of the existing system might lead James to partake in short-term actions which improve the customer service rating. By focusing all his efforts on improving the score, he may neglect satisfaction items that are not currently measured in the rating system. This will be harmful to the Financial District branch and Citibank in the long run.
CVP analysis allows management to use variable cost to identify future performances within the company. This can also show disadvantages of managers not looking thoroughly through the companies performances. These managers tend to be ones who do not record their records thoroughly. CVP analysis tends to be a beneficial tool to management, but it is limited in the amount of information that can be provided for product operations. This analysis gives a hypothesis of what the question is made of, to give an advantage to management but continues to not be an exact procedure for management.
Integrity is also damaged by not being seen to have provided a voice in relation to political equality. How might HR been able to influence the situation more? By managing relationships better across hierarchies, and also by forward planning, being market savvy, and risk management. Predicting the issues before they arose and either finding ways to avoid them or developing damage limitation scenarios and plans. What other key behaviours from the CIPD’s HR professional map do you think are critical here for HR to display?
It is important that Ameritrade not emphasize it’s company cost of capital, which is the opportunity cost of capital for investment in all the firm’s assets, and therefore becomes problematic if the firm is looking at a new project/asset (because most likely this new project will be more/less risky than the firm’s exist business). In addition, Ameritrade needs to identify with a certain type of business. Are they a discount brokerage or an internet/technology firm? There are varying levels of risk associated with new projects in both these areas. Essentially, Ameritrade needs a cost of capital to evaluate new projects.
Why? I would say another reason to analyze a company’s performance would be if you wanted to invest or pull out, because if it is not worth it to the investor then they could invest somewhere else. I also think that it could be used to evaluate a company within its self to improve in areas that could be hindering the company’s ability to receive a loan. Why is it important to report discontinued
There has to been beliefs the partners were more motivation by the revenues recognition, overlooking things and providing services to the company. Anderson also should have distinguished the holding of audits clients as a loss of clients would not be good thing to the auditor’s jobs. In Anderson case his internal control, this person should be able to make the decisions. A person who would be more concerned about losses and revenue of their clients. As for the auditor as for themselves standing up for management or clients has become uncertain.
If the executive failed to implements these changes than it negatively affect company performance and the image. Due to advancement in technologies the new market brings ethical dilemmas, higher customer’s expectation and increased demands. In addition to that the communication gap between executive and employees and communication gap between employee and customers are also important. I personally consider privacy issues might be most challenging in futures. Today, many companies gave reward card or special store discount to the customers and customer many or may not be known reason for that.