The primary users are the 3 current owners including yourself who take an active role in managing the company. You would like the financial statements to be presented in such a manner as to indicate strong financial success and growth. You have plans to expand and possibly go public and having strong financial statements will enable you to attract the right investors and resources needed to make this happen. The more money the company makes the more you will benefit financially as the owners. It is important to remember that financial statements must be presented fairly and in accordance with accounting principles as it is evident here that there is a bias towards presenting statements in a financially strong way.
Evaluate the effectiveness of regulations such as Sarbanes-Oxley Act over minimizing the corporate fraud and protecting investors and make one (1) suggestion for improvement. The Sarbanes-Oxley Act is been very effective especially by protecting investors and improving the accuracy and reliability of corporate disclosures, and much of the law seeks to further this goal by imposing strict rules for audits and auditors of publicly traded companies, prevent insider trading and deals, requiring companies to adopt strict internal controls, and increasing the penalties for white collar crimes relating to investor fraud. As a matter of fact, the Act effects dramatic change across the corporate area to re-established investor confidence in the integrity
SOX were introduced to be known with its purpose. SOX is an act in protecting investors by improving the accuracy, and reliability of corporate disclosures made pursuant to the securities laws, and other purposes. New parts of the law are cited at 15 USC 7201. Many provisions is located at 78 USC because many of the provisions
Democratizing the Federal Reserve would have some advantages and some disadvantages. One of the benefits would include the ability to vote in a candidate who would have a large responsibility in the nation's finances. Running the Fed is a huge task, and having a say in who would do so would be beneficial to the nation's people. Candidates could run for this "office" and thus, the American people would have more of a say in how our financial decisions are made. In almost all other aspects of major decisions made in the United States is done so through voting in candidates.
Nordstrom has integrated many distinct social models and programs in its everyday operations. The company involves itself in community giving, the waste management of the environment, and human rights. The company website states the following about its responsible manufacturing program in relation to human rights, “We collaborate with many partners (factories, subcontractors, employees, and other manufacturer/retailers) to help ensure that our core business standards and all applicable laws regarding health, safety and fair workplaces are upheld” (Nordstrom Inc, 2015). The company also offers scholarship programs for its many customers, and is also involved in the IT asset recycling program. The company's ideal use of social responsibility has enriched its branding image to an extent where it has attracted many socially aware consumers.
(asic.gov.au) · As the financial markets became mainstream and matured, the access to capital markets and their scrutiny have both increased. Along with the added volatility, the lending markets have seen similar risks as equity markets. With the increased speed of both financial information and market changes, the rating agencies are more important as a first step, as they are to be scrutinized for their ratings and the trend in their rating changes. (investopedia.com) · CRAs and their ratings played a critical role in the recent market turmoil. Unlike securities trading on deeper, more transparent markets, credit ratings have had an inordinate impact on the valuation and liquidity of subprime RMBSs and RMBS backed
Why hose local laws, when there are well accepted international laws for such transactions”. (Jack Brandt; Chief Executive Officer, Cadmex Pharma) When the local customs and laws conflict with the customs and laws of an organization operating abroad, which should prevail? The customs and laws of the jurisdiction that the business has chosen to operate in will commonly prevail. If the company has multiple locations in other countries, the same will apply for each operating location. Compliance with the law of the nation is an initial understanding going into the contract from the
Full Disclosure ACC/421 August 3, 2015 Full Disclosure The full disclosure principle was created to protect users of financial statements by requiring publicly held organizations to disclose pertinent information regarding transactions and details surrounding business operations. Full disclosure is increasing because of the need for more information in a timely manner. The necessity for full disclosure in financial statements brings consequences punishable by laws and fines and pushes organizations to act in honest and ethical manners when compiling their financial statements to the public. The Full Disclosure Principle in Accounting The full disclosure principle in accounting was created to protect investors who may be misled by businesses withholding crucial financial information. Without the full disclosure principle important negative financial information on company standings would likely be withheld from investors.
Fiscal Policy Joshua Canfield, Haeli Abeytia, Nancy Garcia ECO 372 May 1, 2014 Scott Cain Fiscal Policy As time progresses the economy is always changing and evolving. Fiscal Policies are one of the major factors that determine the overall stability of the economy. In order to maintain stability of the global economy the governments need to be involved and aware of the markets and the changes in the global economy. Government programs like medical benefits, social security, and even taxpayers are all effected on decisions the government makes so it is vital that the state of our government is stable to keep our economy in good conditions. In order to understand the effects of taxpayers, unemployment, and individuals on social security and Medicare we need to understand what deficit, surplus, and debt is.
Conclusion The Federal Reserve is a very powerful entity and has a large amount of influence on how our nation’s economy performs. The Reserve manages our nation’s monetary system through three primary functions; open market operations, discount policies and reserve requirements. The Federal Reserve’s current monetary policy shows an expansionary policy to influence economic growth. The Reserve has an effect of our nation’s production and employment rate as it influences the money demand and interest