Eth316 Community Profile Paper - 1362 Words

Community Profile Presentation The City of Kelsey is an environment friendly and diverse community with residents from different ethnicities and backgrounds. The City Kelsey where most people regardless of the entry-level position have an opportunity to find a job. One of the largest employers is Smith System consulting, followed by Huffman trucking company own and managed by family members. This community has a diverse population of professionals on different fields such as consulting, transportation, organic farming, and construction. The City of Kelsey also offers their citizens many activities like; annual ballroom, festivals, monthly famer’s market, annual St. Patrick’s Day parade, craft fair, memorial day soft ball tournament, golf†¦show more content†¦If the visitors or the locals are feeling a little more adventurous they can take advantage of its beautiful scenery. Visitors can enjoy a day of boating, sailing, swimming, fishing or water skiing in Beautiful Lake Lora, which is locate d five miles west of the city or the Kelsey River which runs in the southern boundary of the city or catch a Ferry and cross the river to enjoy Baderman island, the Kelsey Aquatic Center provides residents with swimming lessons in its outdoor swimming pool in the summer and in the indoor pool year round. There is also the Kelsey Country Club with one of the most challenging courses in the region, there club members can take advantage of the golf course in the summer months and the club house year round. (Oswaldo) How would you describe the responsibilities of the individual to the community? (Daisy) Individuals of The Kelsey community carry a huge responsibility to preserve the land, as well as the ways of the community. It is very clear that this community is a small one, yet still, a strong and very productive one. The individuals of this community have learned to work and communicate with one another, in harmony, to survive and improve their way of life together. Initially, they survived on what they themselves grew; making sure that it was of quality. Throughout the years, as the community grew, by reproducing and evolving,

Financial Reporting Essay Example For Students

Financial Reporting Essay OnSeptember 28, 1998, Chairman of the U.S. Securities and Exchange CommissionArthur Levitt sounded the call to arms in the financial community. Levitt askedfor, immediate and coordinated action to assure credibility andtransparency of financial reporting. Levitts speech emphasized theimportance of clear financial reporting to those gathered at New YorkUniversity. Reporting which has bowed to the pressures and tricks of earningsmanagement. Levitt specifically addresses five of the most popular tricks usedby firms to smooth earnings. Secondly, Levitt outlines an eight part action planto recover the integrity of financial reporting in the U.S. market place. Whatare the basic objectives of financial reporting? Generally accepted accountingprinciples provide information that identifies, measures, and communicatesfinancial information about economic entities to reasonably knowledgeable users. We will write a custom essay on Financial Reporting specifically for you for only $16.38 $13.9/page Order now Information that is a source of decision making for a wide array of users, mostimportantly, by investors and creditors. Investors and creditors who areresponsible for effective allocation of capital in our economy. If financialreporting becomes obscure and indecipherable, society loses the benefits ofeffective capital allocation. Nothing illustrates the importance of transparentinformation better than the pre-1930s era of anything goes accounting. An erathat left a chasm of misinformation in the market. A chasm that was acontributing factor to the market collapse of 1929 and the years of economicdepression. An entire society suffered the repercussions of misinformation. Families, and retirees depend on the credibility of financial reporting fortheir futures and livelihoods. Levitt describes financial reporting as, a bondbetween the company and the investor which if damaged can have disastrous,long-lasting consequences. Once again, the bond is being tested. Tested by afinancial community fixated on consensus earnings estimates. The pressure toachieve consensus estimates has never been so intense. The market demandsconsistency and punishes those who come up short. Eric Benhamou, former CEO of3COM Corporation, learned this hard lesson over a few short weeks in 1996. Benhamou and shareholders lost $7 billion in market value when 3COM failed toachieve expectations. The pressures are a tangled web of expectations, andconflicts of interest which Levitt describes as almostself-perpetuating. With pressures mounting, the answer from U.S. managershas been earnings management with a mix of managed expectations. March of 1997Fortune magazine reported that for an unprecedented sixteen consecutivequarters, more SP 500 companies have beat the consensus earnings estimatethan missed them. The sign of a quickly growing economy and a measure of theimportance the market has placed on consensus earnings estimates. The singularemphasis on earnings growth by investors has opened the door to earningsmanagement solutions. Solutions that are further being reinforced to managers bymarket forces and compensation plans. Primarily, managers jobs depend on theirability to build stockholder equity, and ever more importantly their owncompensation. A growing number of CEOs are recieving greater percentages oftheir compensation as stock options. A very personal incentive for executiveachievement of consensus earnings estimates. Companies are not the only ones tofeel the squeeze. Analysts are being pressured by large institutional investorsand companies seeking to manage expectations. Everyone is seeking the win. Auditors are being accused of being out to lunch, with the clients. Manyaccounting firms are coming under scrutiny as some of their clients are beinginvestigated by the SEC for irregularities in their practice of accounting. Cendant and Sunbeam both left accounting giant Arthur Anderson holding a bigolbag full of unreported accounting irregularities. Auditors from BDO Seidmanaddressed issues of GAAP with Thing New Ideas company. The Changes were made andBDO was replace for no specific reason. Herb Greenberg calls the episode,A reminder that the company being audited also pays the auditorsbill. The Kind of conflict of interests that leads us to question the ideaof how independent the auditors are. All of these pressures allow questionableaccounting practices to obfuscate the reporting process. Generally acceptedaccounting principles are intended to be a guide, not a procedure. They havebeen developed with intended flexibility so as not to hinder the advancement ofnew and innovative business practice. Flexibility that has left plenty of roomfor companies to stretch the boundaries of GAAP. Levitt focuss on five of themost widespread techniques used to deliver added flexibility. BigBath restructuring charges , creative acquisition accounting, CookieJar reserves, Immaterial misapplications of accountingprinciples and the premature recognition of revenues. These practices do notspecifically violate the letter of the law, but are gimmicks thatignore the spirit and intentions of GAAP. Gimmicks, according to Levitt, thatare an erosion in the quality of earnings and therefore the quality offinancial reporting. No longer is this just a problem perceived in smallcorporations struggling for recognition. Throughout the financial community,companies big and small are using these tools to smooth earnings and maximizemarket capitalization. The Big Bath restructuring charge is thewiping away of years of future expenses and charging them in the current period. .u3a4353c4f06ff90ed33401256a3e52cb , .u3a4353c4f06ff90ed33401256a3e52cb .postImageUrl , .u3a4353c4f06ff90ed33401256a3e52cb .centered-text-area { min-height: 80px; position: relative; } .u3a4353c4f06ff90ed33401256a3e52cb , .u3a4353c4f06ff90ed33401256a3e52cb:hover , .u3a4353c4f06ff90ed33401256a3e52cb:visited , .u3a4353c4f06ff90ed33401256a3e52cb:active { border:0!important; } .u3a4353c4f06ff90ed33401256a3e52cb .clearfix:after { content: ""; display: table; clear: both; } .u3a4353c4f06ff90ed33401256a3e52cb { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u3a4353c4f06ff90ed33401256a3e52cb:active , .u3a4353c4f06ff90ed33401256a3e52cb:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u3a4353c4f06ff90ed33401256a3e52cb .centered-text-area { width: 100%; position: relative ; } .u3a4353c4f06ff90ed33401256a3e52cb .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u3a4353c4f06ff90ed33401256a3e52cb .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u3a4353c4f06ff90ed33401256a3e52cb .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u3a4353c4f06ff90ed33401256a3e52cb:hover .ctaButton { background-color: #34495E!important; } .u3a4353c4f06ff90ed33401256a3e52cb .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u3a4353c4f06ff90ed33401256a3e52cb .u3a4353c4f06ff90ed33401256a3e52cb-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u3a4353c4f06ff90ed33401256a3e52cb:after { content: ""; display: block; clear: both; } READ: My healthy lifestyle EssayA practice that paves the way to easy future earnings growth by allowing futureexpenses to be absorbed by restructuring liabilities. Large one time chargesthat will be ignored by analysts and the financial community through a littleconvincing and notation. In note fifteen of the Coca-Cola companys 1998annual report shows seven nonrecurring items from the past three years. Fours ofthese charges are restructuring charges, most significantly in 1996 in thisnote. In 1996, we recorded provisions of approximately $276 million in selling,administrative and general expenses related to our plans for strengthening ourworld wide system. Of this $276 million, approximately $130 million related tostreamlining our operations, primarily in Greater Europe and Latin America. These one time write-offs become virtually insignificant footnotes to thefinancial reporting process. Extraordinary charges that are becoming unusuallycommon. Kodak has taken six extraordinary charges since 1991 and Coca-Cola hastaken four in two years. The financial community has to wonder howunusual these charges are. Creative acquisition accounting is whatLevitt calls Merger Magic. With the increasing number of mergers inthe 90s, companies have created another one time charge to avoid futureearnings drags. The in-process research and development chargeallows companies to minimize the premium paid on the acquisition of a company. Apremium that would otherwise be capitalized as goodwill: and depreciatedover a number of years. Depreciation expenses that have an impact on futureearnings. This one time charge allowed WorldCom to minimize the capitalizationof goodwill and avoid $100 million a year in depreciation expensesfor many years. A charge hiding in this complex note on WorldComs 1996 annualfinancial statement. (1) Results for 1996 include a $2.14 billion charge forin-process research and development related to the MFS merger. The charge isbased upon a valuation analysis of the technologies of MFS worldwide informationsystem, the internet network expansion system of UUNET, and certain otheridentified research and development projects purchased in the MFS merger. Theexpense includes $1.6 billion associated with UUNET and $0.54 billion related toMFS. (2) Additionally, 1996 results include other after-tax charges of $121million for employee severance, employee compensation charges, alignmentcharges, and costs to exit unfavorable telecommunications contracts and $343.5million after-tax write-down of operating assets within the companys non-corebusinesses. On a pre-tax basis, these charges totaled $600.1 million. The dollaramounts are staggering and the future implications far reaching. Since thisapproach was introduced by IBM in 1995 these charges have become co mmonplace foracquisition accounting. A popularity, largely due to the level of room allowedin research and development estimations. The Third earnings manipulation tooldiscussed by Levitt is what he calls Miscellaneous Cookie JarReserves. The technique involves liability and other accrual accountsspecifically sensitive to accounting assumptions and estimates. These accountscan include sales returns, loan losses, warranty costs, allowance for doubtfulaccounts, expectations of goods to be returned and a host of others. Under theauspices of conservatism, these accounts can be used to store accruals of futureincome. Restructuring liabilities created by Big Bath charges alsoprovides these Cookie jar reserve effect. Jack Ciesielski, whomanages money and writes the Analysts Accounting Observer, calls theseaccounts the accounting equivalent of turning lead into gold a virtualhoneypot for making rainy-day adjustments. Various adjustments and entriesthat can produce almost any desired results in the pursuit of consistency. Thestatement of financial accounting concepts No. 2 (FASB, May 1980), definesmateriality as: The magnitude of an omission or misstatement ofaccounting information that, in light of surrounding circumstances, makes itprobable that the judgement of a reaonable person relying on the informationwould have been changed or influenced by the omission or misstatement. Todaysmanagement has started to ignore this fundamental principle. Materiality isbeing defined as a range of a few percentage points. Companies defend immaterialomissions by referring to percentage ceilings that draw a line on materiality. The amount falls under our ceiling and is therefore immaterial. Themateriality gimmick is one more method companies are using to stretch a nickelinto a dime. Simply put, In markets where missing an earnings projectionby a penny can result in a loss of millions of dollars in market capitalization,I have a hard time accepting that some of these so-called non-events simplydont matter, says Levitt. Finally, Levitt briefly touches on thecomplex issue of the manipulation occuring in revenue recognition. Moderncontracts, refunding, delaying of sales, up front and initiation fees all add tothe complications in some industries to follow specific rules of revenuerecognition. With plenty of holes in revenue recognition the door is open fortweaking. Microsoft is a good example of the problems facing todayscompanies. Concerned with proper revenue recognition, Microsoft started apractice in the software industry that allows companies to recognize revenueover a period of time. This recognition allo ws for better matching of revenuesto future expenses generated by the sale of the software. Expenses such asupgrades and technical support are related to the revenue generated by the saleof the software but are incurred at a later date. The complexities of modernbusiness transactions have left modern standards of accountancy years behind. .uaa8c71f0c7e93eacf7043563f9054df3 , .uaa8c71f0c7e93eacf7043563f9054df3 .postImageUrl , .uaa8c71f0c7e93eacf7043563f9054df3 .centered-text-area { min-height: 80px; position: relative; } .uaa8c71f0c7e93eacf7043563f9054df3 , .uaa8c71f0c7e93eacf7043563f9054df3:hover , .uaa8c71f0c7e93eacf7043563f9054df3:visited , .uaa8c71f0c7e93eacf7043563f9054df3:active { border:0!important; } .uaa8c71f0c7e93eacf7043563f9054df3 .clearfix:after { content: ""; display: table; clear: both; } .uaa8c71f0c7e93eacf7043563f9054df3 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .uaa8c71f0c7e93eacf7043563f9054df3:active , .uaa8c71f0c7e93eacf7043563f9054df3:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .uaa8c71f0c7e93eacf7043563f9054df3 .centered-text-area { width: 100%; position: relative ; } .uaa8c71f0c7e93eacf7043563f9054df3 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .uaa8c71f0c7e93eacf7043563f9054df3 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .uaa8c71f0c7e93eacf7043563f9054df3 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .uaa8c71f0c7e93eacf7043563f9054df3:hover .ctaButton { background-color: #34495E!important; } .uaa8c71f0c7e93eacf7043563f9054df3 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .uaa8c71f0c7e93eacf7043563f9054df3 .uaa8c71f0c7e93eacf7043563f9054df3-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .uaa8c71f0c7e93eacf7043563f9054df3:after { content: ""; display: block; clear: both; } READ: The Absent Male In Little Women EssayGimmicks, that all must be addressed by the financial community. The task ofreturning integrity to U.S. financial reporting is of paramount importance. Theinterests of our financial system are at stake. Arthur Levitt and the SECstand ready to take appropriate action if that interest is not protected. But, a private sector response that obviates the need for public sectordictates seems the wisest choice. A nine part plan that involves theentire financial community is proposed by Levitt. Levitt has made it very clearthat the SEC is prepared to start forcing change. A line Levitt hopes will notbe necessary to cross. The SEC will begin to issue guidance on a wide array ofissues concerning the credibility and transparency of financial reporting. Guidance that must be acted on to Obviate the need for large scaleSEC involvement. The SEC will also act more proactively in two of itstraditional roles of information regulation and enforcement. First, the SEC willbegin requiring companies to provide additional disclosure details on changes inaccounting assumptions. Supplemental beginning and ending balances andadjustments of sensitive restructuring liabilities and other loss accruals willalso be required. Secondly, the SEC is unleashing the dogs on companies usingany practices that appear to be managing earnings. The gauntlet has been thrown,and it is up to the financial community to accept the challenge. FASB and otherstandard setting bodies have fallen behind a rapidly changing and evolvingeconomic environment. FASB and the AICPA are being coercively encouraged toclean up auditing and disclosure practices. The pressure is on and standardsetting bodies are scrambling to close the holes in GAAP. FASB has establishedcommittees to in vestigate a number of concerns and is diligently working towardsolutions that obviate. Auditors and the public accounting industryreceived a good scolding from Levitt. Glaring failures in the auditing processat Sunbeam, Waste Management Inc., and Cendant have put the whole industry atrisk of public solutions. The auditors have failed to be the watchdog of investors. It is time to clean up your industry. Criticism by theentire financial community has questioned the auditors, qualifications, methodsand their ability to police themselves. Finally Levitt challenges corporatemanagement, and investors to begin a cultural change. Change that resists thepressures to follow the leader in accounting chicanery. Investors are encouragedto set financial standards of integrity and transparency and punish those whodepend on illusion and deception. American markets enjoy the confidence ofthe world. How many half-truths, and how much sleight-of-hand, will it take totarnish that faith? With the shift away form company run pension planseveryone has become their own personal financial planners. What hangs in thebalance is the future of us all. BibliographyLevitt, Arthur. Quality Information: The Lifeblood of OurMarkets. Speech, 18 Oct. 1999. Fox, Justin, Searching for Nonfictionin Financial Statements, Fortune 23 Dec. 1996. Adams, Jane B. Remarks. Speech, 9 Dec. 1998. Ciesielski, Jack, More SecondGuessing. Barrons. Johnson, Norman S. Recent Developments at theSEC. Speech. 20 August 1999. Fox, Justin. Learning to Play theEarnings Game (And Wallstreet will Love You). Fortune 31 Mar. 1997Greenberg, Herb, The Auditors are Always Last to Know, FortuneInvestor 17 Aug. 1998. Melcher, Richard, Where are the Accountants.Business Week 5 Oct. 1998. Melcher, Richard and Sparks, Debra EarningsHocus Pocus Business Week 5 Oct. 1998. Bartlett, Sarah, CorporateEarnings: Who Can You Trust Business Week 5 Oct. 1998. Turner, Lynn E. Continuing High Traditions Speech, 5 Nov. 1998. Turner, Lynn E. Remarks Speech, 10 Feb. 1999. Aeppel, Timothy EatonsEarnings Increase but Miss Analysts Forecasts 20 Oct. 1999. Tran, KhanhExcite At Home Posts Quarterly Loss Due to Charges but MeetsEstimates 20 Oct. 1999. Bank, David Microsoft Earnings ExceedExpectations 20 Oct. 1999.

Financial Reporting Essay Example For Students

Financial Reporting Essay OnSeptember 28, 1998, Chairman of the U.S. Securities and Exchange CommissionArthur Levitt sounded the call to arms in the financial community. Levitt askedfor, immediate and coordinated action to assure credibility andtransparency of financial reporting. Levitts speech emphasized theimportance of clear financial reporting to those gathered at New YorkUniversity. Reporting which has bowed to the pressures and tricks of earningsmanagement. Levitt specifically addresses five of the most popular tricks usedby firms to smooth earnings. Secondly, Levitt outlines an eight part action planto recover the integrity of financial reporting in the U.S. market place. Whatare the basic objectives of financial reporting? Generally accepted accountingprinciples provide information that identifies, measures, and communicatesfinancial information about economic entities to reasonably knowledgeable users. We will write a custom essay on Financial Reporting specifically for you for only $16.38 $13.9/page Order now Information that is a source of decision making for a wide array of users, mostimportantly, by investors and creditors. Investors and creditors who areresponsible for effective allocation of capital in our economy. If financialreporting becomes obscure and indecipherable, society loses the benefits ofeffective capital allocation. Nothing illustrates the importance of transparentinformation better than the pre-1930s era of anything goes accounting. An erathat left a chasm of misinformation in the market. A chasm that was acontributing factor to the market collapse of 1929 and the years of economicdepression. An entire society suffered the repercussions of misinformation. Families, and retirees depend on the credibility of financial reporting fortheir futures and livelihoods. Levitt describes financial reporting as, a bondbetween the company and the investor which if damaged can have disastrous,long-lasting consequences. Once again, the bond is being tested. Tested by afinancial community fixated on consensus earnings estimates. The pressure toachieve consensus estimates has never been so intense. The market demandsconsistency and punishes those who come up short. Eric Benhamou, former CEO of3COM Corporation, learned this hard lesson over a few short weeks in 1996. Benhamou and shareholders lost $7 billion in market value when 3COM failed toachieve expectations. The pressures are a tangled web of expectations, andconflicts of interest which Levitt describes as almostself-perpetuating. With pressures mounting, the answer from U.S. managershas been earnings management with a mix of managed expectations. March of 1997Fortune magazine reported that for an unprecedented sixteen consecutivequarters, more SP 500 companies have beat the consensus earnings estimatethan missed them. The sign of a quickly growing economy and a measure of theimportance the market has placed on consensus earnings estimates. The singularemphasis on earnings growth by investors has opened the door to earningsmanagement solutions. Solutions that are further being reinforced to managers bymarket forces and compensation plans. Primarily, managers jobs depend on theirability to build stockholder equity, and ever more importantly their owncompensation. A growing number of CEOs are recieving greater percentages oftheir compensation as stock options. A very personal incentive for executiveachievement of consensus earnings estimates. Companies are not the only ones tofeel the squeeze. Analysts are being pressured by large institutional investorsand companies seeking to manage expectations. Everyone is seeking the win. Auditors are being accused of being out to lunch, with the clients. Manyaccounting firms are coming under scrutiny as some of their clients are beinginvestigated by the SEC for irregularities in their practice of accounting. Cendant and Sunbeam both left accounting giant Arthur Anderson holding a bigolbag full of unreported accounting irregularities. Auditors from BDO Seidmanaddressed issues of GAAP with Thing New Ideas company. The Changes were made andBDO was replace for no specific reason. Herb Greenberg calls the episode,A reminder that the company being audited also pays the auditorsbill. The Kind of conflict of interests that leads us to question the ideaof how independent the auditors are. All of these pressures allow questionableaccounting practices to obfuscate the reporting process. Generally acceptedaccounting principles are intended to be a guide, not a procedure. They havebeen developed with intended flexibility so as not to hinder the advancement ofnew and innovative business practice. Flexibility that has left plenty of roomfor companies to stretch the boundaries of GAAP. Levitt focuss on five of themost widespread techniques used to deliver added flexibility. BigBath restructuring charges , creative acquisition accounting, CookieJar reserves, Immaterial misapplications of accountingprinciples and the premature recognition of revenues. These practices do notspecifically violate the letter of the law, but are gimmicks thatignore the spirit and intentions of GAAP. Gimmicks, according to Levitt, thatare an erosion in the quality of earnings and therefore the quality offinancial reporting. No longer is this just a problem perceived in smallcorporations struggling for recognition. Throughout the financial community,companies big and small are using these tools to smooth earnings and maximizemarket capitalization. The Big Bath restructuring charge is thewiping away of years of future expenses and charging them in the current period. .u3a4353c4f06ff90ed33401256a3e52cb , .u3a4353c4f06ff90ed33401256a3e52cb .postImageUrl , .u3a4353c4f06ff90ed33401256a3e52cb .centered-text-area { min-height: 80px; position: relative; } .u3a4353c4f06ff90ed33401256a3e52cb , .u3a4353c4f06ff90ed33401256a3e52cb:hover , .u3a4353c4f06ff90ed33401256a3e52cb:visited , .u3a4353c4f06ff90ed33401256a3e52cb:active { border:0!important; } .u3a4353c4f06ff90ed33401256a3e52cb .clearfix:after { content: ""; display: table; clear: both; } .u3a4353c4f06ff90ed33401256a3e52cb { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u3a4353c4f06ff90ed33401256a3e52cb:active , .u3a4353c4f06ff90ed33401256a3e52cb:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u3a4353c4f06ff90ed33401256a3e52cb .centered-text-area { width: 100%; position: relative ; } .u3a4353c4f06ff90ed33401256a3e52cb .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u3a4353c4f06ff90ed33401256a3e52cb .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u3a4353c4f06ff90ed33401256a3e52cb .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u3a4353c4f06ff90ed33401256a3e52cb:hover .ctaButton { background-color: #34495E!important; } .u3a4353c4f06ff90ed33401256a3e52cb .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u3a4353c4f06ff90ed33401256a3e52cb .u3a4353c4f06ff90ed33401256a3e52cb-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u3a4353c4f06ff90ed33401256a3e52cb:after { content: ""; display: block; clear: both; } READ: My healthy lifestyle EssayA practice that paves the way to easy future earnings growth by allowing futureexpenses to be absorbed by restructuring liabilities. Large one time chargesthat will be ignored by analysts and the financial community through a littleconvincing and notation. In note fifteen of the Coca-Cola companys 1998annual report shows seven nonrecurring items from the past three years. Fours ofthese charges are restructuring charges, most significantly in 1996 in thisnote. In 1996, we recorded provisions of approximately $276 million in selling,administrative and general expenses related to our plans for strengthening ourworld wide system. Of this $276 million, approximately $130 million related tostreamlining our operations, primarily in Greater Europe and Latin America. These one time write-offs become virtually insignificant footnotes to thefinancial reporting process. Extraordinary charges that are becoming unusuallycommon. Kodak has taken six extraordinary charges since 1991 and Coca-Cola hastaken four in two years. The financial community has to wonder howunusual these charges are. Creative acquisition accounting is whatLevitt calls Merger Magic. With the increasing number of mergers inthe 90s, companies have created another one time charge to avoid futureearnings drags. The in-process research and development chargeallows companies to minimize the premium paid on the acquisition of a company. Apremium that would otherwise be capitalized as goodwill: and depreciatedover a number of years. Depreciation expenses that have an impact on futureearnings. This one time charge allowed WorldCom to minimize the capitalizationof goodwill and avoid $100 million a year in depreciation expensesfor many years. A charge hiding in this complex note on WorldComs 1996 annualfinancial statement. (1) Results for 1996 include a $2.14 billion charge forin-process research and development related to the MFS merger. The charge isbased upon a valuation analysis of the technologies of MFS worldwide informationsystem, the internet network expansion system of UUNET, and certain otheridentified research and development projects purchased in the MFS merger. Theexpense includes $1.6 billion associated with UUNET and $0.54 billion related toMFS. (2) Additionally, 1996 results include other after-tax charges of $121million for employee severance, employee compensation charges, alignmentcharges, and costs to exit unfavorable telecommunications contracts and $343.5million after-tax write-down of operating assets within the companys non-corebusinesses. On a pre-tax basis, these charges totaled $600.1 million. The dollaramounts are staggering and the future implications far reaching. Since thisapproach was introduced by IBM in 1995 these charges have become co mmonplace foracquisition accounting. A popularity, largely due to the level of room allowedin research and development estimations. The Third earnings manipulation tooldiscussed by Levitt is what he calls Miscellaneous Cookie JarReserves. The technique involves liability and other accrual accountsspecifically sensitive to accounting assumptions and estimates. These accountscan include sales returns, loan losses, warranty costs, allowance for doubtfulaccounts, expectations of goods to be returned and a host of others. Under theauspices of conservatism, these accounts can be used to store accruals of futureincome. Restructuring liabilities created by Big Bath charges alsoprovides these Cookie jar reserve effect. Jack Ciesielski, whomanages money and writes the Analysts Accounting Observer, calls theseaccounts the accounting equivalent of turning lead into gold a virtualhoneypot for making rainy-day adjustments. Various adjustments and entriesthat can produce almost any desired results in the pursuit of consistency. Thestatement of financial accounting concepts No. 2 (FASB, May 1980), definesmateriality as: The magnitude of an omission or misstatement ofaccounting information that, in light of surrounding circumstances, makes itprobable that the judgement of a reaonable person relying on the informationwould have been changed or influenced by the omission or misstatement. Todaysmanagement has started to ignore this fundamental principle. Materiality isbeing defined as a range of a few percentage points. Companies defend immaterialomissions by referring to percentage ceilings that draw a line on materiality. The amount falls under our ceiling and is therefore immaterial. Themateriality gimmick is one more method companies are using to stretch a nickelinto a dime. Simply put, In markets where missing an earnings projectionby a penny can result in a loss of millions of dollars in market capitalization,I have a hard time accepting that some of these so-called non-events simplydont matter, says Levitt. Finally, Levitt briefly touches on thecomplex issue of the manipulation occuring in revenue recognition. Moderncontracts, refunding, delaying of sales, up front and initiation fees all add tothe complications in some industries to follow specific rules of revenuerecognition. With plenty of holes in revenue recognition the door is open fortweaking. Microsoft is a good example of the problems facing todayscompanies. Concerned with proper revenue recognition, Microsoft started apractice in the software industry that allows companies to recognize revenueover a period of time. This recognition allo ws for better matching of revenuesto future expenses generated by the sale of the software. Expenses such asupgrades and technical support are related to the revenue generated by the saleof the software but are incurred at a later date. The complexities of modernbusiness transactions have left modern standards of accountancy years behind. .uaa8c71f0c7e93eacf7043563f9054df3 , .uaa8c71f0c7e93eacf7043563f9054df3 .postImageUrl , .uaa8c71f0c7e93eacf7043563f9054df3 .centered-text-area { min-height: 80px; position: relative; } .uaa8c71f0c7e93eacf7043563f9054df3 , .uaa8c71f0c7e93eacf7043563f9054df3:hover , .uaa8c71f0c7e93eacf7043563f9054df3:visited , .uaa8c71f0c7e93eacf7043563f9054df3:active { border:0!important; } .uaa8c71f0c7e93eacf7043563f9054df3 .clearfix:after { content: ""; display: table; clear: both; } .uaa8c71f0c7e93eacf7043563f9054df3 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .uaa8c71f0c7e93eacf7043563f9054df3:active , .uaa8c71f0c7e93eacf7043563f9054df3:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .uaa8c71f0c7e93eacf7043563f9054df3 .centered-text-area { width: 100%; position: relative ; } .uaa8c71f0c7e93eacf7043563f9054df3 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .uaa8c71f0c7e93eacf7043563f9054df3 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .uaa8c71f0c7e93eacf7043563f9054df3 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .uaa8c71f0c7e93eacf7043563f9054df3:hover .ctaButton { background-color: #34495E!important; } .uaa8c71f0c7e93eacf7043563f9054df3 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .uaa8c71f0c7e93eacf7043563f9054df3 .uaa8c71f0c7e93eacf7043563f9054df3-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .uaa8c71f0c7e93eacf7043563f9054df3:after { content: ""; display: block; clear: both; } READ: The Absent Male In Little Women EssayGimmicks, that all must be addressed by the financial community. The task ofreturning integrity to U.S. financial reporting is of paramount importance. Theinterests of our financial system are at stake. Arthur Levitt and the SECstand ready to take appropriate action if that interest is not protected. But, a private sector response that obviates the need for public sectordictates seems the wisest choice. A nine part plan that involves theentire financial community is proposed by Levitt. Levitt has made it very clearthat the SEC is prepared to start forcing change. A line Levitt hopes will notbe necessary to cross. The SEC will begin to issue guidance on a wide array ofissues concerning the credibility and transparency of financial reporting. Guidance that must be acted on to Obviate the need for large scaleSEC involvement. The SEC will also act more proactively in two of itstraditional roles of information regulation and enforcement. First, the SEC willbegin requiring companies to provide additional disclosure details on changes inaccounting assumptions. Supplemental beginning and ending balances andadjustments of sensitive restructuring liabilities and other loss accruals willalso be required. Secondly, the SEC is unleashing the dogs on companies usingany practices that appear to be managing earnings. The gauntlet has been thrown,and it is up to the financial community to accept the challenge. FASB and otherstandard setting bodies have fallen behind a rapidly changing and evolvingeconomic environment. FASB and the AICPA are being coercively encouraged toclean up auditing and disclosure practices. The pressure is on and standardsetting bodies are scrambling to close the holes in GAAP. FASB has establishedcommittees to in vestigate a number of concerns and is diligently working towardsolutions that obviate. Auditors and the public accounting industryreceived a good scolding from Levitt. Glaring failures in the auditing processat Sunbeam, Waste Management Inc., and Cendant have put the whole industry atrisk of public solutions. The auditors have failed to be the watchdog of investors. It is time to clean up your industry. Criticism by theentire financial community has questioned the auditors, qualifications, methodsand their ability to police themselves. Finally Levitt challenges corporatemanagement, and investors to begin a cultural change. Change that resists thepressures to follow the leader in accounting chicanery. Investors are encouragedto set financial standards of integrity and transparency and punish those whodepend on illusion and deception. American markets enjoy the confidence ofthe world. How many half-truths, and how much sleight-of-hand, will it take totarnish that faith? With the shift away form company run pension planseveryone has become their own personal financial planners. What hangs in thebalance is the future of us all. BibliographyLevitt, Arthur. Quality Information: The Lifeblood of OurMarkets. Speech, 18 Oct. 1999. Fox, Justin, Searching for Nonfictionin Financial Statements, Fortune 23 Dec. 1996. Adams, Jane B. Remarks. Speech, 9 Dec. 1998. Ciesielski, Jack, More SecondGuessing. Barrons. Johnson, Norman S. Recent Developments at theSEC. Speech. 20 August 1999. Fox, Justin. Learning to Play theEarnings Game (And Wallstreet will Love You). Fortune 31 Mar. 1997Greenberg, Herb, The Auditors are Always Last to Know, FortuneInvestor 17 Aug. 1998. Melcher, Richard, Where are the Accountants.Business Week 5 Oct. 1998. Melcher, Richard and Sparks, Debra EarningsHocus Pocus Business Week 5 Oct. 1998. Bartlett, Sarah, CorporateEarnings: Who Can You Trust Business Week 5 Oct. 1998. Turner, Lynn E. Continuing High Traditions Speech, 5 Nov. 1998. Turner, Lynn E. Remarks Speech, 10 Feb. 1999. Aeppel, Timothy EatonsEarnings Increase but Miss Analysts Forecasts 20 Oct. 1999. Tran, KhanhExcite At Home Posts Quarterly Loss Due to Charges but MeetsEstimates 20 Oct. 1999. Bank, David Microsoft Earnings ExceedExpectations 20 Oct. 1999.

Financial Reporting Essay Example For Students

Financial Reporting Essay OnSeptember 28, 1998, Chairman of the U.S. Securities and Exchange CommissionArthur Levitt sounded the call to arms in the financial community. Levitt askedfor, immediate and coordinated action to assure credibility andtransparency of financial reporting. Levitts speech emphasized theimportance of clear financial reporting to those gathered at New YorkUniversity. Reporting which has bowed to the pressures and tricks of earningsmanagement. Levitt specifically addresses five of the most popular tricks usedby firms to smooth earnings. Secondly, Levitt outlines an eight part action planto recover the integrity of financial reporting in the U.S. market place. Whatare the basic objectives of financial reporting? Generally accepted accountingprinciples provide information that identifies, measures, and communicatesfinancial information about economic entities to reasonably knowledgeable users. We will write a custom essay on Financial Reporting specifically for you for only $16.38 $13.9/page Order now Information that is a source of decision making for a wide array of users, mostimportantly, by investors and creditors. Investors and creditors who areresponsible for effective allocation of capital in our economy. If financialreporting becomes obscure and indecipherable, society loses the benefits ofeffective capital allocation. Nothing illustrates the importance of transparentinformation better than the pre-1930s era of anything goes accounting. An erathat left a chasm of misinformation in the market. A chasm that was acontributing factor to the market collapse of 1929 and the years of economicdepression. An entire society suffered the repercussions of misinformation. Families, and retirees depend on the credibility of financial reporting fortheir futures and livelihoods. Levitt describes financial reporting as, a bondbetween the company and the investor which if damaged can have disastrous,long-lasting consequences. Once again, the bond is being tested. Tested by afinancial community fixated on consensus earnings estimates. The pressure toachieve consensus estimates has never been so intense. The market demandsconsistency and punishes those who come up short. Eric Benhamou, former CEO of3COM Corporation, learned this hard lesson over a few short weeks in 1996. Benhamou and shareholders lost $7 billion in market value when 3COM failed toachieve expectations. The pressures are a tangled web of expectations, andconflicts of interest which Levitt describes as almostself-perpetuating. With pressures mounting, the answer from U.S. managershas been earnings management with a mix of managed expectations. March of 1997Fortune magazine reported that for an unprecedented sixteen consecutivequarters, more SP 500 companies have beat the consensus earnings estimatethan missed them. The sign of a quickly growing economy and a measure of theimportance the market has placed on consensus earnings estimates. The singularemphasis on earnings growth by investors has opened the door to earningsmanagement solutions. Solutions that are further being reinforced to managers bymarket forces and compensation plans. Primarily, managers jobs depend on theirability to build stockholder equity, and ever more importantly their owncompensation. A growing number of CEOs are recieving greater percentages oftheir compensation as stock options. A very personal incentive for executiveachievement of consensus earnings estimates. Companies are not the only ones tofeel the squeeze. Analysts are being pressured by large institutional investorsand companies seeking to manage expectations. Everyone is seeking the win. Auditors are being accused of being out to lunch, with the clients. Manyaccounting firms are coming under scrutiny as some of their clients are beinginvestigated by the SEC for irregularities in their practice of accounting. Cendant and Sunbeam both left accounting giant Arthur Anderson holding a bigolbag full of unreported accounting irregularities. Auditors from BDO Seidmanaddressed issues of GAAP with Thing New Ideas company. The Changes were made andBDO was replace for no specific reason. Herb Greenberg calls the episode,A reminder that the company being audited also pays the auditorsbill. The Kind of conflict of interests that leads us to question the ideaof how independent the auditors are. All of these pressures allow questionableaccounting practices to obfuscate the reporting process. Generally acceptedaccounting principles are intended to be a guide, not a procedure. They havebeen developed with intended flexibility so as not to hinder the advancement ofnew and innovative business practice. Flexibility that has left plenty of roomfor companies to stretch the boundaries of GAAP. Levitt focuss on five of themost widespread techniques used to deliver added flexibility. BigBath restructuring charges , creative acquisition accounting, CookieJar reserves, Immaterial misapplications of accountingprinciples and the premature recognition of revenues. These practices do notspecifically violate the letter of the law, but are gimmicks thatignore the spirit and intentions of GAAP. Gimmicks, according to Levitt, thatare an erosion in the quality of earnings and therefore the quality offinancial reporting. No longer is this just a problem perceived in smallcorporations struggling for recognition. Throughout the financial community,companies big and small are using these tools to smooth earnings and maximizemarket capitalization. The Big Bath restructuring charge is thewiping away of years of future expenses and charging them in the current period. .u3a4353c4f06ff90ed33401256a3e52cb , .u3a4353c4f06ff90ed33401256a3e52cb .postImageUrl , .u3a4353c4f06ff90ed33401256a3e52cb .centered-text-area { min-height: 80px; position: relative; } .u3a4353c4f06ff90ed33401256a3e52cb , .u3a4353c4f06ff90ed33401256a3e52cb:hover , .u3a4353c4f06ff90ed33401256a3e52cb:visited , .u3a4353c4f06ff90ed33401256a3e52cb:active { border:0!important; } .u3a4353c4f06ff90ed33401256a3e52cb .clearfix:after { content: ""; display: table; clear: both; } .u3a4353c4f06ff90ed33401256a3e52cb { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u3a4353c4f06ff90ed33401256a3e52cb:active , .u3a4353c4f06ff90ed33401256a3e52cb:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u3a4353c4f06ff90ed33401256a3e52cb .centered-text-area { width: 100%; position: relative ; } .u3a4353c4f06ff90ed33401256a3e52cb .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u3a4353c4f06ff90ed33401256a3e52cb .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u3a4353c4f06ff90ed33401256a3e52cb .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u3a4353c4f06ff90ed33401256a3e52cb:hover .ctaButton { background-color: #34495E!important; } .u3a4353c4f06ff90ed33401256a3e52cb .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u3a4353c4f06ff90ed33401256a3e52cb .u3a4353c4f06ff90ed33401256a3e52cb-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u3a4353c4f06ff90ed33401256a3e52cb:after { content: ""; display: block; clear: both; } READ: My healthy lifestyle EssayA practice that paves the way to easy future earnings growth by allowing futureexpenses to be absorbed by restructuring liabilities. Large one time chargesthat will be ignored by analysts and the financial community through a littleconvincing and notation. In note fifteen of the Coca-Cola companys 1998annual report shows seven nonrecurring items from the past three years. Fours ofthese charges are restructuring charges, most significantly in 1996 in thisnote. In 1996, we recorded provisions of approximately $276 million in selling,administrative and general expenses related to our plans for strengthening ourworld wide system. Of this $276 million, approximately $130 million related tostreamlining our operations, primarily in Greater Europe and Latin America. These one time write-offs become virtually insignificant footnotes to thefinancial reporting process. Extraordinary charges that are becoming unusuallycommon. Kodak has taken six extraordinary charges since 1991 and Coca-Cola hastaken four in two years. The financial community has to wonder howunusual these charges are. Creative acquisition accounting is whatLevitt calls Merger Magic. With the increasing number of mergers inthe 90s, companies have created another one time charge to avoid futureearnings drags. The in-process research and development chargeallows companies to minimize the premium paid on the acquisition of a company. Apremium that would otherwise be capitalized as goodwill: and depreciatedover a number of years. Depreciation expenses that have an impact on futureearnings. This one time charge allowed WorldCom to minimize the capitalizationof goodwill and avoid $100 million a year in depreciation expensesfor many years. A charge hiding in this complex note on WorldComs 1996 annualfinancial statement. (1) Results for 1996 include a $2.14 billion charge forin-process research and development related to the MFS merger. The charge isbased upon a valuation analysis of the technologies of MFS worldwide informationsystem, the internet network expansion system of UUNET, and certain otheridentified research and development projects purchased in the MFS merger. Theexpense includes $1.6 billion associated with UUNET and $0.54 billion related toMFS. (2) Additionally, 1996 results include other after-tax charges of $121million for employee severance, employee compensation charges, alignmentcharges, and costs to exit unfavorable telecommunications contracts and $343.5million after-tax write-down of operating assets within the companys non-corebusinesses. On a pre-tax basis, these charges totaled $600.1 million. The dollaramounts are staggering and the future implications far reaching. Since thisapproach was introduced by IBM in 1995 these charges have become co mmonplace foracquisition accounting. A popularity, largely due to the level of room allowedin research and development estimations. The Third earnings manipulation tooldiscussed by Levitt is what he calls Miscellaneous Cookie JarReserves. The technique involves liability and other accrual accountsspecifically sensitive to accounting assumptions and estimates. These accountscan include sales returns, loan losses, warranty costs, allowance for doubtfulaccounts, expectations of goods to be returned and a host of others. Under theauspices of conservatism, these accounts can be used to store accruals of futureincome. Restructuring liabilities created by Big Bath charges alsoprovides these Cookie jar reserve effect. Jack Ciesielski, whomanages money and writes the Analysts Accounting Observer, calls theseaccounts the accounting equivalent of turning lead into gold a virtualhoneypot for making rainy-day adjustments. Various adjustments and entriesthat can produce almost any desired results in the pursuit of consistency. Thestatement of financial accounting concepts No. 2 (FASB, May 1980), definesmateriality as: The magnitude of an omission or misstatement ofaccounting information that, in light of surrounding circumstances, makes itprobable that the judgement of a reaonable person relying on the informationwould have been changed or influenced by the omission or misstatement. Todaysmanagement has started to ignore this fundamental principle. Materiality isbeing defined as a range of a few percentage points. Companies defend immaterialomissions by referring to percentage ceilings that draw a line on materiality. The amount falls under our ceiling and is therefore immaterial. Themateriality gimmick is one more method companies are using to stretch a nickelinto a dime. Simply put, In markets where missing an earnings projectionby a penny can result in a loss of millions of dollars in market capitalization,I have a hard time accepting that some of these so-called non-events simplydont matter, says Levitt. Finally, Levitt briefly touches on thecomplex issue of the manipulation occuring in revenue recognition. Moderncontracts, refunding, delaying of sales, up front and initiation fees all add tothe complications in some industries to follow specific rules of revenuerecognition. With plenty of holes in revenue recognition the door is open fortweaking. Microsoft is a good example of the problems facing todayscompanies. Concerned with proper revenue recognition, Microsoft started apractice in the software industry that allows companies to recognize revenueover a period of time. This recognition allo ws for better matching of revenuesto future expenses generated by the sale of the software. Expenses such asupgrades and technical support are related to the revenue generated by the saleof the software but are incurred at a later date. The complexities of modernbusiness transactions have left modern standards of accountancy years behind. .uaa8c71f0c7e93eacf7043563f9054df3 , .uaa8c71f0c7e93eacf7043563f9054df3 .postImageUrl , .uaa8c71f0c7e93eacf7043563f9054df3 .centered-text-area { min-height: 80px; position: relative; } .uaa8c71f0c7e93eacf7043563f9054df3 , .uaa8c71f0c7e93eacf7043563f9054df3:hover , .uaa8c71f0c7e93eacf7043563f9054df3:visited , .uaa8c71f0c7e93eacf7043563f9054df3:active { border:0!important; } .uaa8c71f0c7e93eacf7043563f9054df3 .clearfix:after { content: ""; display: table; clear: both; } .uaa8c71f0c7e93eacf7043563f9054df3 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .uaa8c71f0c7e93eacf7043563f9054df3:active , .uaa8c71f0c7e93eacf7043563f9054df3:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .uaa8c71f0c7e93eacf7043563f9054df3 .centered-text-area { width: 100%; position: relative ; } .uaa8c71f0c7e93eacf7043563f9054df3 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .uaa8c71f0c7e93eacf7043563f9054df3 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .uaa8c71f0c7e93eacf7043563f9054df3 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .uaa8c71f0c7e93eacf7043563f9054df3:hover .ctaButton { background-color: #34495E!important; } .uaa8c71f0c7e93eacf7043563f9054df3 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .uaa8c71f0c7e93eacf7043563f9054df3 .uaa8c71f0c7e93eacf7043563f9054df3-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .uaa8c71f0c7e93eacf7043563f9054df3:after { content: ""; display: block; clear: both; } READ: The Absent Male In Little Women EssayGimmicks, that all must be addressed by the financial community. The task ofreturning integrity to U.S. financial reporting is of paramount importance. Theinterests of our financial system are at stake. Arthur Levitt and the SECstand ready to take appropriate action if that interest is not protected. But, a private sector response that obviates the need for public sectordictates seems the wisest choice. A nine part plan that involves theentire financial community is proposed by Levitt. Levitt has made it very clearthat the SEC is prepared to start forcing change. A line Levitt hopes will notbe necessary to cross. The SEC will begin to issue guidance on a wide array ofissues concerning the credibility and transparency of financial reporting. Guidance that must be acted on to Obviate the need for large scaleSEC involvement. The SEC will also act more proactively in two of itstraditional roles of information regulation and enforcement. First, the SEC willbegin requiring companies to provide additional disclosure details on changes inaccounting assumptions. Supplemental beginning and ending balances andadjustments of sensitive restructuring liabilities and other loss accruals willalso be required. Secondly, the SEC is unleashing the dogs on companies usingany practices that appear to be managing earnings. The gauntlet has been thrown,and it is up to the financial community to accept the challenge. FASB and otherstandard setting bodies have fallen behind a rapidly changing and evolvingeconomic environment. FASB and the AICPA are being coercively encouraged toclean up auditing and disclosure practices. The pressure is on and standardsetting bodies are scrambling to close the holes in GAAP. FASB has establishedcommittees to in vestigate a number of concerns and is diligently working towardsolutions that obviate. Auditors and the public accounting industryreceived a good scolding from Levitt. Glaring failures in the auditing processat Sunbeam, Waste Management Inc., and Cendant have put the whole industry atrisk of public solutions. The auditors have failed to be the watchdog of investors. It is time to clean up your industry. Criticism by theentire financial community has questioned the auditors, qualifications, methodsand their ability to police themselves. Finally Levitt challenges corporatemanagement, and investors to begin a cultural change. Change that resists thepressures to follow the leader in accounting chicanery. Investors are encouragedto set financial standards of integrity and transparency and punish those whodepend on illusion and deception. American markets enjoy the confidence ofthe world. How many half-truths, and how much sleight-of-hand, will it take totarnish that faith? With the shift away form company run pension planseveryone has become their own personal financial planners. What hangs in thebalance is the future of us all. BibliographyLevitt, Arthur. Quality Information: The Lifeblood of OurMarkets. Speech, 18 Oct. 1999. Fox, Justin, Searching for Nonfictionin Financial Statements, Fortune 23 Dec. 1996. Adams, Jane B. Remarks. Speech, 9 Dec. 1998. Ciesielski, Jack, More SecondGuessing. Barrons. Johnson, Norman S. Recent Developments at theSEC. Speech. 20 August 1999. Fox, Justin. Learning to Play theEarnings Game (And Wallstreet will Love You). Fortune 31 Mar. 1997Greenberg, Herb, The Auditors are Always Last to Know, FortuneInvestor 17 Aug. 1998. Melcher, Richard, Where are the Accountants.Business Week 5 Oct. 1998. Melcher, Richard and Sparks, Debra EarningsHocus Pocus Business Week 5 Oct. 1998. Bartlett, Sarah, CorporateEarnings: Who Can You Trust Business Week 5 Oct. 1998. Turner, Lynn E. Continuing High Traditions Speech, 5 Nov. 1998. Turner, Lynn E. Remarks Speech, 10 Feb. 1999. Aeppel, Timothy EatonsEarnings Increase but Miss Analysts Forecasts 20 Oct. 1999. Tran, KhanhExcite At Home Posts Quarterly Loss Due to Charges but MeetsEstimates 20 Oct. 1999. Bank, David Microsoft Earnings ExceedExpectations 20 Oct. 1999.

Sleep in Sports free essay sample

Cheri Mah of the stanford sleep disorders clinic and research laboratory has been following sleep patterns and the effects on the athletes performance. One of her experiments was with the Stanford University tennis team. For five weeks each member of the tennis team was to get ten hours of sleep per night. Those who increased their sleep time ran faster sprints and played at the best of their ability. Mah found that getting extra sleep over a couple of weeks improved an athletes performance, mood, and alertness for all athletes. Sleep is very important for collegiate and professional athletes who have full schedules and often travel for games. Athletes can easily struggle with getting enough sleep due to being so busy through out each day. This slows down the athletes alertness and performance level to a minimum. Many athletes have set personal bests and have broken school and also world records by just getting enough sleep. We will write a custom essay sample on Sleep in Sports or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The reason behind this is because while a person is in what they call deep sleep, is when a growth hormone is released. These hormones stimulate muscle growth and repair body parts such as bones and muscles. The hormones also help burn fat keeping the athlete in top shape. REM sleep also provides energy to both the brain and the body. If sleep is cut short, the body doesn’t have time to complete all of the phases needed for muscle repair, memory consolidation and the release of hormones. So how much sleep does an athlete need? The answer is seven to nine hours per night for adults and nine to ten hours for adolescents and teens. Athletes can tell by falling asleep within twenty minuets of going to bed and waking up without an alarm means that they are getting the right amount.

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Will offering work-life balance programs result in positive outcomes Essay

Will offering work-life balance programs result in positive outcomes for organisations and for employees - Essay Example Work-life balance programs vary widely depending on organisational policy and include such programs as flextime, telecommuting, paternity leave and even job sharing. These programs are implemented so that the organisation can demonstrate a solid commitment to improving employee relations and to allow employees to balance their personal demands with job role obligations. Work-life policies, in most instances, provide exceptionally positive outcomes for the organisation and employees who make use of the availability of these programs, including employee motivation, increased employee commitment, cohesive organisational cultures and reduced employee turnover that satisfies cost control issues at the organisation. The outcomes of work-life balance programs Positive outcomes associated with work-life balance programs can be attributed to social exchange theory, a psychological supposition that human relationships are founded on reciprocal actions and mutual negotiations between two or mor e parties (Emerson 1976). Social exchange theory posits that employees will repeat an action if they find they are rewarded for the behaviour (Robbins, Chatterjee and Canda 2011). Work-life programs are established by organisational leaders in an effort to provide incentives for employees to provide superior effort and motivation. As a result of this reward, employees respond by exerting maximum effort even when the job role involves an intensification of work responsibilities (Kelliher and Anderson 2010). Hence, there is a quantifiable set of positive psychological outcomes under social exchange theory that provides superior return on investment, in terms of increased productivity and motivation, to the employer. Also at the psychological level, work-life balance programs provide greater employee satisfaction which provides the incentive for employees to be more productive. Having some level of personal control over an employee’s working conditions is considered very valuabl e to workers that engage with these programs (Kelliher and Anderson 2010). It is recognised in research studies that when an employer provides workers with workplace autonomy, it is positively linked to job satisfaction (Emery and Barker 2007). This satisfaction leads to happier workers and job productivity increases (Nauert 2011). The research evidence indicating a positive link between satisfaction and higher productive outputs in the job role illustrate that work-life balance programs maintain considerable positive benefits to both the employee and the employer. Employee commitment is enhanced and there is overall better job performance when an employee is able to work in autonomous work environments (Nauert 2011). From the business perspective, the ability of work-life balance programs to provide perceptions of autonomy even leads to lower employee turnover, thus saving the organisation costs associated with recruitment and training of new employees. Work-life programs also prov ide the organisation with much less overhead costs that is sustained through employees working from home (Beauregard and Henry 2009). In a business where employees are not offered work-life programs, such as telecommuting, businesses must absorb a variety of costs, including office supplies, utilisation of electric services, telephony, and many other administrative costs. By having employees work from home, businesses can reduce their daily operational expenses, thereby satisfying budget concerns. This is a positive outcome from an organisation perspective, especially