...CASE STUDY – LETTER FROM PRISON ETHICS 1. In an interview with the New Zealand Herald, Stephen Richards commented “World Com bankrupt, Enron bankrupt, Adelphia bankrupt. Computer Associates is a radically different environment to those.” Do you agree/disagree with Richards’ comment? Why/Why not? Discuss the ethical implications of the fraud committed at Computer Associates. In your response you should refer to Part A of the Code of Ethics of the Australian Accounting Profession discussed in Chapter 29 of the text. (25 marks) EARNINGS MANAGEMENT 2. “Numerous pieces of evidence suggested that earnings management – the managerial use of discretion to influence reported earnings – was a widespread corporate practice at Computer Associates.” Distinguish between accrual-based earnings management and real activities manipulation. Explain what is meant by a trade-off between the two. Which type of earnings management was practised at Computer Associates? Academic support should be provided (see the attached reference list) from at least two articles. (25 marks) CORPORATE GOVERNANCE 3. Corporate governance is defined as the system by which companies are directed and controlled" (Cadbury Committee, 1992). Discuss the role of specific corporate governance mechanisms that may have alleviated earnings management at Computer Associates. Academic support should be provided (see the attached reference list) from at least two articles. (25 marks) LOBBYING 4. The fraudulent...
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...Petway HCS 405 December 14, 2014 Professor Jennifer Noren Reporting Practices and Ethics Introduction Success comes from effectively implementing the four elements of financial management: planning, controlling, organizing, and decision-making. These four recognized elements allow health care organizations to adjust the inflow and outflow to achieve the most beneficial outcome. A health care organization’s success depends on more than just providing excellent service to patients. One of the most important aspects of any business, including health care, is to stand by their ethical standards. It is vital for health care organizations to conduct their businesses and report finances ethically and in compliance with all laws and regulations. Four Elements of Financial Management Planning is one of the four important parts of managing a company. Planning consists of identifying the best way to achieve the organization's goal. First the manager needs to identify the main objectives needed to reach the goal. Then the manager needs to recognize what steps need to be taken to reach each objective. Essentially, the manager is developing a plan by breaking up one large goal and categorizing it into smaller goals (objectives). These objectives can then be delegated to appropriate teams with steps on how to reach each one. Controlling is another vital element and is the act of supervising everyone involved...
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...Capital Budgeting Case NPV or net present value illustrated as the present value of an investment’s annual free cash flow less the investment’s initial outlay (Keown, Petty, & Martin 2014 Pg. 314). While assessing both Corporation A and Corporation B, NPV formula’s represented by (present value of all the future annual free cash flows) - (the initial cash outlay). Calculations of Corporation A, has a 10% rate of return and the present value of the free cash flow is $270,980. Subtracting the initial $100,000 outlay leaves an NPV of $170,980. Corporation B has an 11% rate of return and the present value of the free cash flow is $290,252. Subtracting the initial $150,000 outlay leaves an NPV of $140,252. Analyzing the results, the NPV tells the value of the project and if that particular project is worth the investment. If the NPV shows a positive result, it is accepted, if it returns negative, it is automatically rejected. With the assessment of both corporations, the values are greater than zero therefore both projects would be accepted. However, because Corporation A has a higher rate of return at the end of the five years, this would be the recommended corporation out of the two. NPV is essential when dealing with capital-budgeting decisions. It is most useful because it is a tool that evaluates free cash flows opposed to accounting profits. It also allows the recognition of time value of money in regard to benefits and costs and the comparison of logic...
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...Value tree paper Decision analysis assists in the process of structural thinking about decisions and the development of supportive subjective judgments that form a basis for good decisions. There are four main phases involved in the process of decision analysis that is the problem structuring, preference elicitation, recommendation decision and sensitivity analysis. Under the problem structuring phase several issues need to be identified and defined. The first task to be carried out involves context decision definition. For example, this is the stage of identifying a college. After defining the problem, the objectives or objective is defined. For example, to come up with the decision of attending my college, the main objective was to find a college which offers the course that will assist me in gaining access to my career. In addition, the college had to offer that course at an affordable price and be near my place of residence (Howard, & Matheson 2005). The next step involves the generation and identification of decision alternatives. Under this step, I evaluated different colleges which I could attend that offered the same course as the one I needed. After this, a hierarchical model of the objectives is formed. This assists in easily understanding the relationship existing between the objectives more easily. Moreover, a basis for further analysis is also created. Finally, measures are provided so as to identify the extent to which the decision alternatives satisfy...
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...Invest. Innovate. Inspire. For a new India. ANNUAL REPORT 2014-15 India is at the threshold of a new era of growth and opportunity. This is driven by increasing economic activity, ongoing ‘Make in India’ initiatives and a demographically well-placed, aspirational society. Reliance Industries Limited (RIL) continues to be a partner in India’s ongoing journey towards economic and social well-being, and remains committed to investing in and innovating for India. RIL is striving to meet and exceed global benchmarks in product quality and customer service with inspiring ideas and strategic investments. From the manufacturing landscape to high-growth consumer service sectors, RIL is achieving superior outcomes that facilitate India’s drive for global leadership. RIL is delivering industry-leading performance through consistent efficiency in operations and prudent configuration of assets. RIL is making sizable capital investments, focusing on technology and expanding its level of services from the hydrocarbons sector to consumer businesses. RIL innovates for existing businesses and also focuses on developing new business models to deliver g g g y significant value for its growing stakeholder fraternity. In this effort, it collaborates with o s with leading global institutions to help usher in a n era of possibilities. global new is growing o RIL’s focus is to continue growing as a respons responsible organisation, thereby e inspiring progress in...
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...from 1 October 2015 to 22 October 2015. Findings 3.1 Alternative strategies relating to market entry/ substantive growth/ limited growth/ retrenchment for your customer. A limited growth strategy is a safer and smarter way to do business as aggressive growth strategy requires a large amount of risk such as entering new geographical markets. Limited growth is a lower risk mode of growth as it needs less start-up funds which include advertising and promotion. (Sherman, 2015) The strategy proposed was the implementation of Starbucks happy hour to give customers a promotion of half price on all drinks when they buy any tumbler or mug with the exception of the $1 reusable cup available in the US and Canada (Kosh, 2013). The promotion in this case will focus on the Starbucks goal to get 5 percent of beverages made in stores to be made in personal tumblers. Previously, Starbucks created a goal to achieve 25 percent of customers using their tumblers for beverages made in their store and will not be able to achieve this goal based on previous records (Starbucks Coffee Company, 2015). This promotion will then only qualify for the customers who buy their own tumblers. The customers that buy tumblers during that period will also have a free Starbucks card with a preload of 10 dollars in the card. In 2009, only 1.5% of Starbucks drinkers used their tumbler and only 1.8 percent in 2010 and 1.9% in 2011 and back to 1.5% in 2012 and 1.8 % in 2013. Based on these records, Starbucks has never...
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...pollution, child labour, workers’ salary below minimum wage, over working hours, welfare discrimination, etc. This essay is going to discuss the recent case of “BP oil spill in the Gulf of Mexico” in 2010 that has got many attentions of countries and international actors including some INGOs and WTO. The US president Barrack Obama has compared the Gulf of Mexico oil spill to the September 11 terrorist attacks as he began a tour of the region: "In the same way that our view of our vulnerabilities and our foreign policy was shaped profoundly by 9/11, I think this disaster is going to shape how we think about the environment and energy for many years to come”, said Obama (Telegraph, 2010). We will use the four well-known moral frameworks discussed throughout the semester (utilitarianism, contractualism, ethics of virtue and deontology) to analyse why and how heavy the impact that disaster had on society under different points of view across international actors and the BP company itself. I. The Facts On April 20, 2010, the methane gas from the well, under high pressure, shot all the way up and out of the drill column, expanded onto the platform, and exploded. According to the global views, BP’s oil spill in Mexico was the biggest and the worst environmental disaster in the petroleum industry (even worse than 1989 Exxon Valdez Case). The explosion polluted hundreds of miles of coast, seriously affected local residents and communities and...
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... (1,350) | Net cash flow from operating activities | | | (4,390) | | | | | Cash flows from investing activities: | | | | Purchase of plant | (2,900) | | | Proceeds from the disposal of plant | 12,000 | | | Proceeds from government grant | 950 | | | Investment income | 40 | | 10,090 | Net cash inflow from investing activities | | | | | | | | Cash flows from financing activities: | | | | Proceeds of 6% loan note | 800 | | | Repayment of 10% Loan note | (4,000) | | | Capital payment under finance lease | (1,100) | | | Net cash flow from financing activities | | |...
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...ARTICLE 1: TITLE: Advertiser satisfaction with advertising agency creative product. NEEDS: The purpose of the paper is to explore the satisfaction response in the context of an applied creative, business-to-business, professional service – that of advertiser satisfaction with agency creative services. OBJECTIVES: CSD is a much-discussed but still controversial concept. Oliver (1997) offered the following definition:the consumer’s fulfillment response. It is a judgement that a product or service feature, or the product or service itself, provided (or is providing) a pleasurable level of consumption – related fulfilment, including levels of under- or over fulfilment.The disconfirmation paradigm has been researched extensively with regard to consumer goods and services (Bolton and Drew, Brown and Swartz, Oliver, Tse and Wilton. It was more recently applied to B2B services (Nowak and Washburn; Patterson. With regard to the basic disconfirmation model, Oliver concluded that “ the model has been able to adequately account for one major mechanism (disconfirmation) by which consumers form satisfaction judgements”. Oliver describes disconfirmation as “discrepancy from standard”, in either a positive or negative direction. The basic disconfirmation model comprises variables including expectations, (perceived) performance, disconfirmation. FINDINGS: Findings from the in-depth interviews concerning the structure of advertiser expectations have already...
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...SL.NO. | TOPIC | PAGE NO. | 1 | CHAPTER – 1INDUSRTY PROFILE ORGANIZATION PROFILE | | 2 | CHAPTER – 2OBJECTIVE OF THE STUDYINTRUDUCTION TO THE STUDY | | 3 | CHAPTER – 3SWOT ANALYSIS | | 4 | CHAPTER – 4CONCLUSIONSUGGESTIONS | | | | | | | | INDUSTRIAL PROFILE SRI MAHALAKSHMI dairy was founded by Mr. R. Ponnuswamy, Chairman and Managing Director of the Aroma Sri Mahalakshmi Group of Food industries in the year 1972 and our brand Name AROMA MILK is a house hold name in the city of Coimbatore and Tiruppur. Sri Mahalakshmi dairy had a humble beginning in 1972 in a small village called a Telugupalayam, nearby Coimbatore. The dairy was started with an ideological goal to serve the poor and economically weaker dairy farmers of Coimbatore Dist. and nearby Tiruppur dist. From the time the dairy started, it has served the farmer community with complete dedication and affection. The farmers have developed an ever increasing loyalty to this organisation which is reflected in the yearly growth rate of the company. * Name of the INDUSTRI : SRI Mahalakshmi Dairy * Year of establishment : 1972 * Type of Industry : UNION BASED INDUSTRI * Corporate office : Coimbatore * Total Unions : 13 * Production : Milk products * Turnover 2011-2012...
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...Licensed to: iChapters User Eugene F. Brigham UNIVERSITY OF FLORIDA Joel F. Houston UNIVERSITY OF FLORIDA Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Eugene F. Brigham UNIVERSITY OF FLORIDA Joel F. Houston UNIVERSITY OF FLORIDA Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Licensed to: iChapters User This is an electronic version of the print textbook. Due to electronic rights restrictions, some third party content may be suppressed. Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. The publisher reserves the right to remove content from this title at any time...
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...Changing ownership and its impact on Firm performance: A detailed pre and post crisis study on Indian firms Several studies are available establishing relationship between firm performance and ownership structure and the results are mixed. Several authors have found significant relationship while others have not found any significant relationships. In Indian context also, there are several studies which propagates to have both kind of results. The way literature is linking the owner ship with performance has always been via addressing the agency (outsiders and insiders) problem, board structure, size, leverage etc. but, literature is sparse to identify these variables as moderating the relationship between ownership and firm performance. The purpose of this study is to establish and study the relationship between ownership and performance in Indian context. Considering following points, I recommend a framework to study the changing ownership and firm performance under the premise that agency costs and information asymmetry acts as moderating variable, which increases/decreases performance when ownership changes. * In India, it is confirmed by several authors that concentrated and complex ownership structure is found which creates problem of heterogeneity and opacity. * India has agency type 2 problems; few studies are available addressing type 2 problem and variables to measure this. * Opacity and complexity creates Information asymmetry and tunneling respectively...
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...Capital Budgeting Case One of the most important decisions made by management is Capital Budgeting. Capital Budgeting is a “process of identifying, analyzing, selecting, and implementing investment projects with returns that are expected to span over more than a year” (Okwuduche, 2010, pg. 1). The main objective is to select investments that will benefit the company. This student was informed by management that they are thinking about acquiring a corporation but do not want to spend more than $250,000. This student will analyze two different companies that cost $250,000 each to determine which company is the best investment. Overview of Net Present Value One method used to determine which corporation to acquire is the net present value (NPV). The NPV “of an investment proposal is equal to the present value of its annual free cash flows less the investment cash outflow to purchase the asset and put it in operating order” (Keown, 2014, pg. 310). In other words, it is the cash inflow that consists of “incremental revenues, reduction of costs, and release of working capital compared to the cash outflows that consists of the initial investment, repairs, maintenance, and operating costs of an asset” (Accounting For Management, 2012, pg. 1). If the NPV value is positive, the asset should be acquired. Overview of Internal Rate of Return Another method used to determine which corporation to acquire is the internal rate of return (IRR). The IRR is “the discount rate that...
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...TAMARA AYRAPETOVA The aim of this paper is to perform financial analysis by using financial ratios and to comment, evaluate, and understand the origins of the results by using the comparison of two companies chosen as a case study. The McDonald's Corporation is the largest fast food restaurant in the world. McDonald's Corporation statistics base it in over 119 countries and it serves more than 68 million customers daily. The company's revenues are coming not only from its primary products like hamburgers, cheeseburgers, etc., but also from rent, royalties, and fees paid by the franchisees. This report will look at the financial statements of the McDonald's Corporation over the past 3 years starting from 2010 through 2012. The author of the paper will apply financial ratios to analyze company's position and to identify patterns and trends. She will then compare the results of the analysis with one of the biggest competitors of McDonald's - Yum! Brands Inc. and the industrial averages. Yum! Brands Inc. is a US based corporation. It includes famous brands like KFC and Pizza Hut in their chain. Currently Yum! Brands are the largest competitors McDonald's has in the fast-food industry. To compare the two companies financial statements will be taken from Yahoo Finance (2013). Unauthenticated Download Date | 12/14/14 11:28 PM CRIS Bulletin 2014/01 33 REPORT ON THE FINANCIAL EVALUATION: MCDONALD'S CORPORATION AND YUM! BRANDS 1.GRAPHICAL COMPARISON OF GENERAL PERFORMANCE...
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...Domino’s Pizza Enterprises Limited (DMP) Student Research: This report is published for educational purposes only by students competing in the La Trobe Investment Research Challenge. 19th June 2012 Fast Food Industry 19 June 2012 La Trobe Investment Research Challenge Ticker: DMP Price: $9.7 EPS FY (c) 0.31 0.33 0.38 0.44 0.46 DPS (c) 0.22 0.23 0.27 0.31 0.32 Franking (%) 100 100 100 100 100 Recommendation: HOLD Target Price: $10.67 P/E (x) 29.81 29.14 25.29 22.26 21.22 Dividend Yield (%) 2.38 2.40 2.52 2.72 2.74 2011A 2012E 2013E 2014E 2015E Investment Summary We initiate coverage of Domino’s Pizza Enterprises Limited (DMP) with a hold recommendation and a target price of $10.67 using Discounted Cash Flow Valuation (DCF), offering a 10% upside from current stock price at $9.70 on 19th June, 2012. As DMP operates in regions with different levels of risks, growth and margins, our estimation of revenue is based on top down approach considering the market share in these regions. We believe DMP may offer a long term upside if it can successfully execute its business plan of opening new stores and maintaining its same store sales growth in Australia and New Zealand (ANZ) and France, Netherlands, and Belgium (Europe). Highlights Future growth driven by increasing store count: DMP currently owns over 900 stores, with the goal of opening 50-60 new stores per year over the next 5 years. Its franchise/corporate strategy allows a long-term target of 750 stores in ANZ...
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