...over to show how the organization benefits or does not benefit from government regulations as well as good and/or bad ethical practices. Access the role of ethics and compliance in the Wal-Mart’s financial environment When Sam Walton founded Wal-Mart he inspired, created, and embraced a corporate culture. The Wal-Mart culture has grown during the last 50 years, but the core principles and values that the culture was founded upon have remained strong. At the core of Wal-Mart’s culture are the three basic beliefs; respect for the individual, service to our customers, and striving for excellence. These three core beliefs created an environment that fosters high levels of integrity, ethics, and compliance. Wal-Mart and the employees often set the standard for other businesses through their efforts in these fields. These high standards are applied to all aspects of the business from financials down to the daily processes within the stores. Wal-Mart complies with all Security and Exchange Commission (SEC) requirements and publishes several financial reports throughout the fiscal year. The average consumer or investor can view these reports on the Wal-Mart corporate website. The available reports include annual reports for every year since 1972, quarterly results, global sustainability reports, and more. Wal-Mart is a for-profit company that is generally known to be financially fit. The company reports show profits and investors can see the assets increasing as Wal-Mart expands...
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...audiences, consumers and shareholders have come to depend on quality, creativity, innovation, and integrity. Individuals trust Disney because of the commitment and the standards to which Disney holds. The organization is responsible for upholding excellence and integrity. This means acting responsibly in all its professional relationships, in a manner consistent with the high standards that is set for business conduct (Disney), n.d. There are many reasons the way ethics and the role Disney complies with codes within its organization. Ethics in Disney affects every area of the organization, not only the financial environment. Upholding legal standards of conduct, while mandatory for every cast member and employee, is not enough. Disney is responsible for maintaining ethical standards. These standards govern how to treat individuals that are in contact with Disney. These are standards of integrity, honesty, trust, respect, fair play, and teamwork, not to insult, degrade, and apply peer pressure to other employees for self-gratification (Disney, n.d.). Disney’s financial environment is characterized by its financial managers, supervisors, and bookkeepers. The role ethics need to be part of Disney’s finance team is to work with integrity and objectivity. Integrity is being honest, sincere and accurate in how the finances are reported. The bookkeepers must be impartial to Disney and avoid any conflict of interest with the organization. The financial management team must...
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...how hard work goes a long way. Because of its size and popularity, Starbucks has become an example to other corporations on how to properly to business ethics and comply with the regulations set into place throughout the world. Not only does this company comply with all the standards set into place, but they also go above and beyond in helping out within the communities they serve at home and abroad in efforts to give back. Starbucks truly is a prime example of an ethically grounded and financially stable organization that has given back to all those who have helped make this a globally recognized brand. Starbucks Business Ethics and Compliance After the fallout of Enron, business ethics and, compliance have become a standard business practice for companies in America. To ensure compliance practices across an organization, companies implement standards of business conduct for its employees and leadership to comply with. Starbucks is no different. According to "Starbucks Business Ethics And Compliance" (2013), Starbucks publishes its Standards of Business Conduct and states its commitment to conducting business ethically and protecting its culture and reputation. The sections of Starbucks’ Standards of Business Conduct include Asking for Guidance and Voicing Concerns, Work Environment, Business Practices, Intellectual Property, and Proprietary Information, Community Involvement, Ethical Decision-Making Framework, and Contact Information ("Starbucks Business Ethics And Compliance...
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...Running Head: GLOBAL FINANCIAL REPORTING: Global Financial Reporting: Why Move Toward Global Financial Reporting Connie Cerruto Student ID 3247960261 Accounting Capstone: Senior Seminar in Accounting ACC 499 005016 Winter Semester 2008 Submitted to Professor Tee Thein March 16, 2008 Dedication and Acknowledgement I would like to take this time to thank my husband, George, for all his support over this last ten weeks. For graciously doing the laundry, vacuuming, dusting, grocery shopping, meal preparing, and dishes so I had time complete the needed research for my paper. I appreciate the sacrifices you made to support me in my efforts of obtaining a Bachelors Degree in Accounting. Table of Contents Page Abstract 5 Chapter 1: Introduction 6 1.1 Background 6 1.2 Problem 7 1.3 Purpose 7 1.4 Scope 8 Chapter 2: Review of Literature 9 Chapter 3: Methodologies 12 3.1 Perspective 12 3.2 Research Procedure 12 Chapter 4: Development of Accounting Principles 17 4.1 History of Accounting Differences 17 4.1.1 Ancient Recordkeeping 17 4.1.2 Double-Entry Accounting 19 ...
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...Solution Manual to accompany Accounting: Business Reporting for Decision Making 4e Jacqueline Birt, Keryn Chalmers, Suzanne Byrne, Albie Brooks & Judy Oliver Prepared by Jacqueline Birt John Wiley & Sons Australia, Ltd 2012 Chapter 1: Introduction to accounting Comprehension Questions 1.1 What is a business transaction and how does it relate to the accounting process? Illustrate the concept of a business transaction with five examples relating to a mobile phone distributor. A business transaction can be defined as external exchanges of resources between the entity and another entity or individual that affects the assets, liabilities and owners’ equity items in an entity. The accounting process is the identifying, measuring and communicating of economic information about an entity to a variety of users for decision-making purposes. The first component of the process is the identification of business transactions which are then measured and communicated to the different users of financial reports. Business transactions for a mobile phone distributor include the following: 1. The contribution of capital by the owner to commence the business. This transaction would increase cash (asset) and increase capital (equity). 2. The purchase of inventory (mobile phones) on credit. This transaction would increase inventory (asset) and increase creditor (liability). 3. The payment of office rent. This transaction would decrease cash (asset) and decrease...
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...company and its senior executives to scorn, infamy and bankruptcy. Its public auditing firm, Arthur Andersen, has basically been destroyed, as well as publicly disgraced. Tens of thousands of employees and investors have been emotionally and financially affected. Major financial services firms in banking, securities brokerage and insurance have been, and may yet be, drawn into the legal battles regarding who is to blame for the ENRON failure. Overview of ENRON: The following timeline for ENRON is presented to set the major milestones for the company: July 1985- Houston Natural Gas merges with InterNorth to form ENRON, as an interstate natural gas pipeline company. Kenneth Lay is CEO. 1989- ENRON starts trading natural gas commodities and commodity derivative financial contracts. 1994- ENRON begins trading electricity as a commodity and related financial derivative contracts. Jeffrey Skilling is executive in charge of this new business venture. Nov. 1999- EnronOnline is launched as a web site for the global trading of energy commodities and derivative contracts. Jeffrey Skilling leads this continued transformation from a natural gas pipeline company to a global marketer and trader of oil, gas and electric energy. Stock price trades at $45 per share. 2000- Stock price trades at high during year of $91 per share. Feb. 2001- Jeffrey Skilling takes position as CEO, and Ken Lay remains as Chairman of the Board. Stock price is trading at high range of $84 per share...
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...FINANcIAL reportING LANDscApe WorLDWIDe, AND LooKs set to Do tHe sAme IN mALAYsIA oNce FuLLY ImpLemeNteD bY LocAL reGuLAtors AND busINesses. Are You xbrL reADY? The objectives of SSM’s SDP II are: • To enhance delivery and improve accuracy of information; • To achieve a standardised and consistent mode of reporting with enhanced analytical capabilities; • To promote data usability and exchange flow with external stakeholders. According to Nor Azimah, SSM also promotes the adoption of XBRL as a nationwide format to be used by key agencies such as the Inland Revenue Board (LHDN), Securities Commission (SC) and Bursa Malaysia and the building of extension taxonomies by the mentioned agencies. The said adoption will provide SSM, other regulators and businesses with detailed data which can be aggregated and made available to stakeholders in the form of industry analysis for industrial benchmarking. The move to XBRL-based reporting is also in line with plans to transform Malaysia into a digital country by 2020, as XBRL reports form part of the digital reporting chain. At the recent Digital Malaysia Press Conference held on 5 July 2012 by the Ministry of Science, Technology and Innovation (MOSTI) along with Multimedia Development Corporation (MDeC), Datuk Badlisham Ghazali, CEO of MDeC told the media that Digital Malaysia will help drive automation and technology adoption to ensure productivity and increased workflow efficiency. ust like IFRS convergence, XBRL adoption looks set to reshape...
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...Fourth Edition Financial & Managerial Accounting for MBAs Peter D. Easton Robert F. Halsey Mary Lea McAnally Al L. Hartgraves Wayne J. Morse Cambridge Business Publishers To my daughters, Joanne and Stacey —PDE To my wife Ellie and children, Grace and Christian —RFH To my husband Brittan and my children Loic, Cindy, Maclean, Quinn and Kay. —MLM To my wife Aline. —ALH To my family and students. —WJM Cambridge Business Publishers FINANCIAL & MANAGERIAL ACCOUNTING FOR MBAs, Fourth Edition, by Peter D. Easton, Robert F. Halsey, Mary Lea McAnally, Al L. Hartgraves, and Wayne J. Morse. COPYRIGHT © 2015 by Cambridge Business Publishers, LLC. Published by Cambridge Business Publishers, LLC. Exclusive rights by Cambridge Business Publishers, LLC for manufacture and export. ALL RIGHTS RESERVED. No part of this publication may be reproduced, distributed, or stored in a database or retrieval system in any form or by any means, without prior written consent of Cambridge Business Publishers, LLC, including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning. Student Edition ISBN 978-1-61853-102-5 Bookstores & Faculty: to order this book, call 800-619-6473 or email customerservice@cambridgepub.com. Students: to order this book, please visit the book’s website and order directly online. Printed in the United States of America. 10 9 8 7 6 5 4 3 2 1 About the Authors ...
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...future. As a response to these large frauds, in 2002, the US Government passed the Sarbanes – Oxley Act of 2002 (SOX) and the American Institute of Certified Public Accountants (AICPA) issued Statement on Auditing Standards No. 99(SAS No. 99) to improve investor confidence and the auditing function’s ability to detect material frauds. The intent of this thesis was to look at the fraudulent factors associated with several recent corporate frauds and compare them to the standards set by SAS No. 99. Through the analysis conducted, this thesis looks at the relationships between pressures, opportunities, and rationalizations made during the act of fraud. Table of Contents ABSTRACT ii INTRODUCTION 1 Sarbanes – Oxley Act of 2002 (SOX) 1 Statement of Auditing Standards Number 99 (SAS No. 99) 4 Parts of the Fraud Triangle 5 Types of Fraud 11 INSTANCES OF FRAUD 13 Enron Corporation 13 Adelphia Communications Corporation 17 AOL Time Warner, Inc. 20 Bristol-Myers Squibb Company 25 Global Crossing Limited 27 K-Mart 30 Tyco International, Ltd. 34 WorldCom 37 HealthSouth Corporation 41 CONCLUSION 45 Appendix: SOX Titles and Sections List 48 Works Cited 52 INTRODUCTION Between the years 1998 and 2002, the United States suffered a time in which several large companies engaged in...
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...The UNOFFICIAL GUIDE to INVESTMENT BANKING Issued by CONTENTS MYTHS AND REALIT IES 6 OVERV IEW OF INVE STMEN T BANK ING INTRODUCTION 4 WHY AN UNOFFICIAL GUIDE TO INVESTMENT BANKING? 3 ASSET 8 MANAGEM ENT 12 GLOBAL BANKING FINANCE 10 GLOBAL MARKETS 16 HUMAN ES RESOURC 20 22 GROUP TECHNOL OG & OPERA Y TIONS LEGAL, RISK & CAPITAL 24 WORKING THE PROCESS TOP TIPS 28 30 GLOSSARY Why an “Unofficial Guide to Investment Banking?” The aim of this guide is to give you a fresh view of investment banking. A brochure is helpful, but can read a little like a catalog. We think you need to know what your life would really be like, challenging out-of-date myths and stereotypes, so you are able to make the most informed decision possible. This is an honest look at investment banking and is based on the experiences of people just like you, who have now gone through the graduate program and come out the other side with blossoming careers. It is the inside story of investment banking written by analysts for graduates, and you won’t hear this tale anywhere else. We’re going to tell you about all the divisions you could work for, what life’s really like for analysts and show you that there’s more to banking than pitch books, power lunches and pinstriped suits. And if you still want to go into banking once you’ve heard the inside scoop, we’ll tell you about how to get there and...
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... ‘finance’ part comes through the specific decisions as to how the resources will be financed. Financial management has a strategic role because it takes place in a changing environment and plans need to be flexible and ready to change. Strategic financial planning sets out the broad series of steps that need to be taken to achieve the business’ strategic objectives. Examples of changing business environments: o Taxation and other laws o Technology o Economy o Financial Innovations Within this changing environment the foals of the business need to be reached. o Liquidity o Solvency o Profitability o Growth o Efficiency Objectives of Financial Management Liquidity • A business is liquid when it can pay its debts as they fall due. • The relationship between current assets and current liabilities. • A business must have sufficient cash flow to meet its financial...
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...Chapter 5 Financial System of Malaysia 5.1 Financial System Structure in Malaysia The Malaysian financial system is structured into two major categories, Financial Institutions and Financial Market. The Financial Institutions comprise Banking System and Non-bank Financial Intermediaries. The Financial Market in Malaysia comprises four major markets namely: Money & Foreign Exchange Market, Capital Market, Derivatives Market, and Offshore Market. Chart 1: The Financial System Structure in Malaysia Financial System Financial Institutions Banking System Non-Bank Financial 1. Bank Negara Malaysia Intermediaries 2. Banking Institutions 1. Provident and Pension • Commercial Banks Funds • Finance Companies 2. Insurance Companies • Merchant Banks (including Takaful) • Islamic Banks 3. Development Finance 3. Others Institutions 4. Savings Institutions Financial Market Money & Foreign Exchange Market 1. Money Market 2. Foreign Exchange Market Capital Market 1. Equity Market • Discount...
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...International Financial Reporting Standards (IFRS): Pros and Cons for Investors by Ray Ball* Sidney Davidson Professor of Accounting Graduate School of Business University of Chicago 5807 S. Woodlawn Ave Chicago, IL 60637 Tel. (773) 834 5941 ray.ball@gsb.uchicago.edu Acknowledgments This paper is based on the PD Leake Lecture delivered on 8 September 2005 at the Institute of Chartered Accountants in England and Wales, which can be accessed at http://www.icaew.co.uk/cbp/index.cfm. It draws extensively on the framework in Ball (1995) and benefited from comments by Steve Zeff. Financial support from the PD Leake Trust and the Graduate School of Business at the University of Chicago is gratefully acknowledged. 1 Abstract Accounting in shaped by economic and political forces. It follows that increased worldwide integration of both markets and politics (driven by reductions in communications and information processing costs) makes increased integration of financial reporting standards and practice almost inevitable. But most market and political forces will remain local for the foreseeable future, so it is unclear how much convergence in actual financial reporting practice will (or should) occur. Furthermore, there is little settled theory or evidence on which to build an assessment of the advantages and disadvantages of uniform accounting rules within a country, let alone internationally. The pros and cons of IFRS therefore are somewhat conjectural, the unbridled enthusiasm...
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...Share Capital It is the amount of money contributed by the shareholders for the furtherance of objectives of the company for which it was created. * Equity / Preference Share * Par value * Number of Shares in each category * Total amount TYPES OF SHARE CAPITAL * AUTHORISED CAPITAL * ISSUED CAPITAL * SUBSCRIBED CAPITAL * CALLED UP CAPITAL * PAID-UP CAPITAL AUTHORISED CAPITAL * MAXIMUM amount of share capital that the company is authorised by its constitutional documents to issue to shareholders. * Part of the authorised capital can (and frequently does) remain unissued. * EXAMPLE: AS PER THE CONSTITUTIONAL DOCUMENT OF A NEW COMPANY ‘XYZ.LTD’ IT CAN ISSUE A TOTAL OF 10 LAKH SHARES OF RS 10 EACH FACE VALUE/PAR VALUE: IT IS THE FIXED DENOMINATION AT WHICH A COMPANY ISSUES ITS SHARES. THE FACE VALUE IS MENTIONED ON THE SHARE CERTIFICATE. ISSUED CAPITAL * THE PART OF AUTHORISED CAPITAL WHICH IS OFFERED TO THE PUBLIC FOR SUBSCRITION * EXAMPLE : * OUT OF 10 LAKH SHARES, COMPANY ‘XYZ LTD.’ ISSUES 7 LAKH SHARES OF RS 10 EACH SUBSCRIBED CAPITAL * PART OF ISSUED CAPITAL THAT IS APPLIED FOR BY PROSPECTIVE SHARE HOLDERS & ALLOTED BY THE COMPANY * UNSUBSCRIBED CAPITAL :BALANCE OF ISSUED CAPITAL NOT SUBSCRIBED BY THE PUBLIC * EXAMPLE : SITUATION 1: UNDERSUBSCRIPTION ‘XYZ LTD.’ GETS PROSPECTS FOR 6 LAKH SHARES SITUATION 2: OVERSUBSCRIPTION ‘XYZ LTD’ GETS PROSPECTS FOR 8 LAKH SHARES ...
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...BUSN7050 Corporate Accounting Lecturer: Dr Sorin Daniliuc Course details • This course covers: – the characteristics of the Australian accounting environment and its financial reporting requirements for companies – accounting for owners’ equity (share capital and reserves) – accounting for liabilities (with a focus on debentures) – accounting for income tax – accounting for leases – accounting for non-current assets (revaluation, impairment) – accounting for intangible assets – a comprehensive coverage of consolidation issues – equity investments. Research School of Accounting and Business Information Systems 2 Lecture outcomes • Outcome 1: An understanding of the regulatory environment in which the companies are formed and operate in Australia. • Outcome 2: A solid foundation in accounting and reporting requirements of the Corporations Act and relevant Australian Accounting Standards Board (AASB) accounting standards. • Outcome 3: A comprehensive understanding of the advanced issues in accounting for assets, liabilities and owner’s equity. • Outcome 4: The ability to account for income taxes. • Outcome 5: The ability to account for leases. Research School of Accounting and Business Information Systems 3 1 Lecture outcomes • Outcome 6: The ability to account for intangible assets. • Outcome 7: An understanding of the accounting requirements for a corporate group and familiarity with the theory underlying the methods used to account for intercompany investments...
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