Business Research Report Impact of FASB on Company A Presented to: CEO of Company A Assessment Code: RWT1 Table of Contents Executive Summary 3 Introduction 4 Research Findings 4 FASB History 4 Public Corporation Requirements (GAAP) 5 Investor Impact 6 Recommendations 7 Conclusion 8 References 9 Executive Summary The purpose of this report is to research the accounting and reporting standards of the Financial Accounting Standards Board (FASB) and report the impact FASB
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Unethical accounting behavior has been on the forefront since the 1980s, in the United States. Unethical behavior is when someone takes advantage or manipulates another without their knowledge. Unethical behavior normally starts within upper management and transcends to the other employees. Unethical behavior consists of bribery, misusing funds, or manipulation of financial reports. When management or accountants knowing and unknowingly has overstated the value of the company’s assets and revenues
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ENRON SCANDAL Enron was formed in 1985 from merger of two companies; Houston Gas and InterNorth Inc. by Kenneth Lay. It grew to be among the highly innovative companies throughout 1990s. Its unique business strategy made it known. Initially, the company’s objective was to sell electricity and gas but by 1990s it had ventured into other businesses such as pulp and paper companies and communications . Its success was indicated by the rise in annual revenues; between 1995 and 2000 Enron recorded
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Q. 1. What is the difference between an ordinary decision and an ethical one? Q. 2.Why study business ethics? Q. 3. What is the primary objective of U.S. antitrust laws? Q. 4. Why was the Sarbanes -Oxley Act enacted? Q. 5. What is the difference between athical delama and ethical Q. 6. When do you consider insider trading legal? Q1. Ordinary decision does not have ethical decision tied in to it. Which means the ordinary decision does not have much effect as making ethical
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MANY STRANDS: A CASE STUDY; A Video Study Of Enron Offers A Picture of Life Before the Fall By SHAILA K. DEWAN Published: January 31, 2002 Correction Appended SIGN IN TO E-MAIL PRINT SINGLE-PAGE In April 2000, Enron was still flying high, at least publicly. Jeffrey K. Skilling, the president and chief operating officer at the time, faced a video camera and spoke enthusiastically about the corporate culture that would, he insisted, enable Enron to go from the world's largest energy-trading
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Enron Case Part1: Profitability: According to Enron’s 1998~2000 Financial report, Enron was reported increasing revenues and earnings-per-share (Table 1). However, they have been reporting a decrease in gross profit margins and net profit margins (Table 2). Although the revenue was increasing from 1998 to 2000, the cost of doing business in Enron was also increasing over time. For example, in 2000, the company had usual cost increasing in gas, electricity metals and other products
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Deal. What caused the need for the Sarbanes-Oxley Legislation? The Enron scandal was certainly enough to show the American public and its representatives in Congress that new compliance standards for public accounting and auditing had to be put into place. Enron was one of the biggest and, it was thought, one of the most financially sound companies in the U.S. Enron was perhaps the catalyst for the Sarbanes-Oxley legislation. Enron stands for the greatest company scandal in the history of the US economy
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SOX Summary Jason Garrett LAW/421 1/12/2014 Instructor: JANE SCHNEIDER The Securities and Exchange Commission was created to hold companies accountable for reporting their current state of financial information on a statement to give the market and investors a snap shot of the company health. This basic legislation of 1933-1934 Securities Act was very basic when you fast forward six or several decades later since that Act there were legislation drafted twice one in 70’s and in the other in
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1. What were the individual factors that contributed to the failure of Enron? Briefly explain two key factors. Greed was the first individual factor that one can blame for the failure of Enron. As the greed of gain has no time or limit to its capaciousness, the executives did massive fraud and insider trading in order to get more profit because of their egoism, self-interest. As a result, their irresponsible behaviour led the company into bankruptcy with numerous executives charged with criminal
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Extra Credit 2 Jeff Chisholm 1 – Securities Exchange Commission (source: BYP4-5 of Kimmel textbook) What we do Answer the following questions: a. What event spurred the creation of the SEC? Why was the SEC created? The SEC was created due to the stock market crash of 1929 which led to the great depression. The SEC was created to protect investors in security exchanges such as the stock market. It is responsible for oversight of both private investment and corporate investment dealings
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