This paper will shed light upon how JP Morgan Chase has modified their accounting principles in the past and what impact has the same had on their growth. An Analysis of JP Morgan Chase Business environment is consistently changing, some changes bring unprecedented challenges and these challenges should be met in order to consistently keep doing well. The likes of AIG, Lehmann Brothers could not sustain during the period of recession and as an inevitable result of which suffered hefty losses. This paper will expansively present the accounting policies and the changes adapted by JP Morgan Chase in order to successfully face the modern day challenges. A complete analysis of the major changes incorporated by JP Morgan chase will be expansively presented in this paper. The oldest financial services in the world is without a doubt JP Morgan Chase, it has its presence in well over 60 countries. They are the leaders in investment banking, wealth management and a host of other services. The biggest change that ever took place in the history of the financial institutions was the merger with Bank One. This change primarily took place because the other banks like the Bank of America were almost ready to merge with other big banks like FleetBoston. This merger took place because the financial institutions came under increasing pressure during the time of recession. The announcement of this merger was made on 14 January 2004. ...Show more
Client’s Name: Course: 7 August 2011 Accounting is a very interesting subject and the main accounting principles have been widely adapted by several companies, important aspects like debt, equity, balance sheet, profit and loss statement and so on are considered to be very important…
Stock markets of late are very volatile and investors need to learn through various important concepts before proceeding to invest their hard earned money to ensure satisfactory returns. Many at times there may be possibilities that investors suffer on the back drop of decreased prices after they invest.
One cannot ignore the fact that numerous factors such as social, economic and legal differences account for different standards that are vary across nations. However, there is a strong push towards a uniformed system of accounting methods in order to facilitate transactions and comparability of financial statement.
According to the report business environment is consistently changing, some changes bring unprecedented challenges and these challenges should be met in order to consistently keep doing well. The likes of AIG, Lehmann Brothers could not sustain during the period of recession and as an inevitable result of which suffered hefty losses.
However, accounting cannot be considered just as a neutral tool that is simply a recorder of the past. The methods and principles of accounting that are used also affect the future financial decisions already taken by the organization including their results.
It is a common experience for all of us that money must be spent carefully. If a person is careless in spending money, a day will come when he will be left with no money. Same holds true for a business firm or for a country as a whole. So as students we must try to understand the importance of maintaining accounts keeping international standards in mind.
and the U.K.-based International Accounting Standards Board (IASB).
There are many points of discussion. For one, the difference between "rule" and "principle" in itself is already a major point of the debate because these two terms share some obvious similarities: rules and principles are both invented and enforced by humans in order to guide our behaviour and improve communication with and understanding of each other.
Also the role of professional judgment became unimportant and rules took over the professionalism. So, the debate started whether the current financial reporting system in the U.S. is undesirable or inappropriate because it is rule based.In order to address the issues with rule based standards the Sarbanes-Oxley Act of 2002
While some activities are identifiable by completed units of jobs that are unique, others are process based. A job order costing approach is applicable to activities whose products are distinguishable to allow for allocation of
The following piece of information would be useful for companies presently engaged in traditional budgeting but willing to switch over to other types of budgeting.
One of the functions of management is “planning”.
All profit making organizations have an obligation to collect, summarize, and communicate its financial information. They do so by preparing financial statements used internally and externally by various users. The information presented in these financial statements should present the true and fair view of the company in a clear and concise manner for the entity and other external users.
6 pages (1500 words)Essay
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