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Hubbard Inc: Jim Brock case - Essay Example

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Author : constantin52

Summary

Case analysis is about Jim Brock who works as an accountant with Hubbard Inc. This is a large company whose stocks are listed in the New York Stock Exchange. As part of Jim’s responsibility, he is required to effectively manage corporate reporting systems within accounts department. In fact, he is supposed to develop and issue in timely manner annual reports for Hubbard’s. …

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Hubbard Inc: Jim Brock case

In fact, he is supposed to develop and issue in timely manner annual reports for Hubbard’s. Based on the preliminary report which he made on 2012 accounting records, results obtained showed a clear indication of a very profitable year. Basically, net income recorded was more than the projection by financial analysts for the year. The results of the financial performance pleased Brock therefore, he made a suggestion to his father to acquire some of the Hubbard’s stock because there was high possibility that stock price will shoot up after the announcement of the 2012 results. In response to his suggestion, the father believed in his words and bought some of the Hubbard’s stock block at a price of $25 per share. 1.2 Outcome of Actions After the announcement of Hubbard’s Inc. 2012 annual report on Feb, 15, 2013 alongside favorable press coverage on the company’s remarkable performance, a boost on stock price was reported, in which, share price went up to $32. This was an equivalent gain of $7 per share, implying that in case Brock’s father decides to sell off his share at this time of the year, he will earn a profit of $7 per share sold. Professional responsibility of Jim Brock in the issuance of 2012 annual reports covered a wider scope. In the first place, he is responsible for financial reporting which should be accomplished on yearly basis to help in management decision. Basically, the benchmark of account profession is to ensure that public interest is upheld. ...
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