Discussions Assignment example
Masters
Assignment
Finance & Accounting
Pages 4 (1004 words)
Download 0
Finance and Accounting: Discussions (Name) (University) Discussion 1 Enron Scandal Enron Corporation was the largest natural gas dealer in North America. Enron’s stock prices rose by 311% over the 1990-98 period and on the strength of this great growth rate, the Fortune’s Most Admired Company survey chose Enron as the most innovative large company…

Introduction

The Enron fraud was revealed to the public in October 2001 and this ended up in the bankruptcy of the organization. While analyzing the Enron accounting impropriety, it appears that the company executives exploited accounting limitations with intend to create a false view of the cash flows and to prepare a misleading balance sheet. This inflated the profits. Fair accounting practices and proper annual reporting might have prevented the Enron scandal. Effect of Accounting Impropriety Although improper or illegal accounting practices may assist a firm to gain short term financial benefits, such practices can have dreadful consequences on the company in the long term. Undoubtedly, accounting malpractices will reduce stakeholder confidence in management and hence investors would be reluctant to invest in the company. This situation may adversely affect the firm’s overall financial performance. Management professionals opine that active stakeholder engagement in business is inevitable to improve financial performance. Hence, in order to minimize the resulting impact of accounting impropriety on the business, making timely changes to the top management team and to publish proper annual reports is essential. ...
Download paper
Not exactly what you need?

Related papers

Professional Accounting Skills For Business Decisions
Through the group works that I was a member, I developed the skills of being able to think deep in my presentations. The group members demanded that everyone has to contribute in the group works which made me to think deeply before making my contribution. This made it possible for me to give relevant contributions that were within the context of the topic. 2. Perceptual skill; perceptual skill is…
Critical Management Theory(CMT) and its application as an analytical tool for resolving problems in a post-modern organisation
Today managements develop their common goal as per the present requirements of society, environment and community. The increasing concern for corporate social responsibility and community development is one of major evidences in this respect. The Critical Management Theory (CMT) is a reasonable and effective theoretical approach for managing the postmodern organisations. These theories include a…
The Capital Structure Decision and the Cost of Capital
The products include dolls and accessories, vehicles, games, puzzles, as well as play sets. The company’s popular toy brands include the Barbie dolls, Polly Pocket, Little Mommy, Monster High, BabyGear, WWW Wrestling figures, Fisher-Price, CARS, Toy Story, Max Steel, and Batman. The company sells it toy products in physical stores as well as online stores. Based on the module discussions…
The Seeking of the Non-Executive Directors (NEDs)
Consequently, this had resulted in endeavors to make the directors more liable for their strategies and actions. The inclusion of non-executive directors in the board of an organization has an imperative part to play in this context and will be the subject of concern in this study (Stewart, n.d., p.2). The non-executive directors (NEDs) perform multiple functions in an organization. In accordance…
Discussions W1-3
This include: independence, integrity, objectivity and being transparent. The body hopes that its independence from undue pressure will not have an influence in its decision-making processes. The board has to be ethical, honest and forthright in all its relationships. It also has to be impartial in its decisions so that it can encourage open public participation. FASB on the other hand, is…
Income, Deductions, and Exclusions
Such “tax breaks” reduce the total quantity of current income tax owned by organizations and individuals. The first step I would take to assist my client is to explain to him the meaning of the three tax codes. Income refers to the flow of cash or cash equivalents gained from salary or wage, interest or profit, or rent. Exclusions are items on a tax return that are reported but not taxed.…
The influence of ethics on auditing
On a broader perspective, Gillan and Starks (2008) refer to corporate ethics as a system of rules, factors and laws affecting a company’s operations. Irrespective of the definition taken up, it is common for researchers to categorize corporate mechanisms into two groups; those that are internal to firms, and those that are external to firms. Ethics is charged with the responsibilities and duties…