Earning management and cookie jar Coursework Example | Topics and Well Written Essays - 2500 words

Earning management and cookie jar - Coursework Example There are various business ethics as well as rules and regulations, which are compulsorily to be followed by every business organization. Many of these rules aim to protect the interest of the customers. Any trade practice that is against the ethics, will lead to legal proceedings and penalties. As per the various sections under the Consumer Protection Act, these entities can be punished if they breach any laws and bring harm to the customers. Earnings management can be defined as â€Å"a purposeful intervention in the external financial reporting process, with the intent of obtaining some private gain†. (Earnings Management Incentive and Techniques, n.d) Instead of doing business in a proper and sincere way, sometimes the management team may be forced to carry out business illegally due to various reasons. This is due to the fact that human beings are always keen on finding shortcuts for every task and, therefore, they always prefer these types of extreme earning management techniques. The common extra earning techniques followed are â€Å"cookie jar reserve technique, big bath techniques, big bet on the future technique, flushing,† (Popular Earning Management Techniques, n.d) stuffing the channel etc. In cookie jar reserve, the accounting rule GAAP is not followed properly. Here the profits made in the current year are used to cover for losses made in some other year, in order to ensure the profitability of the firm by meeting its margin. Big bath is used by companies when stiff competition arises, the company will plan on â€Å"restructuring† (Popular Earning Management Techniques, n.d.) the existing system and policies. Then, instead of recording the cost of such changes made in the organization, this loss is â€Å"reported as a non-recurring charge against income† (Popular Earning Management Techniques, n.d.). This is done for the purpose of maintaining the market

Morality Assignment Example | Topics and Well Written Essays - 500 words

Morality - Assignment Example Morals became so obscured in this day and age that people does not only neglect to practice it but also not sure of what it means. Stanford Encyclopedia of Philosophy defined it as â€Å"some codes of conduct put forward by a society† and these rules are central in formulating ethical theories (2011). We now often hear ethics in class and to put it in proper perspective it was defined by Kant’s deontology that posits that the best way to act morally to act from duty with the consideration of the highest good, that is, acting through the moral determination of the will. Kant’s acting through the moral determination of will meant that the motivation of one’s action must be pursue the good without condition which is intrinsically good by itself (Kant 30). He formulated his deontological ethics in a categorical imperative of doing good for the sake of good regardless of its consequence (Kant’s Ethics). Considering the number of corporate scandals from Enron to WorldCom that helped slid this country in financial crisis, I am more inclined to believe that it is still better to be moral or ethical. Many people may disagree with my position as impractical that will make me finish last but I prefer to be moral and ethical. I can however rebut that as what we can see in the experience, the gains that were garnered with the lack of morals or ethics are short lived and temporary. We all see it on national TV where corporate executives were arrested for fraud. Criminals also lack morals and while they can get away with their crimes, it is again temporary and sooner or later, they too will be arrested. On a personal level, I believe nobody would disagree that we all want to deal with the people we trust. And earning trust requires a great deal of integrity and honesty such as keeping one’s words, not taking advantage of others etch all of which are the realms of morals and ethics. In the same vein, we also avoid dealing with people who

Business Management Theory Research Paper Example | Topics and Well Written Essays - 1000 words

Business Management Theory - Research Paper Example However, his efforts were supported by other professionals such as Frank and Lillian Gilbreth. In the year 1991, he made several contributions towards the management theory that are still in existence up to date as discussed below. The book of Management, Bus. Rev 3rd edition by Patrick J Montana and Bruce H Charnov states that Fredrick W Tailor was the first to make a formal attempt in the creation of management theory. He made wise decisions such as the decision to advocate an application of scientific method so as to work analysis and develop functional ways of putting the theories to work(Dale, 44). Long time before Tailor came up with theories, there was a common belief among the people that leaders not not made but are born. This belief was a great challenge to the formulated theories since the people could not support them. It became very cumbersome to speak of the aspect of theory management in such an environment whereby the fact that leaders could be trained was totally una cceptable. Towards the end of 19th century, the industry had greatly expanded and became complex therefore creating the need for better better understanding on matters to do with the management theory as well as the managerial technique development (Dale, 44). Due to the fact that Tailor got support from other professionals, Lillian Gilbreth and Frank who were pioneers in the area of motion studies on the job analysis and improvement in work efficiency. Franck used the term of therbligs to describe about seventeen motions that were different and were meant for the purpose of doing the job. Through listing the therbligs, Frank was capable of analyzing the job actions and seek to gain efficiency (Dale, 44). Taylor also played a big role in trying to motivate the workers through his theories, he advocated a piece rate so as to motivate the workers. He knew that motivating employees would enable them to be more productive, he therefore introduced a Gantt Chart as a management tool for t he purpose of scheduling work. The Gantt Chart accelerated the use of piece rate so as to record a normal production and a production bonus for motivating workers be more productive above the expected norm (Dale, 44) The Administrative theory that was created had five functions that characterized management as organizing, planning, commanding, controlling and coordinating. Fredrick Taylor, together with his colleagues in the management science movement came up with a theory which stipulated that workers had no intention to work , were very lazy, required a close supervision, had to be pushed by various threatening so as to be productive, lacked creativity and usually got challenged by the work (Montana, 23). However, the theory was opposed by the theory of McGregor which states that workers have a positive attitude towards work, practice high level of creativity, are ready to welcome various challenges, are more responsible and not be challenged by the work. As a result, the McGrego ry theory was more optimistic as compared to the Taylor`s theory since was a rather pessimistic assessment (Montana, 23) In the year 1991, Fredrick W Tailor made various contributions to the management theory as discussed in the book ‘Handbook of Media Management and Economics by Alan B Albarran’, Michael O Wirth and Chan-Olmsted. From this book, he made contributions on the management th