...Full Disclosure Principle Generally accepted accounting principles (GAAP) require certain information be disclosed in the audited financial statements of businesses. The full disclosure principle was adopted by the accounting professionals to ensure financial reporting of any financial facts significant enough to influence the judgement of an informed reader;” (Wiley & Sons, 2013). This principle is relevant to materiality and requires the full information be disclosed in the financial statements or in the notes to the financial statements. Need for Full Disclosure Full disclosure in financial report is necessary to help establish consistency in reporting from one company to another. It also standardizes accounting definitions, methods, and assumptions. The full disclosure principle exists to make sure the accounting policies are disclosed so users can understand what the basis of accounting in the company is, what the contingent liabilities are and how the company handled significant events or the details of property, plant and equipment. In short, the full disclosure principle is necessary so investors and other interested parties, who are familiar with reading financial information, have all the information to make informed, sound decisions about the company. The footnotes in the financial statements will disclose accounting policies regarding such things as revenue recognition, property depreciation policies, income tax and inventory accounting practices, Effects...
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...employs approximately 530 uniformed Field Officers throughout England and Wales. The Inspectorate offers a worthwhile and rewarding career to the right person. All communications should be addressed to: Chief Superintendent Training RSPCA Wilberforce Way Southwater West Sussex RH13 9RS. The number of personnel recruited will vary in accordance with local inspectorate requirements. Candidates must fulfil the following requirements: 1. Must have 5 GCSE’s - Grade C or above or the equivalent to include English and Maths. 2. Unless you have applied for a vacancy within a specified location, by completing the application form you are accepting that you are able to relocate anywhere within England or Wales at the Society’s discretion. 3. Must hold a full, current, UK licence to drive a car with a manual gearbox 4. Must be able to swim 50 metres fully clothed within 2.5 minutes. 5. Must possess proven interpersonal skills. 6. Must have animal handling experience. 7. Must possess good administrative skills. 8. Must be prepared to work unsociable hours including some evenings, weekends and Bank Holidays Further considerations:The practical aspects of the work require the lifting, carrying and moving of equipment and animals. You should consider that dogs, for example, may weigh 30-40 kg, and sheep more than 70kg. You will find yourself subjected to intermittent, highly physical activity. On occasion, the position demands working on flat water, alongside tow-paths, sea cliffs, and from boats...
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...an accounting firm was required only to provide information current as of the initial registration date for the firm. Beginning on December 31, 2009, accounting firms were required to register with the PCAOB and file annual and current reports with the PCAOB. On August 13, 2009, the SEC approved the proposed rules with the original effective date of October 12, 2009, but on September 30, 2009, the PCAOB delayed the effective date to December 31, 2009. These parts implement the requirements of SOX section 102(d) that registered public accounting firms 1) report annual information about the firms and their audit practices, and 2) submit, as specified by the PCAOB or the SEC, more frequent information necessary to update the information previously filed with the PCAOB. Until now, the PCAOB had no requirement for annual reports or amendments to report material changes in initial registration information. The purposes of the new sections are 1) to keep the PCAOB up to date on a firm's basic professional information, such as name, location, licenses, and contact information; 2) to provide the PCAOB with current information regarding a firm's audit practice in order to facilitate analysis and inspection by the PCAOB and keep the public informed of such information; and 3) to alert the PCAOB of any events that would require more immediate action by the PCAOB in terms of inspections or enforcement and that might otherwise warrant public disclosure. As required by SOX section 102(e), all...
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...anti-regulation or free-market approach to accounting is one that has been subscribed to for many years. The main thrust of the American Institute of Accountants in 1934 was anti-regulation, they stressed that, “no attempt [should be made] to restrict the rights of corporations to select detailed methods of accounting deemed by them to be best adapted to the requirements of their business” (May 1934, 80). The argument behind this notion is that the natural market forces or the “invisible hand” of the market will ensure self-regulation. Ross (1979, 379) implies this when he writes, “…disclosure regulations are generally neither required nor desirable, since left on their own, firms will have incentives to report accurately”. The belief that firms have internal incentives to report accurately is the crux of signalling theory. This theory holds that firms can increase their value through full disclosure and firms that fail to disclose will be seen in a negative light. Hence, every firm has reason to engage in financial reporting in order to lower its cost of capital. This incentive makes it a self-regulating system with no need for outside intervention as firms...
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...Briefing Note Introduction In 2007 to mid-2009, the world has suffered the worst financial crisis since the Great Depressions in 1920s. This followed by a wave of economic downturn. Learnt from the crisis, it is suggested that a forceful response by regulators, may help prevent deteriorating further. The objective of this note is to identify the crisis effects on both the financial system and the economy and to provide implications on further financial regulations. Effects Financial System: Many institutions collapsed in the USA and Europe within the period. Figure 1 directly shows a considerable rise of the number of bank failure particularly from 2008 to 2010 in the U.S. This deteriorated the macro-structure of many developed countries. Firms called for ‘bailouts’ or recapitalization from governments to help stabilize the financial system. Or, others were closed, forcibly merged with stronger counterparts, or recapitalized using taxpayer’s money. More effects are given below: 1. Banks have been hit hardly by deteriorating capital & liquidity problems and worsening market confidence. * Global banking sector lost almost half of the capital base at the beginning of the crisis in 2007 (Lybeck, 2011). * Low central-bank interest rate: concerns over deflation by monetary policy makers resulted in long-term low interest rates. Figure 2 presents that in the U.S., a slump of 4% in Federal Funds Rate to nearly zero in 2010 while Bank of England has held rates...
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...Excello Telecommunications: Profit at a Price There are moments in life that can forever define and potentially change not only an individual but an entire corporation as well. With the fiscal year of 2010 coming to a close, Terry Reed the operating CFO of Excello Telecommunications faced such a dilemma. For the first time, Excello was on track to finish out the year below anticipated financial goals, which would resonate throughout the company and its’ stock. This presented Excello with the task of searching for solutions while maintaining ethical and legal choices to the betterment of all parties involved. While searching through problem solving solutions, Reed learned of a pending sale on December 20, 2010 to Data Equipment Suppliers in the amount of $1.2M. The entering of this sale into Excello’s accounting system would cover the companies’ shortfall for the year thereby insuring satisfactory financial performance for 2010. However, the client has requested that due to a lack of storage space for the equipment at the present time, Excello hold the order under January 11, 2011. This information sent Reed to Marty Fuller, the Controller, to seek out the best way to record the sale in 2010 to enhance the years-end reports. While discussing the situation with Fuller, Reed emphasized that the transaction must be recorded in 2010 and that whatever accounting is done be defensible using the Generally Accepted Accounting Principles (GAAP). This is essential in maintaining...
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...privacy and discrimination against minorities. These issues raise the question whether the benefits of personality tests outweigh the costs of employing them. Most employers don’t understand how to use the testing to tell if the applicant is worth the hire. There are four different test types aptitude, personality, skills, and job knowledge. The aptitude and the personality test are the two of the four that are not accurate but the other two skills and job knowledge are fine. Skills and job knowledge are based on physical actions and actual knowledge learned. 2.Personality and aptitude are guessing games from person to person that is very inaccurate in nature especially when answers are limited and implied and only one answer will provide a high enough score to get a interview. These tests are not evaluated by professionals but by a person that may not have no more of a psychological degree than you do. According...
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...Pearson Custom Business Resources: the Legal and Ethical Environment of Business states that “ethics can be defined as the principles of conduct governing an individual or a group.” It has been two weeks ago when Logistics and Services Corporation (LSC) fired two top executives for failing to meet company standards. My research discovered that these two executives were fired for taking bribes from an outside corporation to buy certain products [ (CTU, 2010) ]. My hopes are that this document explains: 1. What do ethics in business means? 2. Why or why not is it ethical for executives to accept bribes and an inducement to buy another business’ products? 3. Why are ethics and social responsibility important in the business world? Ethics in Business A company who has ethics in business means the company does not have to do business from day to day in hopes of not getting caught and being fined. Ethics in business means that there are no wrong doers (employees) within the company that may go to jail as they conduct their jobs with the company’s customers, stockholders, fellow employees, and vendors; all stakeholders in a company working together to make money for each stakeholder and provide growth for the company. Because each individual has individual morals, beliefs, principles, values and codes, ethics is a topic that has no definitive answer. Employees’ behavior toward their...
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...on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The accounting by organizations that own the assets leased by the lessee—also known as lessor accounting— will remain largely unchanged from current Generally Accepted Accounting Principles (GAAP) (Topic 840 in the Accounting Standards Codification). “The new guidance responds to requests from investors and other financial statement users for a more faithful representation of an organization’s leasing activities,” stated FASB Chair Russell G. Golden. “It ends what the U.S. Securities and Exchange Commission and other stakeholders have identified as one of the largest forms of offbalance sheet accounting, while requiring more disclosures related to leasing transactions. “The guidance also reflects the input we received during our extensive outreach with preparers, auditors, and other practitioners, whose feedback was instrumental in helping us develop a cost-effective, operational standard,” added Mr. Golden. Why Did the FASB Embark on a Project to Improve Financial Reporting of Leases? Under the current accounting model, an organization applies a classification test to determine the accounting for the lease arrangements. Some leases are classified as capital leases (for example, a lease of equipment for nearly all of its useful life) whereby the...
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...agency which provides for checks and balances within the finance and investing community. Often many readers may see the initials of SEC, which stands for the Securities and Exchange Commission. It’s with this agency that over the past decade has become a house hold buzz word, particularly within the circle of business, finance, and investing. The agency itself is by far a young branch of the bureaucratic machine, with roots from that of the Great Depression. As we fast forward in time, the agency has undergone some changes for better or worse. In a positive light, although not the scope of this article, the Sarbanes-Oxley Act of 2002 created new guidelines and authority for the agency to require publicly traded companies to provide full disclosure of its financial documents. It also set a precedent for senior management (i.e. CEO, CFO) to legally commit to the accuracy of their books. This topic of discussion revolves around the most recent accusation of ethics violations. To that affect, a whistle-blower by the name of Darcy Flynn within the SEC has come forth claiming that for the past two decades the practice of shredding vital investigation documents has taken place and needs to be justified. The specific documents in question are known as MUI’s or “Matters Under Inquiry”, which are documents that are created during the initial investigating process, well before deciding if there is enough supporting facts for the case to become or not to become a full-scale official...
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...Archie R. Scott, Jr. Ethics Case Project 1 Dr. N. Amoah Introduction As the Chief Financial Officer for Camp Industries, I am overall responsible for the information contained in the Financial Statements for the company that shareholders use in making investment decisions and creditors use in making credit decisions. Camp Industries is the defendant in a class action suit filed in the amount of $44 million. After an informal conversation with in house legal counsel, I learn that it is remote that the company will win this lawsuit and our counsel feels that we will probably lose $30 million. Upon sharing this information with a co-worker, it is pointed out that accrual of loss contingencies for unsettled litigation is rare, in practice. My co-worker also points out that if we disclose that management believes that it is probable that Camp Industries will lose a specific dollar amount, that this could serve as ammunition for the opposing legal counsel. His opinion is that a loss should not be accrued and recorded until a final settlement has been reached in the lawsuit. This ethical dilemma deals with loss contingencies. According to our textbook, “a loss contingency is an existing, uncertain situation involving potential loss depending on whether some future event occurs”. (Spiceland, Sepe, & Nelson, 2012) In dealing with loss contingencies, two criteria must be determined, the likelihood that the event will occur and the estimation of the dollar amount of the...
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...Flat Cargo Berhad (FCB) Introduction FCB obtained listing in Bursa Malaysia on the 15 September 2001. The main core business was to provide air freight transportation within the Asian region. As a fast growing company, FCB secured agreements from well-establish company within the transportation industry such as Worldwide Express, United Parcel Services (UPS), Nationwide Express, City link and others. Issue on FCB 1) The auditors were unable to verify the aircrafts claimed have been purchased by FCB in 2005. The audit team found a non-functional rundown aircraft barely worth 231 million in a hangar. Aircrafts that was claimed have been purchased are categorize as an asset for FCB. It’s because the business nature in providing delivering transportation services to customer that generate income for the company. But acquired an asset must be recorded through legal transaction and within controlled of the company. These items are expected to be used in future activities that will generate cash inflows to the company. From the financial statement in 2005, the account equipment, at cost of the aircrafts acquired is increased and cash decreased for the same amount. But, failing to verify the legal amount of purchased assets, we consider the expenditure was not happening and the amount of fixed asset was overstated and the cash was understated in the balance sheet. Non-functional aircraft barely worth 231 million in the hangar were a huge asset for FCB that within their control...
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...without consultation with the employee. – Unfair Training – for instance by providing training to some employees and not to others, where there is no justifiable reason or in breach of for example a collective agreement Unfair suspension – for instance by suspending an employee for no reason, Or by suspending him or her without pay or for prolonged periods. Failure to reinstate a former employee where there was an agreement – for instance in a case of retrenchment, where the employer decides to reinstate some of the employees he or she previously dismissed, but not others. Prejudice (occupational detriment) suffered because of protected disclosure – the wrongful prejudice of an employee due to the fact that he or she provided information which qualifies as a protected disclosure in terms of the Protected Disclosures Act 24...
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...people Appendix B – Types of abuse and specific safeguarding issues Appendix C – Recognising abuse and indicators of abuse Appendix D – Responding to disclosure Page 14 Page 15 Page 17 Page 18 Appendix E – Guidance on Radicalisation and Extremism Page 19 2 Introduction All schools and colleges are required to have a Safeguarding & Child Protection Policy that guides the procedures and practices of staff when safeguarding and promoting the welfare of children, young people and vulnerable adults (henceforth referred to as students). NewVIc takes very seriously its duty towards all its students who have been entrusted to our care and seeks to provide a college environment where all students are safe, secure, valued, respected, and listened to. NewVIc understands that our work in safeguarding and protecting children and vulnerable adults must always have regard for the national guidance issued by the Secretary of State and should be in line with local guidance and procedures. We understand the term safeguarding to mean that we will take all reasonable measures to ensure that the risk of harm to children and vulnerable adults’ welfare is minimised. We also understand that, where we have any concerns about a student's welfare, we will take all appropriate action to address those concerns by working in full partnership with other agencies. All staff at NewVIc...
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...Transfer Pricing and Financial Reporting: some thoughts Messaoud Mehafdi This essay deals with the perennial transfer pricing (TP) puzzle and calls for the disclosure of TP information as a way of unravelling the puzzle in the new age of corporate governance and financial reporting transparency. Seen as a by-product of "managerial ambiguity by design" in large companies and labelled as a "perennial puzzle" , TP has over the years lived up to this cliché by creating complex management and tax problems with tremendous implications for supply chains and business ethics. TP is an increasingly dominant aspect of international production and exchange of goods and services and, in addition to the continuously changing arm's length regulations, interest in the public disclosure of TP information has been gaining momentum. TP is a multifaceted global business reality that arises from intra-firm trade of tangible and intangible products across the industrial spectrum, usually in large vertically integrated companies. For many transnational companies (TNCs), the inseparable twins of intra-firm trade and TP are a prized business and financial conduit, accounting for around 60% or $1.6 trillion of global trade. Intra-firm transfers are very significant in the global service sector in general and the financial sector in particular where they are the focus of new regulation. TP is therefore a key factor in creating complex supply chains and, in order to engage investor confidence in the knowledge-based...
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