Can you identify conflicts of interest

Assignment Help Accounting Basics
Reference no: EM133073029

Question - You will assume the role of "ethics consultant". You are expected to respond all of the discussion issues listed below and write a memo that presents your arguments and conclusions to the ethics committee members of the client firm. Your memo should be 2 pages in length and typed. The use of a professional, business format is required

Discussion issues:

 a. Research has shown that managers use their accounting discretion to boost or depress earnings when needed (e.g., they underestimate bad debt expense to increase earnings). Can you identify conflicts of interest and pressures that could lead to such conduct? What stakeholders might be involved outside of management, what are their interests, and how might their interests be affected by earnings management?

b. Do you think that managing earnings within the boundaries of a given accounting standards is illegal? Is it unethical? Is there a difference? What kinds of questions would be helpful for managers to ask themselves when confronting an ethical dilemma such as this?

c. How would IFRS being principle-based rather than rule-based affect financial ratio comparison involving American and EU companies? Do you think that American and European managers would differ in their likelihood of engaging earnings management? Why?

d. How might business strategies that facilitate "doing good" be made consistent with the goal of increasing profitability?

Reference no: EM133073029

Questions Cloud

Advanced corporate finance : Remark: all the dollar value below should be considered "fair (true) market values" - i.e. any prospective buyer/seller would gladly pay them
After-tax rate of return on the dividend : As the CFO of Facebook, you invest $100,000 in a preferred stock for the corporate cash account at $30 a share. During the year you earned dividend income of $3
Considering investing in a stock : You are considering investing in a stock with a beta of 1.25. T-bills are currently paying 1%. If the markets expected return is 10% what should your client's e
What do you project the irr to be : You have just received (late 1993) the following setup from a local broker for the purchase of a commercial warehouse facility in the City of Commerce, a city e
Can you identify conflicts of interest : Can you identify conflicts of interest and pressures that could lead to such conduct? What stakeholders might be involved outside of management
What approaches do risk management include : 1. Effective risk management is the process of controlling what threats an organization?
Calculate the irr value for the truck : The firm's cost of capital is 15%. Both projects have useful lives of five years and will improve cash flows as follows: Calculate the IRR value for the truck
Calculate the effective interest rate : Considering projects with periods of 4 years, and a two-year continuously compounded interest rate of 20%.
Expected return and standard deviation : Suppose that your portfolio consists of X equally weighted identical assets in the market, each of which has the following properties: mean = 15%, standard devi

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd