Full Disclosure Essay

Accounting is an information system that identifies, records, and communicates the economic events of an organization to interested users† (Kieso, Weygandt, and Warfield, 2007). Information that is relevant and important to users should be disclosed; unfortunately, some information cannot be quantified through financial data. Certain data cannot be included in the organization’s financial statements. The full disclosure principle explains how companies handle situations that cannot be explained in numerical terms but should be disclosed to the investing public. This paper will explain what is the full disclosure principle in accounting and why has disclosure increased substantially in the last 10 years. This paper will also address why full disclosure is needed and what possible consequences may occur if companies do not follow these principles. What is Full Disclosure?†The full disclosure principle calls for financial reporting of any financial facts significant enough to influence the judgment of an informed reader† (Kieso, Weygandt, and Warfield, 2007, p. 1282). For example, certain financial information does not directly influence specific journal accounts. However, these financial events may influence the future of the company’s or may influence how investors view the financial stability of the company. For example, a high-profile ongoing lawsuit may cause dramatic constraints on the company’s liabilities and assets if the company must pay high litigation fees and settlements. This type of information has a huge impact on how stable the company seems. Unfortunately, it will not be stated in the financial statements since the case has not been settled. According to the full disclosure principle, the company should disclose this type of information in the notes of the financial statements. This kind of information influences how investors rate the company’s financial stability and strategic future even though the company has not settled the case yet. Full disclosure also curbs fraudulent accounting acts that can be hidden or omitted from financial statements. Why Full Disclosure Increased Substantially in the Last 10 Years?The full disclosure principle has substantially increased within the last 10 years due to several reasons. One of the reasons is due to the wake of off-balance sheet financing made public by the Enron scandal (Kieso, Weygandt, and  Warfield, 2007). Fraudulent accounting acts made famous by the Enron scandal has prompted the industry to reinforce this principle. Consequently, the SEC called for an expanded disclosure in order to ensure that companies are disclosing all necessary information. By disclosing information that may affect users, companies comply with the increased reporting requirements recently made by the accounting profession. It also forces companies to disclose information that has the potential of having huge financial consequences to the business. Moreover, the complexity of the business environment, and the need for timely information has increased the need for full disclosure as well. As a result, the SEC enforced the full disclosure principle more fully to help monitor and control business organizations (Kieso, Weygandt, and Warfield, 2007). Why is Full Disclosure Needed?The Securities Exchange Commission (SEC) and the public have both called for the need to disclose accurate financial information that states all contractual obligations and liabilities must be reported. In other words, full disclosure is needed to ensure that organizations are disclosing all of the necessary information to help investors, creditors, and the public make better and wiser decisions regarding their companies. Full disclosure is also needed to ensure that companies do not commit fraudulent activities like the activities that were committed within the Enron organization. Full disclosure also helps investors determine if a company is as stable as the financial statements appear to be. Possible ConsequencesFailing to disclose items in financial statements can have several possible consequences. The Enron scandal shows how company executives can be held liable for fraudulent activity. Criminal and civil liabilities may occur if executives fail to disclose financial information that may mislead investors. Another consequence is losing public trust if an organization is caught not disclosing pertinent information. A company may lose high public opinion if shareholders are led to believe that the company was more profitable than what was actually occurring. Moreover, a company may not be able to recover from bad press, litigation costs, and government fines if caught not fully disclosing financial information. The Sarbanes  Oxley Act reinforces the consequences and punishments of not fully disclosing financial information. The main goal of this act focuses on deterring fraudulent acts and cutting down on poor reporting practices. CEOs and CFOs are held personally liable for the accuracy of financial statements; a forfeit of the CEO’s bonuses or company profits may be withheld if accounting restatements are made as well (Kieso, Weygandt, and Warfield, 2007). Independent auditors must be employed to ensure that accurate information is disclosed as well. Conclusion The full disclosure principle ensures that relevant and useful financial information is reported accurately to the public. Fraudulent accounting activity has called for stricter interpretations of this principle since criminal, civil, and SEC violations may occur if full disclosure is not followed. The Sarbanes Oxley Act highlights the consequences of not fully disclosing information. These strict guidelines show how the government has responded to accounting activities that attempt to hide certain financial activities. Accounting managers must be aware of the heightened need for fully disclosing all types of financial events or information that may affect the investor’s view of the financial stability of a company. References Weygandt J., Kieso D., & Kimmel, P. (2007) Financial Accounting and Accounting Standards. Intermediate Accounting (12th edition). Kieso D., Weygandt J., & Warfield T. (2007). Full Disclosure. Intermediate Accounting (12th edition).

That Newfangled Technology

Set Phasers on Stun Case Case 14: That Newfangled Technology Summary: On the morning of September 8, 1923, Lieutenant Commander Donald T. Hunter was assigned to responsible for leading fourteen destroyers of Destroyer Squadron 11 to depart from San Francisco to San Diego. They were returning home after an escorting Battle Division 4 from Puget Sound to San Francisco. At that time, the Destroyer Squadron comprised with leading flagship that commanded by Captain Hunter, USS Delphy (DD-261) and followed by; the four ships of Destroyer Division 33, USS S. P.Lee (DD-310), USS Young (DD-312), USS Woodbury (DD-309), and USS Nicholas (DD-311); the five ships from Destroyer Division 31, USS Farragut (DD-300), USS Fuller (DD-297), USS Percival (DD-298), USS Somers (DD-301), and USS Chauncey (DD-296); and four ships from Destroyer Division 32, USS Kennedy (DD-306), USS Paul Hamilton (DD-307), USS Stoddert (DD-302), and USS Thomson (DD-305). The warships conducted tactical gears and weaponry exe rcises en route, including a competitive speed run of 20 knots. Later in the day, as weather worsened, the ships formed up a column on the squadron leader â€Å"Delphy†. That evening, around 2000 hours (8:00 p. . ), the leading flagship broadcast an erroneous report, based on an improperly interpreted radio compass bearing, showing the squadrons position about nine miles off Point Arguello. About an hour later, the destroyers turned east to enter what was thought to be the Santa Barbara Channel, though it could not be seen owing to the thick fog. Unfortunately, due to a combination of abnormally strong currents and navigational complacency, it led the squadron onto the rocks offshore point and rugged area of San Miguel Island, near Honda Point. Just after turning, Delphy struck the rocks at 2105 (9:05 p. m. ), plowing ashore at 20 knots.More than worse, Delphy was followed by S. P. Lee, which hit and swung broadside against the bluffs. Young piled up adjacent to Delphy and ca psized, trapping many of her fire and engine room crew below. While Woodbury, Nicholas, and Fuller struck reefs and ran aground offshore, Chauncey ran in close aboard Young. However, the alarm sirens slowed Somers and Farragut enough, so they just touched ground before backing off to deeper water while the five other destroyers steered completely clear. Although heavy pounding surf broke over the seven stranded destroyers, eventually breaking the Delphy into two parts.Hundreds of thousands gallons of fuel oil from seven ships spilled into the crashing waves, carbide bombs were exploded when they came in contact with the water, and numerous fires began on the ships and on the surface of the sea. Finally, 23 men died in the ensuring attempts to abandon the ships and make it to shore in the darkness and heavy surf. About 450 survivors from the seven warships made their way slowly to the narrow and rocky beach below the cliff during the hour that followed. S. P. Lee S. P. Lee Fuller Ful ler Woodbury Woodbury Chauncey Chauncey Delphy Delphy Young Young Nicholas Nicholas What Went Wrong:It later turned out to the light that the Squadron was actually several miles north and further east, but Captain Hunter had disbelieved the accuracy of a Point Arguello radio signal. Following the turn, Point Arguello was dead ahead, and distant only about two nautical miles. The Point Arguello light may have been hidden by the fog. However, did Captain Hunter issue an order to change-of course of 95 ° left turn, or did he order his ships to turn to a bearing of 95 ° magnetic? Additional Factors: Communication between Captain Hunter and Radioman Falls: The communication between Captain Hunter and the radioman was misunderstood.The radioman would report the wrong bearings, when the reciprocal bearing should have been reported instead. Had the correct bearings been reported from the beginning, the ship wouldn’t have crashed. â€Å"Newfangled Technology† Feedback: The mistaken â€Å"error† proved that Captain Hunter cannot always rely on his strong self-reliance and that even a skilled mathematician makes mistakes; and that it’s acceptable to rely on technology. There was no feedback given back to Captain Hunter to state its’ reasoning behind the bearing that was being reported to him. Also, there was no feedback given to challenge Captain Hunter’s navigations.If more feedback was given, it could have been sensed that navigation was off route. Continued use of â€Å"That Newfangled Technology†: After the incident of being reported the wrong bearings, Captain Hunter still continued to use the navigation by radio bearing. It was assumed as an honest mistake. It wasn’t until after the crash that Captain Hunter realized that the radioman was giving him the correct bearings from the beginning. This could have been prevented if the system would have been checked after the first wrong bearing, to see what the re asoning behind such an error was; instead of continuing on the journey.More Information: According to an article by Noah Andre Trudeau, â€Å"California Naval History – Point Honda: A Naval Tragedy’s Chain of Errors†, a lean budget and distrust of new technology contributed to a naval tragedy at Honda Point, California (Trudeau, 2012). Speed was the essential creed of the early to mid-20th century destroyer driver. Determination and self-confidence was a style of command in which those qualities could achieve the impossible while in peacetime the same attributes contributed to one of the U. S. Navy’s most significant disasters (Trudeau, 2012).The 18 ships were meant to travel along the California coast to San Diego, with their two high powered and low powered turbines, four tall thin funnels and a book speed topped at 32 knots. Due to the postwar budget cutbacks, they were operating at 20-30% below full complement. Although a lot of live were lost during this tragedy, all the blame wasn’t on Captain Hunter. Everyone played a part, from, Watson’s fixation on making a record 20-knot passage along with his failure to supervise the navigation, Blodgett’s inability to express his concerns, and the silence of the other squadron officers.Uncertainties surround the new technology, unusual weather conditions and minor equipment problems also played a part (Trudeau, 2012). Lesson Learned: This case illustrated the importance of human error and testing all new technology before use. Although all faults in the technology may not be quickly discovered testing all aspects is critical. It is learned that although you may be proficient in a skill and have applicable experience, mistakes still happen. The people with great skill and power, like Lieutenant Commander Donald T.Hunter, are still fallible as human beings. Despite having a fully functioning technology system to navigate, it shouldn’t completely be dependent on. Instead, the two should assist each other, human intelligence and newfound technology. Additional Reference: Trudeau, N. A. (2012, March 2). California Naval History-Point Honda: A Naval Tragedy's Chain of Errors. Retrieved October 29, 2012, from The California State Military Museum: A United States Army Museum Activity: Preserving California's Military Heritage: http://www. militarymuseum. org/PtHonda. html

Call of the Wild Chapters 4 5 6

What do his parents think? Alex’s parents are very worried about him. They become even more worried when they realize that he told the post office to hold all of the letters they sent him until a certain date. Where does Chris/Alex travel in this chapter and what is the time line (dates and locations) July 9th 1990- Datson is flooded is flooded at Lake Mead July 10th 1990- Chris hikes toward N California August 1990- He gets a ride from/meets Crazy Ernie Chapter 5. What did the people of Bullhead City think of Chris/Alex? He is remembered as a strange but nice person. The employees at the McDonald’s where he worked said he worked at a slow pace, which contradicts what was said about his work ethic earlier in the novel. They said he needed to bathe more and one lady feels he quit because she told him so. Describe the slabs in your own words. The slabs are an abandoned military base that has become home to a lot of drifters. What do we learn about Chris/Alex in this chapter? Is your view of him changing? In this chapter we learn that Chris’s work ethic is starting to disappear because the former employees say that they felt he worked slow. My opinion is not really changing any of him because he still is very odd and obviously he is not all right. 4. Trace the timeline in this chapter. May 1991- Departs Las Vegas July/August 1991- Oregon coast September 1991- Hitchhiked down highway 101 to Bullhead city Several months later- moved to the slabs Chapter 6. What changes do you notice in the narrative stance of chapter 6? Chapter 6 isn’t really about chris, its more about the people he met and the lives he affected. Why did they send Krakauer a letter from Ronald Franz? Because Franz wanted a copy of the magazine article which featured Chris and felt very attached to him. In Chris/Alex’s letter to Ron Franz he reveals his philosophy of life. This is important for an understanding of what happened to him. Summarize his ideas in your won words. If you want to get more out of life, Ron, you must lose your inclination for monotonous security and adopt a helter-skelter style of life that will first appear to be crazy† 57. This is important because for the first time in words he is sort of describing the lifestyle that he is trying to live. He put the ideolism that he is living by into a phrase. What did Krakauer learn when he visited Franz? He learned that Franz was a very physically large men who did not show his age. He had always been praying for Chris to walk back down the road. When he learned that Chris had died, â€Å"{he} became an athiest† because his prayers were not answered†

Women in business Coursework Example | Topics and Well Written Essays - 1500 words

Women in business - Coursework Example Furthermore, ‘Positive influences’ would also help in enhancing the sustainability in business along with betterment of the leadership mentality. This progressions in the individual characteristics development is going to enhance the ability of ‘communication’ that would indicate the base point of any business. According to my individual need for development, these four goals would help in improving my ability for meeting the appropriated requisites of relevant business module. Professional aspiration is one of the important situations in life irrespective of the gender the individual belong. Furthermore, being a woman, I am even likely to face certain problems in the course of achieving these goals and fulfilling my professional desires (Elkin, 1960). In this regard, the paper intends to develop an effective understanding of the different needs for meeting with the progression of developing identities of women in business within the global domain. By analys ing the different aspects of the problems attached with development of women, I will be enhancing my ability to understand myself and develop a better attribute of meeting with my personal needs of development. Biologically, we can differentiate male and female based on their predefined physical appearances. However, in sociological aspect, the gendered views of the society segregates women and men based on the terms of ‘masculinity’ and ‘femininity’ parallel to their physical and biological segregations. The different influences exerted by the notion of socialisation could affect the behavioural patterns of culture and motivate to participation of new members in social relationship. My perception is that socialisation starts from families where these factors acts as agencies of socialisation and inflicts the views of discriminations based on gender. At the very beginning of my life, I have been allocated with different dress materials, colours for

Large numbers of people living in regions conquered by Islam Essay

Large numbers of people living in regions conquered by Islam ultimately converted to that faith. Do these pacts suggest to you any possible reasons for some of those conversions - Essay Example Thesis statement: An analysis of two pacts, i.e., The Pact of Umar, 7th Century and The Pact of Umar, 9th Century, to unearth the reasons behind Islamic conquest and conversion to faith. Islam is a religion that cannot be separated from its military and political agenda, i.e., formation of Islamic world under Islamic rules. But in Europe, Islamic conquest was not easy because it resulted in a number of wars and bloodshed (Cappi 19). But in Syria and Palestine, Islamic conquest was an easy task. This proves that the spread of Islam in its initial stages was based upon its military power. Besides, militant nationalism and unending desire to spread Islam helped the Islamic rulers in the Middle East Asia to spread invade its neighboring nation states. So, it is utmost important to analyze the Pact of Umar, 7th Century and the Pact of Umar, 9th Century to unearth the scope of Islamic conquest, conversion to faith and the possible reasons for some of those conversions. The Pact of Umar was an agreement of peace between Muslims and Christians during the reign of Caliph Umar in 7th Century. Besides, this pact was applicable to the Syrian Christians aiming to mold later interaction between Muslims and Christians. Generally saying, this pact exposes the condition of Non Muslim believers under a Muslim ruler. The rapid expansion of Muslim rule from the Middle East to its neighboring regions helped the Muslim rulers to exert influence on Non-Muslim population. But they exploited this condition to impose more restrictions on Non-Muslim population. For instance, the Pact of Umar makes clear that the Syrians who believed in Christianity were forced to follow the rules and regulations put forth by Caliph Umar I. The Pact proves that the Christian community in Syria was under the control of Caliph Umar I. The main points in the pact prove that the Christians were not allowed to build or repair churches or monasteries in Syria. Besides, they were

All Quiet on the Western Front Essay Example | Topics and Well Written Essays - 1000 words

All Quiet on the Western Front - Essay Example The main themes of this piece are specifically the emotional, physical, and psychological impacts of combat. In addition, the focus of the piece has to do with friendships and interaction between people that function as a means of getting through horrific situations. One of the elements of this piece is the concept of new technology. The advent of tanks, poisonous gases, and trenches appears throughout the story illustrating the butchery taking place. These new technological advances only aided in more precise and efficient killing. They also removed the killer a bit from who he was killing. In other words, placing a tank between two people depersonalizes the action of murder. One of the heavier themes in this piece is the idea of nationalism and its hypocrisy. During the time period that this piece was written, nationalism was on the rise and acted as a catalyst for the first world war. Many authors that wrote about the war glorified the idea of nationalism, patriotism, and fighting for one’s country. This piece was opposite to the notion of nationalism and patriotism. In fact, Remarque emphasis the idea that the soldiers are not fighting for country at all but rather to survive. Even though Paul is lured into the idea of joining the German army by his schoolmaster, Kantorek, he no sooner becomes a soldier and realizes the waste and meaninglessness of war. At one point, Paul returns home on leave and discovers how damaged he has become by the war, †And even if these scenes of our youth were given back to us we would hardly know what to do. . . . I believe we are lost†(). The reader follows Paul through the story as he loses friends one by one, â€Å"Our knowledge of life is limited to death† (Chapter Ten). In the end of the piece, it is the loss of Kat that seems to unravel Paul completely. He loses hope and stops caring. Kat was initially injured and when Paul was carrying him on his back to safety, Kat sustained a lethal head

Ebay Essay Example | Topics and Well Written Essays - 500 words

Ebay - Essay Example However, other issues were still seen like the one-sided feedback system favorable to buyers only. Other online options for businesses also competed with the eBay. Amazon also emerged as one of its major competitors. Other issues which the company faced included fewer consumer-friendly payment features for eBay as compared to Amazon; presence of counterfeit merchandise; and bad management choices all. SWOT Analysis Strengths eBay is the world largest online auction websites and it was the first company that came up with the idea of online auction. And because of its unique way of trading, eBay has given the chance for buyers and sellers from all over the world to buy and sell items by going online and without having them to meet up. Diversifying has become one of the major components for eBay. Not only it diversified its products, but eBay also diversified its target markets from, individuals to small or big companies. Moreover, from the past couple of years, eBay did some acquisitio ns over some other companies, such as, PayPal, StubHub, and Skype. With all of these acquisitions, it made eBay as a bigger and better company, and one of the big successes of these acquisitions was with PayPal.