This paper evaluates the role played by Bernard Ebbers in the accounting fraud committed by WorldCom and in its demise resulting in the largest bankruptcy, at that time, in US history. A brief history of the expansion of the company will be followed by an explanation of the business strategy and methods used to grow the company to provide the context for the evaluation of Ebbers leadership style and his contribution to the fraud According to Kidwell & Martin (2005), Bernard Ebbers started out with
Yummy Sdn.Bhd need fund to do research and development (R&D) in order to keep the delivery service to the customer for present and future need by providing the quality product. On the other hand, R&D is an important role and it is an opportunity to improve the development of the company. However, the Yummy Sdn Bhd had purchased the new machine for expanding their product lines purpose. Therefore, the company has no extra capital to allocate to R&D and they cannot borrow any fund from bank as well
explore the relationship between executive compensation structure and fair value accounting in the context of business combination. Particularly, it examines the effect of CEO compensation including both earning based and equity based compensation structure on post-acquisition fair value measurement on merger and acquisition activities completed in U.S. context, after the application of the Statement of Financial Accounting Standards “SFAS” 142, Goodwill and Other Intangibles Assets, in July 2001, using
Question 1 a. Matching principle requires that expenses suffered by a business must be charged to the income statement in the accounting period with the income to which it relates. In the case of Coca Cola company, they treated shipping and handling costs in moving finished products from the manufacturer to the sales distribution centers as Cost of Goods Sold but the same cost of transportation to customer are considered as selling, general and administrative expenses in the income statement (Coca-Cola
financial statements and accounting figures do not reflect current value figures, especially in the case of assets purchased at different accounting dates by the different organizations. Financial statements are generally not adjusted due to inflation effects which makes accounting ratios calculated having manipulation. Most times, profit in sales, net income and other key variables becomes insignificant where there is an adjustment in changes in price levels of accounting data. Where inflation arises
The core ethical issue of external accounting is that there is a vested interest on the part of companies to misrepresent their financial position in order to attract or maintain investment and lure the short-term profitability of the company. The principle ethical issue in auditing is a business interest on the part of auditors to collude with the auditee who is the source of the fees from which they obtain their income. Companies need the rules that are designed to counter the willingness of companies
We chose the rice sector as an example of a nearly competitive sector. Below we will describe in detail why the rice sector comes close to a perfectly competitive sector. The following conditions are needed for a perfectly competitive market; homogeneous products, many buyers and sellers, free entry and exit of firms and all information should be available to make a rational decision. First, we will look at the behavior or rice firms depending on their time horizon. We assume in a perfectly competitive
Activity-Based Costing to Allocate Overhead Costs The managers at Beneteau Company decided to use activity-based costing to allocate overhead in view of the point that its benefits would surpass the cost. With ABC, This costing use different cost groups which are organized according to different activities to allocate overhead costs. The production and maintenance of the product includes all activities such as purchasing materials, inventory management, assembling parts and verifying final products
2.2 Porters Five Forces Analysis Bargain Power of Customers: High • VYP’s customers are very large broadcasting corporations, which gives the corporations high bargaining power. • The Indie market is saturated. Bargain Power of Supplier: Medium • There is a large number of outsourcing companies that specialize in a variety of services. • There is a large pool of actors and experienced directors to choose from in the market. Competitors’ Rivalry: High • There is a large number of production
Servis started with a three friends who were young fresh from college and established Servis Industries more than 50 years ago. These youngsters, named Ch. Saeed from area Gujranwala Ch. Muhammad Hussain, Ch. Nazar Muhammad, both from area Gujrat commenced business at a very small scope in 1941 Lahore. At That time they were only manufacturing handbags and some other sports goods. With the passing of time their business getting strengthened and they were used to supply their products to every corner