Morality of Management Earnings Essay Example for Free

Morality of Management Earnings Essay The term â€Å"Earnings Management† is a form of â€Å"number smoothing† used by a company’s management to manipulate or influence the companys earnings to match a pre-determined dollar amount. This is done in an attempt to keep financials stable, as opposed to showing financial fluctuations. When a company appears to be stable it has a greater chance of attracting investors, which in turn demands higher share prices. When a company is able to have higher share prices, the more likely they are to draw new investors. Likewise, a company that has low share prices is often a reflection of a company that is not doing well financially (Investopedia, 2009, para 2). Often, companies perform abusive earnings management practices in an effort to â€Å"make the numbers† (Inevestopedia, 2009, para 4). In order to do this, management may be tempted to â€Å"make up† numbers as a means of drawing investors or to make their company appear financially stronger than what it actually is. The methods used in earnings management can be varied, and may be done through manipulation of financial numbers or operating procedures (As cited by Gibson, 2013, p. 84). In a study conducted by the National Association of Accountants, a questionnaire was prepared which described 13 observed earnings management situations (As cited by Gibson, 2013, p. 83). Below are five listed generalizations that can be made by the study findings regarding short-term earnings management practices. 1. Respondents of the survey felt that earnings management practices utilizing accounting methods to be less acceptable than methods of operating procedure manipulation (As cited by Gibson, 2013, p. 84). Manipulation of operations can include something as simple as pushing shipping to the last day of the fiscal quarter or asking customers to take early delivery of goods (As cited by Gibson, 2013, p. 85). Another example is when companies make â€Å"Unusually  attractive terms to customers† or â€Å"Deferring necessary expenditures to a subsequent year† (Rosenzweig ; Fischer, 1994, para 5). According to survey responses, practitioners had fewer ethical dilemmas when using operational earnings management tactics compared to those involving accounting methods (Rosenzweig ; Fischer, 1994, para 7). 2. When it came to accounting, survey respondents felt that increasing earnings reports to be less acceptable than the decreasing of earnings reports (As quoted by Gibson, pg. 84). Managers appear to be more comfortable in reducing the overall company profit when reserves show elevated numbers (As cited by Gibson, p. 85). It would seem that management might assume that if their reserve numbers are high, then reducing them to show lessor profitability acceptable. If the money is genuinely there, then what is the harm in reducing the profit amount to meet a designated number? However, when it came to reporting profit increases, managers were hesitant in determining what earnings management methods would be ethical and which would not. 3. Generalization #3 is similar to generalization number two where ethics are concerned. Respondents felt that if earnings management tactics were kept small that it was more acceptable than if the effects were large (As cited by Gibson, p. 84). When manipulations of numbers or operating procedures are kept to smaller changes, managers seem to feel it more justifiable and acceptable. For instance, if management were asked to show an increase of sales by $12,000.00, such manipulations would be more ethical than if asked to increase sales by $120,000.00. Likewise, if production costs were delayed for advertising to meet a quarterly budget it would be more acceptable than if production costs for advertising were delayed to meet the end of year fiscal budget. This also ties in to generalization #4, the time period of the end effect. 4. Time periods play a large part in determining how ethical earnings management practices are. As described above, when asked to alter numbers or operating procedures in an effort to make quarterly forecasts, managers seemed to feel this practice to be more acceptable. When asked to alter numbers or operating procedures for annual reports, however, the line between ethical and questionable is blurred. 47% of respondents to the survey felt that earnings management practices that were made to meet an interim quarterly budget to be ethical, while only 41% felt that such manipulations in order to make an annual budget to be ethically sound (As  cited by Gibson, 2013, p. 85). 5. When asked whether it was acceptable to offer special extended credit terms to customers in an attempt to increase profits, only 43% of survey respondents felt the practice to be ethical. However, when asked if the same end result would be ethical if achieved through ordering overtime to ship as much product as possible at years-end, 74% of respondents felt this manipulation to be ethical (As cited by Gibson, 2013, p. 85). A staggering 80% of survey respondents felt that selling excess assets as a means of realizing a profit to be ethical, while only 16% felt it would be questionable (As cited by Gibson, 2013, p. 85). Short-term earnings management procedures, while questionable, are often legal. The alteration of financial information in an attempt to meet budgets or as a way to show profitability is often alluring and an â€Å"easy† way to draw investors. Managers who use earnings management tactics must take into consideration the impact such actions may have with key stakeholders (As cited by Gibson, 2013, p. 86). When numbers are skewed favorably, it gives stakeholders a false sense of security in their investments. Companies who engage in short-term earnings management practices often set themselves up for losses over time. When numbers are adjusted to make a quarterly or yearly dollar amount, chances are the following quarter will find the company in the negative. Such practices are rarely foolproof and care must be taken when making earnings management practice decisions. Focusing on long-term earnings management practices are ultimately more favorable, but in order to be effective management must remain committed to consistent operational procedures. Forecasting the product needs of customers and looking ahead are key strategies for keeping sales income at a consistent level. Waiting until the last minute to offer customers generous credit terms in an effort to boost end of year or quarterly sales is a short-term answer at best. Looking at the purchase history of customers and integrating theses sales number into future budgets should help alleviate the need to resort to last minute scrambling to make budget targets.

Biography of Pele Essay -- History

Biography of Pele Edson Arantes do Nascimento, more widely admired by the world as "Pelà ©", was born on October 23, 1940, in a small village in Brasil called Trà ªs Coraà §Ãƒ µes in the Brasilian state of Minas Gerais. He was baptized in the municipal church called Igreja da Sagrada Famà ­lia de Jesus, Maria e Josà ©. His father, Joà £o Ramos do Nascimento, or Dondinho, as he was known in the soccer world, was also a professional player. He was well-known as one of the best-heading players in his time. He was a center forward for Fluminense until an injury kept him from playing professional division one soccer. His mother Celeste gave Pelà © and the rest of his family attention to their needs and a lot of love. When he was a child, Pelà © and his family moved to Baurà º, in the interior of the Brasilian state of Sà £o Paulo, where he learned to master the art of futebol. One day he himself confessed that he "tinha trà ªs coraà §Ãƒ µes [had three hearts]", referring to the city where he wa s born, Trà ªs Coraà §Ãƒ µes, and to Baurà º and Santos. Pelà ©'s Career Pelà ©'s first job was shining shoes. But he had always dreamed of playing soccer. Pelà ©'s soccer career started early. After playing in a few amateur teams like Baquinho and Sete Setembro, at the age of 11, while playing for an uncoached team called Ameriquinha, he was discovered by a former Brasilian World Cup player named Waldemar de Brito. De Brito recognized Pelà ©'s skills and invited him to join the team he was organizing (Clube Atlà ©tico Baurà º?). When Pelà © was fifteen, in 1956, de Brito took him to the city of Sà £o Paulo to try out for the professional club called Santos Futebol Clube (SFC). That day, de Brito told the team directors that "This boy will be the greatest soccer player in the world." Pelà ©'s first show came on September 7, 1956, when he played in place of the center forward Del Vecchio. He came into the game to score the sixth of the seven goals in the 7-1 Santos victory. He scored his goal on the 36th minute, in a play between Raimundinho and Tite. The ball was given to Pelà © in the box, and even though he was surrounded by defenders, he shot on goal and the ball went under goalkeeper Zaluar's body. Zaluar became famous as the first goalkeeper to take a goal from the great Pelà ©. From there, the trip to the summit was fast. In his first league game with Santos, he scored four goals. The next season, he was a re... ...ht goals in one game against Botafogo of Rio de Janeiro. On November 19, 1969, he scored his famous 1,000th goal from a penalty kick on the 34th minute of the game against Vasco da Gama and dedicated it "...para as criancinhas pobres do Brasil...." (to the poor little children of Brasil) and to the elderly and suffering peoples of Brasil. Pelà © also participated in what is known to be the "Golden Age" of the Libertadores Cup from 1960 to 1963, during which the great Uruguayan team Peà ±arol faced the legendary Santos for the final games. Peà ±arol won in 1960 and 61, while Santos took the championship the other two years. Pelà © defined the role of the playmaker/midfielder type. He led some of the greatest Brasilian players of all time - Vavà ¡, Didi, Garrincha, and others. Many said Pelà © would have been the best in any position he played. Pelà © once insisted to the manager of Santos that he play goalkeeper. On January 19, 1964, he substituted Santos goalkeepr Gilmar, who had been ejected, in the semi-final game of the Brasil Cup. For five minutes, after scoring three goals, Pelà © played with the number one jersey and made two spectacular saves that saved Santos the spot in the finals.

North Korea at the Winter Olympics

North Koreas ruler repeatedly exhibits repulsive violations of human rights. Just thinking that we participated in the 2018 winter Olympics with this country gives me the hebegeebes. Kim Jong Un, the ruler of this ruthless, repulsive, regime, shows little to know recognition of human rights. I believe we have sullied the name of the United States by allowing North Koreas Participation. The Olympics are the international celebration of human excellence, Kim's North Korea falls far from the definition of excellence. Excellence is the quality of being outstanding or extremely good. Kim is power hungry and will stop at nothing to make sure he stays in power, or example he felt that his 67-year-old uncle was a threat to his power, so he had him stripped down to his bear skin and thrown in a cage of 120 dogs that had been starved for five days. Kim is mentally INSANE!!!North Korea is a dictatorship, Kim decides everything, and nobody can go against his wishes without punishment. North Korea is known to many as todays worst persecutor of Christians. For example, anyone caught with any contact with a missionary can be killed or tortured. In north Korea Kim has established political prison camps where men women and children can be found, it does not matter whether the person is young or old. To ensure his regimes success Kim has made sure that no one can leave. He underpays workers and raises the price of airline tickets for a time it would cost one person $8,000 to leave North Korea. Kim, his father, and his grandfather were all self-proclaimed gods. North Koreas calendar starts at the birth of Kim's grandfather instead of the birth of Christ. In North Korea in any way you turn it is not hard to find a statue of a previous ruler of a picture plastered across a wall. There is even a special place where you can visit the corpses of Kim's father and grandfather, because the mentally deranged Kim has them embalmed is glass cases. if this is not mentally ill then I don't know what is. We participated in the winter Olympics with these crazy people! Kim has also threatened to nuke us on multiple occasions. I conclude that if it were my decision I would not have let them participate in the winter Olympics.

Abraham Lincoln Heroes Serve Powers Or Principles Larger...

In his article on the characteristics of a hero, Tollefson writes â€Å"Heroes serve powers or principles larger than themselves.† Before one is called a hero, he should try to find a cause or principle where he is not the only one concerned. A hero cannot be called a hero if he does not defend something that should help people in general and not just himself. A hero gets his or her strength from higher principles and he or she knows the value of sacrifice. Only brave and strong men and women could fight against something evil that has existed for a long time because if they fight it, they might die or they might lose everything. Heroes are never afraid to fight for something that they believe in. Abraham Lincoln was one of heroes. He was an American president during 1861 to 1865, and he presents with all his power to his country. Abraham Lincoln was an outstanding hero because he endured many hardships in life, abolished black slavery, and helped reconstruct America after the Civil War. One reason why Lincoln is known as a hero was that he never gave up even though he had many hardships in his personal and political life. This is similar to Tollefson’s idea about a hero having character flaw like â€Å"political incorrectness† and become â€Å"easy targets for the purveyors of heroic perfectionism† (Tollefson). However, despite their flaws of character, they remain great people. Lincoln is one of those heroes who have had many failures in life but have proved himselfShow MoreRelatedThe Broken Promise of Reconstruction the Need for Restitution5574 Words   |  23 Pagesthe most widely written about event in American history and Reconstruction is the most mis-understood and least appreciated subject within this wider issue. 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