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¶ … transparency seems to be a huge concern for the accounting profession and that many specialists (e.g. professionals and organizations in the accountancy profession such as Tilley (2010)) see transparency as remaining the next huge issue in the next decade, particularly as businesses outsource, become more complex, and powerful.
Regulations that are in order include the Sarbanes-Oxley Act (2002) that came into effect due to major accounting and corporate scandals that occurred in the last century such as from WorldCom, Tyco, Peregrine Systems; Adelphia, and Enron, each of which effected share prices of numerous impacted companies and caused the public's trust in security markets to falter (Greer. & Tonge, 2006).
Importance of the SOX consists in the fact that it has restored public security in American capital markets and corporate financial statements as well as making corporate accounting more accountable for its actions and strengthening its responsibility. The SOX has led to alteration in the history of accounting by placing certain checks into the structure of the accounting system thereby changing it from its original structure....
It has done this by mandating accurate financial disclosure that is certified as such by the signing officers (Section 302), as well as requiring various other conditions, violation of which results in penalization (Section 1107).
A result has been a more reliable form of financial reporting. It was not only the SOX that were introduced as a result. Scandals such as that generated by Enron caused many parts of the world to expect a more reliable form of financial reporting. To that end, government divisions set up creating and implementing policies and values that would ensure a more honest form of accounting. In Europe, for instance, the response was three-fold: (a.) there was a call of greater infusion of ethics in corporate cultures; (b) there was an appointment of a 'Chief Ethics Officer' and (c) there was push for adoption of stricter ethical codes of conduct (Fombrun & Foss, 2004).
Nonetheless it seems to me that there is a whole aspect of business that has gone unnoticed and that slips under observation and it is this that I fervently believe will prove the next greatest challenge for accountancy within the next decade. Accountancy…
Sources
Fombrun, C. & Foss, C. 2004, 'Business ethics corporate response'. Corporate Reputation Review, 7, pp.284 -- 288
Greer, L. & Tonge, A. 2006, 'Ethical foundations: a new framework for reliable financial reporting' Business Ethics: A European Review, 15(3), pp. 259-270, Wiley Online Library [Online].
Roslender, R. & Stevenson, J. 2009 'Accounting for people: a real step forward or more a case of wishing and hoping?' Critical Perspectives on Accounting, 20 (7), pp.855-869, ScienceDirect [Online].
Tilley, C. 2010 'Beyond 2010: Accountants in the next decade.'
The Sarbanes-Oxley Act, 2002. Retrieved 2/6/2012 from: http://frwebgate.access.gpo.gov/cgibin/getdoc.cgi?dbname=107_cong_bills&docid=f:h3763enr.tst.pdf.
AbstractBusinesses of all sizes and types have suffered from the adverse effects of the ongoing Covid-19 global pandemic, and the world is still facing a fundamental existential threat. Nevertheless, efficacious vaccines have been developed and increasing numbers of consumers are recognizing the need to be vaccinated against this deadly disease to the point where many observers can see the light at the end of the pandemic tunnel. Although no one
"Management believes that the accounting estimates employed are appropriate and the resulting balances are reasonable; however, due to the inherent uncertainties in making estimates actual results could differ from the original estimates, requiring adjustments to these balances in future periods." Based on the data retrieved and the projections made, the accounting division will proceed to the development of the consolidated statements for all of GM subsidies and the overall group.
career interest is accounting. Accountancy is the process of evaluating the financial information about business entities to users such as the managers of the shareholders (Elliot, & Elliot, 2004). Accountancy falls into three areas: accounting, bookkeeping, and auditing. I choose accounting since it will give me a solid employment with a lucrative wage and this is what is important to me. I have also learned that it can be fun
This is important, because it shows how there is the potential for both harmonization and division. Yet, once you look at what is taking place around the world, it is obvious that a common set of ideas are being readily accepted in different countries around the world. A good example of this can be seen by looking no further than China, where they announced that the country would follow IFRS
" (Camfferman & Zeff, 2) Indeed, the purpose which seems to stand above many others as specific Standards are examined is the improvement of financial reports as informative documents inbuilt with the capacity to educate users as to the financial disposition and outlook of reporting entities. The declared purpose of the IFRS is to improve the comparability, clarity, relevance and reliability of accounting processes and the resultant financial reporting across a
Accounting Case Study Legal Plan Services What type of product is Legal Plan Services selling? Tangible or intangible? What type of benefits does the client receive for his membership? The kind of products that Legal Plan Services is selling is legal representation for civil litigation. The way the company's approach works is to provide customers with access to some of the top law firms for purchasing a membership. The services are considered