Necker's Financial Report

Accounting serves to ensure that financial information is accurately tracked, managed and reported acorss business as well in the personal lives of people. This was as much a necessary function in biblical times as it is today. Although scandals and fraud have farther reaching impact today, it is not a phomenon of our time. So much is this case that botht he Old and New Testament provide rules for accounting and financial actions. Jesus used parables throughout the new Testament that relate to money and it was one of the topics he spoke the most on. Hagerman (1980) states, “the Bible points out that financial accounting is necessary to avoid fraud, to monitor agents, and to reduce conflicts over resources” (p. 72).

In addition, associated with the misapplication of accounting methods, the financial industry has been plagued with one disaster after another involving numerous scandals from top leading American companies. Consequently, the Sarbanes-Oxley Act was passed in 2002 compromising eleven sections that are generated to insure the responsibilities of the company’s managers and executives. This act identifies criminal penalties for particular unethical practices and currently has new policies that a corporation must follow in their financial reporting. The following examples describe some of biggest accounting methods as a result of the greed and the outrage of the ethical and financial misconduct by the senior management of public corporations.

Financial reporting practices and ethics have manifested an ocean of literature. This has mainly come from organization theorists that address accounting practices. These theorists and professionals have given fresh accountability measures. Their ideals give this industry the tools needed to survive, grow and prosper. The way an organization prepares and reports its financial information and handles its daily operations is in essence financial practices, and in the way it accomplishes this reveals their ethical standards to which they adhere to. This paper will discuss the financial practices, ethical standards, and

In 1853, first association of professional accountants, it also can be regarded as the beginning of the modern accounting profession. The UK accounting system is conducive to a principles-based approach rather than a rules-based approach to standard setting. Furthermore, the UK 's politic system is common law, which shows that accounting system in the UK has relatively fewer statutes, more interpretation and tends to be more flexible, adaptive and innovative, etc. Also, taxation does not have influence on accounting system, but Germany and Japan are in opposite Therefore, these all can have a significant influence on accounting system in the UK.

a. Regarding accounting, the acclaimed economist Ben Stein stated, “It's really amazing that in the age of unbelief, as a smart man called it, there isn't even more fraud. After all, with no God, there's no one to ever call you to account, and no accounting at all if you can get away with it.” Ben Stein

Accountants are held to a higher ethical standards and they must performed their duties in compliance with standards or ethical values of honesty, integrity, objectivity, due care, confidentiality, which must be fully committed to. They must put clients or public interest first before their own. They must have and ethical values and maintain those values way beyond what the society or the company’s code of ethic. It is important that accountants’ behavior or ethical values is in conformity with the

Ethics are crucial to the accounting profession and the business world, so choosing an ethics system to base your moral decisions on is extremely important. Accountants and all business professionals will be confronted with moral dilemmas on a daily basis. Being strong in your faith and knowing what you believe in will help you to always make the right decision. Based on this reasoning, this essay will explain why deontology is the best ethics system for the accounting profession.

Now, if I really want to go in depth with this particular topic, I could discuss the principles of accountancy. Accountancy is nothing more than the communication of financial information about a business entity to users such as shareholders and managers. This very process describes the profession and duties of an accountant, I would like to discuss a prime example of this later on in my essay. The principles of accountancy are applied to business entities in three divisions of practical art, named accounting, bookkeeping, and auditing. According to history, early accounts served

HNK’s income statement for the previous three years, along with an SW Financial Services Balance Sheet for HNK is provided below. SW Financial Services reviewed the financial statements for HNK Company and have determined that the store was operating at a net loss for the last three years. SW Financial Services has determined that an ideal current ratio to determine the liquidity of HNK Company is a 2 to 1 ratio. SW Financial Services has determined HNK’s current assets to be valued at $291,500 and its current liabilities to be valued at 5289,750. Thus, making HNK’s current ratio to be valued at 1.01%. SW Financial Services has determined HNK’s profit margin is steadily on the rise with an 8.5% increase. Additionally, SW Financial Services

In addition to accountants providing many useful numbers that signal a company’s performance, they also prepare many useful documents and a code of ethics to make sure that all stakeholders have a clear picture on the business’s financial position. For instance, journaling is what accountants do after every transaction. These entries of what is exchanged in a business provide evidence that money deserves to be in a certain account. Especially since every journal entry needs a corresponding document that proves the record did happen, journals can be used by executives to see what really occurred in case a number in an account looks wrong (Schneider). It is also used when a government official suspects that the company is unfairly representing itself to either indict the business or prove its innocence. Journaling illustrates the importance of accounting since everything is documented and has proof for existence in the case of errors. One thing that journals go hand-in-hand with is the general ledger. This is the document that actually lists each individual account and the amount in it. It organizes the overall picture of every entity a business comes in contact with so that every important number can be put neatly into a financial statement.

To over view the knowledge we learnt from accounting theory and practice, the main thing I can conclude that is the tendency of accounting will shift away from technical way to people’s behaviour way. By understanding what should do, we should ask why and how we could improve and change it into a better way. This essay aims to explain how the theoretical material that we learn in lectures can be developed under a real practical manner.

The study is important because it examines the role of ethics in accounting. The research on identified problems is necessary due to vagueness of ethics concepts and its difficulty to

Regulation is defined as a set of rules that is designed to control and govern conduct by authority (Deegan 2009, p.59). On the basis of this definition, Deegan (2009, p.59) has defined regulations relating to financial accounting as rules that are developed by independent authoritative body to govern the preparation of financial statements which are accounting standards. Since decades ago, there have been arguments for and against the existence of accounting regulations. With a stance of pro-regulation, this essay is going to examine the reasons that financial accounting and reporting should be regulated and the merits of accounting regulations.

When determining and defending the use of a particular ethical system within the confines of a profession, it is important to evaluate the system in terms of the professional culture as well as the expected professional conduct laid out within the vocation itself. The accounting profession has been evolving for thousands of years. Early accounting records date business transactions back as far as third century B.C. (Schroeder, Clark, & Cathey, 2009). Early record keeping was for internal purposes and as societies and economies expanded, it became important to maintain records for external purposes as well. According to Schroeder, Clark & Cathey (2009), by the ninetheeth centruy, bookkeeing expanded into accounting (p. 3). From this time, it has been the duty of the accountant to serve the public interest and the profession has been culitvated into an organizational culture with professional norms and standards constantly taking shape in an effort to complete an all-inclusive conceptual framework.

- In this paper the study examines the ‘Priori research’ role in accounting which covers history and present era. It has been declared in the year 1960 as a golden age. Over the period of time various critiques have criticized the piece of works cited. According to Nelson, there has been very slow progress from the year 1960 to now. He is also of the view that priori studies have values which may be considered doubtful. The other view given is by Dopuch and Revsine and they claim that work is full of deficiencies. They have also given preference to any other set of accounting procedures, which may depend on the particular priori model being adopted. Laterthe writer presents a different angle emphasizing on the fact that these criticism over the passage of time are not based on facts. It has been observed that they are misunderstandings developed related to the role of priori research in the overthrow of concepts. These works have been considered relevant and important steps. A light is thrown on scientific revolutions and how new set of ideas are developed with the passage of time. The major steps identified are five. They are the recognition of anomalies which leads to insecure period. The new ideas are developed and new school of thoughts is identified which leads to new ideas and principles. The process of change and how it takes place has been discussed. Accounting records are maintained by following few techniques. The conventional accounting practices and solutions