Corporate Compliance Report Companies that are being established as well as companies struggling with compliance issues need some method of dealing with governance. The method of handling corporate governance and compliance issues is to implement an enterprise risk management system (ERM). The system should examine alternatives and incorporate the suitable processes that fit into the company's structure. Developing internal control and corporate governance procedures is the foundation for such a system. Developing these procedures include identifying and putting into practice compliance steps and processes.
Companies may find that services from an outside provider cost more than expected due to hidden costs. There is also a notion of geographic separation and state of the economy when dealing with a third party. An unstable economy can affect company activities by degrading efficiency and quality of services. Outsourcing is a major cause of job less, which makes it an unethical practice. Insourcing business activities create a desire for In-house expertise, creating jobs.
a) Introduction: This part of analysis is aimed to illustrate several merits and shortcomings of global accounting standards and discusses whether it should be undertaken or not. Arguments for: On the one hand, the global standards may bring about some merits. For some transnational companies, using this kind of standard may contribute to the decrease of cost, like the cost of producing reports and collecting information, handling the misunderstanding and auditing accounts. Furthermore, by applying the global accounting standards, the relevant staffs, auditors would be clearer about the accounting regulations instead of being puzzled to make comparisons with the other companies. Moreover, the global accounting standards can also bring about
It also stunts any scope for improvement or innovation as it is too focused on sticking to the set benchmarks. This often leads to poor overall performance of the organization in the long run which in turn affects the going concern of the business. Secondly, it utilizes a single, volume-based cost driver which leads to the distortion of the cost of products. It traces overheads to products or services usin... ... middle of paper ... ...osts and where to apply efforts to curb inflationary costs. This can be of particular value in tracking new products or customers and also solves the cross-subsidies problem linked to traditional costing system by separating overhead costs into different cost categories or cost pools.
The transactions introduce some risks of financial loss due to the failure in achieving the expected financial or strategic objectives. The financial or strategic benefits may not be realized due to competitions, regulatory requirements or other factors. One business risk involves effectively integrating the transferred businesses. Also, restructuring or reorganization of the businesses after transactions have been closed can be risky too. In terms of operational risks, integrating operations, especially the differences in organizational culture, can be a problem and may require significant management resources.
For example, there are companies which have volatile assets whose prices will keep changing. The volatility will result in a series of gains and losses which may not depict the real picture of gains and losses of the organization over time (Drury & Colin 137). Secondly, using this accounting approach greatly discourages investors in the sense that fluctuations in the net income are frequent. The investors may get discouraged where losses often occur and opt to withdraw their investment. If the historical approach were in place, the volatility would be minimal, and it would not affect the investors that
Developing a Strategic Plan I. LOOKING AHEAD: PREVIEWING THE CONCEPTS The hard task of selecting an overall company strategy for long-run survival and growth is called strategic planning. II. STRATEGIC PLANNING Each company must find the game plan that makes the most sense given its specific situation, opportunities, objectives, and resources. Strategic planning: The process of developing and maintaining a strategic fit between the organization’s goal and capabilities and its changing marketing opportunities.
If performance meets or exceeds the desired standard, a reward is given. If performance does not meet the desired standards, a performance development plan is created to address the gap, and a new performance date is scheduled. Defining Goals:-The first step in performance management is setting the stage correctly—defining individual goals and aligning them with the corporate strategy. The process of setting goals should be a collaborative process between a manager and his or her employees. Once the company-wide strategy is established, individual goals should be created that support the “big picture”.
The primary audience should be stakeholders (consumer, employees, suppliers and owners) as well as leadership. Overall it should state the fundamental purpose of the organization. Once the organization knows who they are as a company and what direction they seem themselves going, they should start to assess their situation. The organization can do this thru the review of past performance, balanced score card evaluation and SWOT analysis. Organizations should review both positive and negative past performance.
IT Governance consists of the leadership, organizational structure and processes that ensure that the organization’s IT sustains and extend the organizational strategies and goals. IT governance makes sure that IT related decision should match company objectives. Structure IT governance committee works along with corporate managers to ensure that IT is well synchronized with the business and delivers value to organization. IT governance also aid companies in project approval and performance management plans. Relation between IT execution and IT governance 1) Risk: Risk is the major factor why IT governance is required.