preview

Supervise the Sensible Management of Financial Earnings

Good Essays
The purpose of financial reporting is to provide valuable information to benefit economic decisions (Financial Accounting Standards Board, 2008). The knowledge reflects the financial impact of transactions to manage a capitalist system. A business enterprise will compare the statement to determine opportunities for long-term economic growth (Association of Chartered Certified Accountants, 2013). The report will include accurate details to uncover ethical issues, which affect the balance of accounting policies of presenting and disclosing information for public use. Venture capital firms rely on the mandatory disclosure of financial statements specified in the Generally Accepted Accounting Principles (GAAP) and the International Financial Reporting System (IFRS) (Gibson, 2013). The article of focus is to acquire knowledge to create sound judgment and to provide harmony because accurate financial statements create effective communication across borders.

Ethics

Various organizations maintain a stable financial position to obtain short-term investments. The Investopedia (2014), profit is from the surplus of stocks and bonds, which earn high-level dividends instead of a standard interest bearing account. “The Dangerous Morality of Managing Earnings,” illustrates the direction of ethical behavior of corporate managers to influence financial statements to benefit managers or the organization (Bruns & Merchant, 1990, pp.1). The belief of the participants is bending the rules of business methods, which are bookkeeping, deferring cost, and budgets to alter the short-term income. The individual neglects to extend credit and employment hours to increase consignments or the sale of assets to maintain profit (Gibson, 2013). The intention is ...

... middle of paper ...

...ement Accounting, 72(2), 22. Retrieved from http://search.proquest.com/docview/229746269?accountid=38569

Federwisch, A. (2014). Ethical Issues in the Financial Services Industry. Retrieved from http://www.scu.edu/ethics/practicing/focusareas/business/financial-services.html

Financial Accounting Standards Board. (2008). Statement of Financial Accounting Concepts No. 1 Objectives of Financial Reporting by Business Enterprises. Retrieved from http://www.fasb.org/cs/BlobServer?blobcol=urldata&blobtable=MungoBlobs&blobkey=id&blobwhere=1175820899258&blobheader=application/pdf

Gibson, C. H. (2013). Financial Reporting and Analysis: Using Financial Accounting Information (13th Ed.). Mason, OH: Southwestern Cengage Learning. ISBN 13: 9781133188797

Short-Term Investments. (2014). In Investopedia. Retrieved from http://www.investopedia.com/terms/s/shorterminvestments.asp
Get Access