The paper tells that in the last decade, the earnings report management in the United Kingdom has been done through a strengthening method by increasing tough and strict organizations of corporate governance, auditing standards and accounting standards. …
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This research aims to evaluate and present the aspects that include adverse market reactions to the share price put on a listed entity incase outcomes fall short of the expectations of the market, the relationship of executive managers; salaries to results, stock options and capital gains, compliance with loan covenants and understating profits for the reduction of tax liabilities among others. In the United States of America, financial reporting has been strengthened with vigorous investigations of earnings manipulation and manager dealings. This was highly used by US SEC and other regulatory authorities. This was done mainly because financial frauds that have occurred recently have been due to insider trade relationships and earnings manipulation. In addition, there have been changes in accounting discretion, which influence issues that touch on accounting and financial earnings. One of the most famous methods that managers can use to manage earnings is through the administration of accruals with avoidance of direct cash flow outcomes. Some examples are unjustifiable dreadful debts requirements, delay in asset write-offs and opportunistic assortment of accounting techniques among others. However, the discretionary element of accruals has created a loophole for executive to manipulate the accrual element of earnings. Because of the flexibility provided by Generally Accepted Accounting Principles (GAAP), accrual earnings management could result to managerial discretion.
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(The Earnings Report Management in the United Kingdom Essay)
“The Earnings Report Management in the United Kingdom Essay”, n.d. https://studentshare.org/business/1394378-business-financial-crime.
The researcher states that creative accounting is an appalling challenge to the profession of accounting. It is a problem which is not centred to certain specific countries but all the nations of the world. The managers of the companies are motivated to the use of creative accounting practices in financial reporting of the company in many ways as discussed earlier.
For foreign market diversification, the business needs a detailed analysis of the business culture and national business system in India. Therefore, this report will analyse national business systems, business culture, market trend, and culture and consumption behaviours of the target customers with respect to confectionary food and beverage industry in Indian market.
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In the contemporary business environment, the effect of manipulated accounting figures has proven to be devastating for a company as well as other associated parties. It should be taken into consideration that the financial losses caused due to accounting frauds, such as, misrepresentation of financial statements, are humongous
16 Pages(4000 words)Essay
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