StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Accuracy in Financial Reporting - Essay Example

Cite this document
Summary
This essay "Accuracy in Financial Reporting" deals with the significance of an acute financial reporting. Admittedly, very recently, there were reports of how Saytam Computer Services engaged in unethical financial reporting, which eventually led to the breakdown in an acquisition…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER98.2% of users find it useful
Accuracy in Financial Reporting
Read Text Preview

Extract of sample "Accuracy in Financial Reporting"

ACCURACY IN FINANCIAL REPORTING Very recently, there were reports of how Saytam Computer Services engaged in unethical financial reporting, which eventually led to the breakdown in an acquisition the company was embarking on. This acquisition was described by experts as a lifetime opportunity that would have changed the fortunes of the company. However, in its previous year’s financial statement, the company had already made fictitious assumptions of how much it was going to be worth, as well as its profits if the acquisition was completed.

These new values were recorded as present values, making the financial stand of the company appear lucrative when in essence, that were not the real situation. After the proposed buyers found out the situation, they withdrew from the deal. This was because there were intensive debts that the company was trying to hide through that inaccurate financial reporting.Should I be found in such as situation where indebtedness makes my company unattractive for an acquisition, I would rather put in place medium and long term debt recovery solutions that will buy the company out of debt, rather than reporting false financial statements.

This recovery solution would be taken in association with whichever companies are interested in the deal so that the most workable solutions can be worked out in a very transparent manner. As a manager, would always ensure that accurate financial information is reflected in the organization’s financial statements by ensuring the use of third party and independent auditing service persons. Very often, companies over rely on internal auditors, who are easily influenced by accountants and other people responsible for the accounting of the company (Zimmerman, 2014).

It is for this reason that Sherman & Young (2001) recommend the use of external auditors and other independent accounting services to verify authenticity of financial statements.ReferencesSherman, H. D., & Young, S. D. (2001). Tread lightly through these accounting minefields. Harvard Business Review, 79(7), 129–135. Retrieved from the Walden Library databases.Zimmerman, J. L. (2014). Accounting for decision making and control (8th ed.). New York, NY: McGraw-Hill.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Accuracy in Financial Reporting Essay Example | Topics and Well Written Essays - 250 words”, n.d.)
Accuracy in Financial Reporting Essay Example | Topics and Well Written Essays - 250 words. Retrieved from https://studentshare.org/finance-accounting/1651541-accuracy-in-financial-reporting
(Accuracy in Financial Reporting Essay Example | Topics and Well Written Essays - 250 Words)
Accuracy in Financial Reporting Essay Example | Topics and Well Written Essays - 250 Words. https://studentshare.org/finance-accounting/1651541-accuracy-in-financial-reporting.
“Accuracy in Financial Reporting Essay Example | Topics and Well Written Essays - 250 Words”, n.d. https://studentshare.org/finance-accounting/1651541-accuracy-in-financial-reporting.
  • Cited: 0 times

CHECK THESE SAMPLES OF Accuracy in Financial Reporting

Determining acceleration due to gravity using a simple pendelum

Results Table 1: Data Results L (M) T50 (S) T (S) T (S) T (S) T (S) T2 (S2) g (M/S2) 50 65 80 95 110 Discussion Formula and effects on experimental accuracy Based on the experimental results, error in L prompts a linear relation error in any resulting value of g.... accuracy's margin was set at ±5 or approximately 0.... However, this affected both string and accuracy of the data due to unknown stretch...
3 Pages (750 words) Lab Report

TESTING INTELLIGENCE

This accuracy of the results derives from the fact that Testing Intelligence Testing Intelligence According to William (2008), IQ tests are standardized to give certain scores used to obtain intelligence quotient of an individual.... This accuracy of the results derives from the fact that the questions were direct and free of ambiguity.... However, the same person might lack the competitive skills of undertaking duties with diligence and accuracy....
1 Pages (250 words) Book Report/Review

Safety management

10CConclusion Based on the above results, digital results exhibit a heightened accuracy contrary to the analogy instrument.... This is because of its inherent accuracy's advancements when taking minor and detailed readings evident in its results bearing decimals....
2 Pages (500 words) Lab Report

The Effect of low pH on Enzyme Activity

Repeat the experiment twice to get accuracy.... I think that lowering the pH slows down the reactions.... Catalase can decompose hydrogen peroxide into water and hydrogen gas.... (Rembac, 2014) Enzymes are also known as biological catalysts.... They… The enzymes have specialized structures that work according to lock and key model....
3 Pages (750 words) Lab Report

SIMPLE HARMONIC MOTION:MASS ON SPRING

22% which is insignificant and thereby giving a proof of accuracy realized from the experiment.... 22%The error is insignificant confirming the accuracy of the experiment.... This involved studying the movement of the mass while examining the spring properties during the motion....
2 Pages (500 words) Lab Report

Calibration of Pressure Measurement System

he digital manometer shown above has an accuracy of 0.... 45psi=1kPaThe pressure measurement system consisting of Bourdon Pressure Gauge has a higher percentage error, meaning that its accuracy is lower than that of the type E-Ex pressure gauge.... Type E-Ex pressure gauge has an accuracy of 0.... % while Bourdon Pressure Gauge has an accuracy of 5%.... Conclusion The comparison between the indicated values of pressure measuring device with the stated values of a pressure standard with a known accuracy is referred to as Pressure Calibration....
3 Pages (750 words) Lab Report

Instrumentation System Assignment

The instrument has a display accuracy of ≤ ±0.... Its high accuracy, long-term stability and excellent repeatability makes it preferable to most users.... The presence of a digital display makes the pressure measurement system ideal for precise and fast pressure readings....
4 Pages (1000 words) Lab Report

Measuring the Electrical Resistivity of a Wire

The process is done by obtaining the percentage errors in the readings reflecting the data accuracy.... First, we hand to find the electrical resistance of the wire.... Electrical resistance is what hinders the electric current to flow.... The following factors affect the resistance of a wire;… We used the diameter (thickness) of a wire as our primary factor in our experiment. Ohms law of resistance relates the Voltage (V), Current (I), and resistance R of the conductor through which the current For a piece of the conductor, its resistance is determined using the following relationship; Where, L is the length of the wire where the voltage is measured, and A is the area of the cross-section of the wire....
6 Pages (1500 words) Lab Report
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us