The Sources of the Financial Information for Managers - Research Paper Example

Finance For Managers Table of Contents 1. Introduction ……………………………………………………………..……………………….03 2. Uses of Financial Information…………………………………………………………………03 3. Sources of Financial Information……………………………………………………………..05 4. Financial Statement…………………………………………………………………………….06 5. Qualities of good Information…………………………………………………….…………..06 6. Role of Accountants………………………………………………………..……………………07 7. Working Capital Management ………………………………………………………..………09 8. Alternative Approaches in Accounting………………………………………………...…….11 9. Management of Financial Information…………………………………………….…..…….12 10. CVP Analysis……………………………………………………………………………..……..13 11. Ratio Analysis…………………………………………………………………….…...13 12. Budgeting………………………………………………………………………………………..15 13. Performmance Management…………………………………………………………...……..16 14. Long term decision making ……………………………………………..……………………18 15. Short term Decision Making ………………………………………………………………….19 16. References……………………………………………………………………………………….22 Finance for Managers 1. Introduction A general perception is, accounting does not need much of attention. They believe that the most important thing is to concentrate on marketing, sales and how to get big discounts from the suppliers. To register sales, maintain ledgers and accounting books does not only need hard work of an accountant or credit controller. (Brealey, 2002, 592) But it involves a well- organized management of all important documents of the company, for example payrolls, purchases, invoices and agreements, general paper work and sales orders etc. these all combine together to compose an efficient document of financial information. 2. Uses of Financial Information The first and most importantly, financial information is used by the present and potential investors of an organisation. For example, if company is going in loss, these investors completely takeover the company, they use this information to make the company regain its acceptance amongst people, they may decide to sell company’s shares or sell the company to some other organization before its too late. (Bruns, and Merchant, 2002, 36) Some investors may use this information to buy another company’s shares in order to evaluate an estimated profit in advance. Secondly, financial information can be used by lenders. These lenders are the authorized parties that give away financial support to companies for short or long durations. However, most of the financial institutions or persons are eager to lend to successful organizations but only some are ready to provide financial assistance to organizations with less amount of profits. They take a good percentage of interest for their loan, which is to be paid yearly or as decided by both the parties in advance. The examples of such financial bodies include banks, already established organizations and discount houses. Suppliers of a company would also like to see the financial information of the company specially before making any supplies on credit. Then the financial information of a company is of great use for its employees. Generally people think that employees are not directly involved with the financial circumstances of the company. (Dechow and Skinner, 2000, 240) However, it is also true that these employees are the first to be affected due to any minor or major financial change in the company, since they get promotion, demotion or bonuses. Employees are always willing to improve performance of the organization as it provides them security of employment and amenities. It is also a legal requirement to maintain financial information since Government bodies have made it compulsory for each and every organization of the state to maintain financial information and submit it to them on yearly basis. Moreover, such bodies also take care that the financial information provided by the organization should not be false and it should not intrude with the public rights. They also make sure to report any delinquent of the law, together with business and consumer law. It sounds strange but financial information is also of great use for Competitors of a particular organization. By considering existing financial circumstances of a company, their existing competitors or new entrants of the market may calculate an approximate possibility of their success or failure in doing a business. The main areas of interest for such companies are percentage of effectiveness/productivity and cash, or issues like management of credit. The financial information of companies may work as a comparative factor for superior performance of companies and organisations of different sizes. Financial Information also establishes a drift of the market that act as a guide for new comers of the business. Main purpose of Financial information is to disclose the external financial reports to its users, either internal or external, that helps in coming to a decision and its evaluation on part of limited resources. Hence, it includes the information that contains a number of attributes that reassure that the aims of General Purpose Financial Report should be achieved. Such attributes are known as Qualitative Characteristics of Financial Information for having four aspects that are given below. 3. Sources of Financial Information The most important uses and sources of financial information of an organization are given below. Business Level Data Primary Data. The financial information for a well-known organization or stores like Tesco or Sainsbury’s is most of the times extremely simple to obtain and is easily accessible through their registered or certain financial websites for general public and students use. Or one can easily access them through annual or quarterly reports of particular organisation. Usually it is more reliable and easy to take financial information about an organization through Primary Sources. The organisation’s personal website is included in the primary source of financial information. However, if someone decides to seek information from other websites or sources, they must not forget that there will be more chance of mistake or misinterpretation. Secondary Data Secondary financial information is the information obtained from other indirect sources of information like library or other websites, books, journals, magazines, and the most reliable persons or organisations. 4. Financial Statement It is a major requirement of every business to up hold a complete set of its financial information which is called Financial Statement. It will prove to be extremely useful for a number of its operations in long run. The advantages of maintaining financial information are not limited to an individual perspective; but such information is highly valuable for employees, managers, partners or potential investors of the company. This type of information is also helpful when stakeholders plan to expand their business. Finance Department of a company performs its role in decision making for the company. The duty of financial manager is to carry out the process of decision making and employs the provided financial information provided by the accountant of the organization for organization’s prospective profits or even losses. (Francis, 2008)There are various ways in which finance department of businesses and organizations allocate and raise monetary resources and this is also the usage for business purposes keeping the risks involved in mind. The different categories in which finance could be distributed are personal, public, and corporate finance. 5. Qualities of good Information Managerial accountant must provide appropriate financial information that is used for making improved decisions regarding the future with the information for usage for analysis. Finance officer often performs these duties. Financial accounting is used for a company or organization to make financial decisions. Financial report provides factual or predict value of the company and where the company stands. Concentration for the financial accounting is for production including the reporting of profitability, liquidity, or solvency. These reports are prepared using scientific methods to arrive at certain values which are then used for decision making and may include sales budgeting, budget analysis and comparative analysis; merger or consolidation. In comparison, financial accounting is designed to record the financial history of an organization, whereas, managerial accounting provides financial information that could be used to improve future decisions (Finkler & Ward, 2006). Both financial and managerial accounting is used for organizations due to their decisions to make appropriate changes or improvements to current or future activities. 6. Role of Accountants The job description of an Accountant includes collection of data, record, formatting and then investigation of financial information of an organisation. For the position of an Accountant, companies most preferably choose an individual who should posses a proper professional degree/training in Accounting and they must have gained their degree/training from a recognized Institute of Chartered Accountants. Operating systems for Accounting, record financial information and transactions that takes place within the organization and then transform the given data of transactions into financial information that is useful for managers, employees and other individuals related to an organisation, like sales persons & production Incharge etc. Talking about the job description of accountants, this has been discovered that, there are multiple types of accountants, performing jobs ranging from banking to auditing. First of all, one can become a public accountant and work for a public accounting firm. "They carry out a broad range of accounting, auditing, tax, and consulting activities for the clients, who may be corporations, governments, nonprofit organizations, or individuals." ((Finkler & Ward, 2006). The majority of public accountants, however, work on taxes. With the constantly changing tax laws, many people hire accountants to prepare and file their income taxes. They execute tasks "such as preparing individual income tax returns and advising companies of the tax advantages and disadvantages of certain business decisions." (Dechow, P.M., and Skinner, D.J, 2000, 248) Tax accountants must be aware of the new tax laws and must be constantly learning and understanding all of the changes. Also, they have to face extremely hectic work schedules during the tax season. Debra Schill, who owns a Triple Check business, explained, "During tax season (January through April), I work seven days a week, from 6 to 18 hours per day...[and] evenings and weekends are dedicated to filling out [clients'] tax returns, getting them processed and out the door." (Bruns, W.J. Jr., and Merchant, 2002, 32) In addition to accurately filling out tax returns, tax accountants must be familiar with the types of businesses they are working for. "A thorough understanding of the clients' business, investment, and personal objectives is required, as well as a thorough understanding of the tax laws and their applications." (Dechow, P.M., and Skinner, D.J. (2000, 246) Another type of accounting is management accounting. Often referred to as industrial or private accountants, "management accountants analyze and interpret the financial information corporate executives need to make sound business decisions." (Brealey. R. A and Myers (2002, 596) Although there are many different types of management accountants, the one that intrigued individuals the most is found to be the internal auditor. Allowed to work for a specific company, he still performs audits as he would if working for a public accounting firm. Being the company's in-house "authority," the internal auditor may An internal auditor can help a company ensure that they are successfully and correctly utilizing, recording, and reporting their financial state before they are officially audited. Besides taxes, public accountants likewise perform audits. First of all, an audit can be defined as "examining a client's financial statements and reporting to investors and authorities that they have been prepared and reported correctly." (Bruns, W.J. Jr., and Merchant, K.A, 2002, 34) "According to Barron's Dictionary of Finance and Investment Terms, an audit is 'professional examination and verification of a company's accounting documents and supporting data for the purpose of rendering an opinion as to their fairness, consistency, and conformity with generally accepted accounting principles.'" Although only about 15 percent of accountants actually perform them, auditing is the most widely known and the most important job of a CPA. Auditors must follow certain rules and report the facts without bias or other influences. Performing this necessary task is essential "because it ensures the integrity of the financial information on which our economic system depends." (Dechow, P.M., and Skinner, 2000, 248) As well as auditing, public accountants consult and offer advice to companies. "Consulting services provided by CPAs may range from brief discussions with clients in the form of consultations or may involve larger initiatives such as implementation, transaction, or support services." (’Mclaney E & Atrill P, 2002) Consulting allows accountants to move from company to company, giving them a wide array of knowledge regarding the running of different companies and how to handle certain situations. Public accountants can choose to specialize in taxes, auditing, consulting, or a plethora of other opportunities. 7. Working Capital Management This is the strategy of accounting of managers mainly considering upholding proficient amount of both parts of working capital that are existing assets and present liabilities. This is management of capital of an organization that guarantees that an organization must possess enough of cash flow so that it can carry out its daily operations. Many abilities and skills are necessary in order to work in the accounting field. For example, accounting is not just about number crunching, but is also about helping a company run efficiently. (Scott, 2006, 2006) Personal soft skills are needed in order to effectively work with others. Speech and communication skills are important to effectively inform, and "firms seek strong communicators who can explain complex financial information clearly and concisely to a diverse audience." In addition, individuals must be able to deliver presentations and express information concisely and clearly, both in speech and writing. As a result of continuously changing technology, accountants, and all business employees, must be able to advance with these many changes. Accountants will always be learning as technology and laws change. Furthermore, "given the fiduciary nature of the work [they] perform, people will rely on the information [they] provide. Honesty and integrity are qualities which are highly valued." (Mclaney & Atrill, '2002) Because they work with money and are trusted to report the truth about a company and its financial state, I believe accountants should have a high degree of moral integrity. In addition, business sense and an awareness of events transpiring in the world are key assets when working for any company that may be affected by any shifts in the global economy. According to the Robert Half and Accounts 2002 Salary Guide, "Companies seek professionals who can manage a broad range of accounting responsibilities, including general ledger, cost control and financial reporting...Individuals proficient with spreadsheet applications and who possess excellent customer service skills are highly sought after." (Commonwealth Connector, 2008)A personable attitude and knowledge of technology can enhance one's resume, as well as their odds for getting a job. When Robert Half International asked CFOs "Which of the following interpersonal skills is most valued in accounting candidates today," they responded according to the chart below. 8. Alternative Approaches in Accounting Financial Risk and Return Relationship The relationship of rate and risk of can be directly connected. As the risk level of an investment increases, the return can potentially increases as well. Investment risk and return are associated with various types of investment options. Individuals have two types of expectations about the future they are certainty and uncertainty. (Miller. B, 1999) The actual return and investment will not be the same as the expected return for either will be higher or lower. An investor too will want to avoid risk, and will hope the returns from the investment are the same or expected to be more. The risk of a security and the portfolio are standards deviation of an expected return. A portfolio is the difference in collecting of an investment that make up the total holding of the investor and shares or in the capital project of a company. Companies and individuals need to find a comfort level with risk and construct a strategy of investing around that level. For example financial system in Health Care System is explained below. Healthcare System Complexity The Healthcare system seems completed compare to other countries because individuals are uninsured or the problems of insurance companies. The healthcare market is increasing and relying more on clinical evidence for reimbursement even if problems with bad debt expenses are present. Medicare Physician Fee Schedule (MPFS) is an adjusted to reflect the variation in the cost in a practice from multiple geographical areas. Centers for Medicare Services (CMS) (2008) explains the geographic practice cost index (GPCI) is established for any Medicare payment for each of the three components of a procedure's relative value unit (RVU) this includes practice expense and malpractice. Providers within the healthcare organization get paid based on the allowed amount of the charges billed. Physicians and Facilities may already have an established or base charge amount for a procedure, but when submitted to an insurance company reimbursement is made based on the group section of the allowed amount. When the reimbursement is from the allowed charge and the procedure there is a balance that will need to be written off, because the balance between the contacted and the procedure amount cannot be balanced billed to the patient. Other scenario other than medical insurance companies occurs when the patient has workers compensation and motor vehicle accidents. These claims are also negotiated services between the provider and insurance company, but still very rare are the claims paid at 100%. Revenue is the net amount after charges have been reduced by charity services, contractual adjustments, and other allowances. Healthcare organizations have been pressurized to increase their service charges hence the income from the lesser number of patients who are paying will provide help in compensating any sort of deficits made by third-parties. The cost of providing care is rising for all healthcare providers and organizations with payment rates declining from some insurance companies. 9. Management of Financial Information These days management of financial information is basically employed in the process of decision-making, learning, forecasting, and managing various activities. The financial information provided by the management accounting systems helps to carry out a number of operational and strategic functions in an organization. The determinants of the financial position of a company like its cost and effectiveness of the organization’s services, offered or manufactured items, and consumers are only accessible from management financial systems of an organization. It is the financial Management that provides a quick review and feedback to employees upon their performance that helps them in learning from their mistakes and improves their future performance. By doing so, management accounting information helps the organization’s process of continuous learning and improvements activities. Management accounting information measure the economic performance of decentralized operating units such as business units, divisions, and departments. It provides feedback to senior management about the units’ performance and also serves as the linkage between the strategy of the organization and the execution of the strategy in individual operating units. 10. CVP Analysis Cost- Volume- Profit Analysis or CVP Analysis shows how earnings and costs vary with a variation in volume. It is the determining factor of the effects on earnings of variation in such aspects like fixed or variable costs, selling prices, and volume etc. This eventually makes it easier to manage any planning decisions. CVP helps in determining the level of volume at which total earnings become equivalent to total costs. In today’s competitive environment, management accounts have become part of the management team, participating in formulating and implementing strategy. Management accountants can translate strategic intent into operational and managerial measures. Rather than just being caretakers of data and producers of historical reports, they can become the designers of an organization’s critical management information systems. 11. Ratio Analysis Ratio Analysis: Is method which is employed by organisations to perform a quantitative analysis of its financial information. This is determined from the existing year numbers and are then compared with the past year in order to evaluate the effectiveness of organization. The Ratio Calculation Ratio expresses the relation of one figure appearing in financial statement to some other figure in the same statement. Ratio can be very useful when comparing the financial health of different businesses. Financial ratio analysis can be used to help measure and assess: ‘The ability to meet current obligations as they come due. ‘How the firm manages its resources, such as inventory and receivables. ‘The ability to meet interest payments and long-term obligations as they come due. Profitability of the firm and how well it was managed by comparing profits to the amount of resources invested’. (Francis, 2008) ‘Benchmark against competitors and the industry ‘Track changes over time. (McClure, 2002) Management accountant can use ratio to gain information, which help the business in making profit, with the respect to product cost, making division and plan to control the business. Recommendations There are three recommendations to management that can help in business 1-Management should try to increase its capitalization. The balance sheet shows ‘Dues to Affiliates’ as current liability. It should be considered as part of the equity. 2-Review operations cost as it represent 98% of the gross revenue thereby leaving only 2 % to cover for administrative and other business related expenses. (Francis, 2008) Management should strictly implement cost cutting measures on this area. 3-Exert effort in collecting receivable to improve on cash flow. This will also result to lesser number of days to settle creditors. Limitation of Ratio Analyzes Ratios are very useful in identifying the business performance. But this technique got some limitation like: 1-Quality of financial statement: the quality of Ratio depend on the quality of financial statement 2-Ratio based on historical cost which can lead to distortions on measuring performance. 3-Ratios are retrospective and do not directly incorporate forecasts of future performance of a firm. 4-Ratios only indicate potential problem areas; they do not identify causes of problems. 5-A good financial analyst must select the set of ratios that is most appropriate for the type of firm being analyzed6-Ratios do not provide absolute measures for evaluation; rather they must be analyzed against some standard. The choice of an appropriate standard for comparison can sometimes be a difficult one. 7-Inflation can impact the comparability of financial ratios between firms in a number of ways. One important example is the existence of inventory profits in a period of rising prices. If a firm uses FIFO, it will show higher profits (and a larger balance sheet inventory figure) in times of rising prices than a firm using LIFO. Inflation also affects the cost of fixed assets and the depreciation charged against assets. Companies that possess their personal older assets usually make higher profits than companies with recently acquired assets. However, usage of substitute cost financing can counterbalance such problems. 12. Budgeting Capital Budgeting is a process that shows if an organisation’s investment s like expenses in buying machinery, supplies, plants etc is profitable in long run or not. The role of Financial Manager is to provide basic administration and financial assistance to all the available funds for the organization. The Manager of Finance is accountable for all day by day, monthly and yearly processing of administration of information regarding funds and should be able to resolve problems without help when they take place. The Manager of Finance must have a good background of accounting and finance and an aspiration for individual and team uninterrupted improvement through automation and reorganization. The job description of a financial manager includes management of each and every aspect of a company’s accounts, bookkeeping for multiple companies, budgeting processes, weekly P&L, and monthly closings. 13. Performmance Management The performance of financial management of managers is an issue that is of crucial importance in the finance industry. Due to great popularity of this subject within past few decades, the approaches towards management of finances have gained extreme fame amongst investors at all levels. No doubt, it is not deceitful activity it is the exploitation of integers. Hence, it is for sure that there can be a chance of misleading at some point. It raises the question if such exploitations are carried out of self-interest or for financier profit. Even if there are proofs that show this practice is favorable it is by belief that manager’s capability to supervise finances is significant to their capability to present information about upcoming flows of cash and should be impaired. Proper management of finances by the managers creates information asymmetry, generates a lack of reliability, and creates a grey area of ethical conduct. Arguments may reveal management of finances as reduces information asymmetry. This occurs because insider information is actually revealed to the investor. Along with this decrease in information asymmetry more efficient contracts are created. However, this does not portray the big picture. Management of finances gives managers the means to perform manipulation of finances through operational or financial means. Disclosure is not a requirement and therefore creates the problem of whether stakeholders will be aware of this manipulation. Markets are not efficient and therefore disclosure is necessary to portray adequate information. Without this disclosure we bridge a gap between investors. Large investors may have an advantage over smaller investors. Larger investors will have the means to incur the additional costs associated with finding this information. Therefore, investors are not provided with adequate information to make investment decisions. Reliability: Quality over quantity Quality of information increases reliability and therefore is most important to investors. Studies have indicated that market participants overestimate the persistence of low quality (accruals) finances and underestimate the persistence of high quality (operating cash flow) current period earnings. This indicates that market participants are misled. (Miller. B, 1999) Investors should demand earnings that are repeatable, controllable, and bankable. Earnings management cannot provide these elements. By smoothing earnings you are not indicating if you have repeatable sales growth, you have manipulated the numbers to make it appear you have repeatable earnings. Controllable finances are those as cash sales, earnings management does not provide an adequate view of this. Lastly, bankable earnings such as A/R indicate quality. The integrity of these earnings must represent what is actually occurring, earnings management skews this view. If there is manipulation of finances it is apparent that this measure of quality is compromised and therefore so is reliability. Ethical element do moralities align? Supporters of finance management have indicated that there is a “grey area”. It is this area that could lead to fraudulent misrepresentation. One should agree that it is important to understand what constitutes a “grey area”. When do managers know when they are doing something that is unethical? The problem is this grey area is not as small as most would like to believe. (Brealey. R. A and Myers (2002, 595) Questionnaires reveal that there is lack of agreement as to what is classified as unethical practice. When presented with various situations about accounting policy there were various discrepancies about what was considered ethical conduct? Therefore, if you cannot find consistency in right or wrong the ‘grey area” expands. It is when companies reach those grey areas that fraudulent activities emerge. Manager’s inability to agree on acceptable finance management practices, will force an adverse affect on competition. If differences in opinions exist it is likely that financial reporting practices will sink into their lowest and most manipulative level. Consequently, managers that have incorporated strict definitions of moral and ethical practices will find it hard to compete. Companies therefore are no longer playing by the same rules. The need for finance management: Relevance over reliability Finance management can easily be confused with fraudulent activity. It is important to understand finance management is not fraud. (Finkler, S. A., & Ward, D. M. (2006) These are aggressive accounting methods performed within the realm of GAAP and therefore are not illegal. 14. Long term decision making Long term Decision making includes Strategic decisions of the upper most level. A long term decision comes with long term objectives, philosophies and directions. Such types of decisions are the slightest prepared and the most imaginative. These decisions are the most uncertain and of the most unsure conclusion, the reason behind is they are more about future not present. Management of finances is needed because of the benefits associated with the practice. Some of these benefits include a decrease in volatility, decrease in information asymmetry and an in increase in investor confidence. Investors are provided with information that is relevant in their decision process. 15. Short term Decision Making Short term decision making includes every day decisions within an organization. They support strategic decisions. These are not properly structured and are made with comparatively lesser planning. Their outcome can be seen quickly, for a short period of time and it mostly involves low cost. In the same way, its side effects will be minute too, however; a series of poor strategic decisions can result in destruction. These can be can be pre- arranged, pre-formulated, or can be mentioned in organization manuals. Decreasing volatility can portray a more accurate picture of the fundamental value of the firm. Investors are risk adverse and therefore will avoid companies that are seen to be risky. By smoothing finances companies are providing investors with relevant information. Information asymmetry would be decreased as information is released to the public. As a result insider information would be depleted and accurate information about the firms fundamental value would emerge. It is believed that by revealing this insider information investors are receiving information that is more relevant and will in aid in investment decisions. The ’iron law’ governs the practice of finance management. It is this law that keeps earnings management outside the realm of fraud. This ‘law’ operates on the idea of accrual reversal. This idea states ‘A manager who manages earnings upwards to an amount greater than what can be sustained will find that the reversal of accruals in subsequent periods will force future earnings downwards just as surely as current earnings are raised’. Stronger controls over finance management are needed. This quasi law cannot be seen as control mechanism to protect investors. (Finkler, S. A, & Ward, 2006) This “iron law” gives managers a false sense of justification. As long as you can sustain your earnings management through the years you are not doing anything wrong. However, this cannot always be done. When this mentality is reached, opportunistic behaviour can emerge. (Francis, D.R, 2008) Managers may perform fraudulent activity to ensure the “iron law” is sustained. They however are doing this at the expense of the investors. Finance management is an issue that must be treated with concern. This paper provided evidence of benefits. Among these benefits are to increase relevancy for investors decisions. However, a problem with reliability reduces these benefits. Industrial Revolution, Organised activities and Management have been around for thousands of years. Take for instance the Great Pyramids, Great Wall of China and The Coliseum. These were projects of huge undertaking (still would be today) and would have involved the employment of thousands of people over many years ‘decades even. Who would have arranged the transportation of stone etc.? Who would have organised various jobs involved? Who would have organised the ‘budgets of the day’? The answer is ‘Management’ of the day. Beside came the Industrial Revolution. It was more than likely the most important pre-twentieth-century influence on management. It originated in Great Britain and crossed the Atlantic to America. Organized activities have been with us since well before the Industrial Revolution. It has been only in the past several hundred years, particularly in the twentieth century. The changing role of the financial Manager is still ongoing these days however there is not a stronger contrast of today’s manager than that with a manager thirty years ago. A manager/supervisor of that era would have been predominantly male and be seen as being bossy, all-powerful, domineering and generally a suppressive individual. He would also have been undoubtedly an authoritarian. This however was and is not contusive to good morale and productivity. In comparison to today’s manager can be seen to be an advisor a mentor a communicator a motivator a coach. Thankfully things are different for the better now. 16. References Brealey. R. A and Myers (2002) ‘Principles of Corporate Finance (McGraw-Hill/Irwin Series in Finance, Insurance & Real Estate’ McGraw Hill Higher Education, 590-601 Bruns, W.J. Jr., and Merchant, K.A. (2002). The dangerous morality of managing earnings. Management Accounting, 72, 30-34. Commonwealth Connector, (2008). Health Care Reform: Overview. Retrieved on September 14, 2008 from http://www.mahealthconnector.org/portal/site/connector/menuitem.d7b34e88a23468a2dbef6f47d7468a0c?fiShown=default Dechow, P.M., and Skinner, D.J. (2000, June). Earnings management: reconciling the views of accounting academics, practitioners, and regulators. Accounting Horizons, 235-250. Finkler, S. A., & Ward, D. M. (2006). Accounting fundamentals for health care management. Sudbury, MA: Jones and Bartlett. Retrieved September 15, 2008. Francis, D.R. (2008, March). Arguments mount for a national healthcare system. The Christian Science Monitor. Retrieved September 14, 2008 from http://www.csmonitor.com/2008/0303/p16s02-wmgn.html McClure, B (2002, October 30). Earnings: Quality means everything. Investopedia, Retrieved November 17, 2006, from http://www.investopedia.com/articles/02/103002.asp. Mclaney E & Atrill P, (2002) ‘Accounting an Introduction’ Accounting & Finance for Mangers, An MBA study Guide, UK Miller. B, (1999) Required disclosure and corporate governance. Law of contemporary problems. Retrieved November 8, 2006 from http://www.law.duke.edu/journals/Icp/articles/Icp62dSummer1999p113.htm Mott. G (2008) “Accounting for Non Accountants” Kogan Page, London, 200-210 Ryan. B (2004) “Finance and Accounting for Business” Thompson Learning, London, 580-585 Scott, W. R. (Ed.). (2006). Financial accounting theory 4th edition. Toronto, Ontario: Pearson Prentice Hall. Read More