Reported earnings or actual earnings Essay Example | Topics and Well Written Essays - 2750 words

Reported earnings or actual earnings - Essay Example Companies employ accountants to make financial reports. Thus, from the perspective of accounting, what can we say on the situation? Are accountants being used by banks to misstate company profits? On a related point, how do we assess the â€Å"earning management techniques† with regard to their potential to be used by companies to understate company profits? In relation to the said issues, what do the professional ethics for accountants require for accounting professionals on the matter? What are some of the relevant literature on the issue? II. Literature review Some of the relevant materials on the subject matter being addressed by this work were the works of Mitre and Rodrigue (2002), Turner and Wheatley (2003), Laux (2003), and Lev (2003). Mitra and Rodrigue (2002, p. 185) defined earnings management as management’s â€Å"intentional and opportunistic manipulation of financial reports for personal gain†. According to Mitra and Rodriguqe (2002, p. ... 185) clarified that earnings management does not always a negative connotation because management may have implemented an earnings management to provide a conservative or more realistic earning figures based on the GAAP or Generally Accepted Accounting Principles. Mitra and Rodrigue explained (2002, p. 185) that opportunistic behaviour arise from earnings management because it is empirically difficult to differentiate earnings management that is opportunistic from what is done in the interest of a conservative portrayal of the company situation. The Mitra and Rodrigue (2002, p. 185) assessment is that management or researchers â€Å"generally take an opportunistic perspective† in view of the difficulty of separating legitimate from what is illegitimate in earnings management. Turner and Wheatley (2003, p. 61) acknowledged that current accounting principles, auditing standards, and SEC reporting regulations allow managers to implement an â€Å"inappropriate earnings management †. To support their claim, the authors identified 34 companies that published financial misstatements but which also corrected the misstatements a year later (Turner and Wheatley 2003, p. 61). According to the authors, management subsequent â€Å"correction† of â€Å"astute control over the creation of a misstatement† benefits a company just as a misstatement may have been deliberately made in the interest of the company. The authors narrated that the Financial Executives Research Foundation reported that the number of companies restating published financial statements due to an error were higher than earlier figures: the figure of 464 for the 3-year period 1998-2000 for the United States was higher than the earlier 10-year period (Turner and Wheatley 2003, p. 61). Turner and

Learning another language Essay Example | Topics and Well Written Essays - 1250 words

Learning another language - Essay Example There are hundreds of languages in the world and it is quite impossible to learn every language which is spoken within the planet. Why to learn other language? Many people are leaned to learn other language for the sake of their personal interest while others are required in official sense. Study of language and translation has gained international and globalized importance since the time from when international trade has grabbed vital and significant importance. People throw their competitive edge by gaining command on the communication. Communication is the key to success in each transaction when we talk about business. Many traders are interested to have transactions with the people who know their language. For this purpose the people who need to be indulged in foreign transactions prefer to learn the languages of their interest. Some business men never let it spare to know about the other party’s language and they only accept the deals from those who are alike in communica tion. In this sense, learning a second language can aid the individuals in actively participating in economic activity. Through learning the other languages, we can actively communicate with others at international level for various purposes (Ellis, 22). The other mean to lean other languages is for academic purposes. For instance, people who aspire to study in the world class universities are required to learn their languages. For example whenever a foreigner applies in any university of UK or Australia, they ask for IELTS qualifying certificate. Similarly, many countries in Europe like Germany, Italy and France are rigid about their languages. They seldom accept any admission application with the certificate of the concerned language. Rigidity about language comes up because of the fear of cultural amalgamation. The people do not want to be merged with other so that they do not allow anyone else to bring their own practices at their place. The most practical example is about Walma rt when they started their business in Germany. Walmart is an international stores’ chain with headquarter in USA. Walmart was badly hatred by the locales just because they were not complying with the German culture. The main mistake done by the American chain was the language; they did not adopt German language. They were inclined to sustain their own identity because of international recognition (American Linguistic Society). Another constraint to learn second language is for international communication. Since English has been recognized as an international language and every piece of documentation at upper level is commenced in English. For the people who live in other than English countries, English is a second language but they need to learn the language for the sake of their personal interests (Ellis, 32). Advantages of Learning a Second Language There are several benefits of learning a second language which are explained by Sociologists and several Psychologists. A sec ond language can help a person to broaden his or exposure about the outer world. No doubt, learning another language is the most difficult task of the world but it is a task which can only be completed by talented people. Psychology states that second language can be learnt by the people who have significant intelligence quotient. Without this, a person cannot remain successful to gain full command over a language. It is a continuous learning and continually developing process.