The Reasons Why Firms Want to Use Earning Management Essay Example

The Reasons Why Firms Want to Use Earning Management Essay Example The Reasons Why Firms Want to Use Earning Management Essay The Reasons Why Firms Want to Use Earning Management Essay Good afternoon everyone, today we are going to continue to talk about the consequence of Earning Management, I am xxx We will present the bad side of earning management through 2 cases, The first one is Enron: what happened and what we can learn from it and the second one is the ethical dilemma at Northlake. Both cases are present how management is motived to manipulate accounting numbers to achieve their specific purpose, for example in the first case, Enron increased their net income through many methods to rise their share price, but in the second case, the company decreased their net income. However, both earning management comes with the bad consequences happened to the society. Next, we are going to see another example which is how management is motived to manipulate accounting number to reduce or underprovide for environment and restoration costs. As a result, there cause some ethical issue. First let us go through the Background information: (A. F. P. Company). It is in the Pulp and Paper industry. The company had three major mills, located in some of the more remote location in the province. From A. F. P. Company’s standpoint, of course they do not want to expend too much money on the discharge of waste water from pulp and paper mills; furthermore, the firm had been facing difficult financial times due to recession, and this had caused substantial hardship in the three small communities where the mills were located. But, as in the Pulp and Paper industry has the responsibility to the new government proposals to put effluent controls on the discharge of waste water from Paper mills in environmentally sensitive regions of the province. Therefore, the managers in the (A. F. P. Company) find a way to give themselves a reasonable reason not to install the cleaning equipment. CEO and V. P. of A. F. P. collude together to use earning management to increase their cost on the financial analysis. in the financial report, they states that â€Å"we will have severe financial problems if we are forced into building a lagoon for waste water treatment†, in order to show their fake severe financial problem going to happen, they highly estimate their operating cost would rise 30%, but in fact their cost only can be rise around 8%-10%). And they also highly estimated all other costs. In addition, they don’t take into account the damage to the local river at all. The people live in the downstream are still drinking the garbage or damaged water In this case, let us put all the legal issues behind, and focus on the ethical issue first. As the case mentioned the down totally dependent on the mill for economic survival. It is kind of like Blackberry in Waterloo. As the mills goes, so goes the town. And will thousands of people lost their jobs, if put you in the position to decide between the economic survival or environment damage, how will you decide? If you in the position of A. P. F’s accountant how do you decide between your personal benefits and code of professional code? Let’s say, if you do not use earning management to increase the cost, you will force to lose your job by the CEO.

How to Manage and Identify Pin Oak

How to Manage and Identify Pin Oak Pin oak or Quercus palustris is named for a characteristic where small, thin, dead branches stick out like pins from the main trunk. Pin oak is among the most widely planted native oaks in the urban landscape, the third most common street tree in New York City. It tolerates drought, poor soils and is easy to transplant. It is popular because of an attractive shape and trunk. The green, glossy leaves show brilliant red to bronze fall color. In many cases, the pin oak can tolerate wet sites but be careful to manage watering and avoid wet sites. Specifics on Quercus Palustris Scientific name: Quercus palustrisPronunciation: KWERK-us pal-US-trissCommon name(s): Pin OakFamily: FagaceaeUSDA hardiness zones: USDA hardiness zones: 4 through 8AOrigin: native to North AmericaUses: large parking lot islands; wide tree lawns; recommended for buffer strips around parking lots or for median strip plantings in the highway; tree has been successfully grown in urban areas where air pollution, poor drainage, compacted soil, and/or drought are common. The Pin Oak Cultivars The lower branches on pin oak cultivars ‘Crown Right’ and ‘Sovereign’ do not grow down at a 45-degree angle as does the non-cultivar. This branch angle can make the tree unmanageable in close urban settings. These cultivars are thought to be better suited than the natural species as street and parking lot trees. However, graft incompatibility often leads to future trunk failure on these cultivars. Description of Pin Oak Height: 50 to 75 feetSpread: 35 to 40 feetCrown uniformity: symmetrical canopy with a regular (or smooth) outline  and individuals have more or less identical crown formsCrown shape: pyramidalCrown density: moderateGrowth rate: mediumTexture: medium Leaf Details Leaf arrangement: alternateLeaf type: simpleLeaf margin: lobed; partedLeaf shape: deltoid; oblong; obovate; ovateLeaf venation: pinnateLeaf type and persistence: deciduousLeaf blade length: 4 to 8 inches; 2 to 4 inchesLeaf color: greenFall color: copper; redFall characteristic: showy Trunk and Branches Can Be a Problem Trunk/bark/branches: bark is thin and easily damaged from mechanical impact; droop as the tree grows and will require pruning for vehicular or pedestrian clearance beneath the canopy; should be grown with a single leaderPruning requirement: needs little pruning to develop a strong structureBreakage: susceptible to breakage either at the crotch due to poor collar formation or the wood itself is weak and tends to breakCurrent year twig color: brown; greenCurrent year twig thickness: thin Pruning May Be Necessary Lower branches on a pin oak will require removal when used as a street or parking lot tree as they tend to droop and hang on the tree. The persistent lower branches can be attractive on a roomy large open lawn because of its picturesque habit when open-grown. The trunk is typically straight up through the crown, only occasionally developing a double leader. Prune any double or multiple leaders out as soon as they are recognized with several prunings in the first 15 to 20 years after planting. Pin Oak Environment Light requirement: tree grows in full sunSoil tolerances: clay; loam; sand; acidic; extended flooding; well-drainedDrought tolerance: moderateAerosol salt tolerance: lowSoil salt tolerance: poor Pin Oak - The Details Pin Oak develops nicely on moist, acid soils and is tolerant of compaction, wet soil, and urban conditions. When grown in acidic soil, pin oak can be a handsome specimen tree. The lower branches tend to droop, middle branches are horizontal and branches in the upper part of the crown grow upright. The straight trunk and small, well-attached branches make Pin Oak an extremely safe tree to plant in urban areas. It is extremely vigorous as far south as USDA hardiness zone 7b but may grow slowly in USDA hardiness zone 8a. It is very sensitive to soil pH above the high 6’s. It is water tolerant and is native to stream banks and flood plains. Pin Oak grows well in areas where water stands for several weeks at a time. One of the adaptive mechanisms of Pin Oak is a fibrous, shallow root system which allows it to tolerate flooded soil conditions. But as with any other tree, do not plant it in standing water or allow water to stand around the roots until the tree has become established in the landscape. Several years are needed after transplanting for the tree to develop this type of adaptive root system, and subjecting it to flooding too early could kill it. Plant trees in a slightly raised mound or bed if the  soil is poorly drained.