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.

Aerodynamics Assignment Example | Topics and Well Written Essays - 1250 words

Aerodynamics - Assignment Example depicts that if the attack angle is large enough the wing oscillates until a critical angle is exceeded beyond,which the lee-side wing will experience vortex lift off caused by asymmetric flow conditions (Lewis, pp.145-213). Large undamping causes a rapid build-up of wing-rock amplitude until a damping action is caused by the vortex breakdown on the windward wing, which lowers the net damping until it reaches zeroIt limits the cycle oscillations observed and predicted by lattice vortex methods. Bearing friction is overcome without the undamping generated from vortex lift off due to the increased wing area that increases the vortex-induced rolling moment. Predictions of unsteady induced drag are important in flexible aircraft dynamics and flapping applications in which the aerodynamics forces plays a crucial role. The suction force due to the leading edge balances the steady case components of pressure force in a free-stream direction. Moreover, within an unsteady case thrust or drag might develop depending on the details provided in the case. Vortex-lattice method requires inclusion of singularities and resolves the average aerodynamic surface for the unsteady force component given in Bernoullis equation The VLM attempts to predict the behavior of various components of the plane to the data obtained in a wind tunnel. This method produces data that is in agreement with the data for the neutral point location, lift and moment curve slopes at Mach 0.2. When studying the effects of canard using VLM it when the canard is above the wing then the neutral point is independent of the canard height. Moreover, when the canard is below the wing then neutral point varies with the canard height. The effects of the number of panels range from 120 to 240 panels and ought to be provided in order to obtain converged results.VLM has the best results when many span-wise stations are employed in conjunction with a relatively low number of chord-wise panels. The use of VLM in

Environment and famiy dynamics Essay Example | Topics and Well Written Essays - 250 words

Environment and famiy dynamics - Essay Example With respect to what factors constitute an environment, a simpler analysis would be to conclude that any and all outside forces that help to shape the development of the family should be considered the environment. With such an all inclusive meaning, it is readily understood that the environment has a profound effect on familial development as a function of the fact that it encompasses so many diverse factors. Likewise, familial communication is one of the most central mechanisms through which a family can hope to discuss, analyze, and work to ameliorate negative environmental factors. Without open communication within the unit, the environment itself becomes the determinant factor towards shaping the overall functionality/disfunctionality of the given family unit. In this way, the communication mechanism works to regulate the way in which the familial unit works to alleviate environmental pressures that exist upon

Cave Essay Example | Topics and Well Written Essays - 1000 words

Cave - Essay Example The cave reveals that such people are trapped in the cave of confusion and misunderstanding. The Shadows symbolize the perceptions of people who believe that what we see in the world increases knowledge. When one believes that what he sees should be justified as truth then this happens to be the shadow of truth. The game illustrates how people believe that one individual can be a master. The escape prisoner symbolizes the philosopher who finds knowledge outside his senses and the cave. His intellectual journey revolves finding wisdom and truth. The return represents a different prisoner who desires to find philosophical truth. This essay seeks to discuss how we can use Plato’s allegory to understand what Ishmael Beah went through in his experiences in Sierra Leone’s war. In brief, the story of Ishmael Beah reveals a child’s journey through tribulations. At a tender age, Ishmael life was affected by the outbreak of the civil war. His parents and siblings died and left him in the world that was cruel and brutal. Soon after his family’s death, the young boy was recruited as a child soldier. In his assigned duties, Ishmael ensured that many people understood the devastating impacts of war on young children in his country Iran. Ishmael won a competition in his country for creating insights on the effects of war in Iran. In his life, the young boy spoke confidently about his experiences that eventually captivated many people’s attention on the aspect of child soldiering and the effect of war on children (Plato10). Ishmael spoke on different occasions on behalf of the Human Rights Watch and UNICEF. He created a strong ground for many people to promote children rights and end war since its effect cannot be underestimated. The story of Ishmael is of hope and redemption in that it revealed his passion in humanity. Now that we have discussed the meaning of the Allegory cave, let us now discuss how the Plato’s allegory helps us und erstand what Ishmael Beah went through in his experiences in Sierra Leone’s war. Ishmael Beah is like the prisoner described in the allegory in that he represents the dreamer who seeks knowledge outside of the senses and the cave (Beah 19). As previously mentioned, Ishmael’s journey represented a philosopher's journey of finding wisdom and truth. In a Long Way Gone, Ishmael Beah narrates a riveting story that reveals his different realities before, during, and after his time as a soldier. Before being a soldier, the government army accused Ishmael of being capable of committing terrible acts. At this point, one would argue that the boy was in the cave of misunderstanding. The world around him was dark and filled with torments and pain. As argued by Plato (10), the people in the cave cannot air their thoughts since they can only see life as illusion. However, in the outer world there is light that makes an individual to identify everything that is happening around him. Based on this argument, one would argue that the young boy was inside the cave after the death of his parents and siblings. He could not comprehend why the world was so much cruel to the extent of killing his family members. During his time as a soldier, the young boy was in the outer world of the cave where everything was visible. He gradually began to identify everything that was happening around him and he realized that he was living in the real world. He

BAT concept Essay Example | Topics and Well Written Essays - 1500 words

BAT concept - Essay Example 'Permitted processes have to show that they have applied the best available technique (BAT) approach when applying for an IPPC permit'. Considering this statement, a critical evaluation will be done in this paper on the ways pollution is regulated in England and Wales and whether or not BAT should be applied. BAT is seen to be the most effective way of controlling and reducing the emission of hazardous pollutants into the atmosphere. Following points will throw light on the purpose of BAT (Scottish Executive, 2006) & (EC, 2003). A relevant example is of petrochemical company in South England .The requirement was to use butadiene from pure butenes for its down-stream processes knowing the fact that butadiene is a pollutant. Since it was a major requirement, they extracted butadiene from butenes using cuprous ammonium acetate. In doing so, 200 tones of ammonia and 140 tones of volatile organic compounds (VOCs) were emitted in air. 300 tones of ammonia and 6 tones of copper ran into the systems purifying water (Slater, D.). Since these amounts were disturbing, the company decided to replace the butene extraction process with a new process named 'Catalytic Hydrogenation Process' which had zero emissions to air during the reduction of butadiene to butene. The results after changing the procedures showed that annually, only 7 tones of VOCs were released in air from valves of the system and less than 1 kilogram of hydrocarbons were released to water (Slater, D.). Another company owned by an American manufacturer of fluorescent tubes had to shift to a cleaner process in order to minimize emissions of VOCs in air. The tubes, coated with phosphor, lost 500 tones of xylene in air. It took 30 years for the company to design and implement a cleaner process that would reduce the environmental risks. A water-based carrier system was installed in the UK factory. As s result, only 1.25 tones of ammonia were lost in air annually (Slater, D.). Pollution Regulation in England and Wales In 2008, a consultation plan on 'The Pollution Inventory 2009-2011' for pollution regulation in England and Wales was passed by the Environmental Agency aiming to improve environmental conditions in UK (EA, 2008). The aim of Pollution Inventory (PI) is to reduce all the sources of pollution caused by the industrial activities by (EA, 2008): Warning the industrialists about the pollution caused from industrial activities so that they realise the responsibility of being a good citizen and encouraging them to apply and use environmental- friendly procedures in installing and operating industries. Supporting common people to gain information about pollution caused

Economic Causes of Poverty Essay Example for Free

Economic Causes of Poverty Essay Poverty is the deprivation of necessities that that determine the quality of life. These necessities comprises of the basic human needs and better education which directly influences the type of employment and income earned and enable one to fight poverty. In October 2008 World Bank revised the poverty line to 1. 25 US dollar per day from 1 US dollar per day. After revision of the poverty line measure, an estimated 1. 4 billion people were found to live at this poverty line or below (Otlin, 2008). There is an upward poverty trend; for instance in 2004, 984 million people were living on or below the line of measure i. e. 1 US dollar whereas in 1981, 1. 9 million were living on or below the poverty line (Weaver Park, 2007). Among other causes of poverty, economic causes which include capital flight, unemployment, low income, unfair property laws and unfair trade has really made poverty alleviation in developing countries a complicated issue despite the efforts of these countries to fight against poverty. Rapid flow of money outside a country or any other assets commonly known as capital flight is a major economic cause of poverty. In most cases the movement is due to instability and reduced returns. Investors move their money from one investment to another, either within the same country or to a different country to avoid high inflation and search for stability and increased returns. Capital flight is mostly witnessed in a country with currency instability and sometimes the outflows are intensive thus affecting the whole financial system of the country (Epstein, 2005). The loss of confidence and devaluation of the affected country burdens the citizens and their properties lose the nominal value. This resorts to reduced purchasing power of assets of a country making it very expensive to import goods. Due to devaluation of the economy’s currency, inflation comes in. Consequently, the currency unit can only purchase fewer goods thus accelerating poverty. Capital flight also hampers investment which may reduce economic growth of the developing economies. Unemployment is another economic cause of poverty. It usually occurs when one is ready and able to work but there is no work for him/her. The inadequacies of basic human needs and better education are normally as result of un-employment. A country where there is a higher rate of unemployment, the Growth Domestic Product (GDP) is low since most people are not working. According Epstein (2005), unemployment is a primary cause of temporal poverty. The moment people get job, they supplement their incomes and thus reduce poverty levels. Sounder further says that poverty increases with increase in unemployment duration. People without jobs can be having skill which can improve production, but since they have not been employed, their skills may not be utilized. This can result is low productivity in the country. In other cases, un-employment can be a social cost to the society. Issues like crimes, terrorism and drug abuse which may be as a result of poverty, marginalization and unemployment are costly to eliminate. Money which can be used to alleviate the living standards is used for fighting crimes instead. Unemployment brings income inequality which widens the gap between the rich and the poor. Winefield (2002), points out that unemployment leads to delay in experience gain which reduces productivity. Moreover, in countries which provide job search allowance, the government expenditure goes high because more people are entitled to these allowances. This can force the government to reduce money given to other crucial sectors for example agricultural sector which can be a source of livelihood to the country’s population. Taxes may also increase due to high government expenditure resulting to increase in prices of commodities. Low income means that people will have a limited purchasing power. Winefield (2002) points out that, low income earnings place people near or on at the poverty line. He further argues that, raising the incomes by increasing the wages without dismissing their job opportunities has historically minimized poverty rates. According to his research findings, increasing minimum wage will help reduce poverty levels, however minimal. Small household budgets experience the greatest impacts since they have a limited purchasing power. This has facilitated poverty in developing countries. Increases in food prices and an instant steep rise in agricultural commodities is another economic cause of poverty. The rise in food prices can be attributed to increased demand of staple commodities, higher energy prices especially fuel and electricity which affects transportation and production costs of agricultural products and farm inputs e. g. fertilizer and pesticides. Food prices may also rise due to lack of alternative market outlets for agricultural product and low yields of cereals (Anker, 2006). Competition between industrial commercial organizations is healthy and encouraged by market economies. However, unfair property laws by competitors and use of malicious ways to gain business mileage e. g. making false and direct attack to a competitor may scare away potential investors. At times it happens despite the fact that a code of conduct has been set to guard against this behavior. Unfair competition which comprises of all acts and practices during industrial and commercial transactions which are contrary to honest practices may hamper selling and buying of good and services. Unfair competition may include confusion caused in relation to another enterprise’s products or its activities, acts that are misleading for instance, false implications of a competitor’s product, and damaging the goodwill of the competitors. All this may lead to unfair competition which causes decline in sale of goods or services. Eventually, this will translate increased levels of poverty in the affected economies due reduced sales, exports and other losses that may arise from unfair trade. In conclusion, poverty alleviation is a complex issue to deal with. It requires that all relevant stakeholders get rid of their selfish interest so that they can deal with the root causes of poverty. All causes of poverty ranging from economic, governance, demographic and social factors, environmental factors, if looked into by good governance, transparency in public expenditure, strengthening of management capacity and improvement of the public service delivery will help in promoting a competitive private sector environment for development and trade regime liberalization. This can contribute greatly to poverty alleviation in the world and especially in developing countries in Africa, Latin America and East Asia. A fair trade between developed and developing countries is fundamental if the question of poverty in developing countries is ever to be addressed. For instance, disruption of trade in Africa has greatly affected the process of integration in business. As a result poverty levels have increased undermining and lowering the livelihoods of small scale farmers and producers as well as depriving the young people their rights. References: Anker, R. , (2006); Poverty Lines around the World: A New Methodology and Internationally Comparable Estimates. International Labor Review Journal, Vol. 145 Epstein, G. A. , (2005); Capital Flight and Capital Controls in Developing Countries. ISBN 184376931X, 9781843769316, Edward Elgar Publishing. Otlin, J. , (2008); The Causes of Poverty: Thinking Critically about a Key Economic Issue. Journal of Social Education, Vol. 72 Weaver, C. Park, S. , (2007); The Role of the World Bank in Poverty Alleviation and Human Development in the Twenty-First Century: An Introduction. Global Governance Journal, Vol. 13 Winefield, A. H, (2002); Unemployment, Underemployment, Occupational Stress and Psychological Well-Being. Australian Journal of Management, Vol. 27