The quality of financial statement - Free Essay Example

Sample details Pages: 4 Words: 1086 Downloads: 1 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? 1. Introduction: The purpose of this assignment is investigation how credit crunch issues is widespread in the world and what is the quality of financial statement. This will be shown by analyzing the fraud in financial statement of Enron and WorldCom. 2. Methodology Analysis based on a review of the academic auditing literature, audit reports, together with articles from financial journal. Don’t waste time! Our writers will create an original "The quality of financial statement" essay for you Create order 3. Background: 3.1. The collapse of Enron and WorldCom 3.2. The financial statement Enron Corporate and The methods of Enron Corporation that used to the fraud of the financial statement From the tables above we can see clearly that without LJM1, JEDI, Chewco and the â€Å"Four Raptors† partnership. In Enron were considerable numbers of partnerships which leads to Enron hided a significant debt. This is one of the methods of Enron primarily used to cover debt. We can see from table 4, Enrons prior-year reported debt amounts are increased by both JEDIs and Chewcos borrowings. In addition, Enrons net income is reduced for specific JEDI revenues previously allocated to Chewco, relating to appreciation in value of Enron stock held by JEDI, wich eliminates upon consolidation. This, in effect, reduces Enrons share of JEDIs earnings. The net effect reduces Enrons prior-years reported net income and shareholders equity amounts. In brief, Enron did not announced adequate information in financial statement in order to reduce tax payments and blow-up income and profits and to raise the price of share (the high stock price was vital issues to the survived of Enron corporation (Peter 2002: 91) and credit rating. Furthermore, Enron created many partnerships and used partnerships to hide debts.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Partnership of Enron Corporation The financial activities of Chewco Investments, L.P. (Chewco), a related party which was an investor in Joint Energy Development Investments Limited Partnership (JEDI), should have been consolidated into Enrons consolidated financial statements beginning in November 1997; The financial activities of JEDI, in which Enron was an investor and which were consolidated into Enrons financial statements beginning in the first quarter of 2001, should have been consolidated beginning in November 1997; and The financial activities of a wholly-owned subsidiary of LJM Cayman, L.P. (LJM1), a private investment limited partnership for which the general partners managing member was Andrew S. Fastow, former Executive Vice President and Chief Financial Officer of Enron (see Note 4), should have been consolidated into Enrons consolidated financial statements beginning in 1999. 3.3.1. The system of operation to product the financial statement of Enron Looking first at how Enron can cheat in their financial statement. This will be explanation by analyzing their process of making financial statement (Peter 2002: 41-2) in the graph below in order to have clearly understanding. The culture of Enron Corporation was concentrate profit and how to create greater profits (Peter 2002: 47). Thus, every individual in Enron need do like what Directors want do including accountants and the another firms have the same benefit. 3.3.2. The methods of Enron Corporation that used to the fraud of the financial statement One of the methods that Andrew Fastow used on financial statement fraud is he set up the use of Special Purpose Entities(SPEs) so that to finance the purchases and take out of accounting report. In 1997, there are arguments in SPE issue which known like Chewco (Peter 2002: 61).   Ã‚  Ã‚  Ã‚  Ã‚  Some summary about SPEs: Original had a good business purposes Really a joint venture between sponsoring company and a group of outside investors. Cash flows from the SPE operations are used to pay investors.   Ã‚  Ã‚  Ã‚  Ã‚  However, Enron had used SPEs to: Hide bad investments and poor-performing assets (Rhythms Net connections). Declines in value of asset would not be recognized by Enron (Mark to Market) Hide debt (borrowed money was not put on financial statements of Enron) Quick execution of related-party transactions at desired prices. (LJM1 and LJM2) To report over $1billion of false income. Many SPE transactions were timed ( or illegally back-dated) just near end of quarters in order to income could be booked just in time and in amounts needed, to meet investor expectations. Mark-to-Market accounting means that it is re-assessed in the valuable in each asset and changes in value are reflected in balance sheet and income statement in the company. Forced sales in illiquid markets set prices Drive asset values to insolvent levels ( despite the absurdity that mark-down of liabilities increase profits) Risk of facing an insolvent counter-party generates runs: wholsesale and quasi-retail Table 5: The different in financial statement frauds between 2 company WorldCom and Enron WorldCom  Ã‚  Ã‚  Ã‚  Ã‚  Enron Overstating Asset Frauds  Understating Liability/ Expense Frauds The frauds was simple  Ã‚  The frauds was very complicated: many complex transactions and accounting issues 3.4. Credit crunch and quality of financial statement   Ã‚  Ã‚  Ã‚  Ã‚  3.4.1. Credit crunch There is undeniable that credit crunch reveal in the recent global recession. For find out that reason, this quite appropriate to looking at why and how credit crunch occurs. There are number of reason why this financial crisis happened (credit crunch). The credit crunch started in 2007 with the bankrupt of Lehman Brothers, which is one of the most important in the US institutions. When looking at accounting practice, some author have argued that when using fair value accounting, this led to the credit crunch has been getting worsen. This will be difficult to value what is fair value have; thus, many people who control stock market and politicians have arguments for these issues with excessive political preventive in the worldwide (Emerald 2009). On the other hand, in the collapse of Enron and WorldCom, auditors play the important role in the credit crunch occur, which received limited information with opaque reporting. In addition, auditors have change audit report and the r ole of banking, business and the ever more compound financial instruments (Emerald 2009). 3.4.2. Quality of financial statement This wills obsever who is the person that responsibility for quality of financial statement. There is no doubt that with good quality of financial statement leading to do not occur credit crunch. Because financial statements include income statement, balance sheet, and so on that is open information (Jorion 2003).Therefore, How to avoid financial statement frauds is essential. One of the reason is there are an increa.e in the size and number of financial statement frauds. 4. Solution Reference Emerald (2009) Global credit crunch: the role of the auditors [online] available from https://info.emeraldinsight.com/learning/management_thinking/articles/credit_crunch.htm?PHPSESSID=brqmbrv5134rc5p7g9k9dskmr2 [ April 2009] Enron corp (2000) Annual Report 2000 [online] available from www.enron.com [2000] Jorion,P.(2003) Investing in a Post-Enron World. United States: McGraw-Hill Trade Peter,F (2002) What went wrong at Enron. Canada: John Wiley Sons https://www.sec.gov/Archives/edgar/data/1024401/000095012901504218/h92492e10-q.txt

The Great Gatsby By F. Scott Fitzgerald - 1646 Words

Fitzgerald’s novel, ‘The Great Gatsby’, centres on the society of â€Å"moths† and the post war generation of the 1920s. Fitzgerald explores how the immorality of his characters during this period leads to the sorrow that is present in their lives, influenced by this new and exciting Jazz Age. In addition, Waugh uses his novel ‘Vile Bodies’, to explore the same immoral generation of the â€Å"Bright Young Things† and links their lifestyle, like Fitzgerald, to the cause of sorrow and human frailty that is at the heart of both narratives. Facades are a central element of ‘The Great Gatsby’ as they are used by a number of characters as a weapon to conceal their sorrow. Arguably, one may say that Gatsby’s entire life is a facade. It can be argued that â€Å"He chose to become someone new, someone unfettered by his past...† (The Daily Beacon). Gatsby’s facade is used as a form of escapism from reality – a reality which causes him sorrow which he wants to forget. Through describing Gatsby’s parents as â€Å"shiftless† and â€Å"unsuccessful†, Fitzgerald suggests to the reader that Gatsby was hoping for a life that was distant and beyond the reality of poverty his parents may have faced in the world, signifying why Gatsby may have been drawn to his â€Å"green light†. Moreover, Fitzgerald tells us that â€Å"his heart was in a constant, turbulent riot,† which suggests an internal conflict and unhappiness existing inside of him. The noun â€Å"riot † conflicts with the â€Å"majestic hand† of Gatsby that we see throughShow MoreRelatedThe Great Gatsby by F. Scott Fitzgerald1393 Words   |  6 PagesF. Scott Fitzgerald was the model of the American image in the nineteen twenties. He had wealth, fame, a beautiful wife, and an adorable daughter; all seemed perfect. Beneath the gilded faà §ade, however, was an author who struggled with domestic and physical difficulties that plagued his personal life and career throughout its short span. 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Hilton Hotels Resorts Samples for Students †MyAssignmenthelp.com

Question: Discuss about the Hilton Hotels And Resorts. Answer: Introduction The report will discuss in detail about the Hilton Hotels and Resorts. The company provides a great combination of luxury as well as best amenities. The company is a result of sheer hard work of founder named Conard Hilton who initially planned to establish a bank but later went on to buy hotels which in the present is a huge brand name in the business of hospitality all across the world. In an earlier time, the name was Hilton hotel which later became a brand and known as Hilton Hotels and Resorts (Chathoth, 2016). The company was established in the year 1919 and up till now, it is functioning and considered as a huge chain of hotels. Headquarter of the company is in Virginia. The company also has a very strong base of the network in countries like US and UK. The company is slowly expanding the base in many countries. Currently, the hospitality business is booming due to which there are so many competitors as well. Micro analysis of Hilton Hotels and Resorts Following is the detailed discussion: - Suppliers: the suppliers are the people who impact the reputation and profit, and this is why maintaining a cordial association with the supplier is important. The supply management team can grow some strong partnership to discover some great sustainable products (Chathoth, 2016). The company is also able to get most of the products on domestic front from a local team of suppliers in more than ninety countries. The overall success is based on the maturity of domestic market and support system along with quality as well as the quantity of supplies. Customers: the chain of hotels offers a range of services like family based packages to spaces for events for the different theme of parties along with a wedding. There are many other facilities for the local public this is why the target markets are people who are looking for some break for a small period, tourism, leisure as well as business motives. Competitors: the brand carries huge scales of branding and makes it challenging for many small firms to survive in the market. Therefore, the threat of new market entrants is quite low, and the company offers many programs to stay ahead in a competition like loyalty program (Harper, 2016). Media: the website of the company is the vital as well as the main source for any information for the public. The website also engages with the media depending on the hotels all across the world. Intermediaries: these people are always considered as a major force in businesses like Hilton. Some customers are not completely aware of the right manufacturer and mainly obtain the services and product from the popular companies. The company buys the raw material from good distribution firms and make sure that moving stock is on point and align with origin and destination (Dev, 2014). Macro analysis of Hilton Hotels and Resorts Following are the important factors for macro analysis: Political factors: the stability in political area is a basic need for the success regardless of what industry is there. In hospitality industry specifically, factors associated with politics can impact the number of different visitors both business travelers and tourists in direct or indirect manner. For instance, a delicate political case of Ireland may impact the decision of many potential visitors not to visit the region. Also in countries like the UK, the country is branded as a place where many extremist groups stay, and there is the threat of some terrorism in that area. It may impact the number of visitors in the area (Bailey et al., 2014). The company is also known for engaging in the process of lobbying to be able to impact some political factors that further impacts the business to a certain level. Yearly lobbying budget of Hilton Worldwide Economic factors: there are global, as well as national macroeconomics cases as well as factors that impact the case and there, are some important factors that affect the brand. For instance, Olympic in 2012 in the UK when many hotels were completely booked, but things changed after the Olympic. Also, there were many direct outcomes as well with international based financial as well as the economic crisis in 2009. Due to which the sales went down and the level of profit also went down. However, many years have passed, and this is why global economic, as well as a financial crisis of 2009, the economies all across the world, are improving. However, the GBP exchange rate and other relevant currencies along with inflation rate in the country show important factors that can affect the performance of the company (Bailey et al., 2014). Social: the hotels provide hospitality at international level, and the services are given as per the needs of consumers. The chain of hotels also gives revenues too much community foundation that serves the whole community at the time of need, and this way add more amount of value towards social accountability. Technology: there is an app of the chain of hotels which provides the facility of browsing for the availability of rooms, paying as well as booking on the app. The chains of hotels spread across more than eighty countries as well as businesspeople are regular customers. This is why, facility of Wi-Fi is increasing, and there is loyalty program as well (Cortese and Sahli, 2015). Environmental: the company is facing constant and strict regulation to reduce the overall carbon footprint, and this has resulted in increasing the operational costs for the organization. An operational area of Hilton Hotels and Resorts The company makes sure that the employees are efficient enough for the operations of food as well as beverages outlets. The front desk is also able to provide an excellent experience for the guest and the members. The manager handling operations also monitor the overall appearance and the level of the team. Following are some of the highlights of operations: Efficient level of operation for food and beverages outlets as well as front desk. Complete control on the flow of consumers as well as orders Management of all the work at the time of service. Making sure that the outlets are properly staffed as per the levels of business. Supervision of the appearance, performance, and standards of diverse team members with the focus on the overall quality of guest associated services as well as hospitality (Phalippou, 2014). Increased sales based revenues with the help of up-selling and many marketing based program. Management of requests from a guest in an efficient and timely manner. Dependence on the security of hotels, fire based regulations and all safety related legislation. Current promotional marketing strategy of Hilton Hotels and Resorts The company is the well-known name in the industry which selects distinct activities for promotion to assist them to stand out from the crowd completely. The company also provides a selective membership for the people. There is a team of dedicated people and staff aiming at the marketing strategies to base the services on a new kind of marketing based indulgence. The best is also followed in diverse marketing strategies of the company, and the motive is to keep track of outcomes based on any strategy which has provided a strong feedback for the promotional strategies (Roper, 2017). Customers experience practices of Hilton Hotels and Resorts The company is known for its hospitality as well as luxury services. The chain of hotels has a facility to provide deluxe rooms, bar as well as restaurants. The company along with being a tourist ultimate place to stay, it also serves as an answer for many events and business conference. The company looks for some travelers as well as business related guests, and it is considered as a perfect place to conduct many business meetings as well as events. There different rooms that are specifically crafted with some amazing level of diligence along with the advanced level of amenities. The food and drinks are exotic on the menus and are considered as a delight for the consumers (Salvioni, 2016). There are loyalty programs and membership discounts as well with some facilities like different room options and free Wi-Fi. Along with it, request on arrival is one of the popular features for distinct room facilities as well as dcor. Sustainable initiatives implemented by Hilton Hotels and Resorts The hospitality industry is facing a lot of criticism these days since it is blamed for polluting the surroundings, specifically at many tourist attractions. There are complaints of high carbon emission with a negative impact on the issues of global warming as well. Hilton has accepted that the company huge energy levels, as well as carbon emission and, have also created companies to reduce the level of pollution as their response (Cruz, 2015). Also, the hotel has also announced that the company will further higher extra veterans for up to 20,000 people in number who will be dependents or caregiver in coming future. The organization has also achieved hires of over ten thousand people from the military in the US from the year 2013. This way, the company has exceeded its initial objective of two years and placed it ahead of its set schedule. The company has also combined the level of commitment and is considered as the largest among hospitality industry as well as one of the biggest in private sector of many countries. Conclusion The report has discussed in detail about the chain of Hilton hotels and resorts which are considered as an extremely popular all across the world. The brand Hilton is one of the biggest international hospitality organizations in the world. The company covers many fronts like the lodging sector from luxury full-service hotels. The company provided some mid-priced suites as well along with extended stay and from last so many years, and the company is offering services to leisure as well as business class travelers some of the finest experiences, values, amenities and services (Wang et al., 2016). The company has dedicated to continuing the tradition of providing some of best experienced for guest all across the world. The vision of the company is to also fill the world with some warmth and much-needed light of hospitality since they can create some remarkable experienced all across the world. References Chathoth, P.K., 2016. Historical evolution of hotel chains.The Routledge Handbook of Hotel Chain Management, p.27. Harper, D., 2016.Hotels and Resorts: An investor's guide. Routledge. Dev, C.S., 2014. Strategies for Successfully Managing BrandHotel Relationships. Bailey, M., Mendez, J. and Zhai, J., 2014. Leadership Profile: Conrad Hilton.Perspectives in Asian Leisure and Tourism,2(1), p.8. Cortese, C. and Sahli, M., 2015. Environmental Practices and Hotels Performance: an empirical analysis of the accommodation sector in Dubai.The Environment People Nexus in Sustainable Tourism: Finding the Balance, p.118. Phalippou, L., 2014. Hilton Hotels: A Case Study in Real Estate Private Equity. Roper, A., 2017. Vertical disintegration in the corporate hotel industry.Current Issues in Tourism,20(1), pp.1-6. Salvioni, D.M., 2016. Hotel Chains and the Sharing Economy in Global Tourism.Symphonya, (1), p.31. Cruz, I., 2015.Key Performance Indicators and The Balanced Scorecard at the Luxury Brand Hotels of Pestana Group Beatriz Gomes Marques, 1485(Doctoral dissertation, NOVASchool of Business and Economics). Wang, D., Xiang, Z., Law, R. and Ki, T.P., 2016. Assessing hotel-related smartphone apps using online reviews.Journal of Hospitality Marketing Management,25(3), pp.291-313.

Siddhartha Hesse Siddharthas Essay Example For Students

Siddhartha Hesse Siddharthas Essay Siddhartha Siddhartha is extremely proud of his ability to think, fast, and wait. These qualities also allow him to get a job with Kamaswami as a merchant. These are basically Siddharthas life achievements. Being able to do these things shows he is intelligent and more than able to do most tasks. This is probably why he flaunts it, and is proud of these abilities so much. In this essay I will discuss each of these abilities individually, and show how they apply to his life, what they do to teach him, or show him, and also show how they help him or hinder him in various situations. The ability to think obviously is something to be proud of. When a man can think on any topic, give feedback, and reflect on it, they are considered very valuable in any situation or job. When Kamaswami first meets Siddhartha, he is instantly impressed with his ability to read and write. We see how this ability to think can gain a man instant respect. All Siddharthas life he has been reading, writing, meditating, and studying. It is quite evident tat if you or I worked that hard, we would feel the same achievement he has, and try to apply our abilities to anything we do. Aside from thinking though, Kamaswami is also very impressed with waiting as we see when he says, Writing is good, thinking is better. Cleverness is good, patience is better. As much as Siddhartha thinks, his ability to wait is something that really defines his character even better. This is also incorporates with fasting, as well as thinking, but by itself waiting is extremely important. I have found, in all my years, myself to be quite impatient. This will probably harm me later in my life. The ability to wait also spurs the ability to think, and fast. Throughout all his studies, Siddhartha had to wait out the array of different teachings he went through to know truly in his heart, that they didnt apply to him. To wait on something shows wisdom, and maturity. These are traits that no good businessman can ignore, as Kamaswami realizes. That is a major reason Siddhartha was hired. Lastly, fasting is something that once again requires patience, and deep thought. As Siddhartha says It is of great value, sir. If a man has nothing to eat, fasting is the most intelligent thing he can do. It, for instance, had not learned to fast, he would have had to seek some type of work today, either with you, or elsewhere, began hunger would have driven him. But as it is, Siddhartha can wait calmly. He is not impatient, he is not in need, he can ward off hunger for a long time, and them laugh at it. Therefore, but fasting it useless sir. Siddhartha believes in fasting, because it builds character, and lets him flaunt his ability to do certain things even more so. In conclusion, Siddharthas three like achievements demonstrate how really strong his character truly is. All these mean the world to him, because his beliefs dont really incorporate a family. Although these traits didnt score him any points with Kamala, she refused him and off he went. Siddhartha has a very strong independence soul. These traits, thinking, fasting, and waiting all define him as a very intelligent, hard working, and patience young man. The reason is obvious to why he is so prove of his achievements. They are impressive, and something he spent his lifetime working on.