Review of Accounting Ethics Research Paper Example | Topics and Well Written Essays - 1250 words

Review of Accounting Ethics - Research Paper Example Accounting ethics is a vast term and have a lot of minor details in it. Looking at just the basics, it can be defined as providing right financial details to the company and to its stake holders. Numbers are something which can be manipulated very easily for one’s own interest and that is where the rules and regulations are made to make sure that the accounting ethics are not breached at any level. Businesses make sure that each and every account is made and maintained in the right manner (Cohn, 2013). Accountants work in many different areas and fields. They are not focused on one particular subject but have to handle a lot of work at a single time. The accounting areas majorly include performing audits, making tax statements, making budgets and planning for the future, manage the ongoing accounts, consultancy and of course, preparing general accounts. Having so many things to handle, there is an opportunity for them to make frauds at each level or subjects they are working o n. The greed of making huge amount of money in no time makes them get onto the wrong track and that’s where the ethical issues start coming into action (Mele Carne, 2005). Although having all the right code of conduct, there are still some loopholes in the system which the accountants and the senior officials of the company identify and then use it for their own good. One of the biggest examples we can find in the history which was charged of the allegation of breach of accounting ethics is the Lehmon Brothers Inc. Lehmon Brothers was one of the giant companies and had a big name when it comes to the investment market of the United States of America and due to its unethical accounting methods it got bankrupt. The business of Lehmon Brothers can be described as borrowing money from the general public and then investing that money into different assets. They earned interest from their investment into the assets and then share the interest earned with the people they borrowed lo an from (Jeffers, 2011). Lehmon Brothers were considered a good company to invest in as they showed people their artificially made financial statements to the people. After they filed bankruptcy in 2008, the position of Lehmon Brothers came in front of the eyes of the people. We will now discuss about how they betrayed people by showing artificially made good financial statements. A report was made by Jeffers, Agatha E. in which all the details regarding Lehmon Brothers bankruptcy and how they did breach the accounting ethics was presented. Lehmon Brothers used a Repo 105 accounting policy to misguide their investors. Repo 105 policy suggests that when an asset is given out and cash is received, it should be recorded as sale of asset. Although in accounting methods, an asset is not considered and written as sale until it is completely transferred to the second party and is fully non-operational by the company. Lehmon Brothers accustomed to give assets as a guarantee to purchase loan s from the institutions abroad. They recorded this transaction as sale of assets and showed people that they have got rid of non worthy assets and have earned good money from that. In this way their balance sheet looked less leveraged as they have less unproductive assets and more cash. Secondly they used to pay off some liabilities with the

Employability Assignment Example | Topics and Well Written Essays - 1500 words

Employability - Assignment Example In the present scenario, there is no such situation where there is an elongated job for life. This means that it may not be possible for an individual to generate long-term contract with an organisation and in the meantime an organisation cannot expect an individual with loyalty and dedication towards the job. In the past scenario, there was a long-term commitment between an individual with an organisation. However, at the present time there is a chance for an employee to leave an organisation after a few months notice and may get appointed in the competing organisation (Senyucel, 2009). The commitment, motivation and job satisfaction of an employee are closely related which may result in increase in employee’s performance level. The trust, bond and commitment that were present between individuals and organisations have become weak in present scenario. The bond can be created by the human resource management itself by making inner investment within an organisation. Employees e xpect that their employers should consider them as one of the valuable assets of an organisation. Nowadays, employees expect the employers to invest on their training and development and for this organisations want the employees to be creative, flexible as well as productive (Senyucel, 2009). The psychological agreement between organisations and employees provides no benefit to employees because there is no enduring job security for them and organisations are continuously changing the conditions of employment. As there is huge competition, the employees are looking for better opportunities in order to develop their knowledge as well as skill. Organisations in present condition, at times hire an individual on a short-term basis. As a result, there is no employment assurance for an individual. The organisations are incapable of fulfilling the psychological contract as demanded by an employee due to various reasons. The training and development as required by an employee from an organi sation requires both time and resources for conducting such program. An organisation has less time to allocate the entire resources for the programs for employee. To fulfil this need, other employees need to be allocated in place of one who undergoes training program, but it seems to be quite difficult because hiring of new candidate for short-term is required and as a result more wages have to be paid to increased number of employees. Therefore, the psychological agreement seems to be unable to be fulfilled by an organisation (Senyucel, 2009). Change in the nature of work also has an impact on the older generation people. A few individuals prefer to leave the job due to physical activities whereas the others remain in the job. According to a report published by Richard W. Johnson, in the year 2006, employees faced various types of job demand. Only 7% of employees were interested in physical activities related work. Nonphysical works were in high demand among the individuals. 35% em ployees were employed in the job which requires high cognitive skill. Use of computer has become significant for performing the job. 18% of employees need relevant skills as well as knowledge and interpersonal skill has become vital for 34% of jobs. In present jobs, stress has become a common aspect. About 9% of employees are involved in stress related to conflict