Accounting Theory Is The Debt Covenant - 1635 Words

(2) Debt covenant motives Another important hypothesis of accounting theory is the debt covenant hypothesis. The violation of the debt covenant implies, shows that the instability when company operates its business. Also, it means that there exists the volatility in major accounting measures, like earnings and liquidity, even though will increase the possibility of risk of a bankrupt (DeFond and Jiambalvo,1994). Furthermore, it also describes a negative company performance to public to make an impact on stock price, reliability as well as the reputation of the managers (Holthausen,Larcker Sloan, 1995). It is therefore the managers of a firm who have a lot of borrowing are more motivated to avoid the negative effects and manage earnings positively to ensure that they are abiding by their debt covenant. On the other hand, Sweeney (1994) found that so as to reduce the possibility of debt covenant violation, the managers are more likely to choose to engage in earnings management by using accruals to increase inco me. (3) political cost motives Due to the fact that the society and the market pays more attention on super large-scale enterprises, the earnings management becomes one of the methods to lessen the degree of attention. It can be found obviously from Jones(1991) research that during the investigating period of United States International Trade Commission, the firms under investigation are more motivated to adjust accrual incomes in financial statements than otherShow MoreRelatedEssay on Financial Accounting Theory1727 Words   |  7 Pagesï » ¿QUESTION 1 a. Outline the objective and the principles of a theory that prescribes fair value accounting. Fair value accounting is to measure selected assets at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The objective of fair value accounting is linked with the objective of ‘decision usefulness’ of general purpose financial reporting. That is, to provide relevant information thatRead MorePositive vs Normative Accounting Theory Essay1032 Words   |  5 Pageswith planning) TOPIC: Discuss positive accounting theory and contrast it with normative accounting theory. Provide examples where appropriate.       The purpose of this essay is to provide an overview of positive accounting theory (PAT) and highlight how this theory differs to normative accounting theory. Definitions and assumptions of both theories will be considered and examples of the theories will be provided. In addition specific theories related to PAT namely agency and the efficientRead MoreLoan and Typical Financial Covenants Essay examples811 Words   |  4 Pagesthe multiple lawsuits should be unified and heard in Facebook’s home state. Debt Covenants Please respond to the following: Based on your research conducted in the e-Activity, assess the key components of the loan covenant typically used in business loans. Indicate the necessity of each covenant and the likelihood that default will be prevented. Suggest whether or not you agree or disagree with lenders using the covenant approach for protection. Provide a rationale for your position.   CreateRead MoreWhat is Accounting Profit?1054 Words   |  4 PagesBased on my understanding, accounting profit is a measure of the profit or loss of the Company. It’s simply, total income minus total cost. I agree that accounting profit provides a good starting point to evaluate a company’s performance during a particular period. Many people tend to assume a company is doing well if it is profitable and invest in it as long as income statement shows net profit without considering other indicators such as accounting ratios and cash flows. However, I am unsureRead MoreAccounting Analysis On Accounting Standards1911 Words   |  8 Pagesmainly focussed on the topic related to Accounting theory concept in general. There are two articles to elucidate, first article is on Accounting Standards conceptual framework, which is further discussed in detail about the qualitative characteristics of Conceptual framework. Second article is about Positive Accounting Theory, where we discuss about Accounting theories. A) Article One: 1) Australian Accounting Standard Board (AASB) AASB - Australian Accounting Standards Board Body charged with developingRead MoreAgency Cost Of Debt Contracting Essay2159 Words   |  9 PagesAGENCY COSTS IN DEBT CONTRACTING The agency theory examines the relationship between the principle and agent under the assumption that that individuals act in their own self-interest in order to maximise their personal wealth. This conflict of interest creates agency costs that are borne by the principle. The agency problem is apparent in debt contacting relationships where the firm is assumed to be acting in the interests of its shareholders when borrowing money from the debt holders. Agency costsRead More71021713 Words   |  7 Pagesearnings management can be defined as using reasonable and legal means to achieve stable and optimised financing results (Burgstahler amp; Dichev 1997). It should be noticed the earnings management is legal activities rather than the illegal accounting fraud. Due to the availability of difference legal choices, the management can choose the most suitable choice which can generate more close earnings number to desired target. For example, the test on the intangibles impairment requires professionalRead More3101AFE Seminar Questions from Seminars 1 6 Sem 1 20151558 Words   |  7 Pagesï » ¿3101AFE Accounting Theory and Practice Seminar Questions for Seminars 1- 6: Semester 1 2015 SEMINAR 1 - Semester 1 2015 Deegan Topic 1: Introduction to financial accounting theory QUESTION 1 – Question 1.2: If you developed a theory to explain how a person’s cultural background influences how they prepare financial statements, would you have developed a positive theory or a normative theory? QUESTION 2 - Question 1.3: What is a conceptual framework, and would it be considered to be a positiveRead MoreFinancial Accounting1203 Words   |  5 PagesAND LAW ACFI2002 – FINANCIAL ACCOUNTING SEMESTER 2, 2012 ASSIGNMENT 01 Student Name: Tran Thi Ngoc Hanh Student Number: C3173300 Part I: Accounting Standard AASB138 Intangible Assets provides guidelines for accounting treatment of research and development costs for financial reporting purposes. Answer the following questions based on AASB138 and ‘Framework for the Preparation and Presentation of Financial Statements’. (85 marks) Part I: Accounting Standard AASB138 Intangible AssetsRead MoreThe Predictions And Effects Of Financial Accounting981 Words   |  4 Pagesthe predictions and effects of financial accounting reports to discuss the statement based on the previous answer. In the conclusion, the essay will explain how the question helps to understand the importance of learning about accounting in its context. Main Analysis Predictions of Financial Reporting There are four preconditions of financial accounting reporting. Firstly, there are debates that upheld and against the regulation of financial accounting. The supporters of the ‘free-market’ technique

Is Creativity Essential in Learning Free Essays

After the review of three elt designer approaches-the silent way, suggestopedia and total physical response, we have devised our own philosophy of teaching. We believe that creativity is essential to learning and if the students are making an effort on their part and discovering things for themselves; the factor of self-reliance is evolved and since the students are active and autonomous in exploration so the learning would be more effective. We believe that for language learners, the language would present itself as a problem or a riddle to be solved. We will write a custom essay sample on Is Creativity Essential in Learning? or any similar topic only for you Order Now Learners are required to engage with the language and try to discover and explore it. We believe that peer cooperation is an important factor in learning. This enhances the level of confidence and patience among the students and students learn a lot from each other but one drawback to this is that they also learn each others mistakes. Furthermore, students are asked to review and overview what they have learned in the class. It is by this activity of self correction through self-awareness that the students learn to deconstruct and then reconstruct. We believe that the use of sound-color chart is really effective in language learning. This chart contains all the sounds of the target language in different colors. Students learn syllables, words and then sentences of the target language through these charts. We believe that the psychological barriers that students bring with them be desuggested. These can be desuggested both by direct and indirect way. Once the student succeeds to clear his doubts and fear, his performance in learning will become quite easy and effective. We believe that activating the learner’s imagination will aid learning. For example, the learner’s can perform or take up a role or character in the target language that could place them inside the language they are learning. We also believe that when the students are exposed to the information as part of an environment, they grasp it more conveniently with less effort. The use of charts and posters related to the target language are one example of this. Moreover, the teacher’s authoritative role is of prime importance. The main role of the teacher is to deconstruct the self-perceived barriers and to encourage and support the students so that they have enough confidence in themselves. This would improve and enhance their learning ability. Error toleration encourages the students to learn from their mistakes and improve upon. Language is more effective when it is fun and here the main focus is on the spoken language. The use of commands in language learning makes it interesting. A complete lesson can be designed on the verbs by employing this technique. For example: Slice some bread. Spread the butter to all corners of bread. Put piece of meat on one slice of bread. We believe that the use of â€Å"The Arts† incorporate fun in the class and the students can enjoy their learning. The Arts enables suggestions to reach the subconscious of students. This method maintains a modest enthusiasm among the students. We believe that students should be encouraged to understand the target language before speaking. This method will provide the quick response from students. This will activate the learner’s imagination and help in learning. Motor activities involved plays an important role upon the cognitive learning of students . We believe that humor in the class make students stress-free and learning is more effective when students are in a relaxed state of mind. How to cite Is Creativity Essential in Learning?, Papers

Women Position In Chinese Film Since 1950S Essays - Chinese Films

Women Position In Chinese Film Since 1950S Since 1950s, after the Chairman Mao Zedong's Yan?n conference, art and literature had strictly become tools of promoting the ideology of Communist Party, that is, the product of art and literature in China can be classified as highly popanganda. Chairman Mao Zedong and his Communist Party strongly suggested the equality of both genders - male and female. To promote Mao's theory, certain kind of strong female character's image had been created in films since 1950s, and furthermore, the images of these female characters were changing during the time period. The common features of the female characters in Chinese film are usually being victimize, they always suffered under certain convention feudal rules, the effect of capitalism, the landlord, or fall victim to certain politics. And the films always targeted on how these female characters fight against those reasons of suffering, and creating tensions to the narrative because these confrontations. During the Cultural Revolution, a very popular female image had created, it is the White Hair Girl (Baimao N?) (1972) This female character image is a tough, strong and full of hatred to the feudal landlord who insulted her and her family. Her desire is very obvious -- to revenge. And finally, she ended up with a heroic image in the film with the help from Chairman Mao Zedong and his Communist Party. However, this film rarely announced the realistic of a female character, that is, despite the obsession hatred of White Hair Girl toward the landlord, and the joy of starting a new life with the Communist Party, audience can rarely feel the other kind of emotion from this female character, for example, the desire of to be loved, is absent in this film. Therefore, in the other hand, another question had been raisen: Do the White Hair Girl necessary to be a female character when she hasn't shown any of the desire of female? In this film, White Hair Girl is not necessary to be a female, only the reason for it is , a victimized female is more easy to grip audience's sympathy. And this also suggested the position of women as women itself is not important during that period. But obviously, this film is just purely a popanganda from the Communist Party during the Cultural Revolution - a model performance (geming yangbanxi) Comparing the narrative of The White Hair Girl and the other two film after Cultural Revolution - The Yellow Earth (Huangtodi) (1984) directed by Chen Kaige and The Red Sorghum (Honggaoliang) (1987) directed by Zhang Yimou, the image of women is very different. In The Yellow Earth and The Red Sorghum, both of the female character are being suffered under the convention feudalism and the politics. But their attitude towards those great forces are different from the White Hair Girl. And more description of the female features in these two films. In The Yellow Earth, the female character Cuiqiao only wants to escape from the arranged marriage, escape from her father and escape from the rule of convention feudalism. She begged Brother Gu from the 8th Army in the Communist Party to take her with him, but Brother Gu just refused, he said ?There are also rules for officers.? Therefore Cuiqiao just realized there are rules everywhere in her world. After marriage, Cuiqiao was suffered much, she decided to go across the river to Yan?n to look for the 8th Army, but eventually disappear in the Yellow River. The attitude towards the women whom willing to free from the traditional lock of feudalism is different between The Yellow Earth and the White Hair Girl. The White Hair Girl is a passive attitude, she rather hide inside the cave to avoid being suffer again from the landlord, her saviour is Communist Party. But in The Yellow Earth, the represent of Communist Party - Brother Gu haven't saved Cuiqiao (although he willing to) He only gave her the dream of the equality of gender is existed in China. And the one who actually taking the action to find her dream is Cuiqiao herself. Therefore, Cuiqiao is more a ?pathfinder of her own happiness? then the White Hair Girl. We can say that Cuiqiao has more controlling power of

Three Shifts, Three Supervisors Essays

Three Shifts, Three Supervisors Essays Three Shifts, Three Supervisors Essay Three Shifts, Three Supervisors Essay To appease the workers in their Jobs by giving some prosperity gift or benefits. 3. To develop the office management of ML in other to have a better company relationship between the superior to his subordinate. Areas of Consideration Analysis: The Main Problem is the style of leadership Mr.. Gang is a dictatorial leader that uses negative approach to his subordinates. All decision-making power is theirs, unrealistic in demands, uses excessive discipline and punishment, and does not allow others to question decisions or authority. Like what he did to Ian Michael he agree with the proposal. That became the cause of their conflict that lead to Ian Michael to submit a resignation letter. Alternative Courses of Action: In alternative course of action I will specify the possible and most viable solution to solve the problems. First Mr.. Gang should change his, style of his leadership so that he could not have an argument/ conflict Like what happen between him and Ian Michael. In addition to that to lessen the high rate of turnovers, to appease the workers in tenet Sods Day Glenn some prosperity glut or Benefits, and to develop the office management of ML in other to have a better company relationship between the superior to his subordinate. If possible they can use what Ian Michael proposal in motivating the employee to have a better organization. Recommendation: The best solution that I could recommend is to back Ian Michael to the company his a big help to the company to improve the organization. In addition, Like what I said to my other statement Mr.. Gang should change his style of leadership so that the company could avoid a conflict like what happen between Ian Michael and Mr.. Gang. Conclusion/ Detailed Action Plan As early as possible, Mr.. Gang should approach Ian Michael to go back to the company and offer a higher position for him to grab the offer. Then Mr.. Gang should change his attitude in communicating with his subordinate. They should held a meeting at least twice a month to tackle all the happenings inside the organization. In addition to that they should also held a team building to improve the team work of the employees of the company.

How to Replace a Lost or Stolen Social Security Card

How to Replace a Lost or Stolen Social Security Card Replacing your lost or stolen Social Security card is something you may not really need or want to do. But if you do, here is how to do it. Why You Might Not Want to Replace the Card According to the Social Security Administration (SSA), it is far more important that you simply know your Social Security number than it is to actually carry your card with you.While you may need to know your Social Security number for filling out various applications, you are rarely required to actually show anyone your Social Security card. You do not even need your card when applying for Social Security benefits. In fact, if you carry your card with you, the more likely it is to be lost or stolen, greatly increasing your risk of becoming an identity theft victim. Guard Against Identity Theft First Before you even start thinking about replacing your lost or stolen Social Security card, you need to take steps to protect yourself from identity theft.If your Social Security card has been lost or stolen, or if you suspect your Social Security number is being used illegally by someone else, the SSA and the Federal Trade Commission (FTC) recommend that you take the following steps as soon as possible: Step 1 Place a fraud alert on your credit file to prevent identity thieves from using your Social Security number to open credit accounts in your name or access your bank accounts. To place a fraud alert, simply call the toll-free fraud number of any one of the three nationwide consumer reporting companies. You only need to contact one of the three companies. Federal law requires the company you call to contact the other two. The three nationwide consumer reporting companies are: Equifax - 1-800-525-6285Trans Union - 1-800-680-7289Experian - 1-888-397-3742 Once you place a fraud alert, you are entitled to request a free credit report from all three credit reporting companies. Step 2 Review all three credit reports looking for any cases of credit accounts you did not open or charges to your accounts you did not make. Step 3 Immediately close any accounts you know or think have been used or created illegally. Step 4 File a report with your local police department. Most police departments now have specific identity theft reports and many have officers dedicated to investigating identity theft cases. Step 5 File an identity theft complaint online with the Federal Trade Commission, or by calling them at 1-877-438-4338 (TTY 1-866-653-4261). Do Them All Note that credit card companies may require you to take all 5 steps show above before they will forgive fraudulent charges made to your accounts. And Now Replace Your Social Security Card There is no charge for replacing a lost or stolen Social Security card, so watch out for scammers offering card replacement services for a fee. You can replace your own or your childs card, but you are limited to three replacement cards in a year and 10 during your lifetime. Replacing a card because of legal name changes or changes in U.S. citizenship and naturalization status does not count against those limits.To get a replacement Social Security card you will need to: Complete Form SS-5 - Application for a Social Security Card. (This form can be used to apply for a new card, to replace your card or to correct information shown on your card.);Present an unexpired original document, like a drivers license, with identifying information and preferably a recent photograph that proves your identity;Show evidence of your U.S. citizenship if you were born outside the United States and did not show proof of U.S. citizenship when you got your original card; andIf you are not a U.S. citizen, show evidence of your current naturalization or lawful noncitizen status. Replacement Social Security cards cannot be applied for online. You must either take or mail the completed SS-5 application and all required documents to your local Social Security Office. To find your local Social Security service center, see the SSAs Local Office Search website. 12 or Older? Read This Since most Americans are now issued a Social Security number at birth, anyone aged 12 or older applying for an original Social Security number must appear in person at a Social Security office for an interview. You will be asked to produce documents proving that you do not already have a Social Security number. These documents could include school, employment or tax records showing you never had a Social Security number. Documents You Might Need U.S. born adults (age 12 and older) will need to produce documents proving their U.S. citizenship, and identity. The SSA will only accept original or certified copies of documents. In addition, SSA will not accept receipts showing that the documents had been applied for or ordered. Citizenship To prove U.S. citizenship, the SSA will only accept an original or certified copy of your U.S. birth certificate, or your U.S. passport. Identity Clearly, the goal of the SSA is to prevent unscrupulous people from obtaining multiple Social Security numbers under fraudulent identities. As a result, they will only accept certain documents to prove your identity.To be accepted, your documents will need to be current and show your name and other identifying information like your date of birth or age. Whenever possible, documents used to prove your identity should a recent photograph of you. Examples of acceptable documents include: State-issued U.S. drivers license;State-issued non-driver identification card; orU.S. passport. Other documents that might be acceptable include: Company employee ID card;School ID card;Non-Medicare health insurance plan card; orU.S. military ID card. The SSA also provides information on how to get new, replacement, or corrected Social Security cards for children, foreign-born U.S. citizens and noncitizens.

Disscus How ethics applies to police work. and how ethical decisions Essay

Disscus How ethics applies to police work. and how ethical decisions should be made by law enforcement - Essay Example They take vow of office, are anticipated to meet the terms with certified codes of ethics, and are subject to numerous rules, laws, and protocols. An officer matures his or her moral scope, ethical base, or character from cooperating with other characters and reviewing ethics. Ethics exercise for police authorities assistances them do the following: Surrounded by an agencys code of ethics are precise provisions endorsing the protection of lives and belongings, the meaning of escaping bias and the accepting that the badge is the representation of the public trust? To be brief, the code of ethics necessitates that officers are not only equipped to impose the law, but to shadow it. They are entitled to be illustrations to the public and to make evident the right way to perform, instead of the entitlement mentality they are so repeatedly reproached of exhibiting (Gleason,

Obligations Law Essay Example | Topics and Well Written Essays - 750 words

Obligations Law - Essay Example However CounterAct Ltd accused In-Tech Ltd of making false statements during negotiations. The In-Tech Ltd are liable to false statements as accused based on the information they presented during the negotiation process. For instance, in an email on February 15th, she assured CounterAct’s Head of IT that the DX-5 would be very cheap to run, costing â€Å"no more than 25 pounds a week†. The sales manager knew that the system’s running costs are extremely high and did not disclose the information. Instead, she assured the buyer that the system is cheap. But we find that the system is consuming electricity at a rate of 50 pounds per day. This is too expensive considering the fact that In-Tech had given the value of 25 in a week. This makes In-Tech liable to fraud and according to the elements of common law; this is because In-Tech makes a knowing misrepresentation of the material facts that it presents to the other party. In this case, Lily knew about the costs were high but did not disclose the information. It is a fact that the DX-5 is expensive; this is against the promise made by In-Tech managers that the system would be cheap. Clause 13 of the contract provided for the proper installation of the system; this means that the system needed to be installed in good condition in the first week of July. The deadline for the installation was the 8th day of July. Unfortunately, by 14th July the software setup was not installed and there were reports that the In-Tech Ltd had become notorious for late installations. The action is fraudulent because they had promised and even signed the contract on the same. The fact is that, they knew about the process of installation because this is their line of business but they gave a short period of installation. This is considered by the law as promissory fraud. For instance, a case of this sort was litigated in Markow v ABC Transfer & Storage Co. In this case, a commercial tenant entered into negotiations to renew its lease on a warehouse and railroad yard. The warehouse was crucial to the tenant’s continued business relationship with its main client, the Scott Paper Company, because Scott used the warehouse a regional product distribution facility. The parties were assured of renewal of tenant’s lease during the contract renewal negotiations but the landlord was secretly engaged in negotiations of selling the company to the Boeing Company at the same time. The sale went through and the landlord gave a notice to that tenant to vacate in twenty days. The tenant thus lost the Scott Paper contract and incurred extra ordinary relocation expenses. The court found that the landlord’s promise regarding the lease renewal was fraudulent; the promise was done to tie the tenant to the case as the sale did not materialize. The meaning of this is that false promises may cause great losses to the buyer and the seller through the court is forced to compensate the buyer. In another instance, In-Tech Ltd is liable to false statement when they claim that DX-5 is indestructible and the CounterAct staff argues that when once staff spilled a cup of coffee the system reacted badly to the heat and moisture and had to be repaired. The In-Tech may have ignored the information hence misrepresentation of information is evident. All along there had been a misrepresentation of information and in most cases if the buyer realizes later that certain information was not