The Excello Telecommunication has been a very successful business until shortly there were some issues with the competition within the companies industry. The CFO of the Excello Telecommunication is Terry Reed‚ who has realized that the business will be short on the earnings this year. With this going on will cause problems with the financial responsibility toward the stakeholders. Mr. Reed located a transaction within the business that will work for the businesses financial responsibility‚ but with
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Excello Telecommunication Donna Snead ETH/376 Susan Paris Monday 23‚ 2015 Excello Telecommunication had seen many years of profitable sales. But‚ then in 2010 Excello had seen a drop of sales due to competition of their product by overseas manufactures. With all the years that this company had been in business they were now faced with the fact that their earnings estimates were not going to be met. There were many executive managers that were worried about the kind of effect this would have on
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Legality and Ethicality of Financial Reporting Accounting professionals consider standard practices of accounting and board of accountancy rules when creating ethical standards. Accountants also consider state and federal laws. Ethics and the law works hand-in-hand therefore should be on the minds of those considering the commission of fraud. The Chief Financial Officer (CFO) of Excello‚ Terry Reed‚ was considering doing such by posting a $2.1 million transaction to raise year-end earnings.
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Excello Telecommunications has been a profitable company and because of increasing competition they have realized that their earnings that were estimated will not be met. Management is now worried how this will affect the company’s future with investors. A big sale has been made right at the end of the year and this sale could be the difference in making or breaking the company. The problem is that the buyer cannot purchase the items until right after the end of the year which will not then be reported
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Legality and Ethicality of Financial Reporting Clairice Sikoski ETH-376 December 10‚ 2012 Samuel Hinton Legality and Ethicality of Financial Reporting Excello Telecommunications is looking to record revenue before the earning process has been completed or before the unconditional exchange has occurred. Terry Reed‚ the CFO is trying to influence the accounting department to look for options to record the sale of 1.2 million in equipment by December 31 to boost earnings on financial statements
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Legality and Ethicality of Corporate Governance Robert J. Thompson ETH/376 July 8‚ 2013 Tammie Holland Legality and Ethicality of Corporate Governance Case 3-3 at the end of Chapter Three of Ethical Obligations and Decision Making in Accounting provides an example of how legal and ethical issues affect corporate governance. Examining the legality‚ Sarbanes-Oxley Act‚ and ethicality of the activities of this case will ensure the activities of United Thermostatic Controls are equitable
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As the case of Excello Telecommunications is reviewed it can be seen that the CFO was facing financial difficulties due to increased competition. In 2010 the earnings estimate was not going to be met and this would have affected the bonuses‚ stock options‚ and the share prices of the Excello stocks. After discovering a large sale that was pending until the shipment could be made for the following year the CFO asked the company controller to find a way to capitalize on the sale in the current year
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ethical issues in financial reporting. Accounting industry professionals consider standard practices of accounting‚ and board of accountancy rules when creating ethics standards. Important‚ they also consider state‚ and federal laws. Ethics and the law work hand-in-hand‚ and therefore should be at the forefront of the minds of those pondering the commission of fraud as exhibited in the Excello Telecommunications case (hereinafter referred to as Excello). In this case‚ the Chief Financial Officer (CFO)
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The Regulation of Financial Reporting Contents Part 1 Financial Statement Analysis of JD Wetherspoon plc Executive summary.............................................................................4 1.1 Company profile................................................................................4 1.2 History and development...................................................................4 Introduction....................................
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What is financial reporting? The traditional function of financial reporting was to provide business owners with information about the companies that they owned and operated. Once the delegation of managerial responsibilities to hired personnel became a common practice‚ financial reporting began to focus on stewardship—that is‚ on the managers’ accountability to the owners. Its purpose then was to document how effectively the owners’ assets were managed‚ in terms of both capital preservation and
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