Unit 3 – Discussion Board

Accounting for Managers(ACG510-2401B-02)

Stephanie Babineau

I have found that misrepresenting the company’s finances would go against the GAAP rules and principles that are the basic expectations of those financially representing a company’s financial statements, mainly the auditors and upper management, including the finance department. The CEO is playing with serious principles that are meant to guide the company, in such instances, as this one faced. 

First, are the three GAAP principles that are depleted in the immediate situation, mainly, that a CEO wants to mislead those of use of the company’s financial statements, by, suggesting to span the cost of repairs to be covered over several months, whereas, that is not the time of expense. The three GAAP principles that oppose the CEO’s intent are the matching principle, where the expenses are identified immediately within the same time frame as the cost relates. This is to express an accurate income statement, a reflection of costs, and just that. It would be unethical, inappropriate, and, not good for business acumen, otherwise. Another principle of GAAP, that would be unattended, is, the full disclosure principle. This principle states that information, both, financial and non-financial, must be reported to those users of the information, honestly representing the relevant information to those it may be provided for, in connection to, mainly, the stockholders, the creditors, and, the company. The final principle that relates to this concept, is the materiality principle. This is that the information is deemed significant, whether, misstated or left to omission. It is of materiality if it has any effect on those utilizing the information that it holds.

This idea would be strongly discouraged of the CEO, and, proper-action, information would be provided to this party to the company. I would advise the CEO that it is not in the best interest, for the CEO to act upon this suggestion, and, validating the company, is the best advice to follow, especially, when that is in reflection of the earnings and losses that compile the final quarter, or, annual report, and, directly affects decisions made, on the company’s behalf.

Arneisia Mccutcheon

Hello Jami,

I found your post to be very interesting & informative, along with providing a great deal of insight. While reading your post it appears to me that upon researching the topic we have a great deal of similarities. You touched base on some very important points with GAAP being an eye opener to me as well. Receiving the information that the GAAP which requires expenses to be recognized immediately of occurrence was a strong point that I missed. Thanks for this informative post & valuable information. 

Tara Sanders

Good Morning Everyone,

There are a lot of social and financial problems with the CEO’s idea to capitalize on higher repair costs and pay for them over several months. Firstly, this practice gives investors and other parties false information about the company’s finances (Mo, 2020). Inflating its profits for the current quarter by spreading repair costs across multiple reporting periods provides the company with a falsely better financial picture than reality calls for. Investors and other stakeholders lose faith in the company’s reporting methods (Kenneth, 2022). Furthermore, changing financial statements this way is unethical. It risks breaking accounting and government rules, which could lead to legal problems and severe harm to the company’s image and standing in the market.

Addressing the possibility of manipulating the financial statement involves a comprehensive plan, including conformity with the accounting standards and ethics principles and shaping a culture that promotes transparency and integrity within the organization. As the organization’s responsible member, I would start by educating the CEO and the appropriate stakeholders about the potential risks and consequences of tampering with financial statements (Mandal & Amilan, 2023). I will have to stress the role of integrity and accountability in financial reporting for trust establishment in the enterprise. Additionally, I will offer other ways to lower expenses and boost the bottom line, such as implementing cost-cutting measures, switching to better vendor terms, or improving operational aspects (Chandel, Kumar, & Kapoor, 2022). Moreover, by creating a moral and ethical workplace culture, the business can be sure that financial choices are made honestly and in the best interests of everyone involved. This helps protect the business’s reputation and encourages long-term success. Hence, this process follows ethical standards and improves the organization’s business background honesty, which suits the company and its ability to stay in the market.

References

Chandel, R. S., Kumar, R., & Kapoor, J. (2022). Sustainability aspects of machining operations: A summary of concepts. Materials Today: Proceedings, 50, 716–723. https://doi.org/10.1016/j.matpr.2021.04.624

Kenneth, B. S. (2022). Introduction to financial analysis. Touro Scholar. Retrieved from https://touroscholar.touro.edu/opentextbooks/2/

Mandal, A., & Amilan, S. (2023). Preventing financial statement fraud in the corporate sector: insights from auditors. Journal of Financial Reporting and Accounting. https://doi.org/10.1108/jfra-02-2023-0101

Mo, Y. (2020). Research on theory and practice of financial frauds. https://doi.org/10.1145/3436209.3436380

Eduardo Deulofeu

Hello Class,

I personally think that the CEO’s suggestion to capitalize a larger repair cost and recognize it over several months raises significant ethical and accounting concerns. Capitalizing an expense means recording it as an asset and expensing it over time, which is appropriate for capital expenditures that provide benefits over several years, not for regular repair costs which are typically considered as expenses incurred to maintain the current value of assets.

From an accounting standpoint, this approach contradicts the Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS), depending on the jurisdiction. These standards dictate that expenses should be recognized in the period they are incurred unless they add future value to an asset. Repair costs usually do not extend the life of an asset but merely maintain its current usability and are therefore expected to be expensed in the period they are incurred.

Ethically, manipulating financial statements to improve the company’s bottom line, even temporarily, can be seen as deceitful because it misrepresents the company’s actual financial health to stakeholders, including investors, creditors, and employees. Such actions can lead to a loss of trust and credibility, potential legal consequences, and can harm the company’s reputation in the long term.

In addressing this suggestion, one should openly communicate these concerns with the CEO, emphasizing the importance of adhering to ethical accounting practices and standards. It’s crucial to suggest alternative legitimate strategies for cost reduction or efficiency improvements that do not compromise ethical or accounting principles. If the CEO insists on the unethical approach, escalating the issue to the board of directors or the audit committee might be necessary to ensure the company remains compliant with financial reporting standards and maintains its integrity.

 Unit 3 – Discussion Board

Employment Law(MGT555-2401B-02)

Hello Jami.

Your argument effectively highlights the potential for racial discrimination under Title VII due to the firing of Kelly over her dreadlocks, a hairstyle deeply tied to African American culture. You’ve insightfully connected the enforcement of such a policy to disparate treatment, emphasizing the absence of a legitimate business necessity for such an action. The point about courts increasingly recognizing policies targeting black hair as discrimination is crucial and affirms the growing legal acknowledgment of such biases. How do you think this evolving legal landscape will influence employers’ approach to creating and enforcing appearance-based policies in the workplace?

Cassandra Scroggins

Reply

UNIT 3 – DISCUSSION BOARD

Wed 2/28/2024 7:11 PM

LikeUnit 3 – Discussion Board Like PostFlagUnit 3 – Discussion Board Flag Post

Hi class in this scenario Kerry does  have a  claim to Title VII  because she was  discriminated  against  for  her  hair  style  and  under Title VII that is  discrimination. 

Title VII prohibits employment discrimination based on race, color, religion, sex and national origin. Also the  The CROWN Act is a law that forbids discrimination based on hair texture and hair styles. This Law was law   was  violated   when   kerry ‘s   boss   fired   her   based on her   hair style  that  is  discrimination.

Sometimes people of different races may wear different hair styles because of their race or origin, Kerry’s boss firing here based on her hair is not any reason based on here performance but her appearance which like you said is discrimination. The crown act is not passed in Texas however this is something many states have passed to help fight against discrimination in the workplace . THE  CROWN act would apply  to something  like this. 

  Reference  U.S Equal Employment Opportunity (2024) 

Title VII OF  the Civil Rights Act 1964 

https://www.eeoc.gov/statutes/title-vii-civil-righ…

What is the CROWN Act? ( July 4, 2022)  dl.org/resources/tools-and-strategies/what-crown-act

Griselda Santander

Unit 3 Discussion Post

It is likely that Kerry has a Title VII of the Civil Rights Act of 1964 claim against her employer for a case of racial discrimination. The mandate is against employment discrimination based on color, race, religion, national origin, and sex. It is proper to note that the interpretation of what is considered racial discrimination as affirmed in Title VII has evolved over the years and some policies that disproportionately affect people of a certain race, even though neutral, can be deemed to be discriminatory.

           Back in 2019, California was the first state in the United States of America to implement the CROWN Act (Creating a Respectful and Open World for Natural Hair), which strictly and explicitly prohibits employment discrimination based on hair texture and hairstyle (Brown & Lemi, 2021). This rule extended the protections outlined in Title VII to include protective hairstyles and hair texture as an inherent part of race (Brown & Lemi, 2021). The fact further reiterates that hairstyles such as dreadlocks, which Kerry has, are usually associated with certain races and that policies prohibiting these hairstyles are discriminatory in nature.

           With reference to this, the action to fire Kerry for wearing her natural hair in dreadlocks, a hair intrinsically associated with people of her race, directly goes against protections dictated by Title VII and, most importantly, the CROWN Act. Her employer’s perspective on enforcing a policy of neat and professional hair disregards the racial and cultural significance of dreadlocks and effectively discriminates against Kerry based on her race.

           Kerry has a strong basis for a claim against her employer, as her termination was centered on a policy that discriminates on grounds of race. This case scenario highlights the need for employers to ensure their human resource policies comply with state and federal anti-discrimination laws (Brown & Lemi, 2021). It also demonstrates the essence of comprehending and respecting the racial and cultural implications of workplace policies, mostly when it comes to race matters.

References

Brown, N. E., & Lemi, D. C. (2021). Afro-textured hair and the CROWN act. Sister Style, 18-45. https://doi.org/10.1093/oso/9780197540572.003.0002

Ibrahim Vandi

Hello Jami,

As you mentioned Title VII in relation to Kerry’s situation, 50 plus years ago after Title Vill passage, there are still a significant difference in all facets of society including employment based on race and gender, The unlawful employment practice for employers to limit segregation or clarifying employees in any way that will deprive them of employment opportunities based on the employee natural origin.

If Kerry’s employer was considering on her hair style, only a rule it would have been recommended that her employer should consider whether the rule was deemed necessary to applied. Secondly her employer to determine if the rule was a business necessity.  Most important, whether he was to communicate the rule to everyone and to enforce it fairly not at such  disciplinary  decision making that makes it impossible to   understand her Employer.