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Messages - hassan

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Teaching and Learning Tools / Re: Rubrics System
« on: September 16, 2019, 08:12:24 AM »
Thanks for sharing

Business & Entrepreneurship / Re: The hidden cost of inflation
« on: May 07, 2019, 04:40:13 AM »
Informative post

Business & Entrepreneurship / Re: Stand out from the crowd
« on: May 07, 2019, 04:39:18 AM »
Good one

Environmental accounting is a process of preparing and reporting the impact of the organisations activities on its environment. It includes its impact on both living and non-living things. Social accounting has to do with reporting on how the organizations activities impact the society. Sustainablity accounting which is the focus of many countries now, provides financial and non-financial information that helps in assessment of  organisational performance holistically in a multi-stakeholder environmnet.. It is a process of accounting for the impact of the organisations activities on the economy, environment, and society. The reporting must include both positive and negative impacts.

Environmental and economic issues are addressed together within the framework of environmental accounting but represent only two pillars of sustainable development. The concept of sustainable development is equivalent to the concept of well-being, which requires the recognition that humankind must coexist within the limits of available resources and determinants of its potential. Sustainable development is defined as encompassing three main pillars of economic, environmental and social. For example employment, culture and civilization, in a manner that directs the needs of present and future human beings and without guaranteeing the viability of natural land systems on which we depend on growth and life.

Financial Accounting / Re: Environmental accounting
« on: March 30, 2019, 01:54:11 PM »
Reasons for use
There are several advantages environmental accounting brings to business; notably, the complete costs, including environmental remediation and long term environmental consequences and externalities can be quantified and addressed.

More information about the statistical system of environmental accounts are available here: System of Integrated Environmental and Economic Accounting.

Environmental accounting is organized in three sub-disciplines: global, national, and corporate environmental accounting, respectively. Corporate environmental accounting can be further sub-divided into environmental management accounting and environmental financial accounting.

Global environmental accounting is an accounting methodology that deals areas includes energetics, ecology and economics at a worldwide level.
National environmental accounting is an accounting approach that deals with economics on a country's level.
Internationally, environmental accounting has been formalised into the System of Integrated Environmental and Economic Accounting, known as SEEA.[2] SEEA grows out of the System of National Accounts. The SEEA records the flows of raw materials (water, energy, minerals, wood, etc.) from the environment to the economy, the exchanges of these materials within the economy and the returns of wastes and pollutants to the environment. Also recorded are the prices or shadow prices for these materials as are environment protection expenditures. SEEA is used by 49 countries around the world.[3]
Corporate environmental accounting focuses on the cost structure and environmental performance of a company.[4]
Environmental management accounting focuses on making internal business strategy decisions. It can be defined as:
"..the identification, collection, analysis, and use of two types of information for internal decision making:
1) Physical information on the use, flows and fates of energy, water and materials (including wastes) and
2) Monetary information on environmentally related costs, earnings and savings."[5]
As part of an environmental management accounting project in the State of Victoria, Australia, four case studies were undertaken in 2002 involving a school (Methodist Ladies College, Perth), plastics manufacturing company (Cormack Manufacturing Pty Ltd, Sydney), provider of office services (a service division of AMP, Australia wide) and wool processing (GH Michell & Sons Pty Ltd, Adelaide). Four major accounting professionals and firms were involved in the project; KPMG (Melbourne), Price Waterhouse Coopers (Sydney), Professor Craig Deegan, RMIT University (Melbourne) and BDO Consultants Pty Ltd (Perth). In February 2003, John Thwaites, The Victorian Minister for the Environment launched the report which summarised the results of the studies.[1]
These studies were supported by the Department of Environment and Heritage of the Australian Federal Government, and appear to have applied some of the principles outlined in the United Nations Division for Sustainable Development publication, Environmental Management Accounting Procedures and Principles (2001).
Environmental financial accounting is used to provide information needed by external stakeholders on a company’s financial performance. This type of accounting allows companies to prepare financial reports for investors, lenders and other interested parties.[6]

Financial Accounting / Environmental accounting
« on: March 30, 2019, 01:53:44 PM »
Environmental accounting is a subset of accounting proper, its target being to incorporate both economic and environmental information. It can be conducted at the corporate level or at the level of a national economy through the System of Integrated Environmental and Economic Accounting, a satellite system to the National Accounts of Countries[1] (among other things, the National Accounts produce the estimates of Gross Domestic Product otherwise known as GDP).

Environmental accounting is a field that identifies resource use, measures and communicates costs of a company’s or national economic impact on the environment. Costs include costs to clean up or remediate contaminated sites, environmental fines, penalties and taxes, purchase of pollution prevention technologies and waste management costs.

An environmental accounting system consists of environmentally differentiated conventional accounting and ecological accounting. Environmentally differentiated accounting measures effects of the natural environment on a company in monetary terms. Ecological accounting measures the influence a company has on the environment, but in physical measurements.

English / Re: Two Traveling Angels......
« on: March 30, 2019, 01:50:40 PM »
good post

« on: March 30, 2019, 01:49:14 PM »
 the focus in the debate between whether accounting standards should be principles or rules. Management
discretion is allowed with accounting principles, but would not be allowed with rules. The rules would be like laws.
Major financial frauds were committed as follows: McKesson and Robbins created fictitious sates and
inventories. Great Salad Oil Swindle used the fact that oil and water do not mix to fraudulently over-state the quantity of
oil in inventory tanks. The bottom part of the inventory tank was water and the top was salad oil. The auditors did not
test all the way to the bottom of the tanks. Equity Funding was about fake insurance policies. Cedant Corporation was
about fake revenues. Zzzz Best was a pyramid scheme. Sunbeam Corporation used what is called channel stuffing where
revenue recognition is accelerated inappropriately. Nortel used what is called a big bath. Nortel had deferred recognition
of expenses by recording as assets. This inflated total assets and total owners’ equity. After several years, they wrote off
the assets and recognized a huge loss that drove the owners’ equity down. It washed away the profits.
Worldcom also recorded assets when they should have recognized expenses. Enron is well known for using
Special Purpose Entities to hide huge losses. Enron creatively and fraudulently recorded non-existent revenues. Qwest
and Global Crossing used what are called swap sales to inflate reported income.

Financial Accounting / FRAUD INDICATORS
« on: March 30, 2019, 01:48:51 PM »
After many dramatic fraud cases were identified, a list of red flags associated with these examples of fraud
were developed. Had these red flags been noticed, then the organization’s management or employees might not have
committed fraud or it might have been caught sooner. The red flags include the following: Lack of independence
between the organization’s management, external auditors, audit committees and internal auditors; Lack of competence,
oversight or diligence in or by the organization’s audit committee and internal auditors; Weak internal control processes;
Management style that pressured employees to take actions beyond financial statement management to manipulation to
outright misrepresentation which is fraud.
Personnel-related practices allowing financial statement misrepresentation include low employee morale that is
possibly due to inadequate compensation, high turnover and inexperienced managers. This tends to result when there is
inadequate screening of potential employees and managers. Accounting practices indicating that someone has committed
fraud include frequent external auditor firm changes, restatements of prior year reports due in part to large and frequent
accounting errors.
An organization that loses financial records may have lost their financial records on purpose to hide fraud.
Fraud is easier to commit when there is no strong accounting information system. Company’s financial conditions that
can indicate possible fraud include insider trading and inventory manipulation as has already been presented.

Financial Accounting / CORPORATE GOVERNANCE
« on: March 30, 2019, 01:48:34 PM »

Corporate governance can mitigate financial statement fraud through the process of greater supervision of the
organization. This process is also called oversight. Oversight is so important that it is included in the title of the
organization that replaced the American Institute of Certified Public Accountants regarding the development of auditing
standards. This organization is the Public Company Accounting Oversight Board (PCAOB).
The Sarbanes Oxley Act was the legislation that mandated the establishment of the Public Company
Accounting Oversight Board. Some of the standards promulgated by the Public Company Accounting Oversight Board
include the following: Every five years, the primary or reviewing audit partner must be changed for each client. Working
papers must be maintained for a minimum of seven years. This is partially due to documents being shredded relative
to a number of famous fraud cases. A few of these famous fraud cases will be briefly presented later in this lesson.
The internal control system of an audited organization must be evaluated and any material weaknesses
Formal and official ethics standards must be adopted by each auditing organization. Major components of
these ethics standards must include clarity about the organization’s independence from the audited organization
along with how the audit process is accepted and planned and supervised.
Other oversight groups that do not actively operate the organization include the organization’s Board of
Directors, Audit Committee and external auditors. Increased oversight is expected by the organization’s internal
auditors as supervised by top managers such as the Chief Executive Officer and the Chief Financial Officer. It is
hoped and believed that if an organization has a strong audit committee and excellent external audit process that
fraud will be deterred. However the responsibility and blame for fraud rests exclusively at the feet of management
and not at the feet of the audit committee or the external auditors.

« on: March 30, 2019, 01:48:09 PM »
Financial statement fraud that harms individual investors, financial markets, and society includes the loss of
retirement funds, employment, community economics and economies. Fraudulent practice of insider trading is an
example. Insiders are corporate managers. Trading refers to buying or selling of the corporation’s common and preferred
stock. Usually the stock that is purchased is authorized, but not yet issued stock.
When the manager buys the stock, it is purchased directly from the corporation and not from current stock
holders. The new stock dilutes the value of the existing outstanding stock. Before the existing stockholders learn of the
new issuance of stock, the managers have sold the new stock at the existing market value that does not reflect the actual
decline due to dilution caused by the increase in the number of shares representing an unchanged corporate total value.
Insiders or managers know about both good and bad news for the corporation before the impact of the news is
reflected in the financial statements. Managers use this news to buy or sell stock for their personal economic advantage.
In the year 2006, the Securities and Exchange Commission addressed the reporting of stock option exercising. The time
frame has been shortened.
Stock options are given as both an incentive and a reward to managers. The option is an opportunity to
purchase common or preferred stock at a certain price. The option is an opportunity to purchase common or preferred
stock at a certain price. Managers would wait for the stock price to rise and then pretend to purchase the stock days or
even weeks earlier when the stock price was lower. Since the stock was purchased directly from the corporation and was
part of the authorized but unissued stock, it was relatively easy for the corporation to record an earlier date than the actual
transaction occurred.
Recording an earlier date than the actual transaction occurred is called back dating. The purchase would be
back dated and the managers would immediately sell the stock for personal profit. Existing stockholders experienced
personal loss. Sometimes this was a dramatic loss for the existing stockholders and thereby the organization.

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