The Enron scandal‚ revealed in October 2001‚ eventually led to the bankruptcy of the Enron Corporation‚ an American energy company based in Houston‚ Texas‚ and the de facto dissolution of Arthur Andersen‚ which was one of the five largest audit and accountancy partnerships in the world. In addition to being the largest bankruptcy reorganization in American history at that time‚ Enron was attributed as the biggest audit failure.[1] Enron was formed in 1985 by Kenneth Lay after merging Houston Natural
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reevaluation of both the accounting industry and many aspects of corporate governance in America. As a result of the scandal‚ thousands of people lost their jobs‚ some people lost their entire pensions‚ and all of the shareholders lost the money that they had invested in the corporation after it went bankrupt. The Enron scandal is the most significant corporate collapse in the United States since the failure of many savings and loan banks during the 1980s. This scandal demonstrates the need for
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STUDENT NO: …………………………... SEMINAR TUTOR …………………………... Introduction Accounting is concerned with providing both financial and non-financial information that will help decision makers to make good decisions. An understanding of accounting therefore requires an understanding of the decision making process and an awareness of the users of accounting information. The major purposes of accounting are to formulate overall strategies and long-run plans. Resource allocation decisions such
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Financial accounting and management accounting both prepare and analyze financial data. However‚ certain aspects of these two fields are very different. This article discusses the various differences between financial accounting and management accounting. The differing characteristics to be discussed include the users of information‚ the types of information‚ regulatory oversight‚ and frequency of reporting. Users of Information Financial accounting and management accounting provide information
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Waste Minimization Techniques Mike Lancaster Green Chemistry Network Waste Treatment Cost of Waste PREVENT TREAT & DISPOSE DISPOSE Cost of Waste Legislation 1900 2000 1 Waste Minimization Techniques • • • • Prevention is better than cure Get it right at the R&D stage Chemists do not have all the answers! The answer lies within a multi-disciplinary team – – – – – chemists chemical engineers production business health‚ safety‚ environment specialists
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Executive Compensation and the Dramatic Increase in Corporate Accounting Scandals According to one estimate‚ the total median CEO pay at the nation’s 350 largest publicly-owned firms grew from $2.7 million annually in 1995 to $6.8 million in 2005. The overall increase in CEO pay has outstripped inflation and the growth in non-managerial pay over the same period. Equally important is the trend in the composition of CEO performance-based pay which includes stock and stock option grants. Median
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The magnitude of food waste is a pressing problem‚ which causes harm to the economy and the environment. In the United States‚ nearly 40% of food gets thrown away. This is primarily due to the ignorance of the consumers and the distributors with regards to food waste. Consumers should be mindful about the amount and kind of food they purchase while distributors should be careful not to overstock the shelves (Food Waste: The Facts‚ n.d.). Consumers should be more mindful about throwing away food just
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foreign tax credits go to the U.S. corporations with operations abroad. As global competition grows ever more intense‚ it is vital to the health of U.S. enterprises and to their continuing ability to contribute to the U.S. economy that they are made free from the possibility of double taxation‚ excessive foreign taxation‚ and other barriers to the flow of capital that can serve as obstacles to full participation in the international marketplace. Because foreign trade is fundamental to the economic
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The Enron scandal A brief on Enron’s history Enron was formed in 1985 by Kenneth Lay after merging Houston Natural Gas and InterNorth. In the early 1990s‚ he helped to initiate the selling of electricity at market prices‚ The resulting markets made it possible for traders such as Enron to sell energy at higher prices‚ thereby significantly increasing its revenue. As Enron became the largest seller of natural gas in North America by 1992‚ Enron pursued a diversification strategy
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“The past 15 years have seen a series of new developments within Management Accounting to meet the ever changing needs of the organisation in the light of rapidly changing technologies”. The following will focus on new techniques and developments used in Management Accounting over the last 15 years‚ by looking at their origins and apparent necessity leading to their introduction within industry. Each development will be assessed individually providing its background‚ initiation‚ impact on the business
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