Company Going Public Essay

Company Going Public Essay
One of the biggest downsides of a company going public is not only the costly price attached, but
also the stressful drawn–out process of documents and regulations to follow. Going public is process
private firms make when they issue shares of stock to the public for the first time. If a company
wants to share stock to the public, it has to conduct an initial public offering (IPO). An IPO is a
process that takes weeks or months for preparation. The process starts with retaining a law firm to
engage in the tedious detailed disclosure documents needed for the IPO prospectus that is included
in the Securities Exchange Commission Form S–1. The Securities Exchange Commission (SEC)
overseas publicly trades companies and there are various documents that need to be disclosed which
include financial statements, management information circulars, management's discussion and
analysis (MD&A), earnings release and prospectuses. Most disclosure documents must be filed with
securities regulator. However, some don't have to be filled, but instead posted on the funds website
or sent to investors, these include quarterly portfolio disclosure. There are two main acts under the
SEC. The first is The Securities Act of 1933 which is designed to prevent fraud in the sale of
securities. It requires initial disclosures about securities, such as stocks, that are going to be sold to
the public (Federal regulation of publicly traded companies, n.d.)
The second is The Securities Exchange Act of 1934
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Analysis Of Disney Company 's Recreation Of Public Domain...
Once upon a time there were gripping tales shared between generation to generation and
continuously passed down. The listener 's focus was on the story's message and not its possible
profit allowed those listeners to live happily ever after. Storytelling began long ago traditionally told
orally before there was a shift to written stories and eventually as technology developed became a
digital market. Some of the most famous digitalized tales are fairy tales. Previous to digital
development, copyright laws on fairy tales were slim because there was less concern over copying.
This is also how the story's focus was more on the message and its creative development than the
potential profit. The Walt Disney company's recreation of public domain fairy tales demonstraights
how copyright laws have hindered artistic creativitity within America.
The Walt Disney company, is a beloved as well as infamous company worldwide also notoriously
known for their strict copyright laws. Original American copyright laws stated artistic works were
protected for 28 years and these laws were eventfully extended to a 56–year time frame. The term
continues to increase with the present law set at 75 years. Large companies like Disney continue to
fight for stricter and longer laws because of the revenue they will continue to bring it. (Washington
post). One apparent problem from the extensions is public lacks the ability to build on Disney
stories since they are not in public domain. In the 1997 report

Pharmaceutical Companies Are Entering Into Public Private...
1. Introduction
The classic example used to describe the capitalistic greed and oppression of the developed world is
"Big Pharma": pharmaceutical companies apparently commit fraud, cover up their mistakes, and
increase prices of their products for maximum profits. This criticism of pharmaceutical companies is
sometimes justified, especially in the issue of neglected tropical diseases (NTD). NTDs are a group
of diseases that predominantly affect less–economically developed populations but are eliminated in
the developed world. Effective treatment for various NTDs have existed since the last century, but
pharmaceutical companies have historically not catered to NTD patients because it was not
commercially profitable (WHO, Intensified 2). ... Show more content on Helpwriting.net ...
To explore these ideas, this paper will analyze the historical shift to public–private partnerships, the
motivations to invest in NTDs and partnerships, and the resulting strategies that have surfaced to
analyze NTDs.
2. Neglected Tropical Diseases: Overview
Neglected Tropical Diseases are a series of "chronic, endemic tropical diseases" that predominantly
affect less–economically developed populations and are neglected in the health industry (WHO,
"Investing" 1). This definition is broad, as a large variety of pathogens are tropical and poverty–
related. As a result, NTDs are diverse in their biological makeup, ranging from airborne vectors to
bacteria to worms. They are spread and treated differently, and receive varying levels of attention
from the public and private sectors. Many tropical pathogens, notably typhoid fever, are not
included in the list of NTDs despite their debilitating effects on impoverished populations (Hotez
and Kamath 1).
The lack of a clear–cut definition and the lack of research for NTDs creates a severe underestimate
of their disease burden, or their impact on economy, mortality, morbidity, and general quality of life
(Hotez and Kamath 1). The "big three" diseases of our time, or the diseases that receive the most
attention, are

Fraudulent Corporate Scandals
Those who are running corporations have long been detached from the objectives of their
stakeholders, but catered to new breeds of audiences, audiences that are more interested in the short
term stock prices and quarterly performances, stock analysts and equity traders. These corporate
executives kept stretching out of moral and ethical bounds. In many instances, enriching themselves
at the expenses of their thereby crossed also the legal lines. However, it was just a matter of time
before the lids would be blown off to those boiling pots. The much needed blowup was offered by
the massive scandals at Enron and Worldcom followed by Adelphia and the rest. In their efforts to
restore investors' confidence in the capital market, the United States' Congress enacted Sarbanes–
Oxley Act in 2002 (SOX). The SOX had ambitious goals to fix the root cause of the failures in
corporate America, accountabilities in the boardrooms (Grasso, Tilley, & White, 2009: Kessel,
2011). In particular, the Act ensures that accounting records and reports are fairly presented and
reliable (Verschoor, 2012: Aubert & Grudnitski, 2013). SOX achieves these by requiring
certifications by the Chief Executive Officers (CEO) and the Chief Financial Officers (CFO). In
addition, attestations by independent auditors of accuracies of the financial reports and internal
controls over the accounting records. The key ethical components of the SOX The fraudulent
corporate scandals that necessitated the enactment of

Generally Accepted Auditing Standards
Generally Accepted Auditing Standards
Maxx Mayeux
ACC/490
February 22nd, 2012
Linda Carr
Generally Accepted Auditing Standard
Describe how these standards apply to financial, operational, and compliance audits.
Explain the effect that the Sarbanes–Oxley Act of 2002, and the Public Company Accounting
Oversight Board (PCAOB), will have on audits of publicly traded companies. Discuss the additional
requirements that are placed on auditors from this act and the actions of the PCAOB.
Format your paper consistent with APA guidelines.
JPMorgan Chase Bank is a publicly traded company and uses an external–independent auditing
firm, PricewaterhouseCoopers LLP, to provide an annual audit. JPMorgan ... Show more content on
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Although there are different areas of auditing, the standards apply in applicable situations. Auditors
must be properly trained, plan accordingly, and remain objective in all situations. The standards of
reporting portion of GAAS is primarily specific to a financial audit and lays down standard for how
the audits should be conducted. The Sarbanes–Oxley Act of 2002 created the PCAOB to regulate the
audit of public companies subject to security laws (Boynton & Johnson, 2006). The effect that this
has on the audit of publicly traded companies is that the PCAOB has authority in five areas. The
first is that public accounting firms that audit the financial statements of public companies must be
registered. The second puts quality control standards in place for peer review and inspections of
registered public accounting firms. The third sets auditing standards and the fouth sets independence
and ethics rules for the auditors. The fifth is to enforce the Sarbanes Oxley Act and promote high
professional standards. The PCAOB has the authority to prohibit an accounting firm or CPA from
auditing publicly traded companies. The board also conducts inspections of the registered
accounting firms to determine if they are in compliance with the rules of the board, SEC, and any

other professional standards (Boynton & Johnson, 2006). AlwaysCare Benefits is not a public
company and therefore does not need to be audited

Cash Flow Statement And Its Benefits And Disadvantages
When it comes to understanding business finances, the ability to read different financial statements
becomes crucial. A cash flow statement is an important and essential part of keeping a record of the
business' financial liquidity. Business's liquidity matters because it often directly signals the
company's ability to pay off debts and to generate money.
In this guide, you'll learn to understand the definition of a cash flow statement with its benefits and
disadvantages. The guide will also look at the structure of a financial statement and the different
preparation methods you can use to calculate a company's cash flow.
What is a cash flow statement?
Cash flow statement is one core three financial reporting tools companies use. It is designed to
complement the balance sheet and the income statement. In most accounting systems around the
world, a cash flow statement is part of the mandatory reporting.
A cash flow statement is a an official record of cash and cash equivalents entering and leaving a
business entity. It focuses on showcasing the sources of money in the business as well as how it is
spent over a specific period.
It usually looks at the general accounting period, such as financial year, but cash flow statement can
be created over any specific period.
It is important to note that a cash flow statement doesn't include other money revenues, such as
depreciation or other such non–cash items. The statement is similar to income statement, as a
statement to

Nj Water Company : Public Relations Plan Assignment Essay
NJ Water Company – Public Relations Plan Assignment
The New Jersey Water Company serves approximately 2.5 million people, 17 counties in New
Jersey and supply high–quality water. They stand by the regulations, develop the innovations, invest
in the vast infrastructure, and educate the customers on the wise usage of water. The NJ water
company follows the rules and regulations set the State's Environmental Protection Agency that
helps to provide the high–quality drinking water. The company is committed to delivering the high–
quality water to all the customers. The company conducts various tests per year to check the
possible contaminants, check the quality of drinking water at every stage of water treatment and
delivery process. The New Jersey Water Company offers the online service for the customers to pay
the bills online or through the automatic payment machine. The customers can start or end the
service online. The goal of the NJ water company is to achieve the increased trustworthiness of the
customers without the necessities of the additional projects that were being assessed.
The mission of the NJ water company is to provide the high–quality water facility to the customers
after testing to satisfy them. The team conducted the extensive research study to uncover the
consumer insight that would lead to the unique campaign. The research also ensures that the
campaign would resonate the targeted consumers while reinforcing the value position and common
sense of the

Public Company Accounting Oversight Board; Will It Protect...
Public Company Accounting Oversight Board; Will it Protect Investors? The Public Company
Accounting Oversight Board (PCAOB) was created by Sarbanes–Oxley Act of 2002. This board
was created to oversee the audit of public companies, subject to the securities laws, in order to
protect the interests of investors (15 USC 7201, 2002). It was created in wake of the recent financial
scandals of Enron, WorldCom, and Global Crossing to name a few. This "Act" established by
Congress is to create an oversight board, so that such scandals will never occur again. Will this
oversight board work and will its work restore public confidence and encourage individuals to invest
in the stock market again? The PCAOB is not a tax–payer funded agency. ... Show more content on
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So who is responsible for leading the PCAOB to take the necessary steps to restore investor
confidence? The chairman of the PCAOB, William McDonough, states that the PCAOB will be
"stern but sympathetic supervisors" (Michaels). It appears that McDonough is taking a tough love
approach, the approach he used as the president and CEO of the Reserve Bank of New York. He
states; "Most of the time (at the Fed) we 'd be supportive, helpful – but if you do something wrong,
watch out (Tufts)." One example of McDonough being supportive is not requiring public accounting
firms to sell their tax and corporate finance practices (Michaels). To require firms to become audit
only would have created animosity towards the PCAOB and further push back on any standard that
the PCAOB would issue in the future. By allowing firms to keep their tax business he is reducing
future conflicts and getting buy off from public accounting firms on tough auditing standards that
the PCAOB is and will issue. He is trying to foster a win–win attitude. Will this approach work is
hard to determine at this time. The PCAOB board is so new, only time will tell if his approach is
effective or not. The PCAOB is the public accounting oversight board created by the Congress via
the Sarbanes–Oxley Act. It appears the PCAOB has laid the groundwork to effectively monitor and
review the public accounting

Public And Private Company Council
The Private Company Council For decades, there has been a separation between public and private
companies and the method in which they account for their activities. As a result, there can be great
complexity in the preparation of the financial statements for private entities who have been required
to conform to the reporting standards of public companies. This has led to poor comparability
among companies and has left investors frustrated. In 2012, as an attempt to remedy this situation, a
council known as the Private Company Council (PCC) was established. Moving forward in this
paper, the reader shall gain a greater understanding of the duty and purpose of the PCC. In addition,
you shall gain a general idea of how it is working towards a more common ground for public and
private companies to co–exist in regards to the accounting standards of which they abide. Thousands
of corporations in the US are publicly held and have their stock traded daily on various stock
markets. These public companies sell ownership shares and are therefore required to send in a
schedule 10–K to the US Securities and Exchange Commission each year. This schedule provides
potential investors as well as governmental regulators with an overview of the company's financial
information for the previous year. Public companies must also be audited annually to ensure that the
information being presented to the public is accurate. Conversely, privately held companies are just
that, privately held.

Whether Facebook Can Benefit from the Changing Between...
Facebook is a social net working service, which is started in the United States by Mark Zuckerberg
with his friends in 2004. The website's membership was initially limited by the founders to Harvard
students, but was expanded to other colleges, and gradually globalization. In 2012, the fonder of
Facebook, Mark Zuckerberg decide to convert the structure of Facebook from private limited
company to public limited company. Facebook values shares at ￡24 each, and that its shares would
began trading in New York on 18th of May 2012. It is seem that Facebook would be worth £66bn at
this price. The following will analyse whether Facebook can benefit from the changing between
private limited company to public limited company.
Ltd is the short for ... Show more content on Helpwriting.net ...
Facebook choose to be a Ltd company as it beginning, because Mark Zuckerberg and his classmates
aer students on that time. So they do not have enough money to set up a plc company. And the aim
of Mark Zuckerberg making facebook is that he just wants the make the distance of people become
closer than before. And make the communication of people convenient. There are many advantages
and disadvantages of Ltd and Plc. If a company chooses to be an Ltd, they can get money by selling
their shares despite they can only sell shares to friends and family. This might be easy for the
company to control the shares selling. That means Mark Zuckerberg only sell the shares of facebook
to his classmates and family before its flotation. So he can choose which people do his shareholder.
Ltd also can easier to attract investors because of the security of limited liability. The business is
continuity to exist even one of the owners died or sick. However, being an Ltd has negative effects
as well. The business cannot sell on the stock market means that they can not gather so much share
capitals. This is a reason why Mark Zuckerberg decided to sell the shares on the stock market. The
accounts of the business must be public, and the profit should share with the shareholders. The
decision making is not just by one person. Sometimes it is a good thing for solve problems, but there
is also a potential disagreement among shareholders. When a company

Public Company Accounting Oversight Board
This report provides information about the Public Company Accounting Oversight Board for Dr.
Mack. The information includes the history and creation of the PCAOB, its structure, and its duties
in today's accounting world.
The PCAOB is a nonprofit corporation created by congress. It was established by the Sarbanes–
Oxley Act and was a response to the accounting scandals in the early 2000s. The SEC is authorized
by congress to oversee the PCAOB's operation. Additionally, the Securities and Exchange
Commission appoints and removes members, approves the PCAOB 's budget and rules, and
entertains appeals of PCAOB inspection reports and disciplinary actions.
The creation of the PCAOB was necessary and will help prevent another accounting scandal which
cost investors billions of dollars and a lot of confidence in U.S. businesses. The PCAOB "oversee
the audits of public companies in order to protect investors and the public interest by promoting
informative, accurate, and independent audit reports. The PCAOB also oversees the audits of
brokers and dealers, including compliance reports filed pursuant to federal securities laws, to
promote investor protection". (pcaobus.org)
Additional costs are associated with the creation and operation of the PCAOB. Additionally, public
companies and auditors must adjust and learn new regulations and guidelines set by the PCAOB.
However, these cannot be labelled disadvantages, as they serve in order to protect the shareholders
from fraud.
The

The Ethical Dilemmas Article On The Public Relations Arena...
The Ethical Dilemmas article discusses the competitiveness in the public relations arena and how a
client–company relationship is reached. When reading the article one understands how difficult it is
for companies to maintain strict adherence to ethical guidelines. There are 7 dilemmas covered in
the article that calls for an in–depth review of the difficulties clients, employees and employers face
in the highly competitive public relations environment; which entails understanding when and where
to disseminate information in regard to the advertising of a company or an individual. Public
relation firms also manage the careers of high profile individuals and are also known as damage
control consultants.
In public relation firms employees are required to conduct themselves in a manner that reflects
positively on their firm. However, their main focus on managing their clients. In the article there are
7 dilemmas that employees face on a day to day basis and if one were looking for suggestions that
will aid employees in how to handle the 7 ethical dilemmas addressed in the article.
1. Client Non–Compete Agreements – Non–compete agreements are clauses added to a contract that
states a firm will not solicit or accept contracts from a competitor (Quote). However, in today's
competitive environment a business main focus is on return on investments, many companies rarely
honor non–compete clauses. In light of this, employees are left in the precarious position of having
to

Sarbanes Oxley Act : The Public Company Accounting Reform...
Sarbanes–Oxley Act, which is as often as possible alluded to as SOX or Sarbox, was presented 6
years back in 2002, or to be more particular, was authorized on July, 30 2002. This demonstration is
otherwise called the Public Company Accounting Reform and Investor Protection Act of 2002. This
demonstration showed up not without a moment 's delay with no reasons, there were not kidding
requirements for its advancement and institution. There was a progression of bookkeeping and
corporate outrages that affected such organizations as Tyco International, Enron, ImClone,
WorldCom, Global Crossing, Adelphia, and Peregrine Systems. Amid embarrassments with said
companied included, speculators lost billions of dollars and there was no legitimate demonstration to
secure their interests in any capacity. These outrages created colossal cash misfortune, as well as
seriously diminished open trust in the securities business of the USA.
The Act was named after its supporters Senator Paul Sarbanes and Representative Michael G. Oxley,
sanction by the House of Representatives and marked into law by the President George W. Shrub.
This demonstration is frequently viewed as a standout amongst the most extraordinary proactive
changes amid most recent a very long while. Sarbanes–Oxley Act contains 11 titles, which give the
portrayal of particular prerequisites and orders for monetary reporting. There are a few segments in
every title. Significant titles are: Public Company Accounting Oversight Board

What Are the Advantages and Disadvantages for a Company...
What are the advantages and disadvantages for a company going public? An initial public offering
(IPO) is the first sale of stock by a company. Small companies looking to further the growth of their
company often use an IPO as a way to generate the capital needed to expand. Although further
expansion is a benefit to the company, there are both advantages and disadvantages that arise when a
company goes public. There are many advantages for a company going public. As said earlier, the
financial benefit in the form of raising capital is the most distinct advantage. Capital can be used to
fund research and development, fund capital expenditure or even used to pay off existing debt.
Another advantage is an increased public awareness of ... Show more content on Helpwriting.net ...
(For more information, check out ourIPO Tutorial and The Murky Waters Of The IPO Market.) If
you 're lucky enough to have a good relationship with your broker, you may be able to purchase
oversubscribed new issues before other clients. These tend to appreciate considerably in price as
soon as they become available on the market: because demand for these issues is higher than supply,
the price of oversubscribed IPOs tends to increase until supply and demand come into equilibrium.
If you 're an investor who doesn 't get the first right to buy new issues, there 's still an opportunity to
make money, but it involves doing a substantial amount of work analyzing the issuing companies.
Here are some points that should be evaluated when looking at a new issue: 1. Why has the
company elected to go public? 2. What will the company be doing with the money raised in the
IPO? 3. What is the competitive landscape in the market for the business 's products or services?
What is the company 's position in this landscape? 4. What are the company 's growth prospects? 5.
What level of profitability does the company expect to achieve? 6. What is the management like?
Do the people involved have previous experience running a publicly–traded company? Do they have
a history of success in business ventures? Do they have sufficient business experience and
qualifications to run the

The Public Company Accounting Oversight Board
The Sarbanes–Oxley Act created the Public Company Accounting Oversight Board (PCAOB) to
assume the responsibility of overseeing the auditors of public companies. The PCAOB is a private–
sector, non–profit corporation. It was established to "protect the interests of investors and further the
public interests in the preparation of informative, fair, and independent audit reports". (The PCAOB)
Although the PCAOB is a private sector organization, it has many government–like regulatory
functions. The PCAOB was created in response to an increasing number of accounting restatements
by public companies during the 1990s and a series of recent high–profile scandals like Enron and
WorldCom. Prior to the PCAOB, the audit industry was self–regulated ... Show more content on
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Many firms are upset by this rule because of its limitations. However, I believe that this new rule is
a good idea. Previous engagements between firms and clients have been given a large notice of
when the rule will be in effect. They are given plenty of time to finish their engagements. This new
rule may allow small firms more possibilities to increase their clientele. We may be moving away
from having a small number of large firms doing all the services to having many firms providing the
services. Also, Rule 3523 will ensure independence.
Another issue that has arisen since the establishment of the PCAOB is the increased compliance
costs. In 2007, the PCAOB has been awarded a budget of 136,429,000 dollars by the SEC. Of that
amount, 79,514,000 dollars will be used to pay for salaries. (The PCAOB) The PCAOB's budget is
paid by public companies through fees and audit firms through fines. These fines can reach 100,000
dollars for individual auditors and up to 2 million dollars for audit firms. Many firms have increased
their audit fees due to the increase in costs, partly due to the PCAOB. The PCAOB continues to
grow each year. Their powers and responsibilities continue to grow, which in turn will lead to a
larger budget. The SEC should take into consideration these additional fees for businesses and
auditing firms when they determine the salaries of employees. The average salary for each employee
is over 150,000 dollars, which is a substantial

Congress created the Public Company Accounting Oversight Board (PCAOB) or known as the
Board, a nonprofit corporation in 2002 after Sarbanes– Oxley Act. The PCAOB purpose is to keep
watch over audits of public companies in order to protect investors. Their responsibilities are broken
into three main parts besides registering public accounting firms, the first one which is setting
auditing standards by establishing what they need to do for audits, establishing quality controls,
ethics, and independence. Second, Inspecting registered public accounting firms by conducting
inspections and investigations of registered accounting firms and third is enforcement of the
Sarbanes–Oxley. Taking a closer look at the PACAOB third responsibility their enforcement
activity, the process is broken down into five main parts in which they investigate and enforce their
standards. Part 1 – Inquiries and Investigations, Part 2 – Disciplinary Proceedings, Part 3 –
Disciplinary Sanctions, Part 4 – Rules of board Procedure, Part 5 – Hearing on Disapproval of
Registration Applications. Which are all broken down in the PCAOB rules section 5. Part 1
Inquiries and Investigations are broken down into 14 main rules to follow. They first start by doing
informal inquiries. This is where the Director of Enforcement and Investigations may start to accrue
informal information where the PCAOB may think that a registered public accounting firm or any
associated person of that firm may have violated any rules

The National Association of Securities Dealers Automated...
The National Association of Securities Dealers Automated Quotations (NASDAQ) and the New
York Stock Exchange (NYSE) are two of the largest and most known stock exchanges across the
globe. Both of these stock exchanges handles and mediates the trade, sale, and purchasing of
different stocks, bonds, and securities. While both of these stock exchanges have their own unique
methods and forms of purchasing and selling stocks, they both serve the same purpose and function,
which is a marketplace for the sales of stocks. While the differences between NYSE and NASDAQ
do exist, they are comparatively miniscule to the similarities that exist between them. Their main
objective and purpose is the same: to allow companies to contribute stocks and to ... Show more
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On October 29th, 2012, the NYSE was forced to shut down operations for two days in lieu of
Hurricane Sandy, which severely impacted their stock sales and purchasing exchanges. NASDAQ
had no issues during this time because they don't utilize a physical location for trading. This is one
of the larger disadvantages that NYSE has when compared to NASDAQ, which had no trouble
working past the storm through their electronic communications model. [IMPACT, MORE INFO]
The New York Stock Exchange utilizes the NYSE Euronext, integrating an electronic stock
exchange model with their in–person trading floor model in 2007. This change introduced the NYSE
as the first global stock exchange through their integration of the electronic stock exchange model
introduced by Amsterdam–based Euronext [10]. Despite their electronic stock exchange, buyers and
sellers still meet on the NYSE floor in–person to negotiate the sales and purchase of the stocks. The
NYSE is one of the only remaining stock exchanges where physical interactions are necessary for
stock sales and purchases.
Auction Market
All trades in the New York Stock Exchange is done through an auction format. Buyers and sellers
stand together on an open floor to trade certain amounts of shares of stocks from publicly traded
companies, all of which are registered in the NYSE. Traders are able to make stock transactions in
place of their investors. Traders will

Public Company Accounting Oversight Board (PCAOB)
Public Company Accounting Oversight Board; Will it Protect Investors?
The Public Company Accounting Oversight Board (PCAOB) was created by Sarbanes–Oxley Act of
2002. This board was created to oversee the audit of public companies, subject to the securities laws,
in order to protect the interests of investors (15 USC 7201, 2002). It was created in wake of the
recent financial scandals of Enron, WorldCom, and Global Crossing to name a few. This "Act"
established by Congress is to create an oversight board, so that such scandals will never occur again.
Will this oversight board work and will its work restore public confidence and encourage
individuals to invest in the stock market again? The PCAOB is not a tax–payer funded ... Show
more content on Helpwriting.net ...
The PCAOB was not limited to simply reviewing public accounting firms, but also to create
standards that public accounting firms must follow. The first standard requires public accounting
firms registered with the PCAOB to include in their reports on engagements performed pursuant to
the PCAOB's auditing and related professional practice standards a reference to the standards of the
PCAOB. The second standard requires public accounting firms to audit internal controls in
conjunction with an audit of financial statements. The second standard requires public accounting
firms to attest that the internal controls documented and set forth by the company audited are
sufficient to ensure the integrity of the financial statements (Griggs). This second standard is a real
breakthrough in ensuring the financial statements of a company are sound. It is impossible for a
public accounting firm to audit every detail of large multi–national company. Strong internal
controls reduce the risk of material misstatements to a company's financials caused by negligence or
fraud. Maintaining internal controls is no longer enough. Companies must now analyze and
document their internal processes (Calabro). When a public accounting firm issues an unqualified
opinion on the internal controls of a company, which will be required starting November 15, they
are stating that the internal checks set forth adequately protect the assets of a company from
negligence or fraud. There are

Tesco Plc And Public Limited Company
Business Organisations Task 1: TESCO Plc (public limited company) is a British multinational
grocery and general merchandise retailer. It is the third largest retailer in the world measured by its
profit, and its second measured by its revenue. TESCO Plc is owned by shareholders who fund the
company. The general public can buy shares in the company and then become shareholders; this
method allows TESCO to gain funds. The reason I would choose to locate TESCO in the new
business park is because TESCO is the grocery market leader in the UK, it has a market share of
28.4%. TESCO have competitive prices and many people shop at TESCO, this means it will grow
the local economy. TESCO rely on their employees to provide a service to their customers. TESCO
have 500,000 (2015) and I believe that having a TESCO in this business park will create more jobs.
TESCO's core purpose is "to be the champion for customers, helping them to enjoy a better quality
of life and an easier way of living". I would also locate a National Health Service (NHS) Hospital at
this business park. The NHS is primarily funded through taxation with a much smaller funding
provided through. They provide a comprehensive range of health services; the vast majority are free
for people legally resident in the UK. The NHS is in the public sector and is a not for profit
organisation. It was founded in 1948. The aim of this business is to provide a service to the
community. The NHS have 1.4 Million employees and I

Sarbanes Oxley And The Oxley Act
In the early 2000's there were a series of financial scandals that took place by large companies such
as Enron, Tyco, and WorldCom. The impact of these scandals was significant. Investors lost large
amounts of money. Employees of the scandalous companies not only lost their jobs but lost their life
savings. The financial scandals that had taken place were so severe that an Act was created in
response to them in hopes to prevent these scandals from happening. The Sarbanes–Oxley Act, also
referred to as SOX or Sarbanes–Oxley, was created by Senator Paul Sarbanes and Representative
Michael Oxley and was signed into law by President George W. Bush on July 30, 2002. The creation
and passing of the act was so tremendous that "in the opinion of most observers of securities
legislation" Sarbanes–Oxley was "viewed as the most important new law enacted since the passage
of the Securities and Exchange Act of 1934" (Ink.com 2008). The Sarbanes–Oxley Act was devised
and designed to protect shareholders, as well as the public, from errors in corporate accounting and
fraudulent business practices. All publicly traded companies, no matter their size, are required to
comply with the terms of the Act. The Act was not only created to regulate corporate business
practices, but also was created with the intention to help gain back the public's trust in large,
publicly traded corporations. The Act helps the Security Exchange Commission (SEC) in regulating
companies and making sure these

Sarbanes Oxley Act Of 2002
Sarbanes–Oxley Act In reaction to a number of corporate and accounting scandals which included
Enron Congress passed The Sarbanes–Oxley Act of 2002 (SOX) (Sarbox) also known as the "Public
Company Accounting Reform and Investor Protection Act" and the "Corporate and Auditing
Accountability and Responsibility Act" was enacted July 30, 2002. The Sarbane–Oxley Act is a US
federal law that created new and expanded laws regarding the requirements for all US public
company boards, management, and accounting firms. The act has a number of provisions that apply
to privately owned companies. The Act addresses the responsibilities of a public corporation's Board
of Directors, adds criminal penalties for misconduct, and requires the SEC to create regulations that
define how public corporations are expected to comply with the law. The SOX increases the
penalties a company pays for fraudulent financial activity, and requires top management to provide
individual verification to certify the accuracy of financial information, while also increasing the
oversight role of a company's Board of Directors and the independence of outside auditors.
The Major Elements of the Sarbane–Oxley Act
1. Public Company Accounting Oversight Board (PCAOB)
Title I consists of nine sections and establishes the Public Company Accounting Oversight Board, to
provide independent oversight of public accounting firms providing audit services ("auditors"). It
also creates a central oversight board tasked with

The Sarbanes Oxley Act And Enron Essay
The Sarbanes–Oxley Act was signed into law in 2002 and it was ment to ensure that publicly traded
companies complied with policies that made their financial records honest and not distorted to make
them look better or to make them look worse. This was supposed to cut down on the corporate fraud
with accounting. This all started because some companies such as, Enron and WorldCom. Enron
was reporting inaccurate trading revenues by acting as a middle man in partnerships and selling
back and forth these partnerships and crediting Enron for the profits (Britannica). The government
stepped in and investigated their accounting practices and while the investigation was occurring,
their accountants started destroying evidence (Britannica). WorldCom, through their accounting
records improperly stated $3.8 billion in five quarters (cbsnews). WorldCom should have showed a
net loss but WorldCom's records showed otherwise. WorldCom's accountant company was the same
as the Enron scandal and they claimed that they "complied with professional and Securities and
Exchange Commission standards" with WorldCom. In both companies, the result of their
wrongdoing made their stocks completely crash and their top executives in trouble with the law. The
Sarbanes–Oxley Act makes companies create an oversight board or in case of the company not
making one, by law, the board of directors is the board. The board is responsible to oversee that the
financial records of the company is incompliance with the

The Impact Of Sarbanes Oxley Act On Public Companies And...
The affects of the Sarbanes–Oxley Act on Public Companies and the Market
Shareen Sidhu
University of Maryland University College
The Affects of the Sarbanes–Oxley Act on Public Companies and the Market The Sarbanes–Oxley
Act of 2002 was implemented and designed to "protect the interests of the investing public" and the
"mission is to set and enforce practice standards for a new class of firms registered to audit publicly
held companies" (Verschoor, 2012). During the early 2000 's, the world saw an alarming number of
accounting scandals take place resulting in many corporations going bankrupt. Some of the major
companies involved in these scandals were from Enron, WorldCom, and one of the top five
accounting and auditing firms, Arthur Andersen. These companies were dishonest with their
financial statements, assuring the public the company was very successful, when in reality they were
not. This became a problem because if the public believes a company is doing well, they are more
likely to invest in it. That is to say, once these companies were exposed, it caused a number of
companies going bankrupt and a major mistrust between the public and the capital market.
Consequently, the federal government quickly took action and enacted the Sarbanes–Oxley act of
2002, also known as SOX, which was created by the Public Company Accounting Oversight Board
(PCAOB), and the Securities and Exchange Commission (SEC). Many have questioned what
Norman Bowie (2004) had questioned,

Risk Of Going Public Company
5. Risk of going public The company's decision to expand overseas will require further capital
investment which the company is trying to achieve by going ahead with the initial public offering.
This will allow MESL to obtain further financing outside the banking system. Through analysis and
discussions on identified issues regarding, audit legislation and corporate governance, MESL is
required to meet a higher standard of regulations in order to sustain itself as a publicly listed
company in the long–term. Not acknowledging these problems can lead to a drop in equity value as
the public may perceive the company to be questionable due to the non–compliance with regulations
and the lack of transparency. As a result, share prices will be affected negatively not only in terms of
value but also itself as a financial product with limited demand. Given the circumstances, MESL has
to meet the standardisation protocol that will be vetted by investment banks in order to go public
with minimal risk. Further analysis shows that in conjunction with the company's plan to expand
overseas; MESL will be exposed to external risk factors associated with moving into new markets.
Establishing itself overseas will reduce revenue stream given that the floated shares will likely be
left outstanding in the short–term. Hence, the company's revenue will be required as short–term
leverage. Consequently, this will affect MESL's future earnings which will decrease the value of its
share prices and

The Walt Disney Company Using Second Life As A Public...
Virtual communities such as Second Life have revolutionized communication channels for public
relations professionals. The virtual–communication platform uses the integration of social and
digital media to communicate with target audiences. The internet–based simulated environment
permits users to not only interact with each other, but with products and services provided by
organizations and individuals. Thus, Second Life has become an interactive, collaborative and
commercial communication channel to connect to and influence global audience behavior (Barnes &
Mattsson, 2011).
Already internationally recognized, the Walt Disney Company was an early participant of Second
Life. The purpose of Disney's virtual–world establishment was to give Disney fans a place to
hangout, enjoy the scenery and get updates about the parks (McConnon & Reena, 2007). The five
advantages of the Walt Disney Company using Second Life as a public relations tool are: Tourism
and international public relations have a positive relationship, access to target audience feedback
through personal interfaces, Second Life serves as another platform for dissemination of information
and promotion of organizational activities, the content of the virtual world creates an hyperreality
for identified target audiences and the platform removes geographically barriers encouraging people
from around the world to collaborate. According to Curtin and Gaither (2007), "international
perceptions of a country are

Factors That Affect The Timeliness Of Financial Reporting...
CHAPTER 1
INTRODUCTION
1.1 Background
Investment options are very diverse and complex currently. An investor can invest their fund into
every investment that attracts them. One of the investment options in Indonesia is share investment
in Indonesia Stock Exchange (IDX). An investor can do investment by purchasing shares from listed
company. Before the investors make decision, they need relevance and timely information to
analyze the targeted company's performance. Investors gain the company's information from the
issuance of audited financial statements. Information will be useful if the information is presented
accurately, precisely, and in timely manner. This research is conducted with the purpose to study
about the factors that affect the timeliness of financial reporting. The factors that will be examined
in this research are profitability, total debt to total asset, debt to equity, public accounting firm size,
committee audit, total asset, company's age, and market capitalization.
Profitability measures the company's ability to generate profit in their business. If the company
experiences losses, management tends to delay the releasing of annual financial statement in order
to avoid the discomfort of communicating as a bad news (Modugu et.al 2012) and if the company
experiences profits, management tends to issue the annual financial statement as soon as possible.
Total debt to total assets measured the proportion of total assets financed by the company's creditors.
If

Public Company Accounting Oversight Board
1. Introduction
Public Company Accounting Oversight Board (PCAOB), a nonprofit corporation that established by
Congress and created by Sarbanes– Oxley Act, aims to supervise the audit of the public registered
companies to make sure their reports conform the requirements of fairness and independence, in
order to protect the interest of information users and investors ("PCAOB", 2015). Actually, there are
three major duties that PCAOB serves: setting auditing standards, inspecting registered public
accounting firms and enforcing auditing standards; inspecting registered public accounting firms
will be discussed in detail in this paper.
The inspection is made by PCAOB and is designed to identify the deficiencies and weakness of
audit ... Show more content on Helpwriting.net ...
2. The inspection process As discussed above, the inspection process aims to identify and address
the deficiencies and weakness that related to the audit procedures of a firm. In order to achieve this
goal, the PCAOB inspection process is focused on two significant inspection procedures: (1) to
evaluate the audit performance in specific audit engagements; (2) to evaluate firm's quality control
system to figure out whether the operation of the system works effectively. In fact, the PCAOB
inspection team does not review all the audits for finding defects in this firm; instead, the team
selects engagements for inspection based on a risk–based approach (Xi, 2013). As for review of
selected engagements, according to PCAOB (2012), it consists of the evaluation of auditing for
firm's financial statements and the assessment of auditing for internal control. During this process,
the inspection team reviews the relevant audit documents in selected areas and then has a discussion,
if necessary, with the audit firm's engagement personnel based on the result of the review. Further,
the inspection team also has responsibility to analyze the potential adjustments, which in financial
statements that were not made by audit firm before. Besides that, the inspection team needs to check
the written communication records between the firms and the audit committee for inspecting some
engagements, especially in the largest companies (PCAOB, 2012).

Privatisation of the Royal Mail
The Privatization of Royal Mail
Maastricht University School of Business and Economics Maastricht, 5th April 2014 Wall,
Sebastian (SW) ID numbers: I6029483 Course code: Group number: 1 Tutor's name: Professor Hans
van Mierlo Writing Assignment: Final Paper
1
Executive Summary
Royal Mail is the largest provider of postal services in the United Kingdom and one of the largest
postal service providers in the world. This paper analyzes ... Show more content on Helpwriting.net
...
2
Table of Contents Introduction
........................................................................................................................ 4 A brief History of
Royal Mail .......................................................................................... 5 Factors that lead to
privatization ................................................................................. 6 Process of Privatization
................................................................................................... 7 How does the Royal Mail sale
compare to Deutsche Post? .................................. 9 Royal Mail current performance and Customer
Satisfaction .......................... 10 Conclusion
......................................................................................................................... 14 Bibliography

SOX established the Public Company Accounting Oversight Board (PCAOB) to regulate the audit
industry to oversee accounting professionals who provided independent audit reports for publicly
traded companies (SEC). Key responsibilities include: registering public accounting firms and
establishing audit, quality control, ethics, independence, and other standards relating to public
company audits (SEC). Conducting inspections, investigations, and disciplinary proceedings of
registered accounting firms, as well as enforcing compliance with Sarbanes–Oxley as a whole (SEC)
also falls under PCAOB's responsibility. SEC penalties have increased considerably in the recent
years in addition to increased levels of enforcement activities.
SOX had transformed the auditing industry from a self–regulated one to an industry controlled by a
quasi–government agency. It also enabled measures to reduce conflicts of interests between auditors
and their clients. PCAOB could oversee the actions of external auditors who directly monitors the
financial reporting and form the first line of defense against potential earnings or accounting
manipulation. Though external auditors were theoretically supposed to provide assurance, there was
an inherent conflict of interest in the system of auditing companies. SOX restrictions on non–audit–
related service does not show improvement on audit quality. PCAOB is recognized strictly in the
United States and has no jurisdiction over issuers, audit committees,

The Public Perception Of A Company
Many cases of fraud begin when there is an image to keep up. The public perception of a company
is important, especially when said company is publicly traded. When something within the company
goes wrong, and the good image is threatened, that is often when the fraud comes into play. They
attempt to cover up the problem by inflating revenues, evading taxes, or showing misleading
information on their financial statements. Although Crazy Eddie, an electronic retail business in the
70–80's, did employ many of these tactics as a cover–up, their fraud started almost from the
beginning, just because they could.
Crazy Eddie started out as ERS Electronics. Its namesake (ERS) was from the three equal partners,
Eddie Antar, cousin Ronnie Gindi, and father, Sam Antar. They founded it together in Brooklyn
1969, under the original store name of Sights and Sound. In 1970/1971, Sights and Sounds was at a
disadvantage because of the regulation and "fair trade" laws. These laws allowed manufacturers to
set a price at which the retailers must sell the products. Smaller stores therefore weren't able to use
their lower overhead costs to benefit them by marking the prices lower, and didn't have the steep
advertising budgets that big chain stores were able to afford.
Despite the challenges, Eddie refused to give up. In 1971, he bought out his cousin Ronnie Gindi for
$25,000, thus rendering him owner of 2/3 of the company, with his father, Sam Antar, owning the
remaining 1/3. Eddie knew that

Public Limited Corporation And Private Limited Company
Public limited company and private limited company. _ Difference
Company is defined as a legal entity which is allowed by legislation and permits a group of people
to run a business. Finance is the basic ingredients of a business. Without cash a business can not
run.various sources of finance helps a business to grow and to fulfill it's need of wages, advertising,
expansion, payment of interest etc. Different sources of finance are used depending upon their
maturity period. To built a company not only finance but also various factors which are the
essentials of it.
INTRODUCTION
Private limited company is a legal and juristic person established under companies Act. Private
limited company is of two types ,which are by shares and by ... Show more content on
Helpwriting.net ...
Long term finance
2. Medium term finance
3. Short term finance 1. Long term finance :– Long term sources of finance are those method that
are adopted to private finance for a long period of time. The period of time must be of one year and
above. Example of long term fianancing include a 40 year mortgage or a 10 year treasury note. The
sources of long term finance are :
● Debentures
● Common stock
● Preference shares
● Mortgage
● Government grants/loans
2. Medium term finance :– Medium term finance or intermediate financing is done for a period
intermediate between 1 to 10 years . Medium term financing is generally done for the purpose of
maintenance or up gradation of the business. The sources of medium term finance are :
● Loans
● Venture capital trust
● Lease
● Hire purchase
3. Short term finance :– The money needs for less than a year are fulfilled through short term

financing. They provide a cash influx or the fulfillment of short term inventory needs and repairs as
well as short term investments.
● Bank over drafts
● Trade credit
● Factoring
● Invoice discounting
On the other hand,
● Private limited company:
If few person by together starting a new business or trying to grow an existing business or company
, all certainly will need money . This money can come from various sources. Roughly speaking

Enron Research Paper
THE COLLAPSE OF ENRON & THE INTRODUCTION OF THE SARBANES OXLEY
ACT
BY
TREVOR GARRETT
02/25/2011
Abstract
Enron Corporation was one of the largest energy trading, natural gas and Utilities Company in the
world that was based in Huston, Texas. The downfall of Enron is one of the most infamous and
shocking events in the financial world, and its reverberations were felt around the globe. Prior to its
collapse in 2001, Enron was one of the leading companies in the U.S and considered among top 10
admired corporations and most desired places to work at. Its revenues made up US $139 to $184
billion, assets equaled $62 to $82 billion, and the number of employees reached more than 30,000
people in 20 countries around the world. ... Show more content on Helpwriting.net ...
Enron used this loop hole and began to take many assets and liabilities off its balance sheet and into
that of SPE's, so as to be able to access more capital and significantly reduce its risks. It specifically
used these SPE's to borrow funds directly from outside lenders by supplying its own credit and
using its high stock prices as guarantees. Enron took full advantage of accounting limitations in
managing its earnings and balance sheet to portray a rosy picture of its performance.
The company also violated GAAP in the recording or its revenues and expenses. It committed cut–
off fraud by recording revenues early and recording expenses/liabilities after the cut off period
thereby violating the policy and principle of revenue recognition. Enron's trading business adopted
mark–to–market accounting which made it difficult to estimate the income and expenses for long
term contracts.
Once the financial mis–representations came to light, Enron restated the previous 4 years of
financial statements by recording a $1.2 billion reduction in stockholders' equity, adjusting its
income statements and balance sheets for the unconsolidated SPEs by $ 569 million, and making
prior–period proposed audit adjustments and reclassifications that had originally been considered as
immaterial. Following these announcements,

An Overview Of The Company ' Woolwoths Holdings Limited Is...
Woolwoths Holdings Limited is a public company listed on the JSE. Woolworths includes a chain of
food stores, and a few of these stores are attached to department stores, and some of these stores
stand alone in the Woolworths Food brand. Woolworths is in partnership with Engen petrol stations
in most areas as this offers customers on the go to shop conveniently and efficiently. The majority of
the bigger stores have a restaurant inside the store which is branded as Cafe W. The goods of
Woolworths are traded in about 149 corporate stores, International brands add up to 51 stores
throughout the rest of Africa and the Middle East and about 69 franchise stores across South Africa.
Woolworths sells accessories and clothing under premium brands such as, Country Road, Witchery,
Mimco and Trenery.
History and some general information about the company
In 1931 Woolworths was founded by a man called Max Sonnenberg. The official opening was on the
30th of October in Plein Street, Cape Town. This was in the dinning room of a Royal hotel. Later on
in 1947 a crucial stage on the companies history came along, after World War II. This was when the
company established a relationship with Marks and Spencer of London. Over a period of time the
relationship grew between the owners, but later M&S sold their shares in Woolworths however still
keeping a strong relationship and maintained close personal ties.
Later on in 1981 Woolworths came into partnership with Truworths and established the

Free Enterprise Fund Vs. Public Company Accounting...
In the case of "Free Enterprise Fund v. Public Company Accounting Oversight Board" They were
trying to determine what powers can reside over Public Company Accounting Oversight Board or
also known as the PCAOB. They was disputing the fact that the President as no control over the
board member since they are not appointed government officials and are not limited by government
limitations. They are in fact in control over by the SEC, which stands for the securities and exchange
commissions. In this court case in which the Petitioner accounting firm which was a non profit
organization wanted to sue the PCAOB because they believe that the President had not control over
the members of the board and threaten the separation of power law. The Sarbanes–Oxley Act, also
known as SOX was to put in place to protect investors from fraud in accounting activities in
corporations. The courts ruled that the separation of powers was not broken because The President
of the United States can remove member of the SEC, which the SEC controls the PCAOB. The
decision of the case of "Free Enterprise Fund v. Public Company Accounting Oversight Board" was
that the breaking of the separation of power was not broken. This allowed The decision to be in the
favor of the board and it's members. They found that board can and will be removed if there acts are
unconditional. Since the president has control over the SEC and is allowed to remove whom ever
with good reasoning. The role of the SEC is

The Public Company Accounting Oversight
The act is very comprehensive, however, some of its main points include (Ball, 2009): Creation of
the Public Company Accounting Oversight Board which regulates the public accounting/auditing
industry Requires CEO's and CFO's to certify the financial statements are free of material
misstatements and fairly represent the company's financial position Requires a strong and
independent audit committee which is to oversee the audit instead of management Places limitations
on the provision non–audit services by a firm responsible for auditing the company in order to
strengthen and enhance auditor independence Requires management to assess, and attest to, the
adequacy of the company's internal controls Prior to Sarbanes–Oxley and the creation of the
PCAOB, the auditing industry regulated itself. Between the years 2000 and 2001 Ernst and Young,
Price Waterhouse Cooper, and Arthur Anderson were involved in cases that proved the need for an
oversight board (Coates, 2007). Ernst and Young settled a shareholder lawsuit for $335 million;
Price WaterHouse Cooper was found to have over 8,000 instances where their auditors held stock in
the company they were auditing even though it was a violation of SEC rules; and the SEC charged
Arthur Anderson with fraud. It was once again vital that public confidence in our financial system
was restored, hence the passage of Sarbanes–Oxley. Stronger oversight of the auditing industry
reassures the public the profession will be held to

A Public Company Of A Private Company
(a) From a public company to a private company. According to the CORPORATIONS ACT 2001
Section 162, 163 (and others) The possibility to change a public company to a private is in regards
to these features: If the public company is limited by shares, it can become to unlimited proprietary
company or a proprietary company limited by shares. If the public company is unlimited, it can
become to proprietary company limited by shares (within the last 3 years as a maximum time) or an
unlimited proprietary company.If the public company is a public no liability company, it can become
a proprietary company limited by shares. As a public company according to the section 113, must to
complete the requirements to become a proprietary company. When the change officially occurs, the
section 164 of the Corporations Act ASIC must be publish a notice in the Commonwealth Gazette
that states explaining the intention to change the company registration. After one month, the change
registration has to be notified and published in the Commonwealth Gazette. ( Australian
Government, 2001) The main advantages to change the registration from a public company to a
private company are: The possibility to plans in long term, the public company is focused en
quarterly results, when it occurs the yield is lower, instead the private company is able to pan the
growing in a long term bringing a clear objective , in this way the investors and managers can
evaluate and research to look the benefits. As a

Company Analysis : Public Limited Company
Public limited company: a public limited company is under the united kingdom low, which is can be
sold and trade the company shares. A public limited company don't need to loan in the bank, because
this type company can financing in the public market, and then can development the company. More
importantly, the public limited company need to provide account financial statement to the all of
hold these company shares individuals, to prove the company development trend is better, this way
can help the investor to make the best decision of the organization.
Partnership: partnership is between individuals or between company to achieve the largest level
cooperation relations. It can be share the resources and interests of the long term ... Show more
content on Helpwriting.net ...
It was built in 1943. Nowadays it is the world 's largest furniture retailer, recognised for its
Scandinavian style. The most of IKEA 's furniture is flat–pack, ready to be assembled by the
consumer. This allows a decrease in costs and casing. IKEA carries a range of 9,500 products,
consist of home furniture and accessories. This extensive range is useful.
Since it was built IKEA has always had concern for people and the environment. The IKEA view to
create a great everyday life for the many individuals puts this involve at the heart of the business.
IKEA has responded to the public 's ascending involve in persistence in its choice of product range,
suppliers, stores and communication. It has also speckled business latent in providing sustainable
solutions. IKEA 's involve in people and the environment encourages it to make better use of both
raw materials and energy. This keeps costs fall and helps the company to attain its green targets and
have an overall good impact on the environment.
Read more: http://businesscasestudies.co.uk/ikea/swot–analysis–and–sustainable–business–
planning/introduction.html#ixzz3pitRBuhs
Under Creative Commons License: Attribution Non–Commercial Share Alike | three Aims:
The overall objective of inter IKEA group is to secure successive and improvement and a long life
of the IKEA idea. That will

The Issue of Accounting Entity Definition in Regards to...
The UK public sector has been transformed over the past few decades. In an increasingly global
economy, the main lever by which central governments can influence the success of the domestic
economy is by ensuring its public sector operates efficiently. The central governments of the
developed economies have adopted similar change agendas to transform their public sectors. These
change agendas entail the introduction of new structures, new kinds of organizations and a
'reinvention' of many parts of the public sector. The intention of successive governments has been
the creation of a 'New Public Sector', which is more strategic and corporate in its thinking. This
'New Public Sector' is intended to replace a public sector characterized by ... Show more content on
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Despite of that definition, the creation of an accounting entity is also a political process with
potentially huge implications. Kurunmäki states that the boundaries which describe an organization
as an economic unit separate from other units are not as clear–cut, natural or fixed as the accounting
entity assumption implies . To which extent does NOMS now fulfill the above described
requirements? What are the issues involved in the representation of NOMS as an accounting entity?
By defining NOMS as an accounting entity, the financial controls involved seek to limit
accountability to the very institution which is fair to say and in line with the so–called market–based
New Public Sector reforms (Arnold, 1991). As a consequence, NOMS has to face the challenge to
act within a managerial, instead of an administrative culture. When looking for example at
healthcare reforms throughout Western Europe during the late 1970s and 1980, we find out that
before introducing those reforms and seeing hospitals as accounting entities, several problems
occurred: Poor management followed by arm's length management, with organizational actions
guided by practices rooted in a rationality that privileged "professional" or "clan" over
"bureaucratic" or "managerial" forms of control (Kurunmäki, 1999). These associated problems
could be

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