Purchase Solution

Managerial Accounting - Questions on ethics and stakeholder analysis

Not what you're looking for?

Ask Custom Question

Suppose you are the CFO of a listed company.

The shareholders, creditors, analysts and other stakeholders are awaiting the announcement of your
company full-year financial results at the end of the month.

The market consensus is your company's earnings to be $2 per share.

However, you know that the earnings per share should be $1.50.

The CEO has pressured you to shore up the earnings per share to at least $2. He has suggested various unethical ways to increase the earnings before the announcement of the full-year results.

Question 1: Perform a stakeholder analysis and discuss how the various stakeholders would be affected if the CFO and CEO manipulated the earnings.

Purchase this Solution
Solution Summary

The solution examines ethics and stakeholders analysis as a CFO of a company.

Solution Preview

DEAR STUDENT,

The actual earnings per share of the company is $1.5. However, CEO of the company wants the earnings per share to be $2 in order to meet the market expectations. He wants to show the earnings per share of $ 2 by making adjustments in the financial statements by overstating the income or by postponing the record of expenses. It is incorrect to show the false picture to shareholders, creditors, Government, income tax ...

Purchase this Solution
Free BrainMass Quizzes
Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Motivation

This tests some key elements of major motivation theories.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

View More Free Quizzes
Related BrainMass Solutions

  • Enron: Ethical Decision Making

    Note that stakeholder analysis is particularly pertinent to the consequentialist approach, and that one of the challenges is estimating positive and negative impacts on relevant stakeholders.

  • Financial vs managerial accounting. What about GAAP?

    The questions about financial analysis, tools and benchmarking are each explained and examples are provided from websites.

  • Using the 13 point checklist in Value-Based Approach

    Business Ethics: A Managerial, Stakeholder Approach. International Journal Of Organizational Analysis (2003 - 2009), 3(3), 301 -326.

  • internal accounting system

    330065 Explain objectives and characteristics of an internal accounting system, importance Details: You are the manager of an accounting department and would like to hire another managerial accountant to focus on internal accounting.

  • The role of ethics in the development of cost accounting

    Since cost accounting is used as a managerial accounting activity to facilitate internal decision making according to the evaluation and interpretations of reports, managers need to make fair judgments.

  • Ethics

    247522 Ethics: conflicting value systems, code of ethics, managerial decision making and more... Please assist with the listed questions. 1. How does an individual deal with living under two or more conflicting value systems? 2.

  • Management Strategies to Improve Stakeholder's Relationships

    Identify production, managerial, and stakeholder views of the business you selected. 2. Explain the difference between the production, managerial, and stakeholder views of the firm. 3.

  • internal accounting system

    330405 Managerial Accounting Deliverable Length: 1-2 page memo Details: You are the manager of an accounting department and would like to hire another managerial accountant to focus on internal accounting.

  • Organizational Ethics Issue Resolution

    In this case, shareholders are the key stakeholders (Stakeholder analysis and stakeholder participation, 2008). //In the former paragraph, we discussed about issue clarification and stakeholder analysis.

View More Related Solutions