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The use of social media throughout all platforms (2)
The use of social media throughout all platforms (Twitter, Facebook, Snapchat, etc.) has significantly expanded during the past ten years. Since humans are inherently social beings, social media is especially well-liked since it provides chances for interaction and sharing. Social comparison opportunities grow as social media platforms improve, making them more participatory and “addicting. The detrimental effects of self-comparison, such as anxiety, stress, low self-esteem, healthy eating and poor body image, are also increased by this.
Although seemingly unrelated, it is important to note that worrying trends in young people’s mental health got worse at the same time that teenage social media and smart phones usage skyrocketed. It can be difficult to draw definitive connections between social media use and broader trends in mental health for a variety of reasons, but it is obvious that partaking in a significant amount of negative social comparison is one numerous possible causes of these trends.
This is due to the fact that fabricating a fake identity on social media in order to gain likes and followers can make personal flaws or challenges in real life appear much more challenging, and remain unaware of what’s true. Social comparison can be triggered by even minimal contact with social media, and seeing profiles of successful or healthy people was associated with lower self-evaluations.
Negative social comparison and the fear of missing out (FOMO) that refers to the belief that another person is happier or much more accomplished than themselves, social media can have a range of negative effects on mental wellbeing.
Depression has become more severe as a result of feelings of jealousy and self-doubt brought on by what others publish on social media.
Reduced general well-being: Studies have found that those who use social media heavily (up to five hours daily) have poorer self-esteem, experience depression, and suicidal thoughts sometimes.
Negative self-comparison is a typical occurrence for both gender on social media and is a significant contributor to self-esteem, particularly in the development of adolescents. Even if the desired criteria for men and women’s bodies vary, both are prone to having a negative perception of their bodies and having low self-worth.
Eating disorders: More time on social media is also associated with the desire to change one’s body through disordered eating habits. One pervasive manifestation is the diet tea craze and other restrictive “cleanses”, commonly promoted by influencers with idealized body types and moreover, body types that have often been distorted or edited for social media.
Accounting auditing and fraud
Accounting auditing and fraud
Presented to
Institution
Madoff was a successiful entrepreneur who made use of computer technology in making trading systems more secure, efficient and cheap. Madoff used to visit Wall Street during early stages of life and wished he would become a leading player in the finance sector. In collaboration with other friends, Madoff organized the NASDAQ exchange, which ended up becoming the world’s largest electronic stock market. Other security agencies, like NYSE were forced to switch to electronic securities trading. Madoff fame came to an end after the federal authorities realized he was operating a 50-65 million U.S. dollars Ponzi scheme. Prior to his confession to the family in 2008, Madoff used the investments made by new clients in pay fictitious returns to fellow clients. This made both Madoff and his independent auditor face fraud charges. The following discussion relates to Madoff Securities International Limited fraud case and its implications on the nation’s financial reporting system (Knapp, 2013; 161-163).
The ineffectiveness of Friehling made Madoff securities sustain the financial fraud for so long. In addition, Madoff’s independent auditor, David Friehling, played a vital role in ignoring fraud checkups for decades. The results of poor audit management by Friehling have made the business fall under heavy scrutiny and face more challenges from the public. Friehling is liable for arrest by the federal prosecutors for flouting the accounting profession’s auditor independence rules. Moreover, Madoff’s independent auditor failed to subscribe to the AICPA code of conduct making him ignore most rules. Freihling failed in correcting the entity’s financial statements that were false when he had the authority to record the entity. In addition, the company violated the rules of performance and profession service by disclosure of confidential client information (International Federation of Accountants, 2013).
Madoff had had issue with Securities and Exchange Commission (SEC) since the financial statements that introduced fraud were stamped. In addition, Madoff had provided false information regarding his employees since the body came to realize that he had only one active accountant. Moreover, the failure by Freihling to disclose the financial audits to AICPA made SEC angrier with Madoff. After December 2008 situation, the Securities and Exchange Commission (SEC) took decisive and comprehensive steps in reducing chances for such frauds as seen at Madiff Securities Limited to occur again. Financial fraud plays a key role in stabilizing a nation’s economy requiring the associate bodies, like SEC, to develop strategies for minimizing or preventing such case in the future. On the other hand, Madoff auditor operated in a tiny CPA firm that brought many questions by the SEC professions as to how such a big company could be operated by one auditor in a small office.
From the following discussing, Madoff’s conduct should not be allowed in the present society since it portrays how selfish a person could be. According to the NASBA (2010), entrepreneurs should portray high degree of ethics towards their clients and avoid misusing their funds for their own benefiters. The SEC in collaboration with AICPA should develop strong systems and rules that govern the actions of auditors to capture the like of Freihling. In addition, firm leaders should stress on the importance of ethical behaviors and encourage members to act towards the public interest. Moreover, Freihling conduct demonstrated employee ignorance of the rules and regulations governing their profession. Freihling should be jailed in order to serve as an example to others.
References
International Federal of Accountants. (2013). Code of Ethics for Professional Accountants.
Retrieved from:
http://www.ifac.org/
Knapp, M. C. (2013). Contemporary auditing: Real issues and cases. Australia: South-Western
Cengage Learning.
NASBA. (2010). Audit Fees and Engagement Profitability: A Threats and Safeguards Approach
to Strengthen Compliance with Standards of Ethical Behavior. Retrieved from:
http://www.nasba.org/files/2011/03/Ethics_and_Strategic_Issues_Discussion-2010.pdf
Accounting Analysis sample
32645358851265450000
21310603322320Accounting Analysis
0Accounting Analysis
Year Sale Volume
1 $ 70,000
2 $ 80,000
3 $ 100,000
4 $ 85,000
5 $ 75,000
PDA
Prototype $ 8,500,000
Marketing $ 2,500,000
Selling Price $ 250
Variable Cost $ 86
Fixed Cost $ 2.4 million per year
Machine Cost $ 10,000,000
First Year
Sales
Less: Variable 70,000 QUOTE 6,020,000
Fixed Cost
Net Income before tax
Less: Tax
Net Income after tax $ 5,448,000
Depreciation Expenses
Cash Flow $ 7,448,000
Second Year
Sales 80,000 QUOTE 20,000,000
Less: Variable 80,000 QUOTE
Fixed Cost 2,400,000
Net Income before tax
Less: Tax
Net Income after tax $ 6,432,000
Depreciation Expenses
Cash Flow $ 8,432,000
Third Year
Sales 100,000 QUOTE 25,000,000
Less: Variable QUOTE
Fixed Cost 2,400,000
Net Income before tax
Less: Tax QUOTE $ 5,600,000
Net Income after tax 8,400,000
Depreciation Expenses
Cash Flow $ 10,400,000
Fourth Year
Sales 85,000 QUOTE
Less: Variable 85,000 QUOTE 7,310,000
Fixed Cost 2,400,000
Net Income before tax
Less: Tax QUOTE
Net Income after tax $ 6,924,000
Depreciation Expenses
Cash Flow $ 8,924,000
Fifth Year
Sales 75.000 QUOTE 18,750,000
Less: Variable QUOTE 6,450,000
Fixed Cost 2,400,000
Net Income before tax
Less: Tax
Net Income after tax $ 5,940,000
Depreciation Expenses
Cash Flow $ 7,940,000
Year Cash Flow
1 $ 7,448,000
2 $ 8,432,000
3 $ 10,400,000
4 $ 8,924,000
5 $ 7,940,000
Pitfalls of using playback Period
It has insufficient genuine certainties, which pick the length of best payback period? Nobody from different does – it is arranged by setting one venture opportunity against an alternate. Money streams are viewed as either prepay back or post-payback, however the last have a tendency to be disregarded. Payback makes no note of the impact on business benefit. Its sole concern is money stream.
The genuine downside of payback period is it doesn’t depend on the period estimation of cash it may prompt wrong choice making (Hail, Leuz & Wysocki, 2010). Since the money inflows of a venture may be dubious, in this manner an undertaking could have a worthy rate of return yet it still not by any stretch of the imagination meet the organization’s obliged least payback period. Payback period additionally does not measure the gainfulness of a business which is the essential objective in business. It simply essentially tells the administrators that the obliged years to recoup the first venture.
Accounting Rate of Return
Advantages of ARR
Accounting rate of return (ARR) is to assess a venture or venture’s benefit that without material assessments and gathering enthusiasm after wipe out the cash contributed from returns. Accounting rate of return permits organizations to gauge the venture’s productivity focused around speculation income that less cash contributed. ARR may be ascertained more than one years of a venture’s lifespan. On the off chance that figured more than one years, the midpoints of venture and income are taken. The recipe of ARR as beneath:
ARR has a gainfulness objective where when the buys have made, firms can utilize the accounting rate of return system to track the productivity and expense viability of the capital venture. This may help firms to enhance choices making and arrangement adequately related to capital consumptions. In addition, it is basic and less demanding approach to compute and see by utilizing ARR strategy, it can be assess rapidly on the recognize that permitting firms to exploit quick open doors.
For long haul activities and ventures evaluation might great to utilizing net present quality technique on the grounds that it account period estimation of cash which considers potential approaching money stream and measure the abundance of money streams. This may then to consider the issues and dangers of future money stream and general net money stream. Net present esteem additionally serves to expand association’s worth
It consider the period estimation of cash when gauge a ventures or activities in light of the fact that when venture’s available worth is zero, the count figure out the return then will know the base rate of return. It will take care of the expenses and make a benefit the length of the rate is sure. Interior rate of return technique is easy to see as the estimation gives a rate for each one venture. The higher inward rate of return will be the best to pick when choose from more ventures, this assistance to settle on the choice effortlessly
There are a few hindrances for interior rate of return. Inward rate of return computation overlooks the dollar esteem subsequently it is not the best for looking at totally unrelated tasks. For example, Project X may give introductory venture of $10000 a 10% inside rate of return. Venture Y may give beginning speculation of $100000 a 5% inward rate of return. With interior rate of return strategy, would dismiss the Project Y despite the fact that it come about a higher benefit. Next to inside rate of return is hard to comprehend to figure diverse rate in light of the fact that when the present estimation of money inflow not balance with present estimation of money surge the genuine estimation of inward rate of return may be two new rates.
Disadvantage of using ARR method
The drawback of ARR technique is that it accept steady adapting to keep up same expense of capital. This once in a while happens as money inflows over the period change the adapting. An organization will need to issue obligation routinely to keep up same outfitting (Kothari, Ramanna & Skinner, 2010). This is hard to do because of regulatory issues and expenses. It is likewise not simple to compute expense of capital that is utilized for marking down money streams (Kothari, Ramanna & Skinner, 2010). At long last, the ARR technique is not helpful all alone’s the point at which an organization confronts capital proportioning. The benefit file may must be utilized alongside the ARR to assess interests in a capital apportioning situation.
The ARR system in capital planning looks to cure a portion of the shortcoming of payback and the accounting rate of return. Net present worth takes entirety of all money streams and outpouring over the life of the venture and makes recompense for the period estimation of cash and computes the present estimation of all normal future money stream by utilizing least target rate of return.
Net present esteem additionally has inconveniences where if the measure of speculation is not equivalent in tasks of fundamentally unrelated, ARR can’t settle on a choice precisely. It is hard to ascertain the rebate rate proper on account of indeterminate in assessing markdown rate may make unverifiable of ARR numbers. Likewise, when specific activities are not equivalent life ARR may not give right choice.
Taking everything into account, to settling on a choice by utilizing ARR system, pick the task which has higher ARR than standard and reject lower ARR if the undertakings are autonomous. While, if tasks are fundamentally unrelated, pick the venture which has most noteworthy ARR and reject different ventures.
The company should consider undertaking the PDA project, but it should on the other hand consider the AAR approach because it shows that there exist profitability trend in the project. This will be an added advantage to the business as it lows cost of production.
References
Hail, L., Leuz, C., & Wysocki, P. (2010). Global accounting convergence and the potential adoption of IFRS by the US (Part I): Conceptual underpinnings and economic analysis. Accounting Horizons, 24(3), 355-394.
Kothari, S. P., Ramanna, K., & Skinner, D. J. (2010). Implications for GAAP from an analysis of positive research in accounting. Journal of Accounting and Economics, 50(2), 246-286.