Second, it is argued that cost-benefit analysis contain a unadventurous bias because its Valuation principle, motivation to pay, depends upon ability to pay (i.e. wealth and income), Which is unequally disseminated? Again, the criticism is valid in theory but need not be so in put into practice. Weights may be assign to benefits which accrue to specific groups, if there is a clear and explicit policy good reason for doing so. Also merely display the incidence of (un weighted) costs and benefits will often provide useful indicators of the equity implications, in income distributional terms, of projects and programmes.
An auditor supplies the independence and objectivity to a financial report complementing the high expectations of third party users The professional judgement required is influenced by some professional traits such as the auditor’s experience and capability of the auditors training. In additional to the professional traits influencing the auditor’s judgement, the auditors is also influenced by behavioural and ethical traits. Auditors have a responsibly to ensure that ethical standards are upheld, ensuring the social exceptions of auditors
What changes were required to implement the Supernova process—for FAs? For Merrill Lynch itself? What were the risks and potential benefits for both? Major change in philosophy and approach on managing accounts of clients, where financial advisor will merely be focusing on long term relationship and profitability rather than acquisition and immediate return. For Merrill lynch change is nature of work, where customer retention and loyalty will be given importance and also resulting in less market errors due to decrease in number of clients and focusing on profitable clients.
Part C of the code describes examples of threats that could be encountered and likely safeguards that can be useful to make sure that threats are either eliminated or reduced to acceptable level. It does not explain all potential situation or relationships that members in business might come across that could create threats to compliance with fundamental principles members are encourage to be alert and may consider obtaining legal advice if they believe unethical behaviour will continue to occur within the employing organisation. The FIA code of ethics dose not apportions its principles and rules in this manner. (APES 110 Code of Ethics for Professional Accountants,
If the cash from operations exceeds cash flows from investment, that reflect a good sign of firm’s performance. Besides, a questionnaire will be created if the cash used from investing activities exceeds the cash provided from operating activities in the short term. However, a problem will rise about whether the ability of the firm could still generate cash if this situation happens too often. Marshall (2014) gives a conclusion that the statement of cash flow delivers important financial data to users that is really difficult to find in other financial statements such as the accrual basis income statement. Although this statement under accrual based accounting is related to revenue and expense, it does not contain information about cash flow form the three above activities.
Though as per the Judgment the right cannot be exercised when it is a particular issue is of public interest , there are serious loopholes in the Judgment which makes it difficult to guard essential public interest. The judgment entirely fails to deals with crucial questions where there is need to decide what would be the basis for deciding whether particular information is in public interest or not? Who is to be held accountable if the information regarding public interest is indeed removed? Upon whom does the burden of proof lies when it comes to deciding public
The management accounting information are used for further decision making like the report of sales forecasting, budget analysis and comparative analysis, feasibility studies and reports for merger and consolidation. Information in managerial accounting reports are future-oriented and the information is provided to the top management whereas information in the financial reports are historical informations which does not help the internal organizations which does not help the internal organization much. Managerial accounting information may effect the behavior of employees but still it helps a company to give
Therefore, ARR over estimate the profit (higher profit) and ARR don’t count time value of money plus it doesn’t adjust to risk too. On the other hand NPV is better because, it take count the time value of money and it consider cash flow plus it adjusted to risk also. However, NPV difficult to calculate and difficult to find accurate discount rate of return which take time leads to high cost. But, Finance staffs have better knowledge on finance than Mr.Javins as they specialized in finance. So Mr.Javins should consult with them when making any financial decisions to get accurate
• Secondary data is not possible or useful in every situation. For example, if there is a research program being conducted on a market research, the existing secondary data may not be applicable since the market is a constantly changing environment and unpredictable. Secondary data is more useful in predictive environments than in other environments. • Secondary data may be outdated. It may not be a true reflection of the current reality.
Hence, this view is absurd. If the second of view of causality is taken to be true, cause and effect must be entirely distinct phenomena. This does not make sense, as the cause depends notionally on the effect (there must be an effect for it to be called a cause), and the effect depends existentially on the cause (it would not exist without the cause). Cause and effect cannot be independent, each with their own svabhāva. Considered as the logical conjunction of the first two views (both shown to be invalid), the third view must also be false.