Effective financial reporting depends on sound ethical behavior. Financial scandals in accounting and the businesses world have resulted in legislation to ensure adequate disclosures and honesty and integrity in financial reporting. A sound economy is contingent on truthful and reliable financial reporting.
Read the following scenario. Answer the questions that follow. Your answers should result in a 2-3 page submission. Reference back to your text book for guidance on how to think through the scenario.
Imagine you are the assistant controller in charge of general ledger accounting at Linbarger Company. Your company has a large loan from an insurance company. The loan agreement requires that the company’s cash account balance be maintained at $200,000 or more, as reported monthly. At June 30, the cash balance is $80,000. You give this update to Lisa Infante, the financial vice president. Lisa is nervous and instructs you to keep the cash receipts book open for one additional day for purposes of the June 30 report to the insurance company. Lisa says, “If we don’t get that cash balance over $200,000, we’ll default on our loan agreement. They could close us down, put us all out of our jobs!” Lisa continues, “I talked to Oconto Distributors (one of Linbarger’s largest customers) this morning. They said they sent us a check for $150,000 yesterday. We should receive it tomorrow. If we include just that one check in our cash balance, we’ll be in the clear. It’s in the mail!”
What is the accounting problem that the Linbarger Company faces? What are the ethical considerations in this case? Provide rationale for why these are ethical considerations. What are the negative impacts that can happen if you do not follow Lisa Infante’s instructions to wait one more day to post the balance?
Who will be negatively impacted if you do comply? Provide a rationale for why these individuals will be impacted. What is one alternative that you could pursue in this scenario? Support your recommendations with information you learned in this class.
STA travel's essential point is pull in youthful and dynamic and additionally audacious customers anyplace around the globe. A sensible business technique may be to offer what the client need when they require it, By working in excess of 400 retail organizations around the globe STA keeps on taking more hazardous condition and would wanting to venture into new markets to encourage its scope in to the understudy travel world. The same number of associations, STA travel directors give the feeling that redesigning or changing segments of data framework will emphatically affect a business procedure. In this way it exploits to extend it advertise by creating staff preparing components on systems administration framework and modernizing its electronic correspondence with their clients. STA gave "BLUEe" which is a solitary booking framework indicated each buy in STA travel by offering highlights on organize, foundation, back and working framework. Besides STA make accessible to their clients a profoundly intuitive site which ascribing video reports STA clients about their movement goals and openly downloading offices the second life customer or territory as favorable position to turning into a playing part. It is imperative to adjust the procedure triangle. By rolling out any improvements in the data procedure or association system in first then the triangle escaping balance and will be affect other including territories as well. By considering on that view moment that STA building their virtual world they do changes in business procedure like making staff are more gainful and influencing greatest conceivable work to put openings. And STA head out is attempting to pull in more clients by holding costly assets, utilizing mastery's information and worldwide projects in their gathering administration division. By building these progressions they endeavoring to make association amongst supervisors and their voyagers. STA make a trip assemble an agreement to build up their showcasing participation on second life through the PC recreated virtual world. As a well run association the business procedure of the STA makes whatever is left of the authoritative and instructive system isn't show up a major extraordinary. Association Strategy While considering the STA travel association plan, STA had grown-up and spread out its worldwide reach through a chain of mergers. To receptive to their all inclusive appropriated and different social customers that the STA composed around responsiveness and would incorporate components of independence, strengthening and expert as near the activity as could reasonably be expected. In the event that association needs responsive, it would not work to have unified basic leadership specialist. Since it requires long investment to get data up and choices back to the field. The voyaging procedure composed through the market examination and administration narratives. Additionally they do arrangement of hierarchical process, (for example, STA travel second life, by building a virtual world) and ensure clients the STA make a trip can really prepared to give their booking administration when client require their administration. STA planned online interface pull in more voyagers in to business and give more data by downloading second life customer programming guide. From this second life site STA travel offer their potential players to free download amusement and through the online the product associated with the matrix PC servers and it is facilitating one little zone of numerous islands and the territory. The new association structure in STA is incorporated and give more adaptable framework. Appropriately it has most invaluable of condition for screen and actualize new process. STA travel actualizes shared administrations estimation for specific procedures and capacities. And furthermore STA give level of structure when they settling on any choices (CODA Group, p.3) In STA second life travel areas structure association would incorporate; Committed entryway and introduction island - this will give simple routes understudies to joint their second life and figure out how to discover the path to the virtual world Virtual quarters - has private gatherings and get together. Virtual travel goal - give involvement in Mayan ruins, Asian sanctuaries and French bistros. STA travel fundamental office - give the visit bundle data Delivered Live week after week occasions and visits Sandbox - give practice to fabricate claim their virtual world. Data Strategy STA travel's data methodology bolsters its business procedure through the advancement and receptiveness. It has decentralized data technique in every specialty unit and every unit in charge of their own IT activities. At present STA has reliable and savvy IT base that give offices to keep up of their reality around tasks. (Savvis ,2009,p.) Its web-based interface draw in potential voyagers by allowing their clients to downloads their customer programming and keep up online travel courses of action to suit the necessities of the business. Their sites give component to interface with their overall voyagers, to take their appointments, to give administrations when the explorer needs more data in regards to any goal and connection to different branches. In STA most areas site pages comprise look and believe and every nation advertisers don't hesitate to outline their showcasing effort utilizing strategies connect to web. Fir example, the US office run a virtual promoting effort for spring break called "body shots". To get more favorable position they prompted it on confront book and Myspace as well and furthermore they offer office to their clients to get in touch with them through messages. STA taking the benefits of the through their new web innovation, for example, they used to publicize, set up discourse gatherings and diversion , utilize instruments like second life to advance its administrations. Besides, STA fly out data procedure support to their business methodology by meeting their business goals of income age and expanding referral pay and enhancing on the web business deals change rates. In addition, STA fly out acknowledge to work with IBM worldwide Business Service and develop long haul marketable strategy with them to build up their business technique. Additionally they help to STA travel to actualize a worldwide electronic business innovation framework to control STA over various sites as a similar time they offering the flexibility to embrace their neighborhood content. By having support from IBM and Open Text, STA travel keep up their most recent online has a tendency to get more advantage on their worldwide business. The STA travel expanding their destinations request by offering new offices, for example, client created travel log access and individual suggestion. Speedily they took off new online administrations to thirteen nations. They can without much of a stretch and rapidly roll out the updates and improvements in the sites. Since the format or code of the site refreshes are actualize just once to the ace undertaking. (Open Text, 2009) It is great having virtual staff with appropriate data innovation learning as indicated by their entire framework changes, since it will be more effective and prompt increment their creation and business activities.>GET ANSWER