Here is the synopsis of our sample research paper on Accounting Standards; Will Enron Happen Again?. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
Recent financial scandals such as Enron and Parmalat have caused concern, but they have not been the earliest financial scandals and have only added to the pace of change in the regulation of accounting standards. This 4 page paper looks at how and why regulations have been changing, including the development of the current regulatory framework in the EU, the way the regulations and standards are changing their impact. The bibliography cites 4 sources.
Page Count:
4 pages (~225 words per page)
File: TS14_TEAstand.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
the role of the accountants and the auditors. It is due to this reliance that the accounting profession is regulated and this regulation has been increasing in recent year, but
the path to the current framework has not been short; Enron and Parmalat were not the first scandals that demonstrated the need for rigorous accounting standards. Therefore the standards which
are applied are very relevant to the stakeholders and impact on the way they make their decisions. Cases that started the
current progress to regulation may be seen as starting with the GEC proposed a take-over of AEI in 1967, in this they were reliant on the AEI accounts, and as
such due to the subjective nature of the accounting practices of the company ended up getting a great deal less than they though they had bought (Elliott and Elliott, 2005).
The AEI director had recommended against the take-over bid and had projected a ?10 million profit; this was also backed by the auditors that said it was a fair and
reasonable basis (Elliot and Elliott, 2005, Watts, 1996). When the take-over went ahead and the GEC directors took control of the company,
and therefore the accounts this ?10 million profit turned into a $4.5 million loss (Elliot and Elliott, 2005). This is quiet a difference, and we can look to the
regulatory framework of the time to try and explain how this could be, especially when the audited accounts were seen as fair and reasonable and complied with the framework f
the time. This means that one company paid to much, and that shareholders of the acquiring company got poor value. There were
...