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Purdue Global University Off Balance Sheet Accounting an Ethical Study Essay
Assignment 2: Off-Balance Sheet Accounting an Ethical Study
In this assignment, you will be assessed based on the followin ...
Purdue Global University Off Balance Sheet Accounting an Ethical Study Essay
Assignment 2: Off-Balance Sheet Accounting an Ethical Study
In this assignment, you will be assessed based on the following Course Outcome:
GEL-7.02: Apply ethical reasoning to ethical issues within the field of study.
Companies use off-balance sheet accounting so that they do not have to include certain assets and liabilities in their financial statements. Off-balance sheet accounting is often used to make the balance sheet look like the company has less debt than it actually does. One method used by companies to achieve off-balance sheet accounting is classifying capital leases as operating leases.
New GAAP accounting rules and the Sarbanes–Oxley Act now require that capital leases must be included on the balance sheet as both an asset and liability. However, leases with a duration of less than 12 months and other long-term leases are still excluded from this reporting.
Off-balance sheet accounting is beneficial to companies as it eliminates both assets and debt from the balance sheet, improves companies’ liquidity ratios such as its current ratio and quick ratio, and lowers leverage ratios such as debt to equity and debt to asset.
You are a new accountant for a company and have discovered that the company’s management has formed a new corporation that will build a new corporate headquarters for the company and then lease the asset to the company on a 30-year lease, thus allowing the company to employ off-balance sheet accounting for the new assets. The arrangement will also allow management to make additional income from their new venture.
Scenario: The board of directors, shareholders, and stakeholders are just now learning of this arrangement to employ off-balance sheet accounting for the new office building and of management’s profit arrangement from the new company.
An alternative to this arrangement would be a sale leaseback. Read more about sale leasebacks at the following site:
Singer, R., Winiarski, H., & Coleman, S. (2020). Accounting for sale and leaseback transactions. Journal of Accountancy. https://www.journalofaccountancy.com/issues/2020/j...
Checklist: Address the following items:
Explain to what extent the corporation’s shareholders might feel the corporation breached any measures of an entity of the highest ethical standards.
Explain to what extent the corporation’s board of directors might ever feel that management breached any measures of an entity of the highest ethical standards.
Use at least two of the ethical viewpoints presented in ethical approaches to provide the ethical reasoning to address your company’s use of off-balance sheet accounting and management’s profiting from the arrangement. Specify the approaches you use.
Silicon Valley College Week 6 Problem Diagnosis Discussion
I'm working on abusiness Select question multi-part question writing question discussion question practice test / quiz tes ...
Silicon Valley College Week 6 Problem Diagnosis Discussion
I'm working on abusiness Select question multi-part question writing question discussion question practice test / quiz test / quiz prep exercise case study project report presentation spreadsheet discussion questionand need Select guidance an explanation a reference a sample draft support an explanationto help me learn. (please ignore these sentence)(W6) Discussion(W6) DiscussionOne of the benefits of employing a management consultant is the value they add to the client with their expertise as a diagnostician. The process utilized to complete an accurate diagnosis often strains the consultant-client relationship. Both parties might be fearful of uncovering difficult situations during the process. The successful completion of an effective problem diagnosis requires an examination of the external environment, the technology, the economics of the business, the behavior of all members of the organization and the corporate culture. The consultant is tasked with asking the tough questions to managers that can lead to the managers having to justify why they made certain choices or ignored certain factors that appeared to be important.Discuss how you would convince the client that this diagnosis process is necessary. Identify and support at least three reasons you would give to the client to make your case.How would you ensure that members of the client’s team are part of the diagnostic process? What tasks would you assign them and why?Explain how you would present to the client negative information you uncovered in the diagnostic process which should have been addressed previously.
5 pages
W345 Corporate Governance.edited 1
Corporate governance can be defined as a system of approaches through which corporations are directed and controlled. The ...
W345 Corporate Governance.edited 1
Corporate governance can be defined as a system of approaches through which corporations are directed and controlled. The system functions by shifting ...
MKT571 UOPX Week 1 Components of a Marketing Plan Answer
Due ThursdayRespond to the following in a minimum of 175 words: An effective marketing plan is critical to the success of ...
MKT571 UOPX Week 1 Components of a Marketing Plan Answer
Due ThursdayRespond to the following in a minimum of 175 words: An effective marketing plan is critical to the success of your product and/or service. What are the key components of an effective marketing plan and why is the marketing plan one of the most important elements of the marketing process? Be specific. Provide an example.
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Most Popular Content
Purdue Global University Off Balance Sheet Accounting an Ethical Study Essay
Assignment 2: Off-Balance Sheet Accounting an Ethical Study
In this assignment, you will be assessed based on the followin ...
Purdue Global University Off Balance Sheet Accounting an Ethical Study Essay
Assignment 2: Off-Balance Sheet Accounting an Ethical Study
In this assignment, you will be assessed based on the following Course Outcome:
GEL-7.02: Apply ethical reasoning to ethical issues within the field of study.
Companies use off-balance sheet accounting so that they do not have to include certain assets and liabilities in their financial statements. Off-balance sheet accounting is often used to make the balance sheet look like the company has less debt than it actually does. One method used by companies to achieve off-balance sheet accounting is classifying capital leases as operating leases.
New GAAP accounting rules and the Sarbanes–Oxley Act now require that capital leases must be included on the balance sheet as both an asset and liability. However, leases with a duration of less than 12 months and other long-term leases are still excluded from this reporting.
Off-balance sheet accounting is beneficial to companies as it eliminates both assets and debt from the balance sheet, improves companies’ liquidity ratios such as its current ratio and quick ratio, and lowers leverage ratios such as debt to equity and debt to asset.
You are a new accountant for a company and have discovered that the company’s management has formed a new corporation that will build a new corporate headquarters for the company and then lease the asset to the company on a 30-year lease, thus allowing the company to employ off-balance sheet accounting for the new assets. The arrangement will also allow management to make additional income from their new venture.
Scenario: The board of directors, shareholders, and stakeholders are just now learning of this arrangement to employ off-balance sheet accounting for the new office building and of management’s profit arrangement from the new company.
An alternative to this arrangement would be a sale leaseback. Read more about sale leasebacks at the following site:
Singer, R., Winiarski, H., & Coleman, S. (2020). Accounting for sale and leaseback transactions. Journal of Accountancy. https://www.journalofaccountancy.com/issues/2020/j...
Checklist: Address the following items:
Explain to what extent the corporation’s shareholders might feel the corporation breached any measures of an entity of the highest ethical standards.
Explain to what extent the corporation’s board of directors might ever feel that management breached any measures of an entity of the highest ethical standards.
Use at least two of the ethical viewpoints presented in ethical approaches to provide the ethical reasoning to address your company’s use of off-balance sheet accounting and management’s profiting from the arrangement. Specify the approaches you use.
Silicon Valley College Week 6 Problem Diagnosis Discussion
I'm working on abusiness Select question multi-part question writing question discussion question practice test / quiz tes ...
Silicon Valley College Week 6 Problem Diagnosis Discussion
I'm working on abusiness Select question multi-part question writing question discussion question practice test / quiz test / quiz prep exercise case study project report presentation spreadsheet discussion questionand need Select guidance an explanation a reference a sample draft support an explanationto help me learn. (please ignore these sentence)(W6) Discussion(W6) DiscussionOne of the benefits of employing a management consultant is the value they add to the client with their expertise as a diagnostician. The process utilized to complete an accurate diagnosis often strains the consultant-client relationship. Both parties might be fearful of uncovering difficult situations during the process. The successful completion of an effective problem diagnosis requires an examination of the external environment, the technology, the economics of the business, the behavior of all members of the organization and the corporate culture. The consultant is tasked with asking the tough questions to managers that can lead to the managers having to justify why they made certain choices or ignored certain factors that appeared to be important.Discuss how you would convince the client that this diagnosis process is necessary. Identify and support at least three reasons you would give to the client to make your case.How would you ensure that members of the client’s team are part of the diagnostic process? What tasks would you assign them and why?Explain how you would present to the client negative information you uncovered in the diagnostic process which should have been addressed previously.
5 pages
W345 Corporate Governance.edited 1
Corporate governance can be defined as a system of approaches through which corporations are directed and controlled. The ...
W345 Corporate Governance.edited 1
Corporate governance can be defined as a system of approaches through which corporations are directed and controlled. The system functions by shifting ...
MKT571 UOPX Week 1 Components of a Marketing Plan Answer
Due ThursdayRespond to the following in a minimum of 175 words: An effective marketing plan is critical to the success of ...
MKT571 UOPX Week 1 Components of a Marketing Plan Answer
Due ThursdayRespond to the following in a minimum of 175 words: An effective marketing plan is critical to the success of your product and/or service. What are the key components of an effective marketing plan and why is the marketing plan one of the most important elements of the marketing process? Be specific. Provide an example.
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