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Guidelines for assessing global account management plans are presented, along with management practices. Considerations include integration capabilities, geographic spread, cultural and strategic fit, and strategic importance.

ABSTRACT This paper presents and discusses a series of principles for managing departments of accounting. We categorize these principles as guiding, resource management, and performance measurement, and combine them with [...]

The article identifies and discusses the potential risks companies faced prior to the implementation of Sarbanes-Oxley Act of 2002, which left them vulnerable to liabilities far exceeding the Act's compliance costs.

There are two sources of agency costs under moral hazard: (1) distortions in incentive contracts and (2) implementation of suboptimal decisions. In the accounting literature, the relation between conservative accounting and agency costs of type (1) has received considerable attention (cf. Watts 2002). However, little appears to be known about the effects of accounting conservatism on agency costs of type (2) or trade-offs between agency costs of types (1) and (2). The purpose of this study is to examine this void. In a principal-agent setting in which the principal motivates the agent to expend effort using accounting earnings, this study shows that accounting earnings become more useful for reducing agency costs of type (2) when measured conservatively than when measured aggressively. Combined with the result in Kwon et al. (2001) that agency costs of type (1) decrease with accounting conservatism, this analysis suggests that conservative accounting enhances the incentive value of accounting signals with respect to both types of agency costs. Key words: accounting conservatism; moral hazard; limited liability; agency costs, 1. Introduction The separation of ownership and control in publicly held firms often creates incentive conflicts between stockholders and management, which causes agency costs for the firms' stockholders. Two types [...]

ABSTRACT: Laborers Local 829 serves as a multi-employer health care provider for union construction members. The case focuses on accounting situations that might be faced on an audit engagement. The [...]

This article examines the preformance of firms both before and after the adoption of accounting-based performance plans, by testing whether the change in compensation policy is a response to prior problems or a signal to the markets that the firm will improve performance levels. The authors find that the signalling process is most likely, because stock prices increase with the announcement of a firm's intention to adopt accounting plans.

The relevance of cash-flow statements to financial reporting in Australia in terms of decision making was examined. A survey of 159 financial statement users consisting of loan officers and financial analysts revealed that there is a strong support for cash-flow statements among user groups in Australia. Users also indicated that the cash-flow statement is most relevant for decision making when applied in conjunction with both the balance sheet and the profit and loss statement.

The basics of financial management for new project managers are introduced. As a primer, managers can familiarize themselves with common accounting methods and systems, various accounting reports and financial documents, and financial ratios used to measure project and firm-wide financial performances. Proper financial management requires a reporting system that supplies both cash and accrual methods of accounting. The general ledger and the charts of accounts are the heart of the general accounting system, where the latter is the starting point in establishing the firm's accounting system. Project accounting system and cost accounting technique are also explained. Using financial data generated from the accounting information system, the balance sheet and income statement are prepared as primary documents to ascertain financial health of the firm. Financial ratios utilize the information provided by these documents. Four key ratios are discussed. These basic ratios are important indicators of performance when compared against previous measures or typical industry ratios. Both accounting and financial management are vital activities in charting the course of success of a project or firm.

A study was made on the association between executive succession and discretionary accounting changes. Ninety-two companies from 23 industry groups were used as samples. Two explanations were given for the hypothesis that companies with executive changes are more likely to implement accounting changes. The results supported the different perspectives explanation which states that new chief executive officers are not likely to share the perspectives and views of their predecessors.