Friday, February 28, 2020
Professional Versus Persona judgement in accounting world Essay
Professional Versus Persona judgement in accounting world - Essay Example Personal judgment emanates from an individual based on personal views, values, and opinions. On the other hand, professional judgment emanates from a set of guidelines stipulated by relevant bodies in the respective profession. In the accounting world, the main accounting bodies that govern professional judgment are; The International Accounting Standards Board (IASB) and The International Federation of Accountants (IFAs). Personal judgment may be biased due to subjective reasoning from the accountant. Cottone, (2001) states ââ¬Å"accountants need to move from psychologically based ethical decision-making models to socially constructed decision-making models.â⬠Ethical issues that arise in accounting ought to be handled in objective reasoning (professional judgment) as opposed to empathetic and irrational reasoning (personal judgment). There are numerous users of financial information (managers, investors, lenders, employees, and shareholders). It is prudent that accountants apply the accounting guidelines in line with the Code of Professional Conduct stipulated by AICPA to put the interests of all users of financial information into consideration. In a situation whereby an accountant applies personal judgment to solve an ethical concern, he or she may end up favoring one party. Such acts may be considered discriminatory and may lead to legal action being taken against such accountants. All acco untants should bear in mind that ââ¬Å"professional judgment results in wisdom from experiences being applied in ethical decision-making processesâ⬠(Lehr and Sumarah
Wednesday, February 12, 2020
JPMorgan Chase Essay Example | Topics and Well Written Essays - 1250 words - 5
JPMorgan Chase - Essay Example The Commission enforces its authority also by bringing ââ¬Å"civil enforcement actionsâ⬠against those who violate the securities laws (SEC, n.d.). On the other hand, the SEC as an overseer, watches over ââ¬Å"the key participants in the securities world,â⬠which include ââ¬Å"securities exchanges, securities brokers and dealers, investment advisors, and mutual fundsâ⬠and heads in advancing ââ¬Å"the disclosure of important market-related information, maintaining fair dealing, and protecting against fraudâ⬠(SEC, n.d.). The SEC also persistently works with the participants of the major market as well as investors in the securities markets to take note of their concerns and experiences (SEC, n.d.). The primary responsibilities of the Commission include: interpreting and enforcing ââ¬Å"federal securities lawsâ⬠; issuing ââ¬Å"new rules and amending existing rulesâ⬠; overseeing the examination of ââ¬Å"securities firms, brokers, investment advisers , and ratings agenciesâ⬠; overseeing ââ¬Å"private regulatory organizations in the securities, accounting, and auditing fieldsâ⬠; and coordinating ââ¬Å"U.S. securities regulation with federal, state, and foreign authoritiesâ⬠(SEC, n.d.). The Commodity Futures Trading Commission (CFTC) on the other hand, is mandated ââ¬Å"to regulate commodity futures and option markets in the United Statesâ⬠(US CFTC, n.d.). ... 2. Determine the elements of a valid contract, and discuss how consumers and banks each have a duty of good faith and fair dealing in the banking relationship. The elements of a valid contract are ââ¬Å"parties competent to contract, a proper or lawful subject matter, consideration, mutuality of agreement or assent, and mutuality of obligationâ⬠(Henke v. U.S. Dept. of Commerce, 83 F.3d 1445 (D.C. Cir. 1996); Foundation Telecommunications, Inc. v. Moe Studio, Inc., 341 Ark. 231, 16 S.W.3d 531 (2000); Mallory v. City of Detroit, 181 Mich. App. 121, 449 N.W.2d 115 (1989); Rhode Island Five v. Medical Associates of Bristol County, Inc., 668 A.2d 1250 (R.I. 1996). It may also be ââ¬Å"offer, acceptance, and considerationâ⬠(Gatlin v. Methodist Medical Center, Inc., 772 So. 2d 1023 (Miss. 2000); Sauner v. Public Service Authority of South Carolina, 354 S.C. 397, 581 S.E.2d 161 (2003); Shaw v. Smith, 964 P.2d 428 (Wyo. 1998). In every contract, there is always ââ¬Å"an implied covenant of good faith and fair dealingâ⬠(Lloyd Noland Foundation, Inc. v. City of Fairfield Healthcare Authority, 837 So. 2d 253 (Ala. 2002); Wells Fargo Bank v. Arizona Laborers, Teamsters and Cement Masons Local No. 395 Pension Trust Fund, 201 Ariz. 474, 38 P.3d 12 (2002), as corrected, (Apr. 9, 2002)), where ââ¬Å"neither party shall do anythingâ⬠which would destroy or injure ââ¬Å"the right of the other party to receive the fruits of the contractâ⬠(Diagnostic Laboratory, Inc. v. PBL Consultants, 136 Ariz. 415, 666 P.2d 515 (Ct. App. Div. 2 1983); Okun v. Morton, 203 Cal. App. 3d 805, 250 Cal. Rptr. 220 (2d Dist. 1988); Dunfee v. Baskin-Robbins, Inc., 221 Mont. 447, 720 P.2d 1148 (1986); Spanish Oaks, Inc. v.
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