Contemporary Issues in Accounting Earnings Misstatements come in Bunc

Question: Find accounting issues currently feature in news and discuss the issue its nature potential significance in the general accounting debate and practice. Following the next steps: Relevant article (Not older than 1 year) Summarise what happened Why is it relevant to accounting issue Critical argument References Answer: Recent article This particular article is taken from The New York Times. This article states the issue related to Earnings Misstatements come in Bunches. This article was dated from 23rd October, 2015 (Nytimes.com, 2015). Summary of the article This particular article helps to understand that one bad corporate apple can spoil the entire bunch of people working together in an organization. It is noticed that there is accounting restatement performed by big corporation for 12-year period. Companies performed this action and others too followed the same path that results in own restatement pertaining to danger in future business activities This study relates to the evidence found from the contagion in Earnings Management in an effective manner. Researchers have found misstatements in 2249 companies from the year 2009 to 2015. It is noticed from the earnings statements of companies that manipulation is directly linked with the percentage of firm in industries. This account restatement was announced for the previous 12 months (Nytimes.com, 2015). Critical Argument on the article On critical analysis, it is noticed that while performing this action by companies, they faced strict regulatory action, litigation of shareholders. Due to this action, corporate peers started discussing on their code of conduct and affected the business activities on an adverse manner. It is recommended that misstatement of earnings should not be encouraged and this need punishment as soon as possible. The Accounting Review conducted further study in relation with the American Accounting Association. Top business professionals further discussed this news in the November issue in famous business magazines. In this study, specific companies were not identified who were directly involved in the manipulation of earning statement in their business activities. Most of the big and visible companies were found involving in the book- cooking that leads to misconduct of business practices on an adverse manner It is noticed that big corporate companies who are imitating with the performed extreme misstatement on an overall manner. This action was copied by the corporate America. Addition to that, misstatement of corporate accounts involves manipulation with revenue, fudging with the expense account, inventory shortage. Restructuring of assets also leads to manipulation of earnings misstatement. Littering is an important example that will help in understanding the current issue of accounting misstatement on an overall manner. Most of the corporate just go against laws and social norms in order to attain success rate in faster manner. At the end of the study, it is easy to gather the information on the issue on misstatement of earnings by the Big Corporation. It is advisable to make effort to stop this manipulation and conduct ethical way to perform the business activities in the most appropriate manner. Accountability counts on this matters and companies need to abide by the regulations and laws. Capital markets and the investors have the right to understand the shareholder participation, journalist enterprise and the regulator participating in the business activities on an overall manner. Reference List Nytimes.com,. (2015).Earnings Misstatements Come in Bunches, Study Says. Retrieved 22 December 2015, from https://www.nytimes.com/2015/10/25/business/earnings-misstatements-come-in-bunches-study-says.html?ref=topics_r=0