Business Financial Crime Coursework Example | Topics and Well Written Essays - 2500 words

Business Financial Crime - Coursework Example The paper analyzes the frauds associated in the earning management and cites some cases of frauds in the earning management. A section of the paper also deals with the regulatory framework of earning management in countries like USA and UK. The concept of earning management can be defined under three board heads of white, black and Gray. White signifies the beneficial earnings which are used to enhance the transparency of the financial reports whereas black signifies the misrepresentation of the report and involves fraudulent activities. The gray denotes the manipulation of financial reports which occurs within the boundaries of the compliance, which are done to enhance the efficiency or to provide opportunistic results. Under the gray concept, earning management involves the selection of accounting principles which helps to maximize the overall utility of the management of the organization. Earning management is initiated by the mangers when they use their judgment in the reporting of the financial statement and alters certain information within the reports for misleading the stake holders or to influence the outcome of certain contracts which depends on the stability of the organization in terms of accounting figures . However all earning management does not involves the misrepresentation of the facts and figures. Certain organizations do not resolve to distortion of figures of the accounting report and allows the investors to distinguish between the various components and they only undertake operations which enhance the value of the information associated with the earnings of the organization. Earning management often proves to be beneficial in determining the long term value of the organization and at the same it can be pernicious while concealing the short term value. The concept of earning management is declared as fraud and it violates the rule specified by GAAP, when the organization records sales in the accounting reports

Duration of technology licensing Research Paper

Duration of technology licensing - Research Paper Example mination of the actual technology transfer charge and the actual duration of the charge, certain factors such as the type of technology, the type of industry and competitive environment contribute to the consideration of the appropriate charging method. Licensing considerations available to innovators highlight the various technology leakage impacts and the effect that the irregular transfer of the innovation has on the monopoly impact that a company enjoys in the market with several competitors. The basic assumption in the considerations is that there are many companies competing for the technology and the innovator seeks to find the most appropriate method to continue making revenue from the technology once sold (Raspudic 6). As mentioned above, the two types of contracts widely employed in licensing innovation to companies include fixed-fee and royalty payments. Despite the fact that the two licensing contracts have several similarities, distinctions however, stand between them in various fundamental perspectives. In the fixed fee alternative, the technology owner charges a fixed fee on the product and makes it available to all competing companies on take-or-leave basis of offer. In this contract perspective, meeting the initial fixed fee implies that the company agrees the offer and effectively gives the company the rights to use the technology as a licencee. In the determination of the fixed fee, the number of companies competing to take up the offer forms an integral determinant force. The concept of royalty arrangement finds shape on the unit output analysis where the innovator charges a specific predetermined royalty fee (Raspudic 4). Licensees become beneficiaries of the technology if they meet th e royalty fees. As employed in fixed-fee contracting, the number of licensees determines the amount of royalty charges. The determination of the active duration of a license depends on the type of contract up to when the technology utility reduces to an outdated