Full Disclosure Paper

Many people in this storm were injured, hurt, and killed. According to New York Times article, “At least 39 people have died, including a Houston police officer, a family trapped in a van beneath surging floodwater.” New York Times article also said that Houston was ‘built to flood’.

The full disclosure principle states that any future event that may or will occur, and thatwill have a material economic impact on the financial position of the business, should be disclosed to probable and potential readers of the statements. Such disclosures are most frequently made by footnotes. For example, a hotel should report the building of a new wing, or the future acquisition of another property. A restaurant facing a lawsuit from a customer who was injured by tripping over a frayed carpet edge should disclose the contingency of the lawsuit. Similarly, if accounting practices of the current financial statements were changed and differ from those previously reported, the changes should

Financial reporting practices and ethics have manifested an ocean of literature. This has mainly come from organization theorists that address accounting practices. These theorists and professionals have given fresh accountability measures. Their ideals give this industry the tools needed to survive, grow and prosper. The way an organization prepares and reports its financial information and handles its daily operations is in essence financial practices, and in the way it accomplishes this reveals their ethical standards to which they adhere to. This paper will discuss the financial practices, ethical standards, and

The hurricane affected Houston in an economic way by stopping production because without oil wen cannot make gases without gas some people cannot go to work because they do not have gas in their car. Another way the hurricane affected Houston in an economic way is by taxes because some place in Houston are destroy by the hurricane so people don’t have enough money to pay taxes. The hurricane affected Houston in a Social/Cultural Factors way is by food because a lot of markets were flooded by water so there were not much of good for people to buy and their prices were a little bit high because of the hurricane, another way the hurricane affected Houston in a Social/Cultural Factors way is by clothes because weather in your house or a market

On April 18, 2016 Yahoo reports Houston, Texas have flooding that forces residents to move out their homes and live in a nearby shelter. The flooding causes damage to the electricity lines, foreclosures of freeways, and forcing schools to close down because of the weather. One million students got the day off including workers. It’s deeply saddened that five victims were dead in this weather. There is over 450 water rescue and victims were transported to the mall to shelter away until the storm passes. It’s hard for people to drive in the freeway because the water can be up to 15 feet deep. The weather causes frustration toward the Houston resident.

These disclosures must be made "clear and conspicuous" to a "reasonable user". In their outline of what this means in a digital world, the FTC has offered up their "4Ps" to abide by when making disclosures:

Sarbanes–Oxley, Sarbox or SOX, is a United States federal law which was introduced in 2002. It is also known as the “Public Company Accounting Reform and Investor Protection Act” and “and 'Corporate and Auditing Accountability and Responsibility Act”. The main objective of the act is to protect investors by improving the accuracy and reliability of corporate disclosures. New aspects are created by SOX act for corporate accountability as well as new penalties for wrong doings. It was basically introduced after major corporate and accounting scandals including the scandals of Enron, WorldCom etc so that the same kind of scandals do not repeat again.

The act requires management to disclose all material information or changes within their accounting processes. By requiring senior management to review the reports they are held accountable for the financial accounting of the firm, and procedures to prevent employees and other members within an organization from committing fraud or theft and management is legally responsible if material misstatements have been made. By making management accountable then they are less likely to commit fraud if faced with jail time. Management and stockholders frequently have different goals. Management often wishes to expand and use the company’s assets in different ways than a stockholder. Management’s accountability of the financial reports often helps encourage management to use company assets in appropriate ways. Disclosures were also a reduction in risk of fraud because all material information must be disclosed. By requiring this disclosure if a company’s net income increased this year due to a

Obviously, many citizens were affected by this storm. Forty-two thousand, three hundred and ninety-nine people are in shelters. Two hundred thousand people without power and 1.3 million people in Houston without health insurance. The Red Cross, however, has given 190,000 meals and over 1,960,000 liters of water.

The hurricane that hit Galveston in 1900 is the deadliest in U.S. history according to Burton, (2012). There was no disaster relief other than the local community, the U.S. Army, and the Red Cross. At least 6000 people lost their lives during the event and that number could be doubled by some accounts. The city of Galveston failed in every emergency preparedness phase. Mitigation plans for a storm surge wall were brought to the attention of the city council, but rejected the idea leaving the city vulnerable to storm surge. The 1906 San Francisco Earthquake and fire completely devastated the city. Although earthquakes are not unusual for San Francisco then as they are not today. The city had not prepared for a potential disaster. According to Butler, (2012) Dennis Sullivan the cities Fire Chief ?argued for years that the city was an tinderbox waiting to be struck? his pleas for the city to improve the water distribution system was rejected. Again, without a federal emergency management system the only help was the local community, the Military, and the Red Cross.

The Sarbanes-Oxley Act (SOX) was enacted in July 30, 2002, by Congress to protect shareholders and the general public from fraudulent corporate practices and accounting errors and to maintain auditor independence.   In protecting the shareholders and the general public the SOX Act is intended to improve the transparency of the financial reporting.   Financial reports are to be certified by the Chief Executive Officer (CEO) and Chief Financial Officer (CFO) creating increased responsibility and independence with auditing by independent audit firms. In discussing the SOX Act, we will focus on how this act affects the CEOs; CFOs; outside independent audit firms; the advantages and a

Ethical and legal obligations apply to all members of society. As one in society, the obligation to act in an ethical, law abiding manner on a daily basis is vital to the integrity of daily life. Many professions have their own code of ethics. Financial reporting is not exempt from such ethical and legal standards. One’s lively hood depends on decisions made in the business world. Business transactions are done daily and can impact one’s economic stability. Trust is placed in the hands of corporate America and an obligation of financial reporting to reveal a complete honest and legal picture of an entity’s accounting practices is important in attaining trust. This paper will discuss the obligations of

In any business operations, full financial disclosure refers to the provision of the necessary information about a company for better decision making by the people accustomed. It is the financial revelation of a given company. There are some financial disclosures in any business that ensure proper understanding of financial statements to the financial readers, or potential auditors. Examples are the annual financial reports and the financial declarations of the company. The annual financial reports of the enterprise are very useful since they discloses the revenues recognized in the business, and the accountability of the inventories plus the income taxes accounted for during that period of operation. Second, is the disclosure of this financial statements which gives the actual revelation of the company 's stock options, liabilities and the effects of foreign currencies?! This disclosure includes the company 's balance sheet of the year, income statements and also the cash statements flows of that year. This information gives a proper understanding of the financial status users about the effects of inflation and price change on property and inventories (Berger, 2011).

These changes were outlined in the Sarbanes Oxley Act of 2002 (SOX). SOX completely revolutionized financial reporting, requiring senior management of firms to sign off on each financial statement that the company issues. It also stipulated that wrongful doing can result in not only termination but also imprisonment. SOX amplified the requirement for companies, requiring firms to maintain proper levels of internal controls when it comes to operating activities. SOX also established the creation of the Public Company Accounting Oversight Board (PCAOB) which implemented stricter auditing standards for public accounting firms. Not only were accounting firms required to consider internal controls, but they were also required report any significant deficiency directly to the board of directors. SOX stressed the importance of internal controls, and within internal controls it established the need for segregation of duties. Since this time, there have been many additions to accounting policies regards segregations of duties, and many functions of the business process dedicated to it.

Material changes to a company’s financial condition or operations must be disclosed to the public in a timely manner under the provisions of Section 409. Rapid disclosure applies to all types of company information – i.e. product recalls, personnel changes, or loss of a major customer (Hoffman, 2005, p. 4).