Response to Classmates Discussions
kingstonman41
WEEK5ClassmateDiscussionResponse.docxWEEK 5 Classmate Discussion Response
Guided Response: Respond to at least two of your fellow students’ posts in a substantive manner and provide information or concepts that they may not have considered. Support your position by using information from the week’s readings. You are encouraged to post your required replies earlier in the week to promote more meaningful and interactive discourse in this discussion forum.
Greetings all,
Upon reading More than meets the eye, it was determined that information is not portrayed as it should be when it comes to reporting information to the shareholders and the public (Bujaki & McConomy, 2010). Typically there are standards, a set of guidelines, a format, a process in which something should be done. From a manufacturing standpoint, while each company will vary in what material they produce, they will typically have the same guidelines for a universal process, such as torque calibration. Manufacturing companies worldwide refer to a standard written and guidelines by ISO, Internation Organization of Standards. These standards give specific instructions to keep processes and records in the same format. Such as torque calibration. A licensed and certified torque specialist should do this process. This process also should be performed semi-annually. While most manufacturing companies have personnel in-house that are trained to perform an adjustment, the standard is that all manufacturing companies abide by this rule.
When it comes to presenting financial information to the public or shareholders, data from one company to another should remain consistent, which, according to Bujaki and McConomy, is not the case (2010). Also, they mention that executives use confusing words by not being transparent in what they want the follower to understand. A company may be on the verge of bankruptcy, yet the CEO will use words to make it seem as the company is doing well. If the statements were to be universal, this would mean that people would be able to follow along and understand how a company is performing. In my report, I plan to be as transparent as possible. If the company is in financial trouble, state it, and give a list of obtainable goals to get the company back on track.
References:
Bujaki, M., & McConomy, B. (2010, May). Voluntary disclosures in corporate annual reports — More than meets the eye. CMA Management, 84(3), 14-16.
·
The AOR provides an organization’s strategic pathway over the last year. According to Hayes (2020), “An annual report is a corporate document disseminated to shareholder that spells out the company’s financial condition and operations over the previous year” (para. 2). Each decision made or lever pulled throughout the simulation becomes a reportable discussion point in the AOR.
The report begins with the overall basics, such as the accounting method used to record transactions producing the financial statements. According to Stanko and Zeller (2003), “Amounts are accrued because they are an expense that relates to the generation of revenue in the current period” (p. 55). Hisco records financial transactions on an accrual basis of accounting.
Additional sections to include in the report will breakdown the investments in R&D, marketing, advertising, and quality expense. The organization will discuss solar panels’ investment and reflect Mr. Sloane’s equity investment, including the depreciation impact. It will further reference the expansion into the European market and all of the added investments around the decision. We will explain accounts receivable days outstanding, market share, growth, and the impact each has on cash flow. There will also be a section to address long-term debt and the intended repayment schedule. Overall, there is quite a bit to cover in the 2021 AOR for Hisco.
References
Hayes, A. (2020, July 28). Annual Report. https://www.investopedia.com/terms/a/annualreport.asp (Links to an external site.)
Stanko, B., & Zeller, T. L (2003). Understanding corporate annual reports: A user’s guide. Hoboken, N.J.: John Wiley & Sons, Inc. eBook., Database: eBook Collection (EBSCOhost).
