Accounting Standards Of An Economy - 2023 Words

INTRODUCTION Guidelines are needed in every sector of an economy, firm and even households to prevent and control unethical practices. Therefore, financial reporting is not LEFTOUT as standards of authentication are set; these accounting standards play vital roles in the direct and effective functioning of businesses and capital markets. They provide shareholders, other users and the general public of financial information with key elements of a company’s financial control and systems which have been reported and assessed on. Its key objective is to standardize general accounting practices globally, ensuring fair and accurate reporting of financial statements. The different sets of standards used in the accounting world depend on the business type or firm and its area of location. They include the Generally Accepted Accounting Principles (GAAP) which was developed by the Financial Accounting Standards Boards (FASB), the GAAP are used essentially by public traded and private companies in th e United States to watch over and protect the public’s interest. The items covered by the GAAP are revenue recognition, outstanding share measurements and classification of balance sheet items. The International Financial Reporting Standards (IRFS) developed by the International Accounting Standards Board (IASB), the IRFS are devised to eliminate disparities and to serve as a common accounting language in financial reporting documents for businesses operations that run through globally andShow MoreRelatedShould China Adopt International Accounting Standards?.1532 Words   |  7 PagesInternational Accounting Standards? The International Accounting Standards Board (IASB) issued and developed the new International Financial Reporting Standards (IFRS) as new international accounting standards after 2001. In 2006, the Chinese government issued a new set of Accounting Standards for Business Enterprises (ASBE) which are substantially consistent with IFRS. As mentioned in the scholarly article of Li and Sun (2011), there are some primary differences between Chinese accounting standards andRead MoreAccounting Theorist Economist Recommending1112 Words   |  5 PagesHI6026 Memo 01 –T02, 2015 Memo To: Mr Tu Dewey From: Mrs. Jaya Jawalkar (Student ID: DC2369) cc: Mr. Safayet Hossen Date: September 14, 2015 Re: Accounting Theorist Economist recommending to deregulate GPFR This memo is in response to Mr. Dewey’s concern regarding large businesses asking for discount in their audit fees many positivist accounting theorists and right-wing economists recommend that general purpose financial statements (GPFS) be deregulated because they think that market forcesRead MoreFinancial Management Coursework1694 Words   |  7 Pages Grade Awarded___________ For Office Use Only__________ Final Grade_________ Moderation required: yes/no Tutor______________________ Date _______________ Topic 4: Economic consequences of adoption of the International Financial Reporting Standards (IFRS) 000744245 Thi Hoai Ly Dinh 000745588 Phuong Thao Nguyen 000748773 Adjoba Houra Content Page Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.4 Mandatory IFRS adoption’s impact on analysts forecasts†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦5 Read MoreCurrent Financial Reporting Standards On The Workplace Essay1744 Words   |  7 PagesCurrent Financial Reporting Issues It is incontestable that international financial reporting standards (IFRS) are in vogue and global conformity theoretically on the doorstep as about 100 countries implement standard financial regulations. The idea that uniform reporting standards have the same effect on financial reporting undervalues the contested ability to be flexible in financial reporting and introduces another level of debate on the issue of flexibility and uniformity. Apart from the factRead MoreIntroduction To Australian Accounting Standards Board1043 Words   |  5 Pages Accounting Abstract Accounting has been playing a very important role in many places such as Australian accounting standards. Australian accounting standards is also developed by the Australian Accounting Standards Board (AASB). This essay will firstly discuss what AASB is, the role and the functions of AASB. And then, following this, the other projects’ role such as Financial Reporting Council (FRC) and International Accounting Standards Board (IASB) and the relationship between AASB, FRC andRead MoreInternational Convergence Of Accounting Standards1494 Words   |  6 Pagesconvergence of accounting standards has risen since the end of World War II, resulting to the revolution of financial reporting. â€Å"IFRS for example are accounting standards issued by the IASB, an independent organisation based in London, UK† (Ball, 2006). IASB is primarily established to promulgate IFRS and are responsible to set rules that can be equivalently implemented by public companies internationally. Unif orm accounting standards are simply demanded in order to produce a comparable accounting informationRead MoreThe International Accounting Standards Board1603 Words   |  7 PagesInternational Accounting Standards Boards (IASB) and the Financial Accounting Standards Board (FASB) are making an effort to converge to develop International Financial Reporting Standards (IFRS) by gathering accounting standards that can be used in financial reporting whether it is in the home country or in the host country. Both the International Accounting Standards Board and the US FASB have proven to be vital promoters of the globalization of international financial accounting standards (Kirsch,Read MoreInternational Financial Reporting Standards On The Workplace Essay1740 Words   |  7 PagesIt is incontestable that international financial reporting standards (IFRS) are in vogue and global conformity theoretically on the doorstep as about 100 countries implement standard financial regulations. The idea that uniform reporting standards have the same effect on financial reporting undervalues the contested ability to be flexible in financial reporting and introduces another level of debate on the issue of flexibility and uniformity. Apart from the fact that the merits of flexibility areRead MoreGlobalization And Convergence Of Us.gaap Ifrs Standard As Prescribed By The Security And Exchange Commission ( Sec )1120 Words   |  5 Pages– IFRS Standard as prescribed by the Security and Exchange Commission (SEC) for users that set up financial statements in accordance with IFRS as issued by IASB. This followed would lead to a worldwide adoption of IFRS over the next few years. In his work, Barry (2009, p.26-27) states, â€Å"The advantage of a single set of financial reporting standards are manifest, particularly as internationalization of business activities became the norm. In particular, having uniform, high quality standards has beenRead MoreContribution Of Accountancy On Sustainable Development1485 Words   |  6 Pages FINANCIAL ACCOUNTING THEORY | BBAC502 Group Assignment â€Æ' Topic # 1 CONTRIBUTION OF ACCOUNTANCY IN SUSTAINABLE DEVELOPMENT â€Å"Bookkeepers will spare the world†, said Peter Bakker, the Chief Executive of of the World Business Council for Sustainable Development. The idea of sustainability includes working in a way that assesses an association s effects on the planet, its kin and what has to come. A developing number of bookkeeping scholastics have been looking

The Employment Non Discrimination Act - 904 Words

The Employment Non-Discrimination Act (ENDA) is legislation proposed in the United States Congress from the mid 1990’s and finally became law in 2013. This law prohibits discrimination in hiring and employment on the basis of sexual orientation or gender identity by employers with at least 15 employees. Those which favored the law intend it to address cases where gay, lesbian, and bisexual and transgender (GLBT) employees have been discriminated against by their employers because of their sexual orientation of gender identity (Raghavan,2013). Employees were not able to find protection under the law and not seen as a suspect class by the federal courts and appropriate as the United States Constitution guarantees equal protection and due process to all (Wiki, 2013) Those who favored the law firmly believe that people should be judged by their work and not by unrelated factors. Not everyone say the law as necessary and voted against it (Raghavan, 2013). The American Family Association (AFA) and others who apposed the bill felt the bill would discriminate against religious organizations and education systems. The Untied States Conference of Catholic Bishops went further with their claims as they saw the bill as to be â€Å"lacking and affirming of extra material conduct, re defining of marriage †¦..threatening of religious liberty’s and punishing some organizations, but not all. Clearly there are those who have litigated, Burwell v. Hobby Lobby Stores, Inc. and have found to beShow MoreRelatedThe Proposal Of The Employment Non Discrimination Act1551 Words   |  7 Pages The proposal of the Employment Non-discrimination Act by the American Congress has attracted the warm attention that most victims of sexual-oriented and gender-based discrimination wished dawned on their fellow citizens. This arises from the prevalent cases of reported discrimination in the workplace today, implying a modern society, yet to discharge the traditional perception of prejudice. It emerges amidst the outcry to free the workplace elements of discrimination, still locking out a crop ofRead MoreOn the Employment Non-Discrimination Act Essay610 Words   |  3 Pagesâ€Å"US Bishops oppose Employment non-discrimination Act; Say it punishes disapproval of conduct; three chairmen of the United States Conference of Catholic Bishops have criticized the Lesbian, Gay, Bisexual, and Transgendered; backed Employment Non-Discrimination Act (ENDA) of 2013, which was passed on Thursday by the United Senate, arguing that it punishes those who show a disapproval of same-sex sexual condu ct. â€Å"Our dignity as children of God extends to our sexuality. Being a male or a female isRead MoreA Brief Note On Employment Non Discrimination Act2185 Words   |  9 PagesEmployment Non-Discrimination Act Researchers show that anywhere from 15% to 43% percent of LGBT have encountered some variety of unfairness and harassment in the workplace (Center Progress, 2011). Further, 8 % to 17 % of LGBT state being passed over for employment or fired due to their sexual orientation. Ten percent to 28 percent experienced a negative performance review or were overlooked for a promotion due to being gay. Moreover, 7 % to 41 % of gays faced harassment, abuse, or antigay vandalismRead MoreThe Employment Non-Discrimination Act of 2009—Ensuring Equality in the Workplace for Gay, Lesbian, Bisexual and Transgender Workers1485 Words   |  6 Pagesthe US, it is legal to fire an employee for being gay, lesbian or bisexual. 38 States in the Union have no laws on record preventing discrimination against gender identity or expression—commonly known as transgender. While these statistics may be disheartening for many gay, lesbian, bisexual, and transgender (GLBT) individuals, it is not all do om and gloom. Employment protections and rights for GLBTs have grown exponentially in the past two decades. Fortune 500 companies have helped lead the chargeRead MoreHcs430 Employees Handbook Essay1732 Words   |  7 PagesEmployee Handbook Non-Discrimination XXX HCS/430 – Legal Issues in Health Care: Regulations and Compliance University of Phoenix CERTIFICATE OF ORIGINALITY: I  certify that  the attached  paper is my original work and has not previously been submitted by me or anyone else for any class.  I further declare I have cited all sources from which I used  language, ideas, and information,  whether quoted  verbatim or paraphrased, and that any assistance of any kind, which I received while producingRead MoreEmployment Equity1660 Words   |  7 PagesEMPLOYMENT EQUITY Contents PAGE EXECUTIVE SUMMARY 2 INTRODUCTION 2 WHAT IS EMPLOYMENT EQUITY 3 HOW DOES IT WORK 3 - 4 WHAT IS AFFIRMATIVE ACTION 5 IMPLEMENATION OF AFFIRMITIVE EMPLOYMENT EQUITY 6 - 7 OBSTACLES CHALLENGES 7 ACKNOWLEDGEMENTS 8 CONCLUSION 8 BIBLIOGRAPHY 9 EXECUTIVE SUMMARY This assignment deals with the Employment Equity Act of 19 October 1998. It covers the workings of the act in terms of equityRead MoreHarrassment Is an Example of Discrinimation in Employment Essay example821 Words   |  4 PagesJob Discrimination by definition is the practice of using an individuals race, color, national origin, sex, or religion to make employment decisions related to hiring, firing, compensation, evaluations, promotions, and training. There is a lot of discrimination in employment and the example of discrimination that occur is Harassment. Harassment Sexual harassment is one of the most heard in the workplace and usually it occur when employees are subjected to unwanted and unwelcome treatment due toRead MoreSex, Religion, And Discrimination1132 Words   |  5 Pages1. Chapter Summary Historically, there has been race, sex, religion, and many other sources of discrimination worldwide. America has come a long way in bringing justice to those who have been discriminated, and to prevent it from happening by implementing relevant policies. However, it is apparent that traces of these historical discriminations have followed us onto the new era of the 21st century. In the past few months alone, there were a few laws executed to stop inequity allowing for: †¢ SameRead MoreDisability Discrimination In The Workplace1439 Words   |  6 PagesOver the years, the workplace has experienced several instances of discrimination. In attempt to stop the discrimination, Title VII was passed. Although Title VII helped employers in terms of race, color, gender, religion and national origin, those who had disabilities continued to face the frustration of disability barriers in the workplace, given disability was not one of the listed protected classes. Employers abstained from hiring the disabled in fear of them not being able to perform at theRead MoreDiscrimination : Discrimination And Discrimination1169 Words   |  5 PagesII 10/5/2017 Discrimination Of People in the Workplace Does Discrimination still exist in the work environment? You bet. This paper focuses on discrimination laws that help women and men, who are treated differently because of their sexuality, race, religion and gender identity. Federal and State laws forbid discrimination against race, religion, sexual orientation, sex, and gender identity even though it still happens to many people. (Employment Law Handbook. (n.d.).) Discrimination Laws Organizations

Potential Liability Certified Information Systems

Question: Discuss about the Potential Liability for Certified Information Systems. Answer: The auditor is a person who is qualified to evaluate and validate that the accounting information given by an audited organization precisely fits in to the actions that are acquired by an organization. The auditor's responsibility is to prepare a report at the end of the audit, which decides the standard of accurateness and clearness that the company has considered. For a moment, if every step related to accounting prepared by an organization is illustrated in the records, and all information that is noticeable in the books matches to the course of trade in an organization, then it states that audit will show no inaccuracy (Economic, 2016). Power and duties of auditors The power of the auditors helps them to properly analyze the financial position of the firm. Auditors should have right to access the accounts and vouchers of organization. The organizations management should provide all the relevant data to the auditors, for performing duties without any hindrance. Auditors have the authority of signing the audit report of organization and other financial documents as well (Bainbridge, 2012). Notices and communications related to any meeting should be properly sent to auditors on time. Remuneration of the auditors should be made clear within the general meetings or any other way of communication. The duties of the auditors make them responsible for indicating things in advance to organization (Cannon, 2011). Auditors should make audit report for the company, as it helps to know about the financial statements. Auditors work should based on the certain principles of the auditing. Auditor while performing his/her duties founds out that illegal act is i nvolved, fraud is being committed in opposition to the organization by officers or employees, auditors should right away inform the fact to the Central Government on time and by following approved procedure (Pickett, 2010). Duty of care Duty of care can be explained as, the accountability or the lawful duty of an individual or association to keep away from actions or measures, which can create damage for others. An accountant owes it in properly developing organizations accounts, an auditor owes it in validating an organizations financial statements appropriately, which represents financial position of an organization. Director to shareholders it is owed in preserving the firms assets and manufacturer to consumers it is owed for the security of goods and every party to a contract it is owed to the other parties who are contracting (Giove, 2015). Global financial crisis is a universal era of financial complexity accustomed by markets and customers. A global financial crisis is a complex business environment to do well because possible customers are likely to decrease their acquisition of products and services up till the economic conditions develops (Davies, 2010). The financial crisis and auditor liability The global financial crisis (GFC) is frequently presumed to have begun in July 2007, when there was loss of motivation by US financers in the worth of sub-prime debts induced a liquidity crisis. This, sequentially, evolved out in the US Federal Bank introducing a huge amount of investment into monetary markets. With September 2008, the crisis had aggravated as stock markets across the universe strike and resulted in extremely unstable manner. Customer motivation hit the rock bottom as everybody tightens belts in terror of what could happen further (Davies, 2014). Auditors are under attention due to faith that a green signal provided by the auditor means that a states that organizations accounting application have approved inspection (Pal, 2010). The table below illustrates that anxious ?nancial ventures, in Netherlands, Iceland, Germany, UK, France, USA, or Switzerland, acknowledged unquali?ed audit viewpoints on their ?nancial statements issued right away former to the public announcement of ?nancial problems. These viewpoints were given by one of the Big Four accounting enterprise Ernst Young, KPMG, Deloitte Touche, and Price water house Coopers. The principles of auditing in Australia are very much associated with international principles of auditing, which illustrates that the auditors process essentially engage a thought of the organizations capability to carry on in operational continuation for the future nearby. Sequentially, that compels deliberation of the present and the probable future conditions of the company and the surroundings in which it works. Principles of auditing also need auditors to present audit process planned to acquire adequate suitable audit proof that all proceedings until date of the report of auditor may need modification of, or revelation in, the ?nancial statements, which is recognized (Malb, 2013). Lehman brothers case On 28 January 2008, Lehman Brothers who acknowledged an unquali?ed audit viewpoint on its accounts annually, on 10 July 2008, which was chased by vigorous clean bill in terms of accounts quarterly (Rootzen, 2011). On the other hand, nearby August it was undergoing rigorous ?nancial troubles and on 14 September 2008 registered for insolvency. Bear Stearns, Americas fifth chief investment bank, on 28 January 2008 acquired an unquali?ed audit viewpoint. On the other hand, by 10 March, its ?nancial troubles strike the headings and on 14 March, with the help of state, JP Morgan Chase purchased it (Harress and Caulderwood, 2013). The German migrant Henry Lehman and his brothers came with the establishing Lehman Brothers in the 1850s. In its initial years organization traded cotton, however with the commencement of the 20th century the organization entered in trading of banking and securities, ultimately became a speculation bank (Historical Resources, 2010). Financing and performing business in rising section of the 20th century, moreover, preceding worldwide and obtaining other firms, Lehman Brothers extended along with becoming worlds chief speculation banks . Modern speculation banks like Lehman are complicated academies with superior and difficult formation, with every day undertakings of numerous billion of dollars. Prior to the fall down of Lehman Brothers the chief business sectors was characteristic speculation banking, also equities, capital markets, fixed income and speculation administration. Lehman Brothers speculation banking industry gave financial services like, underwritings and issuing securities, mergers and acquisitions (Rootzen, 2011). Further business areas related to the equity sector of Lehman financed in equity across the globe. However, the fixed income, speculation administration and capital markets sector focused on wealth administration and different services. The size of the undertakings or services given was charged and their major revenues were acquired from these (Hantoft and Jerkrot, 2012). Financial crisis in Lehman Brothers Lehman Brothers executive and auditors failure caused the bank collapse that unbinds the worst of financial crisis. Lehman Brothers continuously extended their own domestic risk limits and commands and huge range of worst calls due to its management caused the failure of bank, stated in the report commenced by inspector Anton Valukas. The U.S. Bankruptcy Court for the Southern District of New York to examine the causes of Lehmans failure appointed Valukas, of New York law firm Jenner Block, in January 2009 (Wong and Smith, 2010). Credit crunch led investor motivation to fall down and in 2008, Lehman tried to anticipate collapse creating a false image of its financial situation. Lehman Brothers executives could have done better in comparison. Valukas, held responsible Lehman executives for aggravating the organizations troubles, creating the financial down fall for creditors and shareholders. The executives' behavior towards balance sheet manipulation is a severe but unoccupiable mistake related to business decision. Lehman Brothers make use of Repo 105 to make their accounting records look better. Instead of selling $ 50 million at a loss, they used Repo 105 to create a false picture in the balance sheet, which removes these assets from the balance sheet (Wong and Smith, 2010). Lehman Brothers global financial controller provided confirmation in context of Repo 105 use was only for showing reduction in transaction from balance sheet. Ernst Young the auditor was conscious about the use of Repo 105, except that also it did not confront or inquiry in context of this. However, there was not any evidence regarding the awareness of auditors about the use of Repo 105 (The Guardian, 2015). Charlie Perkins Ernst Young representative pivoted liability from his company, stating that Lehman Brothers insolvency was the outcome of a sequence of unfavorable proceedings in the financial markets. Ernst Young stated that they audited the financial statements according to the Generally Accepted Accounting Principles. Hence, auditors are not liable for the insolvency of Lehman Brothers (CNBC, 2016). Recommendations Based on the report it can be recommended that accountants, managers, boards of members are responsible along with auditor for financial crisis. Hence, it becomes the combined responsibility of the all of these to work in a proper format to avoid financial crisis following prescribed standards. Regulators should be allowed to take responsibility directly for auditing. It is not anticipated from auditors to provide assurance for the continued existence of any organization. Rather than auditors should be allowed to work independently for the organizations they are auditing and should work out sensibly with concern and ability. Auditors should be good at predicting the performance of the organization since previous 12 months accurately, by providing justified and reasonable view over the performance. Auditors work is to focus on the historic information not over the future prediction. The auditors should focus on the reliability and impartiality strategy. The cooperation of the manageme nt is necessary for the auditors to create a fair audit report for the organization. The organization must inform the auditors about the meetings that have to be attended on time. Public expectations and actual facts should be met out, there should not be any gap between actual and expected. Conclusion From the report, it can be evaluated that financial crisis has the huge impact on auditors liability. Principle of auditing has been changed from time to time. Auditors play very crucial role in the organization. Investors and lenders before dealing with nay organization focus over the auditing reports of any company. Auditing report helps to judge the financial position of the organization. Power and duties help auditor has to perform their jobs properly. Auditors cannot be fully blamed for financial crisis, as accountants, manager, board members are also responsible for the organization. Direct responsibility of the regulators can restrict financial crisis probably. Auditors do not have the liability to provide guarantee for the survival of the organization. Auditors can only analyze the financial statements of the organizations and provide accurate report to the company. The job of auditor is not to forecast future rather to provide guarantee that organizations financial statement s provide a factual and reasonable analysis over the preceding 12 months presentation. References Bainbridge, S. M. (2012) Corporate Governance After Financial Crisis. New York: Oxford University Press Cannon, D. L. (2011) CISA Certified Information Systems Auditor Study Guide. Australia: John Wiley Sons CNBC (2016) On this day 8 years ago, Lehman Brothers collapsed: Have we learned anything? Available at: https://www.cnbc.com/2016/09/15/on-this-day-8-years-ago-lehman-brothers-collapsed-have-we-learned-anything.html (Accessed: 13 January, 2017) Davies, H. (2010) The Financial Crisis: Who is to Blame? UK: Polity Davies, J. (2014) Global Financial Crisis What caused it and how the world responded. Available at: https://www.canstar.com.au/home-loans/global-financial-crisis/ (Accessed: 13 January, 2017) Economic (2016) What is an auditor? Available at: https://www.e-conomic.com/accountingsoftware/accounting-words/auditor (Accessed: 13 January, 2017) Giove, F. C. (2015) Auditing Essentials. New York: Research Education Assoc. Gramling, A. A., Johnstone, K. M., and Rittenberg, L. E. (2012) Auditing. USA: Cengage Learning Griffithis, P. (2016) Risk-Based Auditing. USA: CRC-Press Hantoft, L., and Jerkrot, H. N. (2012) Statistical Report Lehman Brothers. Available at: https://www.math.chalmers.se/~rootzen/finrisk/Statistical%20Report%20Lehman%20Brothers%20Group%208.pdf (Accessed: 13 January, 2017) Harress, C., and Caulderwood, K. (2013) The Death Of Lehman Brothers: What Went Wrong, Who Paid The Price And Who Remained Unscathed Through The Eyes Of Former Vice-President. Available at: https://www.ibtimes.com/death-lehman-brothers-what-went-wrong-who-paid-price-who-remained-unscathed-through-1405728 (Accessed: 12 January, 2017) Historical Resources (2010) History of Lehman Brothers. Available at: https://www.library.hbs.edu/hc/lehman/history.html (Accessed: 13 January, 2017) Malb, M. (2013) The role of the Auditors Liability in the global financial crisis. Available at: https://prezi.com/vsujbqrl8kdw/the-role-of-the-auditors-liability-in-the-global-financial-crisis/ (Accessed: 12 January, 2017) Pal, T. (2010) The Impact Of The Economic Crisis On Auditing. European Integration Studies, Miskolc, 8(1) pp. 131-142. [Online]. Available at: https://www.matarka.hu/koz/ISSN_1588-6735/GTK_vol_8_no_1_2010_eng/ISSN_1588-6735_GTK_vol_8_no1_2010_eng_131-142.pdf (Accessed: 12 January, 2017) Pickett, K. H. S. (2010) The Internal Auditing Handbook. 3rd edn. Australia: John Wiley Sons Rootzen, H. (2011) A Case Study of the Lehman Brothers Bankruptcy. Available at: https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.186.5564rep=rep1type=pdf (Accessed: 12 January, 2017) The Guardian (2015) Lehman Brothers' former CEO blames bad regulations for bank's collapse. Available at: https://www.theguardian.com/business/2015/may/28/lehman-brothers-former-ceo-blames-bad-regulations-for-banks-collapse (Accessed: 13 January, 2017) Wong, G., and Smith, A. (2010) What killed Lehman. Available at: https://money.cnn.com/2010/03/12/news/companies/lehman_examiner/ (Accessed: 13 January, 2017)

Week 3 Devry Business Law Assignment Essay Example

Week 3 Devry Business Law Assignment Essay The definition of a valid contract is that it complies with all of the legal requirements for a contract. There are several types of contracts. First is a unilateral contract, which is one that only one of the parties involved makes the promise. The other party involved would than act in return for the promise stated. A bilateral contract is when both partied make a promise. An implied contract is when there are surrounding circumstances along with facts, which show that a promise was created. A contract is not executed when all of the parties involved have fully completed their promise and contractual duties. In order for the offer to be valid, there are several basic elements. First, there must be intent to contract. Secondly, it must be communicated to the acquirer. Lastly, the terms and conditions needs to be certain and definitive. All parties involved have the right to duress from one another. If these elements are not met, the contract may be seen as invalid. In contract law, in order for a contract to exist, one part must make an offer and the other must accept the offer. There are several rules to the accepting of an offer. First, prior to the offer being accepted, the offer may be withdrawn. We will write a custom essay sample on Week 3 Devry Business Law Assignment specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Week 3 Devry Business Law Assignment specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Week 3 Devry Business Law Assignment specifically for you FOR ONLY $16.38 $13.9/page Hire Writer The offeree must accept the offer, which is the person who was made the offer. Another person cannot accept the offer of their behalf without specific authorization. For example, if a power of attorney exists, another person may be able to accept the offer. If the offer specifies a method in which the acceptance should be given, it must come in that form. For example, if the offeror states that the acceptance must come via fax and no other method is allowed, it is the only form that can be accepted. In order for a binding contract to be created, there must be consideration in order for it to become legally sufficient. The consideration in contracts is when one party for a specific promise gives something of value from the other party stated in the contract. The consideration may be given for the performance of an act or not performing an act. One example of this would be that one party pays another party to not put up a fence of their property. In order for the contract to become enforceable, the consideration must be adequate. The adequacy does not mean that the price matches, exceeds, or is the fair market value. Instead, it means that the agreed consideration is measured. There must be value that can be objectively determined in order for consideration to exist. Pennsylvania law allows for the recovery of damages when a contract is breached. Essentially, any damages incurred due to the breach will total a sum that will compensate the non-breaching party for all loss in which they sustained. In order for this to take effect, the non-breaching party must present sufficient evidence of what exactly the damages where. The damages needs to be reasonably foreseeable at the time the contract was entered into and also reasonable certain as to the calculations. Examples of these damages would include lost profits, lost rental income, an increase of rental costs, an increase of labor costs, an increase of material costs, and so forth. References: Miller, R. L. , Jentz, G. A. (2010). Business Law Today: Comprehensive Edition. In R. L. Miller, G. A. Jentz, Business Law Today: Comprehensive Edition (pp. 248 256). Cengage. Schwartz, S. (2012). Schwartz Blackman. Retrieved from Pennsylvania Commerical Law: Breach of Contract and the Duty to Mitigate Damages: http://www. schwartzandblackman. com/pennsylvania-commercial-law- breach-of-contract-and-the-duty-to-mitigate-damages-part-two/