ssues Financial reporting in the recent years through the SEC mandates has become one of the most important aspects to corporate management. Stamford International's problem is inherent in the discrepancy in reporting system and accounting irregularities from the various aspects of the business. Not only has this but Stamford, due to rapid growth not been able to accommodate for the expansionary activities like acquisitions of units and international transactions. The result has been the experience of loss in earnings-per-share. In the following analysis, the researcher thus will outline some of the problems that Stamford should address and resolve accordingly to be able to post a positive quarterly report and remain compliant with the
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Similarly advertising charged to the first quarter whereby its benefits are being materialized in April, May and June should be added as unused expense rather than an expense (and reported nevertheless). Furthermore, the relative dollar hedge gain realized during this month should be included as unrealized exchange gain and not transferred to the second quarters. Lastly, considering the need of the hour for high earnings, the company should also include its restructuring reserve equivalent two cents per share into the first quarter results. This should be done because the company needs to project a positive earnings-per-share and secondly because restructuring have been underway since last year and during this year too which have resulted in the shortfall in earnings. Given these discrepancies in my opinion as CEO of the company, the ideal earnings-per-share figure should be 50 cents and revise its previous quarter over estimation to prevent the company from charges of fraudulent reportage.
Stamford has had these discrepancies due to several reasons and it should be resolved immediately at the beginning of the year before the company endeavor to continue reportage in the same manner for the entire year. Firstly accounting reportage method depends on the kind of operation the company undertakes. Some companies have the option of deferred method while others adopt the as is' basis. There is a third option of using both methods in combination which