Excello - 1204 Words

Financial Reporting Excello Telecommunications Catherine Richard ETH376 October 6th, 2014 Melanee Robertson Financial Reporting Excello Telecommunications Excello Telecommunications has had a good profit margin for several years. Recently they have had increased competition for their products by overseas manufacturers. With these increases their earnings will not be met for the first time in the company’s history. With the blow of this being felt high in the corporation, there are concerns about the effects on stocks, stock options and bonuses. There is currently talk of a sale of product to Data Equipment that needs to take place rapidly to benefit the company. The company has a few courses to take and must make the†¦show more content†¦Making the company profitable at any cost and means is Reed’s goal, ethical or not. Fuller has explained the regulations and laws to the accounting department and to Reed, and Reed seems to not care about cost to the company, just profitability. Share prices will also remain high because of this decision to report in 2010. Th is would only benefit managers and personnel that have stock options, keeping them interested in the company and their investments only. Other options that are being discussed by Excello Telecommunications are to transfer the product to Data Equipment by December 31st, 2010 and agree that the customer could return it for a full refund after it arrives at Data Equipments warehouse. This would be unethical and reflect badly in the financial statements, because there would be large debits and credits in the financial information that would look obviously suspicious. This would raise questions during audits and board meetings because of the amounts of money being credite and debited in such a close amount of time. This would not look good for the company and would cause more financial distress with fines and penalties. Excello Telecommunications has another option that requires offering Data Equipment a discount for purchasing the equipment by December 31st, 2010. This would be a le gal and ethical way of dealing with the situation. Not only does it require that the money is recorded in 2010, but it also increasesShow MoreRelatedExcello1402 Words   |  6 PagesExcello Telecommunications October 4, 2014 ETH/376 Katherine Parks Excello Telecommunications has been profitable for many years, but recently has been faced with increased competition for its products by overseas manufacturers. For the first time in the company, it appears that earnings estimates will not be met. Management is concerned about the effect on bonuses, stock options, and the share price of Excello stock. When Terry Reed, the CFO, learns of a transaction on December 20, 2010,Read MoreExcello Telecommuncations1587 Words   |  7 PagesRUNNING HEAD: EXCELLO TELECOMMUNICATIONS CASE Excello Telecommunications Case Kevin C ETH/376 February 10, 2014 Excello Telecommunications Case The year is quickly ending for Excello Telecommunications, and they are trying to maximize earnings for the company. With increased competition from foreign companies, Excello meeting its financial estimates are looking bleak. Failure to meet earnings expectations can reduce the availability of bonuses, stock options and couldRead MoreExcello Telecommunications1382 Words   |  6 PagesThe Ethicality of Excello Telecommunications Cody S. Smith ETH/376 April 22, 2013 Ding Hardin The Ethicality of Excello Telecommunications Excello Telecommunications has been a profitable company for many years, but recently the competitive landscape has become tougher. Competition from overseas manufacturers has lowered Excello’s market share and profits. For the first time it looks as is Excello will not meet earnings estimates. This information directly impacts bonuses, stock optionsRead MoreExcello Commuminations1426 Words   |  6 PagesExcello Communications Camille ORoarke ETH/376 September 15, 2014 Ding Hardin Excello Communications In the Excello Communications scenario, the CFO Terry Reed is faced with a dilemma. Sales have been dropping due to competition from overseas manufacturers. Mr. Reed’s concern with these reduced sales is the impact it will have on bonuses, stock options, and share prices. With a large order of $1.2 million placed on December 20, 2010 by Data Equipment Systems, Mr. Reed sees an opportunityRead MoreLegality Ethicality of Financial Accounting917 Words   |  4 Pages(CFO) of Excello, Terry Reed, was considering doing such by posting a $2.1 million transaction to raise year-end earnings. Terry Reed, CFO of Excello, committed the unethical practices in this case. Reed had considered the $2.1 million transaction to collect the earnings from a sale that was not to occur until January 2011. By posting the transaction in December 2010, Reed would be able to boost the earnings for that year. According to the generally accepted accounting principles, Excello must recordRead MoreLegality and Ethicality1100 Words   |  5 PagesReporting In week3, we are looking into the case of Excello Telecommunications, and study their behavior base on the knowledge of legality and ethicality in financial reporting. Excello Telecommunications has been successful in the past. However, in recent years, the company is facing more and more competitors. For the first in the company’s history, the earnings estimate won’t be met. This means nervous investors and drop in value of Excello stocks. And the top management worries about the effectRead MoreLegality and Ethicality of Financial Reporting1296 Words   |  6 PagesAbstract Excello Telecommunications is a successful organization, but because of a growing rivalry, the organization has begun to notice their earnings estimations might not be achieved. Excello’s top administrators are worried how this will impact the organization. We will look at possible options as well as their moral ramifications as well as the federal laws which can be applied to the situation. Legality and Ethicality of Financial Reporting There are a number of rules that Excello mustRead MoreLegality and Ethicality of Financial Reporting1241 Words   |  5 Pages Excello Telecommunications was presented with a dilemma on how the company should report earnings so that they would appear to have met earning estimates for the 2010 financial year. The CFO, Terry Reed, was concerned with how failure to meet earning estimates would affect bonuses, stock options, and the share price of Excello stock. On December 201, 2010, the company sold $1.2 million of equipment to Data Equipment Systems. However, Data Equipment Systems requested that Excello hold on toRead MoreLegality and Ethicality of Financial Reporting1239 Words   |  5 PagesLegality and Ethicality of Financial Reporting ETH/376 August 25, 2014 Legality and Ethicality of Financial Reporting Excello Telecommunications has a history of excellent performance but with a surge in oversea competitors the company may not be able to meet its financial estimates for the first time. Executives were worried that not being able to meet the financial estimates could impact stock options, bonuses, and the share price of company stock. While looking to find a way to meetRead MoreLegality and Ethicality of Corporate Governance985 Words   |  4 PagesLegality and Ethicality of Financial Reporting Clairice Sikoski ETH-376 December 10, 2012 Samuel Hinton Legality and Ethicality of Financial Reporting Excello Telecommunications is looking to record revenue before the earning process has been completed or before the unconditional exchange has occurred. Terry Reed, the CFO is trying to influence the accounting department to look for options to record the sale of 1.2 million in equipment by December 31 to boost earnings on financial statements