The family of Mr. Holland Park was searching for a home care that would serve the needs of their grandfather. They needed a home that would offer impeccable services that would ensure the comfort of their relative. Mr. Holland Park is suffering from several complications, including dementia, hearing problems, challenging behaviour and visual problems. His family chose my practice after recommendation from friends and other family members. The reason for their choice is the immaculate outcomes of this nursing home in that it is versatile and works to deliver on individual needs. Introduction The emphasis on special and specific needs in social careprofession has evolved to encompass all activities relatedthe users of these homes stress on their delivery of service meaning that for any home to stay in business, it should provide quality services. Another twist to this story is that auditors are sent periodically by the government to check the operations of these homes and any home found operating contrary to the codes of conduct required of them is shut down. Task 1 The perceptions of health, disability, illness, and behaviour The way people view various health issues in the society is dependent on several factors including education, socio-economic background, and even political factors. This implies that the perception of different elements such as health, behaviour, illness, and During the process of admitting Mr. Holland Park several concepts related to Analysis of the concepts of health, disability, illness, and behaviour Different phrases, elements, and concepts in healthcare have different definitions and uses in various subsections of healthcare. This section strives to analyse and define various concepts related to special care. These concepts include Health Health For instance, if Mr. Holland did not suffer from all the ailments outlined above but still had social problems some would term him healthy. However, according to this definition, Mr. Holland is unhealthy until he is in a state of complete health. This underscores the importance of care homes for people with disabilities because these homes strive to put these people in a state of complete wellbeing as defined in the paragraphs above. Disability Disability can be described as any mental, physical, and emotional impairment that restricts an individual from undertaking regular activities like walking, working, driving, eating, and even going on vacations. Mr. Holland has various disabilities ranging from hearing, seeing, dementia and even behavioural problems. The care home defined above caters for all these disabilities. In fact, the essence of the home is to enable these people to lead a comfortable life. Illness In all aspects, illness is related to both health and disability in that illness involves the state of the body just like health and disability. In essence, an illness is a state of being unhealthy in body and mind. Illnesses inhibit a person from carrying out several activities done by a healthy person. In this case, scenario Mr. Park is suffering from several illnesses, and that is the reason it becomes necessary for him to be cared for in a home. Behaviour and behavioural issues Behaviour can be defined as an individual’s character. It is the way an individual acts and conducts towards his or her environment. Most of the time the way someone relates to others is very important to the comfort of their lives. Behavioural issues often arise due to old age as the mental and physical health deteriorates. This is perhaps the reason Mr. Park exhibits these problems. The fact that he suffers from several illnesses implies that his behavioural problems are prevalent. Over the decades, the perceptions of people from different lifestyles on disability have changed considerably. the number of private practices in the UK as opposed to the past where people depended on public healthcare institutions. Moreover, the quality of care is stressed by individuals and the concerned government institutions not like in the past where did not give much importanceMoreover, people’s attitudes towards people with special needs have changed over the years prompting increased focus on their wellbeing and comfort. Indeed, Mr. Park’s family wanted a care home that would treat him with respect and at the same time offer him impeccable services. They desired to see their relative being taken care of and living in a comfortable environment, a thing they were not able to do because of their limited capabilities and busy schedules. society, and culture Several laws governing the treatment of individuals with special needs exist in the UK. Perhaps the most important law in the UK relating to individuals with specific needs is the Health Act 1999, which stipulates pooling of resources and capabilities in order to enhance the quality of service. This implies that the adoption of this Act ensures that people like Mr. Park get better services than it was in the past. The impact of culture on the services for the disabled is less compared to economic and political factors in that the current UK is modernised. The perception of people towards disability has become better than it was in the past. For instance, buildings are now constructed Several initiatives have been established to cater for people with special needs. Reports suggest that the British government has increased its funding of disability benefits. Indeed, over the last decade government spending has increased to over 30 billion pounds. Task 2 Care needs of individuals with specific needs Special health care needs comprise any developmental, sensory, mental, physical, behavioural, emotional, or cognitive impairment requiring specialized medical attention and care. These conditions arise due to several factors including old age, congenital factors, diseases, trauma, or environmental factors. This condition limits the individuals suffering from it from leading a normal life. e facility. Most of Mr. Park’s conditions are not treatable but only manageable. This implies that the treatment plan will involve training him on ways of coping with these conditions. Moreover, Mr. Park’s behavioural issues implywhich is needed so that the treatment can continue as planned. Although Mr. Park’s condition is related to old age, the whole process will begin with the identification of the causes of his behavioural issues. The preceding steps will include eliminating these causes and training him to better ways of dealing with his condition. Mr. Park will be made to know that being in the home does not mean that the family is forsaking him but are minding the eventual state of his health. The process of treatment of the other disorders will only begin after the patient has been healed of the behavioural disorders. The process will continue with finding medical remedies for the visual and hearing problems. The treatment plan will include suggestions for the diet that fits his condition. As it is evident, dementia is often caused by old age; however proper diet helps to elevate some of these problems. The main aspect of the treatment will involve putting Mr. Park in a peaceful and familiar environment. This will ease his anxiety during the treatment allowing for a faster recovery. The services available in a chosen locality my private practice have tremendous support from the community. Indeed, the UK special care institutions have augmented their services with the help of the members of the community. For instance, the people around Manchester always act as volunteers in the practice while others visit the patients to offer moral support. This is not the only initiative that supports these individuals because the government has structured several interventions to support their cause. For instance, there are several welfares established to cater for their financial needs. One of the welfares is the disability living allowance, and the other one is the reform for incapacity benefit. The services available in a chosen locality There are several prejudices against people with special needs in the UK. These prejudices increase the problems that these people go through especially in urban centres. However, government intervention and that of the private sector have allowed for the improvement of their condition. Mr. Park. Task 3 Explanation of the approaches and interventions In response to the auditor’s question, I provided him with a catalog of approaches undertaken to meet the specific needs of Mr. Holland Park. These specific needs are stated with a brief explanation as shown below: the self-help approach and evidence-based practices. The former consist of self-approach towards improving the situation. The latter comprises of services that continuously display the efficiency of the people. Interventions used in this perspective are as follows: Education interventions Mr. Park needs relevant and specific health information. Appropriate communication between healthcare personnel and the individuals provides health information. This health linked information is of great significance. Physical interventions These comprise of suitable therapies and exercises for joint movements. In this kind of intervention, there is a stipulation for exterior appliances. It assists Mr. Park in sustaining the physical status and reinstating the lost functions so that he can live normal life that he used to enjoy before. Vocational interventions This kind of intervention aims at promoting the vocational training that is appropriate to the disability level. Once trained, Mr. Park can earn something for himself, which will assist him in living an independent life. Since this kind of training enables him to suit in a working environment, he will gain confidence for the job. Lastly, we have Psychological interventions Psychological intervention is significant for an individual like Mr. Park because he has a challenging behaviour. It assists him in building positive attitude towards life and hoisting his morale. This psychoanalysis assists in treating anxiety, personality changes, suicidal tendency, and depression. Evaluation of the effectiveness of intervention strategies Psychological intervention is necessary for physical intervention to succeed. The former will enhance Mr. Park’s morale and help him in building the affirmative attitude towards life. This psychotherapy helps in treating anxiety, personality changes, suicidal propensity Discussion of the potential impact of emerging developments in support for individuals with specific needs Some of the emerging developments are certain changes to the legislation and policies from international, national For instance, a green document that puts emphasis on the importance of social welfare by cooking healthy and good meals has been launched Numerous external agencies run the scheme to assist the people like Mr. Holland Park and promote the well-being and health of the society. With healthy care partnership, they try to maintain and arouse the proper environment with healthy care partnership. The theories of behavioural change explain the reasons behind certain health behaviours. It is easy to achieve strategies for social and health providers. In line with this, the people with certain conditions and their respective caretakers must have knowledge and skills for effective communication between them and health and social care providers. In aIDition, the workers of social and health care should be able to communicate effectively with the patients and provide a solution to their questions. For people with long-term conditions, the providers should use their best expertise and knowledge to design the personalized care plans. After a thorough and a well-organized discussion with the patient, a detailed plan should be created. When designing a care plan, there should be an integrated approach by which organizations are supposed to work together in a closer manner. Task 4 Explanation of the different concepts of challenging behaviour Challenging behaviours are behaviours of such duration, frequency or intensity that the physical safety of an individual or other people is likely to be put in risk. It can also be defineIDisabilities or physical impairment. The effects of these behaviours are the ones that make them abusive or challenging. These behaviours can be aggressive, and these may include; spitting, screaming, verbal abuse, throwing objects, hair pulling, grabbing, pinching, hitting, biting and scratching. Those that are non-person directed include withdrawal, lack of awareness of danger, incontinence, and destruction of clothing, inappropriately sexualized behaviour, stealing, hyperactivity and damage to property. Others included self-injuries and stereotyped. The former entails eating things that are not food, grinding teeth, picking, eye poking, pulling, scratching and head banging. The latter entails repetitive manipulation of objects, repetitive speech, rocking and repetitive movements. There are several combination of reasons or potential reasons leading the rise of challenging behaviour. Some are simple as that of an individual who runs away just because he or she cannot cope with crowds. Others entail a complex mix of factors such as biological causes. For example, Lesch-Nyhan syndrome is associated with self-injuring behaviour because of the difference in how the brain handles hormones and chemicals. Some individuals would want to sustain the level of arousal or stimulation they want hence developing a stereotyped behaviour like rocking. Another factor is that this challenging behaviour could result as a way of communication. For instance, the need for comfort, drink or food could the reason behind this behaviour. Response to the environment is another reason for challenging behaviour. This entails over- or under-stimulation, poor physical environment especially extremes in noisy or temperature levels, inconsistencies in staff that includes training, approach, awareness and staffing levels. Lastly, challenging behaviour could be as a sign of pain, discomfort, frustration, anger, distress or abuse. At mealtimes, for instance, withdrawal of cooperation may be the only way available for showing emotions to a highly physically dependent person. The aspects influencing challenging behaviour comprises of ill health, physical disability, alcohol and drugs, fatigue, sleep disturbance, sexuality, expectations and perceptions; social factors like ethnicity, culture and relationship The potential impacts of challenging behaviour on health and social care organisations. People suffering from challenging behaviour have the following impacts. These include memory problem, communication difficulty, alcohol and drug aIDiction. It also includes demand for more financial and emotional support, unable to get on with the carer, and they do not have contact with the neighbor, friend or family hence they are isolated. The following are some of the most important risk factors of challenging behaviour. These include depression among the caregivers, abuse of substances, social isolation, and illness among the elderly or intensity of dementia. It also includes inadequate support from the caregivers, the elder’s verbal and physical aggression Analysis of the Strategies for working with challenging behaviours associated with specific needs. In the bylaw of social care worker, the code of practices, procedures, policies. should be given to these social care providers on how to handle vulnerable groups that need assistance from them. In aIDition to respecting the rights of service users, their behaviour should not harm the emotions of service users.

Experts in health care fraud prevention have noted that a successful culture of regulatory
September 28, 2020
experience and interests in Community and Public Health
September 28, 2020

The family of Mr. Holland Park was searching for a home care that would serve the needs of their grandfather. They needed a home that would offer impeccable services that would ensure the comfort of their relative. Mr. Holland Park is suffering from several complications, including dementia, hearing problems, challenging behaviour and visual problems. His family chose my practice after recommendation from friends and other family members. The reason for their choice is the immaculate outcomes of this nursing home in that it is versatile and works to deliver on individual needs. Introduction The emphasis on special and specific needs in social careprofession has evolved to encompass all activities relatedthe users of these homes stress on their delivery of service meaning that for any home to stay in business, it should provide quality services. Another twist to this story is that auditors are sent periodically by the government to check the operations of these homes and any home found operating contrary to the codes of conduct required of them is shut down. Task 1 The perceptions of health, disability, illness, and behaviour The way people view various health issues in the society is dependent on several factors including education, socio-economic background, and even political factors. This implies that the perception of different elements such as health, behaviour, illness, and During the process of admitting Mr. Holland Park several concepts related to Analysis of the concepts of health, disability, illness, and behaviour Different phrases, elements, and concepts in healthcare have different definitions and uses in various subsections of healthcare. This section strives to analyse and define various concepts related to special care. These concepts include Health Health For instance, if Mr. Holland did not suffer from all the ailments outlined above but still had social problems some would term him healthy. However, according to this definition, Mr. Holland is unhealthy until he is in a state of complete health. This underscores the importance of care homes for people with disabilities because these homes strive to put these people in a state of complete wellbeing as defined in the paragraphs above. Disability Disability can be described as any mental, physical, and emotional impairment that restricts an individual from undertaking regular activities like walking, working, driving, eating, and even going on vacations. Mr. Holland has various disabilities ranging from hearing, seeing, dementia and even behavioural problems. The care home defined above caters for all these disabilities. In fact, the essence of the home is to enable these people to lead a comfortable life. Illness In all aspects, illness is related to both health and disability in that illness involves the state of the body just like health and disability. In essence, an illness is a state of being unhealthy in body and mind. Illnesses inhibit a person from carrying out several activities done by a healthy person. In this case, scenario Mr. Park is suffering from several illnesses, and that is the reason it becomes necessary for him to be cared for in a home. Behaviour and behavioural issues Behaviour can be defined as an individual’s character. It is the way an individual acts and conducts towards his or her environment. Most of the time the way someone relates to others is very important to the comfort of their lives. Behavioural issues often arise due to old age as the mental and physical health deteriorates. This is perhaps the reason Mr. Park exhibits these problems. The fact that he suffers from several illnesses implies that his behavioural problems are prevalent. Over the decades, the perceptions of people from different lifestyles on disability have changed considerably. the number of private practices in the UK as opposed to the past where people depended on public healthcare institutions. Moreover, the quality of care is stressed by individuals and the concerned government institutions not like in the past where did not give much importanceMoreover, people’s attitudes towards people with special needs have changed over the years prompting increased focus on their wellbeing and comfort. Indeed, Mr. Park’s family wanted a care home that would treat him with respect and at the same time offer him impeccable services. They desired to see their relative being taken care of and living in a comfortable environment, a thing they were not able to do because of their limited capabilities and busy schedules. society, and culture Several laws governing the treatment of individuals with special needs exist in the UK. Perhaps the most important law in the UK relating to individuals with specific needs is the Health Act 1999, which stipulates pooling of resources and capabilities in order to enhance the quality of service. This implies that the adoption of this Act ensures that people like Mr. Park get better services than it was in the past. The impact of culture on the services for the disabled is less compared to economic and political factors in that the current UK is modernised. The perception of people towards disability has become better than it was in the past. For instance, buildings are now constructed Several initiatives have been established to cater for people with special needs. Reports suggest that the British government has increased its funding of disability benefits. Indeed, over the last decade government spending has increased to over 30 billion pounds. Task 2 Care needs of individuals with specific needs Special health care needs comprise any developmental, sensory, mental, physical, behavioural, emotional, or cognitive impairment requiring specialized medical attention and care. These conditions arise due to several factors including old age, congenital factors, diseases, trauma, or environmental factors. This condition limits the individuals suffering from it from leading a normal life. e facility. Most of Mr. Park’s conditions are not treatable but only manageable. This implies that the treatment plan will involve training him on ways of coping with these conditions. Moreover, Mr. Park’s behavioural issues implywhich is needed so that the treatment can continue as planned. Although Mr. Park’s condition is related to old age, the whole process will begin with the identification of the causes of his behavioural issues. The preceding steps will include eliminating these causes and training him to better ways of dealing with his condition. Mr. Park will be made to know that being in the home does not mean that the family is forsaking him but are minding the eventual state of his health. The process of treatment of the other disorders will only begin after the patient has been healed of the behavioural disorders. The process will continue with finding medical remedies for the visual and hearing problems. The treatment plan will include suggestions for the diet that fits his condition. As it is evident, dementia is often caused by old age; however proper diet helps to elevate some of these problems. The main aspect of the treatment will involve putting Mr. Park in a peaceful and familiar environment. This will ease his anxiety during the treatment allowing for a faster recovery. The services available in a chosen locality my private practice have tremendous support from the community. Indeed, the UK special care institutions have augmented their services with the help of the members of the community. For instance, the people around Manchester always act as volunteers in the practice while others visit the patients to offer moral support. This is not the only initiative that supports these individuals because the government has structured several interventions to support their cause. For instance, there are several welfares established to cater for their financial needs. One of the welfares is the disability living allowance, and the other one is the reform for incapacity benefit. The services available in a chosen locality There are several prejudices against people with special needs in the UK. These prejudices increase the problems that these people go through especially in urban centres. However, government intervention and that of the private sector have allowed for the improvement of their condition. Mr. Park. Task 3 Explanation of the approaches and interventions In response to the auditor’s question, I provided him with a catalog of approaches undertaken to meet the specific needs of Mr. Holland Park. These specific needs are stated with a brief explanation as shown below: the self-help approach and evidence-based practices. The former consist of self-approach towards improving the situation. The latter comprises of services that continuously display the efficiency of the people. Interventions used in this perspective are as follows: Education interventions Mr. Park needs relevant and specific health information. Appropriate communication between healthcare personnel and the individuals provides health information. This health linked information is of great significance. Physical interventions These comprise of suitable therapies and exercises for joint movements. In this kind of intervention, there is a stipulation for exterior appliances. It assists Mr. Park in sustaining the physical status and reinstating the lost functions so that he can live normal life that he used to enjoy before. Vocational interventions This kind of intervention aims at promoting the vocational training that is appropriate to the disability level. Once trained, Mr. Park can earn something for himself, which will assist him in living an independent life. Since this kind of training enables him to suit in a working environment, he will gain confidence for the job. Lastly, we have Psychological interventions Psychological intervention is significant for an individual like Mr. Park because he has a challenging behaviour. It assists him in building positive attitude towards life and hoisting his morale. This psychoanalysis assists in treating anxiety, personality changes, suicidal tendency, and depression. Evaluation of the effectiveness of intervention strategies Psychological intervention is necessary for physical intervention to succeed. The former will enhance Mr. Park’s morale and help him in building the affirmative attitude towards life. This psychotherapy helps in treating anxiety, personality changes, suicidal propensity Discussion of the potential impact of emerging developments in support for individuals with specific needs Some of the emerging developments are certain changes to the legislation and policies from international, national For instance, a green document that puts emphasis on the importance of social welfare by cooking healthy and good meals has been launched Numerous external agencies run the scheme to assist the people like Mr. Holland Park and promote the well-being and health of the society. With healthy care partnership, they try to maintain and arouse the proper environment with healthy care partnership. The theories of behavioural change explain the reasons behind certain health behaviours. It is easy to achieve strategies for social and health providers. In line with this, the people with certain conditions and their respective caretakers must have knowledge and skills for effective communication between them and health and social care providers. In aIDition, the workers of social and health care should be able to communicate effectively with the patients and provide a solution to their questions. For people with long-term conditions, the providers should use their best expertise and knowledge to design the personalized care plans. After a thorough and a well-organized discussion with the patient, a detailed plan should be created. When designing a care plan, there should be an integrated approach by which organizations are supposed to work together in a closer manner. Task 4 Explanation of the different concepts of challenging behaviour Challenging behaviours are behaviours of such duration, frequency or intensity that the physical safety of an individual or other people is likely to be put in risk. It can also be defineIDisabilities or physical impairment. The effects of these behaviours are the ones that make them abusive or challenging. These behaviours can be aggressive, and these may include; spitting, screaming, verbal abuse, throwing objects, hair pulling, grabbing, pinching, hitting, biting and scratching. Those that are non-person directed include withdrawal, lack of awareness of danger, incontinence, and destruction of clothing, inappropriately sexualized behaviour, stealing, hyperactivity and damage to property. Others included self-injuries and stereotyped. The former entails eating things that are not food, grinding teeth, picking, eye poking, pulling, scratching and head banging. The latter entails repetitive manipulation of objects, repetitive speech, rocking and repetitive movements. There are several combination of reasons or potential reasons leading the rise of challenging behaviour. Some are simple as that of an individual who runs away just because he or she cannot cope with crowds. Others entail a complex mix of factors such as biological causes. For example, Lesch-Nyhan syndrome is associated with self-injuring behaviour because of the difference in how the brain handles hormones and chemicals. Some individuals would want to sustain the level of arousal or stimulation they want hence developing a stereotyped behaviour like rocking. Another factor is that this challenging behaviour could result as a way of communication. For instance, the need for comfort, drink or food could the reason behind this behaviour. Response to the environment is another reason for challenging behaviour. This entails over- or under-stimulation, poor physical environment especially extremes in noisy or temperature levels, inconsistencies in staff that includes training, approach, awareness and staffing levels. Lastly, challenging behaviour could be as a sign of pain, discomfort, frustration, anger, distress or abuse. At mealtimes, for instance, withdrawal of cooperation may be the only way available for showing emotions to a highly physically dependent person. The aspects influencing challenging behaviour comprises of ill health, physical disability, alcohol and drugs, fatigue, sleep disturbance, sexuality, expectations and perceptions; social factors like ethnicity, culture and relationship The potential impacts of challenging behaviour on health and social care organisations. People suffering from challenging behaviour have the following impacts. These include memory problem, communication difficulty, alcohol and drug aIDiction. It also includes demand for more financial and emotional support, unable to get on with the carer, and they do not have contact with the neighbor, friend or family hence they are isolated. The following are some of the most important risk factors of challenging behaviour. These include depression among the caregivers, abuse of substances, social isolation, and illness among the elderly or intensity of dementia. It also includes inadequate support from the caregivers, the elder’s verbal and physical aggression Analysis of the Strategies for working with challenging behaviours associated with specific needs. In the bylaw of social care worker, the code of practices, procedures, policies. should be given to these social care providers on how to handle vulnerable groups that need assistance from them. In aIDition to respecting the rights of service users, their behaviour should not harm the emotions of service users.

Earnings sometimes called the bottom line are the most important element in the life ofbeing earned by an organization. The essence of the earnings is that they indicate the degree that the company has engaged in valued aIDed activities. Earnings are a good element for the company; however, they lead to uncontrollable ambition, which may lead to fraud. The term fraud can be defined as a criminal activity that exploits one’s position, bogus representation or taking someone else’s rights for personal financial or status gain. In essence, fraud is an act of trickery where a person or a company cheats another person or company in order to obtain an individual gain. The concept of earnings give rise to another phrase termed earnings management, which, in essence, implies the control of finances in such a way as to show a good position of a company. Indeed, it is it is a sensible and legal management reporting and decision-making anticipated to attain steady and feasible financial outcomes. Earnings management is a huge term that leads to other phrases such as “caveat emptor” that implies that a customer is responsible for any financial loss on his or her part. This only happens when the buyer has been informed of the situation of the stuff he or she is buying. In this regard, this essay will delve into earnings management particularly in exchange-listed companies. It will also assess whether it is an illegality or an instance of caveat emptor for an investor in such situations.

Earnings Management Literature Review

According to Weil (2009), earnings quality and quality of earnings have no particular meaning. However, they are utilized in accounting issues, reviewing earnings management, and in analyzing business issues such as timing of transactions. This implies that the two concepts are crucial in understanding the concept of earning management and its implications. Weil (2009) also dictates that the concept of earning management is not a complex phrase rather it is a simple and a vital term in accounting and finance. This concept occurs in two situations namely 1) during a situation when a firm has a chance of making accounting decisions and 2) when a firm takes advantage of these chances.

Bishop states that earnings are a pointer aiding the direction of resource allocation in capital markets (Bishop 2001). Indeed, the hypothetical value of a firm’s earnings is represented by the current state of its earnings. According to Bishop (2001), earnings become a crucial aspect of the firm especially when it comes to firms listed on the securities exchange. This is because the state of the earnings influences the decision of an investor. Indeed, a firm with better-looking earnings is sure to attract more investors than a company with a poor state of earnings. Bishop states that the importance given to earnings in every firm has lead to the phenomenon “earnings management.” h a huge importance, earnings management is sure to lead to several illegalities as the companies try to present a good image in the stock exchange. investor puts his or her money into a wrongly rated investment (Bishop 2001). Bishop states that several listed companies in the US and the UK fix their accounts due to a host of reasons, including the deferment of accruals and increase investor confidence.

Healy & Wahlen (1999) state that earnings management is very crucial for a company that wishes to get more investors, especially in the securities exchange. They assert that obtaining resources is a very crucial aspect in a firm and that it is very important for a firm to design ways that enable it to access these resources easily. However, they state that the existence of independent auditors and the government intervention implies that firms have limited allowance to fix their earnings to their liking. Indeed, several governments require that all financial reports reflect the real state of the company and not a fictional value. Healy & Wahlen (1999) assert that it is through these financial reports the government and hence the investors, assess the financial situation of the company. In truth, the existence of financial reporting standards implies that companies should provide correct reports in a timely manner unlike what is required in earnings management.

Healy & Wahlen (1999) state that the aspect of earnings management can only be legal if the investor is well informed of the financial situation of the company. This implies that an investor can make an informed decision on the viability and the feasibility of his or her investment. Only then, they argue, is the concept of earnings management legal and practical. In another instance, they state that earnings management for companies in the stock exchange is illegal in that the stock exchange depends on the valuation of the companies to value its shares. A wrong evaluation of a company’s earnings implies that the shares in the stock exchange will be valued wrongly too. This implies that the investors will put their money 1) into wrong investments and 2) bogus projects.

Burgsahler et al. (2004) state that the pressures and the requirements of the capital markets forced firms to operate in certain ways. They state that although the morality of earnings management is low, the firms often do it for the sake of financial gains. Several markets in the capital market strive to provide a healthy picture of its fina is different from the reality. Bugrsahler et al. (2004), however, state that the existence of financial reports implies that the investors have a better chance of investing in stocks of real value. This is because the government provides stipulations requiring the firms to provide true information in the financial reports according to financial reporting standards.

Nonetheless, Burgsahler et al. (2004) state that these standards give a considerable flexibility to companies. The reporting is often founded on private information. AIDitionally, the standards are based on personal judgments. In this way, the firms may decide to use this discretion afforded to them to satisfy their interests or provide a true picture of the finances of the firm. This implies that reporting incentives play an integral role in determining the truth of the financial reports projected. For this reason, the investors are likely to be dubbed in the process of investing in such businesses.

Hail et al. (2009) summarizes the argument by stating that there are positive and negative sides to earnings management. However, they state that the benefits accrued fall to the firms rather than the investors. Nonetheless, the investors can benefit from the deal but only if the company begins to profit after the investor has entered into the company. They, however, state that the concept is illegal considering the amount of information hiIDen from the investor.

Synthesis of the Literature

It is evident that most people regard the act of fixing accounts as illegal due to the amount of information given. The rules that govern business dealings stipulate that all the parties to the deal be informed of all the circumstances surrounding the deal. However, earnings management tends to hide these items implying that there is no fairness in the deal. The literature disagrees with the notion that the concept is legal and that it is an instance of caveat emptor in case an investor is caught in such a situation.

The US and UK Regulatory Framework

The US has several measures and regulations that govern financial reporting apart from IFRS. For instance, the United States Commission on Fraudulent Financial Reporting of 1987 describes counterfeit reporting as a deliberate or careless act of omission of information resulting in deceptive financial statements. This implies that earnings management is considered a fraud according to this commission. However, according to GAAP, these activities cannot be considered as fraud but management’s discretion.

In the UK, the Cadbury report and the Accounting Standards Board assert the need for transparency in any accounting reporting. The frameworks were designed to govern the companies from fixing their earnings. However, as it is in the US, the stipulations provided by the IFRS and GAAP influence the definition of fraud in this regard.

Conclusion

Several countries, inclusive of the US and the UK allow earnings management to a certain degree. However, the aggressive aspect of the concept is deemed illegal as the firms use it to obtain finances illegally. However, the importance of the concept comes when the company needs to push accruals to a later date. This, however, does not imply that the process is wholesomely legal. The fact that the investor is left with the responsibility of assessing the company does not also mean that the concept is legal. This is because these investors depend on these financial reports, which have been fixed, to make decisions.

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