For this discussion, find three recent news articles or resources (published within the last five years) that highlight accounting challenges for each of the three entities: a public company, a government-based organization, and a nonprofit organization. To search for resources on the
Shapiro Library
website, use the following steps:
- Under the Find Articles, eBooks, & More menu item, select Find News & Current Topics.
- Use the Multi-Search field to combine key words. For example, “nonprofit accounting and challenges” or “public companies and challenges.”
- Use the Refine Results feature to limit the search to news articles from the past five years.
- Review the search results to find a resource that piques your interest.
In your initial post, introduce yourself to the class and answer the following:
- Summarize all three articles, one for each entity: a public company, a government-based organization, and a nonprofit organization.Include citations.
- Explain at least one accounting challenge faced by each of the entities presented in the articles.
In your responses to two peers, be sure to address the following:
- Suggest a possible solution for at least two different entities.
Peer #1
The first article I reviewed was titled “US Public Companies Take Action
to Prepare for Enhanced Sustainability Disclosures.” This article
discussed some issues that companies face when trying to disclose
sustainability initiatives. With the increasing demand for these
disclosures, companies are having issues reporting ESG data, especially
green house gas emissions (2022).
The article titled “Accounting Under Regulatory Scrutiny,” highlights
efforts that states and federal income tax authorities are taking to
enforce reporting laws. These authorities believe some non-profit
entities are not fully reporting fundraising costs by inflating their
expenses. One issue is the GIK or gifts-in-kind donations. It is believed
several non-profits are undervaluing these donations (2019).
The article titled “Government Accounting Needs Scrutiny,” explores
several issues facing government-based organizations. The article
discusses that fact that most organizations use cash-basis accounting
which doesn’t account for future obligations or future
revenues. Another issue is the fact that government organizations each
use their own accounting standards which leads to inconsistent
reporting (Weinberg, 2023).
Weinberg, S. (2023, October 6). Government Accounting Needs Scrutiny.
Truth In Accounting.
https://www.truthinaccounting.org/news/detail/governmentaccounting-deserves-scrutiny
(2019, January 19). Accounting Under Regulatory Scrutiny. The Non Profit
Times. https://thenonprofittimes.com/accounting/accounting-underregulatory-scrutiny/
(2022, December 1). US Public Companies Take Action to Prepare for
Enhanced Sustainability Disclosures. Gale OneFile. https://go-galecom.ezproxy.snhu.edu/ps/i.do?p=STND&u=nhc_main&id=GALE%7CA7
28448555&v=2.1&it=r&sid=ebsco&aty=ip
Peer #2
Hello everyone, my name is Elissa. I’m a mom to three energetic teenage
boys and a proud owner of a French bulldog. By profession, I work in
social work as a fiduciary, which I find incredibly rewarding. Personally, I
have a deep love for the ocean, spending time with family, and enjoying
warm weather.
Public: Tesla Inc
Tesla Inc. has reported significant growth in its electric vehicles sales,
driven by the strong demand for its current Model 3 and Model Y. The
company’s financial performance shows increased revenues and
profitability, supported by expansions in production capacity and market
research. Tesla faces ongoing challenges such as supply chain
disruptions and competition in its ongoing electric vehicle markets.
Tesla’s key accounting challenge is managing the complexities of
capitalizing and expensing its extensive research and development costs.
Determining which costs should be capitalized versus expensed impacts
the company’s financial statements and requires careful adherence to
accounting standards.
Government-Based Organization: NASA
NASA’s latest mission reports highlight its advancements in space
exploration, including successful Mars rover landings and the
development of the Artemis program aimed at returning humans to the
Moon. NASA continues to push the boundaries of space science and
technology, though it grapples with budget constraints and the need for
efficient project management.
One of NASA’s significant accounting challenges is the long-term
tracking and allocation of project costs. Given the multi-year nature of
its missions, accurately forecasting and managing budgets while
ensuring compliance with federal financial regulations is a complex task.
Nonprofit Organization: World Wildlife Fund (WWF)
The World Wildlife Fund (WWF) continues its critical conservation
work, focusing on protecting endangered species and preserving natural
habitats. Recent initiatives include efforts to combat illegal wildlife trade
and promote sustainable practices globally. WWF emphasizes the
importance of community involvement and partnerships to enhance
conservation outcomes.
WWF faces the challenge of ensuring donor funds are used effectively
and transparently. This involves stringent internal controls and
reporting systems to track funds from diverse sources and guarantee
they are allocated according to donor intentions, all while maintaining
operational efficiency across numerous projects worldwide.
Cowing, K. (2015, November 17). NASA’s accounting improves but its cost
forecasting does not. NASA Watch. https://nasawatch.com/financialmanagement/nasas-accounting-improves-but-its-cost-forecasting-doesnot/
Tesla’s accounting policies: Another controversy for TSLA. (2019, November
28). Market Realist. https://marketrealist.com/2019/11/teslasaccounting-policies-another-controversy-fortsla/#:~:text=Tesla%E2%80%99s%20Accounting%20Policies%3A%20A
nother%20Controversy%20for%20TSLA%201,Tesla%20…%204%20Wa
rren%20Buffett%20on%20Tesla%20
WWF – endangered species conservation | world wildlife fund.
(n.d.). https://www.worldwildlife.org/
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