The Effective Manager Assignment Example | Topics and Well Written Essays - 2250 words

The Effective Manager - Assignment Example The Effective Manager At the same time, seventy five percent (up from 50 percent the previous year) reported downtime due to security breaches. (McClure, 2003) Of those with written policies, most of them failed to adequately address security issues. When asked why they do not have policies, many answered that they do not like writing them or that they do not want to commit in writing to upholding and enforcing them. Security management is not only technology specific but for to do three things for a company: It is known that accounting, as the word implies, is a reckoning of the financial outcomes of an entity between those who control the employment of capital or assets and those who provide the capital or assets so the understanding of accounting helps managers maintaining effective security management. Accounting reacts to the needs of business and follows developments in commercial activity. One main purpose of accounting is to fairly represent the financial results of an operation to the shareholders, who are the individual owners of a business entity. In simpler words, financial profit or loss is the revenue less the cost of goods sold less the fixed or overhead costs, less interest, taxes, and an allowance for depreciation on fixed assets. Depreciation is keyed to a phase of time that sufficiently reflects the useful life of the asset while it is under the stewardship, or control, of management. If an asset under the control of management is expected to have a useful life of twelv e years, then it is usually written off, or depreciated, at 15 percent per year. Effective management is judged on its presentation to generate a profit on an asset under their control for ten years before it has to be replaced by charging management 15 percent of its value per year. Because the computation of taxes follows the same general format as reporting profits, some feel that pretax profit indicated in a financial report should be the same as the profits reported to the tax authority. In a few countries, such as Finland, Germany, Italy, Portugal, and Switzerland, this conclusion is correct. In most others, it is not. One reason for this is that the allowance for depreciation for reporting financial results may not be the same as the allowance for depreciation for filing a tax return. Whereas the purpose of financial reporting is to fairly represent the financial results of management's stewardship of the shareholders' assets, the purpose of filing a tax form is to calculate a liability. The depreciation plan selected for calculating taxes to be paid to a tax authority is the applicable schedule of depreciation decided on by the tax authority. (Kathryn, 1998) The resulting profit is severely for the computation of taxes, not to judge the performance of eff ective management to generate a pro