ebay financial reporting
eBay Corporation: Financial Reporting
The current market trend in the American business world shows that many businesses are making the switch to the fair market value of accounting for employee stock options. The Journal of Accounting Research defines fair market accounting as accounting for the fair value, or price, of an asset or liability based on the current market price of that asset or liability, or for similar assets and liabilities, or based on another objectively assessed "fair" value (Riedl and Serafeim, 2011, p. 1083). In understanding this concept fully, one can then assess its role within specific businesses' financial decisions -- in this case, eBay.
Ethical and Financial Considerations
Footnote disclosure is a widely-used system of financial reporting, which has brought about instances of ethical questioning in past years since its introduction within eBay's reporting protocol. The introduction of backdated accounting disclosure in the form of footnotes caused an instance of ethical dilemma within eBay in 2000. This new accounting disclosure required that companies report what earnings would have been had they been in compliance with fair value stock option expensing. Upon disclosing this old material in a new format, it was gauged that in 2000, eBay reported a "net profit of $48 million," when in reality it should have "reported a loss of almost $91 million" (Bradshaw, 2005, p.1). This brings about a massive breach in ethics in terms of reporting. In a company where employees were regarded as "key risk factors," fluctuations in stock prices into "extremely volatile" zones brought about the threat of employee departure (Bradshaw, 2005, p.2-3).
Plans of reporting were then employed to attract and motivate employees and the amount of shares reserved for these employees...
EBay PayPal Merger Growth in business comes from the joining of synergy to produce savings and necessarily growth, which lead to better profits. EBay is one of the greatest creations of the Internet in buying and selling, and it seems to be a continuously growing operation. The approach to the potential user is extremely friendly; the site gives good quality products which builds up the faith of the customers about the
The result was a completely redesigned B2B site from the process workflow layer up, including distributed order management systems that provided for businesses to treat eBay as part of their procurement and supply chain partners (Katok, and Alvin E. Roth, 1061, 1062). In addition to the lessons learned by eBay with regard to segmenting their customer bases based on e-business categories, the company also learned how to differentiate the customer
Comparing Amazon and eBay is really like comparing apples and oranges. The two, while appearing to be the same on the surface, are really nothing alike once the superficial labels are peeled off. eBay began as a C2C ecommerce site -- consumers selling to consumers. That gradually morphed into B2C as businesses (from big time car lots to small business owners) saw the advantage of posting items on eBay in
Amazon.com A Strategic Assessment of Amazons' e-Strategies Amazon's remarkable ascent as one of the top online global retailers can be attributed to the foresight they had in creating a comprehensive distributed order management, Enterprise Resource Planning (ERP), Supply Chain Management (SCM) and e-commerce series of systems. The many other e-commerce sites that rose quickly with massive infusions of venture capital just as quick exited the market, flaming out due to a lack
Ratio Analysis a) The price-earnings ratio reflects two things -- the company's earnings and the market price. By no means is there a law that says one firm's P/E ratio should be in line with either the market or the competitors. First, an explanation of the earnings. The earnings component of the P/E is past-looking. The profit margin for HRG is fairly low -- 1.7% - reflecting that its earnings are
Organizational Case Analysis Organization Overview Apple Inc. is a multinational companies specializing in the designing, manufacturing and marketing of mobile communication devices such as personal computers and digital music players. The company also sells varieties of mobile telecommunication devices such as iPhone, iPod, iPad, and Mac. Additionally, Apple Inc. sells some professional software application such as Mac OS, iOS, iCloud and other varieties of communication accessories. Apple Inc. sells its products through
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now