Supply Commitments

In: Business and Management

Submitted By nineten1314
Words 356
Pages 2
To: RALPH
From: NAME
Date: April 4, 2011
Subject: Disclosure of supply commitments

We have looked into the situation that surrounds PPI’s noncancelable supply commitments that they have entered into and the accounting/reporting for them in 2003 and 2004. The unrest on Anatu Island may have a significant impact on their operations going forward because of the uniqueness in the dose composition.
In accounting for supply commitments GAAP does not require the recognition or disclosure as they do with purchase commitments. While both may have the same impact on the future risk and cash flows there is no set pronouncement for supply commitments. From our view the FASB has stated in Statement No. 5 if there is a loss contingency that is probable and reasonably estimable it should be accrued against income in the current year. If no accrual is recognized because of uncertainty surrounding the probability or estimability of the contingency a disclosure of the contingency should be made when there is at least a reasonable possibility that a loss will occur. In this disclosure the nature of the contingency and an estimate of the possible loss or range of loss should be stated. If no estimate is able to be made than this should be disclosed in place of an estimate along with the nature.

For 2003 we believe that a disclosure of the supply commitment information should be disclosed in the notes; this provides a more accurate presentation of future supply commitments to shareholders, possible investors, and possible creditors. Because management estimates that they have enough inventories on hand to deliver to their customers for the next year under their supply contracts and are confident of reaching an agreement with the newly formed government by 2005, we believe there is sufficient doubt as to the certainty of the liability and no accrual against is…...

Similar Documents

Toyota Commitment

...CASE STUDY “Toyota’s Commitment to Innovation and Improvement Pays Off” TUGAS PAPER IS POLICY Andreas Nova (0922201135) Tommy Valentino Octavianest (0922201002) Yvonne M Prawinoto (0922201122) PROGRAM PASCASARJANA ILMU KOMPUTER MAGISTER MANAJEMEN SISTEM INFORMASI JENJANG S2 BINUS UNIVERSITY JAKARTA 2010 Toyota Introductions Toyota was founded in 1937 by the Toyoda Familiy, whose members continue to play key roles and are a symbol of emotional unity for the company and its employee. Toyota Motor Corporation (toyota.com) became the worlds largest automobile manufacturer in 2008, based on the 2007 annual automobile sales figures all companies. During the first quarter of 2007, Toyota for the first time pushed out General Motors (GM) from the top global sales spot, which GM had held since 1931. Toyota sold 2.35 million vehicles worldwide in the January-March 2007 period compared to GM’s 2.26 million vehicles. In addition to competition from GM and Ford in the United States, Toyota also faces tough domestic competitors-Honda Motor, which is the third largest automobile manufacturer in Japan, and Nissan, which is the second largest. The Company’s innovators, such as their production executive Taiichi Ohno, are credited with : 1. Inventing just-in-time (JIT) production to reduce inventory costs 2. Introducing the philosophy of worker empowerment called kaizen, allowing workers to keep finding ways to improve production methods. ...

Words: 1246 - Pages: 5

Organizational and Commitment

...Organizational Commitment and Communication Paper: The American Red Cross The American Red Cross The American Red Cross was established in 1881 to be an organization in a humanitarian way to help people with emergency services, disaster relief, and education inside the United States and Internationally. The organization’s mission is to help prevent and relieve suffering for all the people. The organization holds a vision that incorporates compassion, collaboration, creativeness, creditability, and commitment. The organization’s culture is made up of ordinary individuals who have the same desire to accomplish extraordinary things. Through the right channels of communication and deep desire of commitment, The American Red Cross has succeeded for many years to bring hope, relief, and safety to people in need. In order for a company or organization to be successful, it must have a person to lead everyone in the same direction. Leadership is defined as the ability to influence a group toward an achievement of a vision or set of goals. There are many types of leadership styles that a company or organization can select from to help direct the group in the same direction. Depending on which style is chosen, will depict how it affects the group and its communication. One type of style is the Transactional Leadership. This style is more thought of as a management style; however it has its advantages and disadvantages. Transactional Leadership is a controlling and dominating......

Words: 1238 - Pages: 5

Organizational Commitment

...Research Questions.............................................................................................................. 5 Research Objectives ............................................................................................................. 5 Literature Review .................................................................................................................... 6 Internal Marketing ............................................................................................................... 6 Employee Satisfaction .......................................................................................................... 9 Employee Retention and Organizational Commitment ............................................................10 Organizational Commitment .............................................................................................10 Employee Retention ........................................................................................................11 Research Methodology .......................................................................................................... 12 Constructs Operationalization and Measurement ...................................................................12 Population and Sample ........................................................................................................12 Research Instrument and Data Collection......

Words: 13546 - Pages: 55

Commitment

...Commitment Commitment of all personnell in a work place is essential. Without commitment from everyone, a work place will fall apart. A team with commitment is a productive team that is goal oriented. Commitment can be seen in those who take pride in what they do. Commitment has no boundries. Commitment in some cases can be the difference between people living and dying at work. The commitment to do things the right way everytime no matter what is a necessity to the over all safety of a team. Those who are fully committed exhibit the highest degree of moral character, technical excellence, and competence in what they are assigned to do. The quality of there work directly reflects the amount of professionalism, pride, and commitment they have. These personnel are committed to constant improvement, and settle for nothing less than the best. Excellence is all they know, and is all they will accept from those around them. There tasks will be done with obligation and responsibility independently. The commitment of caring for the safety, professional, personal and spiritual well-being by all team members is vital to the overall success of the team. Respect toward all people without regard to race, religion, or gender must occur. Every team member must treat one another with human dignity. These commitments will help build a solid bond among team members. A bond which will strengthen the morale of all involved. A bond that will help the team be able to overcome any......

Words: 515 - Pages: 3

A Study Analysing the Effect That Collaboration, Information Sharing, Joint Relationship Effort, Dedicated Investments, Commitment and Trust, Satisfaction and Performance Have on Supply Chain Relationships in the Retail

...effort, dedicated investments, commitment and trust, satisfaction and performance have on Supply Chain Relationships in the retail food sector in the Western Cape Introduction The purpose of this study is to reflect the impact that various concepts have on Supply chain relationships. The concepts the study focuses on are collaboration, information sharing, joint relationships effort, dedicated investments, commitment and trust, Satisfaction and performance. Because of the ever changing supply chain environment businesses are constantly looking for ways to increase their competitiveness in the market. Factors such as advances in communication technologies have a great impact on supplier/buyer relationships. Recent advances in inter-enterprise software and communication technologies impacts positively by making global communication easier but on the other hand, creating a multitude of alternatives which may become costly. Trust, the willingness to coordinate activities and the ability to convey a sense of commitment to the relationship are key actors in successful supply chain relationships. The quality of information transmitted and the joint participation by partners in planning and goal setting send very important signals to the trading parties (Mohr & Spekman, 1994). (Moberg & Speh, 2003) concludes that strong relationships Increases the probability that firms will exchange vital information and work together to plan and implement new supply chain strategies, splitting......

Words: 3502 - Pages: 15

Commitment Trap

...With regards to Vietnam under Kennedy's presidency, there are many arguments both for and against the idea of commitment trap, Kennedy certainly escalated military involvement in Vietnam but did he have a choice? Or had his predecessors committed him in Vietnam long before he came into the Whitehouse? There is no doubt that Johnson was the one who fully placed ground troops in Vietnam in '65 and created his legacy of 'Johnson's war', but did any of the previous presidents give him any other option except to stay? Also, was there any evidence of any moments when they could've pulled out? The commitment trap theory is widely acknowledged, with regards to Vietnam, by historians as it explains many of the extreme actions that were undertaken during this period. It is also used in arguments supporting USA's decisions in Vietnam, because these decisions were only made because they HAD to be made, the predecessing presidents gave them no choice. However, was commitment trap the only reason Kennedy stayed in Vietnam? One of the first Presidents that could be argued to have influenced the refusal to withdraw from Vietnam was Truman and, particularly, his foreign policy. Truman's foreign policy states that 'we [USA] will give help to any free peoples suffering from Communism' this policy was an embedded thought in any successing President's mind, if they wanted to keep America an Anti-Communist country. Truman, implementing his policy, initiated the connection between Vietnam and......

Words: 1030 - Pages: 5

Organizational Commitment

...Running head: ORGANIZATIONAL COMMITMENT 1 Organizational Commitment of Part-Time and Full-Time Employees Julia A. Teahen Baker College ORGANIZATIONAL COMMITMENT Abstract In recent years many educational institutions have increased their use of part-time adjuncts, especially with the introduction of distance learning courses. With this growing use questions about the efficacy of part-time and distance faculty have arisen. This paper tests whether organizational commitment, as described by Mowday (1979), differs between three groups of faculty: full-time, part-time, and part-time who work full-time for another organization. The 2 authors used a 15 item, seven-point scale instrument to measure commitment of a sample of 479 full and part-time faculty at two midwestern universities. Those that worked full-time for another organization are more committed to organizations for whom they work part-time than are those working only part-time. No significant difference in commitment was observed between full-time and part-time employees. ORGANIZATIONAL COMMITMENT Organizational Commitment of Part-Time and Full-Time Employees With the rapid growth of non-traditional educational institutions and enrollment, many educational institutions have added significant numbers of part-time adjuncts to teach courses. With this growth a number of questions and rhetoric have arisen about the quality of instruction from part-timers (Fulton, 2000; Leatherman, 1998; Rewick, 2001),......

Words: 3410 - Pages: 14

Organisational Commitment

...How might organisational commitment impact on the behavior of employees in the work place? Would the impact be the same for all employees? Organizational commitment is the employee's psychological attachment to the organization. It predicts work variables such as turnover, organizational citizenship behavior, and job performance. Some of the factors such as role stress, empowerment, job insecurity and employability, and distribution of leadership have been shown to be connected to a worker's sense of organizational commitment. Organizational commitment can be contrasted with other work-related attitudes, such as job satisfaction, defined as an employee's feelings about their job, and organizational identification, defined as the degree to which an employee experiences a 'sense of oneness' with their organization. Organizational scientists have also developed many nuanced definitions of organizational commitment, and numerous scales to measure them. Exemplary of this work is Meyer and Allen's model of commitment, which was developed to integrate numerous definitions of commitment that had been proliferated in the literature. Meyer and Allen's model has also been critiqued because the model is not consistent with empirical findings. There has also been debate surrounding what Meyers and Allen's model was trying to achieve. Role Stress Dysfunctions in role performance have been associated with a large number of consequences, almost always negative, which affect the well......

Words: 685 - Pages: 3

Commitment to Public Trust

...How can you show your commitment to public interest? It was year 2002 when I was elected as Sangguniang Kabataan Chairman in our barangay. As a youth leader, I have tons of functions and duties to perform - to enhance the social, political, economic cultural, intellectual, moral, spiritual and physical development of the youth in the country, just to name a few. There was self-sacrifice on my part, but since I am very willing to serve my community and help address the needs of our youth in our barangay I am eager to bypass my own needs. And this is just one of the many things on how to show commitment to public interest which for me is an aspiration to serve society based on values and responsibility. Being a public servant demands the commitment to public interest.  This is so because once you come into the government service, a relationship between you and the government is created.  I also have to attend our sessions regularly. For if I do not attend meetings, I betray the trust that the public placed on me. There are many ways for which we can show our commitment to public interest depending on the job that we are in.  They may be simple and common but sometimes hard for others to do.  One more way is by having decisions that should be for the interest of the common good. I will not use my position, information or property to go after my personal interest. I will also ensure that the government’s fund, property and supplies are in good hands.  I want to be identified......

Words: 579 - Pages: 3

Continuance Commitment

...continuance commitment continuance commitment refers to an cognition of the costs that would be incurred in leaving the organization. Employees feel that they have to remain in the organization because of the high opportunity costs. After World War II, continuance commitment has played a significant role in "Japanese Style of Management". Basically, there are two important employment systems contributing to the success of Japanese economy: the "lifetime employment" and the "seniority system", respectively. Japanese companies employ workers until retirement age as long as there is no serious management crisis or disciplinary action, and the basic wage of employee's increase with the employee's length of service despite the capabilities and skills, temporary workers and new employees were paid less than that of long-term works because they had fewer years of service with the company . Therefore, with the high degree of continuance commitment, Japanese employees have long been believed to be strongly loyal to the organizations. Following is a case about practices of continuance commitment in Japanese enterprise. To overcome the adverse effects of labor shortages due to the World War II, firstly, "lifetime employment" system was put into practice by Panasonic. The system, which includes "seniority-based wages" has been imitated by numerous Japanese firms. The new employment system claimed that Panasonic employees can stay in the company until retirement age, and the......

Words: 597 - Pages: 3

Escalation of Commitment

...Escalation of Commitment in Individual and Group Decision Making MAX H. BAZERMAN Massachusetts Institute of Technology TONI GIULIANO University of Texas at Austin AND A L A N APPELMAN Citicorp Previous research (cf. B. M. Staw, Academy of Management Review, 1981, 6, 577-587) has found that when managers are given negative feedback on an initial individual investment decision, they allocate more additional funds to that investment if they, rather than another member of their organization, made the initial allocation decision. Justification is thought to underlie this phenomenon. This study explored commitment in group and individual decisions and examined the plausibility of dissonance processes as the mediator of escalation of commitment. One hundred eighty-three individuals participated in a role-playing exercise in which personal responsibility for an initial decision was manipulated for groups and individuals. As expected, escalation of commitment occurred for both groups and individuals. In support of a dissonance explanation, dissonance processes did vary as a function of the personal responsibility manipulation, and individual variation in dissonance responses accounted for a substantial portion of variance in allocation behavior beyond that accounted for by the experimental manipulations. The results concerning dissonance processes suggest a number of ways in which escalation can be reduced in individuals and groups. The escalation of......

Words: 5090 - Pages: 21

Fostering Commitment

...Fostering Commitment Tammy Davis Psy 220 February 10, 2012 Sara Kassabian Fostering Commitment When it comes to my commitment I have used all nine of these suggestions in one way or the other. I have more than one commitment in my life those commitments are what keep me going when times are rough and I think I will fail or not reach my goal, but I always bounce back. The personal goal that I have chosen is my education, probably like all the other students. One reason for this is that an education goal is hard to keep for some. I know that right now it is hard for me to focus and keep my mind set on that one goal because of all the other commitments in my life. A few of the suggestions listed that have helped me not to give up and to refocus on my goal are; looking for meaning, transforming the shoulds into wants, setting my priorities, reviewing my commitments and maintaining hope. The one the really keeps me going is hope because if you do not have hope, because that is one thing that helps out in the dire situations. All of these help me to refocus because I do have a lot of commitments and not enough hours in the day. I have to set my priorities at what is first today and what should get the most of my time and attention and my education is normally at the bottom of the barrel. When it comes to rethinking my goals it is mostly the time frame for my education of can I do it quickly so I spend less time in school or should I just drop it until I can devote......

Words: 330 - Pages: 2

Hrm Commitment

...The Phrase ‘commitment’ is frequently used by HRM practitioners in the control of absenteeism and its contribution to business objectives. Evaluate the evidence to reinforce commitment and reduce absenteeism. Mowday et al have defined organizational commitment as “ the relative strength of an individual’s identification with an involvement in an organization” (Chapter 7 Attitudes at work, Page no, 265 Work Psychology, Understanding Human Behaviour in the Workplace by John Arnold (ft) fourth edition) Commitment is very powerful human concept as if a person is committed to an organization; therefore he or she has a strong identification with it and will turn out to be a long-term employee for the organization. Sir Richard Branson is an example of someone’s commitment towards its work. He born in an ordinary established family but it was his commitment, which led him to build the virgin empire and now he is one of the richest man in the world. Controlling the absenteeism is the objective of nearly every business organization and the phrase commitment is regularly used by HRM practitioners in order to control the absenteeism, In this essay I will explain the above statement in more details and also provide the evidence to support it. The question arises here why absenteeism is important? Absenteeism is important because it’s not only costly but it also affects the morale of other employees. The cost of absenteeism is greater than......

Words: 1563 - Pages: 7

Organizational Commitment

...Organizational Commitment Organizational commitment is the employee’s psychological attachment to the organization. It predicts work variables such as turnover, organizational citizenship behavior, and also job performance. Organizational commitment is the strength or the feeling of responsibility that an employee has towards the mission of the organization, also in which has an important place in the study of organizational behavior. Organizational commitment is related to job satisfaction, employee’s behaviors and performance effectiveness; it describes how content an individual is with his or her job. The happier people are within their job, the more satisfied they are said to be. Commitment itself is considered a psychological state. Organizational researchers and social psychologists view commitment quite differently. Organizational researchers study attitudinal commitment, focusing on how employees identify with goals and values of the organization. Social psychologists study behavioral commitment, while focusing on how a person’s behavior serves to bind him or her to the organization. (http://en.articlesgratuits.com) Some components of organizational commitment are a strong belief in and acceptance of the goals and values of the organization, a willingness to exert (display) considerable effort on behalf of the organization. And a definite desire to maintain organizational membership (belong to the organization). Meyer and Allen (1991) define organizational......

Words: 601 - Pages: 3

Organisational Commitment

...ORGANISATIONAL COMMITMENT: Organisational commitment is employee’s commitment to the organisation. It has two facets; one the organisation’s perspective and the other employee’s. Commitments develop naturally. Commitment can be in form of the nature of relationship between an employee and the organisation or relationship to a variety of entities. Commitment can be observed as an attitude or mindset (attitudinal commitment) where the commitment arises due to convergence of goals and values and develops prospectively. Commitment can be behavioral where it develops post membership in retrospect which facilitates rationalization of continuance in an organisation or a course of action. Organisational commitment has been defined as “a psychological state that characterizes an employee’s relationship with an organisation and has implications for the decision to continue membership of the organisation” (Meyer and Allen 1991). There are three components of organisational commitment. 1. Affective commitment refers to employee’s identification, or strong emotional attachment and involvement in the organisation. 2. Continuance commitment refers to an awareness of the costs associated with leaving the organisation. 3. Normative commitment reflects an obligation to continue with the organisation. Although, initially literature suggested the presence of a second classification of commitment in form of compliance, identification and internalization (o’rielly, chatman and...

Words: 887 - Pages: 4