What do you perceive as an immediate threat or threats conf

. What do you perceive as an immediate threat (or threats) confronting modern organizations now? What about opportunities? Please support your findings using financial references (e.g. Bloomberg. The Financial Times, The Wall Street Journal, The Economist). . How do you see the financial reporting requirements for companies shifting in 10 to 20 years? Are they going to become more stringent or more relaxed? Are countries across the globe going to standardize their filings into a sinele system?

Solution

This is an article taken from Bloomberg on “what’s standing between Amazon & top US secrets:

The US defense department is now on a confusion to decide which company has to be hired the contract of a cloud computing company in order to take a look of the secrets which can help the war fighters & military leaders to make data driven decisions at mission speed.

In the above case, the opportunities are available for various modern organizations like Amazon, IBM, Microsoft corp. etc. who are vying for the million dollar contract & who get a chance to work on government project. By this opportunity, all these companies can get a very good name & fame. Though there can be only one company which would be selected, the other nominees for the contract has very good opportunity for its future growth.

The contract is estimated to be worth $10 billion & it is estimated that pentagon would spend $1.63 billion on cloud computing through fiscal 2023.

The threat here is that there can be competition among various giants in the IT field. The most active members’ coalition is trying to unseat Amazon as front runners are oracle, Microsoft & IBM. The group succeeded in giving pressure to the lawmakers to direct pentagon to defend its approach under the threat of curtailed funding.

I wouldn’t see any change in the financial reporting requirements. Because according to GAAP, an organization would be required to disclose reports on their cash flows, profit making operations & overall financial conditions. So how many ever years it would be from now, any organization’s financial requirements would be to disclose income statement, balance sheet & cash flow statement. All these three statements are important for any type of organization as it will help us in knowing the organization completely, its financial performance, future goals etc. this is important not only for the insiders, but also for the externals who deal with the organization. There won’t be any chances of them becoming stringent or relaxed. They would remain the same as they are now. Standardization by countries across the globe won’t be helpful. This is because different countries would have different laws, rules & regulations which won’t be that much easy to synchronize.