American Superconductor Company Essay Example | Topics and Well Written Essays - 1000 words

American Superconductor Company - Essay Example They also have to follow the guidelines given by Securities and Exchange Commission. Financial statements are used by all the stakeholders of the company. They are made to provide true and fair view of the financial health of the company. Hence if the statements do not give true and fair view of the financial health of the company statements have to be restated. In this project, restatement of financial statements of the company American Superconductor (AMSC) has been studied. American Superconductor deals in power generation systems. It develop system both mechanical and electrical equipments which are used in wind turbine system. They are also into the business of manufacturing power cables and system of voltage stabilization (American Superconductor-a, 2011). It is quoted in NASDAQ. The current share price is $7.78 (American Superconductor-b, 2011). Its last five years it had grew annually by 27.56% and the revenue grew by 40.22%. In terms of profitability currently its operating margin is 16.23% (American Superconductor-c, 2011). Most of its shares are held by Douglas. They hold about 10797500 shares. Many financial institutions like RCM Capital Management LLC, Columbia Partners LLC Investment Management etc also hold shares of American Superconductor (American Superconductor-d, 2011). The president and chief executive officer of American Superconductor is Dan McGahn (American Superconductor-e, 2011).... The main change which they want to implement is to record its transaction as per cash basis. Previously American Superconductor had recorded some receipts on the basis of receipts of shipments but the payments were still due on those transactions. They had a pile of pending money due from the customers. As a result they had a history of operating losses. Most of the shipments receipts were not ever paid. All these things were increasing the operating loss. This also resulted on incorrect disclosure of revenues. Hence it decided that after 31str of August. AMSC will not consider revenues from certain Chinese customers until they are paid. This excluded Sinovel from whom American Superconductor had not received any amount in the first quarter. As the amount of debtors was increasing, the company was falling short of liquid cash. The new projects were getting delayed because of unavalibility of liquid cash. The company was also suffering because of exchange rate. The company also has ma ny foreign buyers who made the payments at a later date due to which the company had also suffered loss because of exchange rate fluctuations. They had a plan of acquiring the company but because of not having enough funds, the plan was getting delayed. There was also a risk that if they failed to acquire the Switch their share price may decline and there goodwill will also be affected. Therefore they decide to restate the financial statements which will present true and fair view of their revenues, the actual revenues which they can use (Davens, 2011). Impact of Financial Restatement As we it is already discussed that when the financial statements does not give true and fair view of financial health of the company the financial statements need to be restated. The

Is there a link between volcanic eruption and climate change and what Essay

Is there a link between volcanic eruption and climate change and what the relationship between the two may be - Essay Example A., & Wilson, L. (2008). Donald Rapp in his book about climatic changes states that volcanic eruptions, though minor, are one of the factors for global warming, but injecting radiations into the earth’s atmosphere. Volcanos erupts huge amounts of ash, magma and sulfuric contents that remain in the environment, polluting it. (Rapp, D. (2008) When the issues regarding global warming got into discussions, human activities like the release of gases having CFC’s and burning of fossil fuels were considered as the primary factors for the climatic change. But some people disagree and claim that human activities pose less danger to our environment than natural procedures such as volcanic eruptions. This statement led human to study the affects of volcanic eruptions in detail. (Stenchikov, Georgiy L., Ingo Kirchner, Alan Robock, Hans-F. Graf, Juan Carlos Antuna, R. G. Grainger, Alyn Lambert, and Larry Thomason, 1998) Mount Pinatubo in Philippines got erupted on June 15, 1991, where approximately about 20 million tons of SO2 and ash particles spread into the air for more than 12 miles. The gases and solids that bumped into the atmosphere at the time Mount Pinatubo erupted lasted for 2 weeks in the air. Volcanic outbreak of this scale can shock earth’s climate, dropping the quantity of sun rays getting in the Earths shell, and altering atmospheric activity model. But the degree to which these changes happen, may vary. (Geology, sdsu; climatic effects of volcanic eruptions (2001). Extensive volcanic motion may precede only a couple of days, but the huge out break of solid ash and gases containing high sulfur content, may last for a long period of time. The erupted sulfuric gases convert themselves to â€Å"Sulfate Aerosols†. After the volcanic eruption, these aerosol particles may rest in the Earth’s stratosphere for as long as a