If someone can at least write up one comment for one of the posts based on what the teacher wants so I can use that as an example to write the other and for future posts, that would be greatly appreciated. I tend to only earn Bs because of my lack of informative comments to others. The assignment topic, my instructor’s comment on my post, and two student’s posts are below. This assignment was already due last Saturday. But I have not yet commented on any of the students’ posts. Please, I need help.Tech Firms Stand to Gain from Huge Write-OffsLEAD STORY-DATELINE: USA Today,July 16, 2001.Many high-technology companies, like Nortel Networks, Micron Technology and JDS Uniphase, have written down massive amounts of their inventory. For example, Nortel Networks revalued some of its inventory parts at $0, though the inventory initially cost Nortel $650 million.Companies are required to report whether they write off the cost value (or book value) or their inventory even if they do not dispose of the inventory. Later on, they may sell this inventory but are not required to report the sale for cash of previously “worthless” inventory. The effect may be that in future years, when the inventory is sold, profits are overstated.Also in the article, JDS Uniphase said it will write off $250 million of its inventory but promised to disclose any future sale. On the other hand, Micron Technology, which wrote down $260 million, won’t disclose any future sale. Should the Securities and Exchange Commission do anything? Why?”Make sure that in your responses to other students you provide additional information to the discussion that would be informative; look to expand on other students ideas; present reasons for or against a topic in a persuasive fashion; share your own personal experiences that relate to the topic; share a URL website with other students and explain your findings in researching this URL. This will further demonstrate that you know how to apply the concepts and help you earn additional participation points.” -Dr BOne of the student’s post:Yes, this information should be disclosed in the financial statement to ensure consistency and transparency in the reporting of these transactions. Sarbanes Oxlley Act of 2002 was designed to ensure a high level of transparency in the reporting of these financial transactions. Full disclosure would help investors make a more informed decision because their decisions would be based on a more accurate financial statement.The SEC could regulate it by requiring quarterly and annual reports and by doing a comparative analysis of information contained in those reports. An analysis of the 10k and 10q reports would help the SEC identify fluctuations in reporting financial information.reported by the companies.The companies who do not accurately report financial information should be penalized because investors are using that information to make investment decisons that could lead to financial ruin for some investors, like ENRON, where the investors based their decisions on faulty financial information provided by the company.In conclusion, it is important for companies to adequately and fully disclose financial transactions regardless of whether or not these transactions have an adverse affect on the company because investors need full information on which to base their decisions.Another student’s post:Technically the tech companies are not doing anything wrong by selling off their old inventory they have written off, as long as it has appeared in the ledger at some point in the accounting cycle. This is true whether the amount is small or large that they receive for it. The fact that some people might believe this unethical or underhanded might hurt sales of stock or company value later on down the line but does not make it illegal.Moreover the fact that each year large numbers of companies do the same thing must mean that it is both lucrative and profitable to do so. According to an article from USA TODAY titled,”Tech firms stand to gain from write-off”, Micron sold its old inventory in much the same manner as listed in our assignment. They stated that,”they would not disclose future profit benefits from that sale”. (Krantz, M. July 7th 2001) USA TODAYThough it is the responsibility of the Securities and Trade Commission to monitor business practices of companies that are freely traded on the stock market, only the board can launch an investigation if they feel it is warranted. As long as that company is registered and files a public financial statement that is balanced for that time it is published they have omitted no infraction. The Internal Revenue Service has tax forms for individuals and companies that file capital gain and loses, this is merely an attempt to recover that loss that has already been disclosed beforehand.References Horngren, Harrrison, Bamber 2005, Accounting 6th edition chapters 1-18 Pearson Education Inc. Upper Saddle River, New Jersey retrieved August 5th 2006Krantz, M. July 7th USA TODAY “Tech firms stand to gain from write-off” retrieved August 5th 2006My post:United States Securities and Exchange Commission and Operating BusinessesShould the Securities and Exchange Commission (SEC) do anything about these companies that are reselling their previously written off inventory? I personally don’t think so. When a company writes of its inventory for what ever reason, they are legally within the GAAP rules (Horngren, Harrison, & Bamber, 2005). What they do with this inventory is now up to them. Many companies will turn around and sell this inventory for a profit and then disclose this increase in revenue in their manager footnotes. Some companies will not disclose this information for what ever reason they may have. Many people feel that this is a businesses way of inflating their businesses overall outlook. But if you take into consideration when a company writes off its inventory as a loss, they are actually taking a loss in their net income as well as their shareholders are receiving a lower earning per share on their investments (Horngren et al., 2005). Therefore, when a business has the opportunity to recoup this loss, they should take it. As long as they are reporting the revenue, what does it matter where the revenue is coming from? Perhaps you are thinking that by doing this, the businesses inflated sales will trick people into investing in a company that is not doing as well as it seems. This is where the investor’s common sense should come into play and thus they should research their investments. It is not the government’s responsibility to regulate every aspect of investments. There has to be some point when we say enough and let the individual investor take their risks. The SEC has its hands full enough without having to add more to its plate.ReferenceHorngren, C. T., Harrison, W. T., Jr., & Bamber, L. S. (2005). Accounting. (6th ed.). Upper Saddle River, NJ: Pearson.