Chris, I like your contribution to this post regarding the concept of bonds and misrepresentation of facts. Whereas you have done well in addressing the issues, I think you did not us a real example involving a publicly traded company. Liabilities are identified as account payable, and the business needs to offset such debts periodically. A scenario may occur whereby accountant at JPMorgan Chase exaggerates the liabilities for items that were purchased under the credit. When the company is paying the liabilities through the same accountant, he/she can arrange to direct that money to his account (CTI Reviews, 2017). Thus, exaggerated liabilities are serious legal problems that must be considered to avoid scenarios of company robbery.
To prevent such misstatements, the financial documents should be audited both internally and externally. Internal auditing can entail several persons charged with the role of counterchecking the records (CTI Reviews, 2017). External auditing verifies the result provided by the internal auditors and is more successful when conducted randomly.
Delegate your assignment to our experts and they will do the rest.
Bonds issued by JPMorgan Chase:
Green Bonds are issued and marked for use in climatic and environmental projects (Felman et al., 2014). This bond is an interest in multinational organizations.
Green-Hybrid Bonds are bonds possessing both debt and equity characteristics. Therefore, it is related to the green bonds issued by JP Morgan Chase.
The state, counties and other government agencies issue municipal bond s to fund governmental projects.
Governments in the G7 ranks issue G7 government bonds .
In case an investor was interested in investing in JPMorgan, purchasing the green bonds will be a strategic move given the global movement towards a safer environment. This will provide security in the green bond stock market sell as compared to trading in the G7 government and municipal bonds. A consideration of the green hybrid bonds will be more advantageous, as compared to green bonds given their dual-nature as debt and equity, which makes them convertible.
References
CTI Reviews (2017). Financial Accounting: Business, Finance . Cram101.
Felman, J., Gray, S., Goswami, M., Jobst, A. A., Pradhan, M., Peiris, S., & Seneviratne, D. (2014). ASEAN‐5 bond market development: Where does it stand? Where is it going? Asian‐Pacific Economic Literature, 28 (1), 60-75.
