Accounting, write a memo about Sony company Essay

Accounting, write a memo about Sony company - Essay Example Interesting content from proxy statement: â€Å"In a case where the outside director is reelected as an outside director of the corporation and reassumes his/her office as an outside director of the corporation, this agreement should continue to be effective after reelection and re-assumption without any action or formality.† This implies that in reelection of outside directors no formality is followed but the contract with the corporation is automatically renewed. In such instances the directorship is suppose to be formally executed like other directors by the use of the signature and company stamp but here it is no done. Positive Aspect: The annual report is viable and reasonable in that they require further tests to be conducted. While the primary objective of the report was to look at the effectiveness of the project in ensuring costs saving and operational efficiency, the project also looked at other information in a cursory manner as well (Simplified Acquisition Procedures for Federal Purchases, 2004). The report also suggests that independent study must be conducted to ensure that the prices of items being offered via the simplified acquisition procedures are at least at par with their market equivalents. Concerning Aspect: The first and the most concerning issue is that of carrying cost. The organization may carry excessive amounts, however the organization will have to bear excessive carrying costs to ensure that the products are kept in usable conditions and that they are not damaged due to prolonged periods of storage. These costs are not insignificant and in case of sensitive equipment, the equipment maintenance costs are a major portion of the organization is operating overheads. Overall: the annual report and proxy statement enables one to understand and the strategy of the company. It also enables one to comprehend the strategic direction as it