A re-port of pro-fes-

A REPORT OF PROFESSIONAL TRAINING WORKSHOP

FOR STORES AND PURCHASING PERSONNEL

Organised by: THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA -ICAN

(THE LAGOS MAINLAND DISTRICT SOCIETY)

Training focus:STOCK QUANTIFICATION, VALUATION AND DOCUMENTATION

Date:15TH-18TH SEPTEMBER 2015

@ ALPHA PARTNERS PROFESSIONAL TRAINING CONFERENCE CENTRE,

#200, MURITALA MOHAMMED WAY (3RD FLOOR) ADEKUNLE, YABA, LAGOS.

Attended, prepared and submitted by:MR.EZEKIEL TUNDE ADEBAMIWI

(Cost Control Officer)

FINANCE DEPARTMENTFOURPOINTS BY SHERATON LAGOSPlot 9/10, block 2, oniru chieftaincy estate,

Victoria-island, Lagos.

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i

IAS 2 – INVENTORYIntroduction:

he accounting for inventories is a major consideration for many entities because of its significance on both the statement of profit or loss (cost of goods sold) and the state-ment of financial position.T

Statement of comprehensive income (same as P&L) Statement of financial position (same as balance sheet)

Inventories are defined by IAS2 as items that are held for sale in the ordinary cost of busi-ness, in the process of production of such sale or in the form of materials or supplies to be consumed in the production process or in the rendering of services. The complexity of ac-counting for inventories arises from several factors:

1) The high volume of activities or turn over in the account2) The various cost flow alternatives that are acceptable3) The classification of inventory

There are two types of entities for which the accounting for inventories must be consideredA. The merchandising entity (generally a retailer or wholesaler) has a single inventory

account, usually entitled merchandise inventory. These are goods on hand that are purchased for re-sell.

B. The other type of entity is the manufacturer, which generally have three (3) types of inventory, namely (a)raw material (b) work in progress (c)finished goods

Raw material inventory represent the goods purchase that will serve as input in the produc-tion process leading to the finish product.

Work in progress (WIP) consist of the goods enter into production but not yet completed.

Finished goods inventory is a completed products that is on hand awaiting sales.

In the case of any type of entity, the same basic questions need to be resolved1. At what point in time, should item be included in inventory (ownership)?2. What cost incurred should be included in the valuation of inventory?3. What cost flow assumptions should be used?4. At what value should inventory be reported (net realisable value)?

The standard that addresses these questions is IAS2. IAS2 discussed the definition, valu-ation and classification of inventory.

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DEFINITION OF TERMS1. Absorption ( full ) costing-is inclusion of all manufacturing costs (fixed and variables)

in the cost of finished goods inventory2. By-products-goods that results as an auxiliary products from the production of

primary goods often having minor value when compared to the value of the prin-cipal product(s).

3. Consignment-marketing method in which the consignor shipped goods to the con-signee who act as an agent for the consignor in selling the goods. The inventory re-mains the property of the consignor until it is sold by the consignee.

4. Cost-the sum of all cost of purchase, cost of conversion and other cost incurred in bringing the inventories to their present location and condition.

5. Direct (variable) costing-inclusion of only variable manufacturing cost in the cost of ending finish goods inventory. While often used for management (internal) report-ing, this method is not deemed acceptable for financial reporting purposes.

6. Finished goods-completed but unsold product produced by a manufacturing firm7. First in first out (FIFO)-cost flow assumption, the first goods purchased or produced

are assumed to be the first goods sold.8. Goods in transit-Goods being shipped from seller to buyer at year end9. Gross profit method-method used to estimate the amount of ending inventory

based on the cost of goods available for sales and the gross profit margin.10. Inventory-assets held for sales in the normal cost of business or which are in the

process of production off such sales or are in the form of materials or supplies to be consumed in the production process or in the rendering of service.

11. Joint product-two or more products produced jointly where neither is being viewed as being more important in some cases, additional production steps are applied one or more joint products after its split-off point.

12. Last in first out (LIFO)- cost flow assumptions ,last goods purchased are assumed to be the first goods sold

13. Net realisable value-estimated selling price in the ordinary cost of business less the estimated cost of completion and the estimated cost necessary to make re-sell

14. Periodic inventory system- inventory system where quantities are determined only periodically by physical count

15. Perpetual inventory system-inventory system where up to date record of inventory quantities are kept

16. Specific identification-inventory system where the seller identified which specific item have been sold and which ones remain in closing inventory

17. Work in progress-for a manufacturing firm, the inventory of partially completed products.

18. Weighted average-periodic inventory costing method where ending inventory and cost of goods sold are priced at the weighted average cost of all items available for sale.= (cost of goods sold + closing balance)/2

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RECOGNITION & MEASUREMENT

FRS (IAS2) establishes the lower of cost and net realisable value should be the basis of the valuation of inventory.I

FIFO and weighted average cost are the only acceptable cost flow assumptions un-der IFRS.Either method can be used to assign cost of inventory but once selected an entity must apply that cost flow assumption consistently(unless the change to other method can be justified under the criteria set up by IAS 8).Cost include all the following

1. Cost of purchase (including taxes, transport and handling), net of trade dis-count received.

2. Cost of conversion(including fixed and variable manufacturing overheads)3. Other cost incurred in bringing the inventory to their present location and

condition.

Borrowing cost identifies some limited circumstances where borrowing cost (interest) can be included in cost of inventory that meet a defining qualifying asset.Inventory cost should not include

a) Abnormal wastageb) Storage costc) Selling costd) Foreign exchange differences arising differently on the recent acquisitions of invent-

ory invoiced in a foreign currencye) Administrative overheads unrelated to productionf) Interest cost when inventory are purchased with the deferred settlement terms

WRITE DOWN TO NET REALIZABLE VALLUE

NRV-net realisable value is the estimated selling price in the ordinary cause of business, less the estimated cost of completion and the estimated cost necessary to make the sale. Any write down to net realisable value should be recognised as an expense in the period in which the write down occurs. Any reversal should be recognised in the income statement in the period in which reversal occurs.

EXPENSE RECOGNITION

IAS18 is saying revenue address revenue recognition for the sale of goods. When inventory are sold and revenue is recognised, the carrying amount of those in inventory is recognised as an expense (often called cost of goods sold).Any write down to net realizable value and any inventory losses are also recognised as an expense when they occur.

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DISCLOSURES

IAS2 requires the following disclosures:1. Accounting policies for inventory2. Carrying amount, generally classified as merchandise, supplies, materials, work in

progress and finished goods. The classification depends on what is appropriate for the entity.

3. Carrying amount of any inventory to fair value less cost to sale4. Amount of any write down of inventory recognised as an expense in the period5. Amount of any reversal of a write down to net realisable value and the circum-

stances that led to such a reversal6. Carrying amount of inventories placed as security for liability

IAS 2 acknowledges that some organisations classified income statement expenses by nature (materials, labour etc.) rather than by function (cost of goods sold, selling expenses etc.).Accordingly, as an alternative to disclosing cost of goods sold expense, IAS 2 allows an entity to disclose operating cost recognised during the period by nature of the cost (raw ma-terials and consumables, labour cost, other operating cost) and the amount of the net change of inventory for the period.

STOCK VALUATION

Eight stock valuation methods:i. FIFOii. LIFO-this is out of system/use

iii. Weighted averageiv. Adjusted selling pricev. Last known price-used in public sector(last invoice price)

vi. Base price-used by company over century in agevii. Specific identification-used in aircrafts, ships etc.

viii. Standard price

DIFFFERENCES BETWEEN IAS & IFRS

International Accounting Standard Committee (IASC) was responsible for developing IAS-In-ternational Accounting Standard before 2001. IASC was renamed as the IASB-International Accounting Standard Board, in 2001(1st April 2001).Consequently, the standards issued thereafter are known as IFRS-International Financial Reporting Standard. Therefore, all the standards issued after 2001 are IFRS. Note that the previous IAS are still valid but are gradu-ally superseded by new IFRS.

IFRS 1-15 standardsIAS 1-41 standards

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They both work hand in hand, for now. AS 2 is still IFRS compliance, being that most of the 41 IAS is yet to be replaced by IFRS (which is just 15 in number of standards yet).Therefore, any IAS not yet replaced by IFRS 1-15 is still valid and compliance with IFRS.

INVENTORY

physical resources that a firm holds in stock with the intent of selling it or trans-forming it into a more valuable state.( Raw materials, work –in process, finished goods, MRO maintenance, repair & operating),consumables.A

INVENTORY SYSYTEM

A set of policies and controls that monitors levels of inventory and determines what levels should be maintained, when stock should be replenished and how large orders should be.

Zero Inventory?

Reducing amounts of raw materials and purchases parts and subassemblies by having sup-pliers deliver them directly.Reducing the amount of works –in –process by using JIT production. (JIT means Just in time)

COST/STOCK CONTROL METHODS/TECHNIQUES

a) EOQ method-(graphical approach and by formula)b) ABC Methodc) 2-Bin methodd) Order cycling method

(A) EOQ-ECONOMIC ORDER QUANTITY

Graphical approach:

Total cost = Holding cost + Ordering cost Formula approach

EOQ = (2dO/h) 1/2Where:d=annual demando=ordering costh=holding cost

Illustration 1

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The demand for a commodity is 40,000 per annum. It cost N20 to place an order and 40k to hold a unit for a year. Find the EOQ (the backside to minimize the inventory cost).

Solution:EOQ = (2do/h) 1/2 = (2*40,000*20)/0.4=2,000

SAFETY STOCKStock between minimum and re-order level

(B) ABC METHOD

ABC method is from Pareto law which can be referred to as 20 by 80 rule (20*80 rule).It has three categoriesA-20%-high valueB-30%- less than optimum controlC-50%-can be least stock (counted once in a year)

(C) 2-BIN METHOD

A ........................................................ B

50 items 50 items

(D) ORDER CYCLING METHOD

At every point in time, we have 90 items, when it is at 60, the store keeper re-order for 30 items more.Under the order cycling method, quantity inn hand for each stock item are reviewed period-ically. A technique called 90-60-30 day technique could be used so that when stocks fall to 60 days’ supply, a fresh order is placed for a 30 days’ supply, so as to boost the stocks for 90 days’ supply.

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STOCK TAKING DOCUMENTATION AND RECONCILIATION

Stock taking exercise purposes:

1. To ascertain the quantity of stock as at the date of such stock taken.2. To determine the effectiveness of stock keeping in the organisation.3. To control pilferages of stock4. To check on the accuracy of the documentation procedures in the stores5. To identify active ass against slow moving stocks to enable management take appropriate decisions on them, so as to avoid obsolescence and slow moving stuff.6. To identify damage, expired and obsolete stock with a view to writing them off7. To detect and correct error in making entries in the stock card8.the outcome of stock taking exercise often help management to determine the level of re-liance on the internal control measures, integrity of store keepers and other personnel en-trusted with stocks.

PERIODIC & CONTINOUS STOCK TAKING PPROCEDURES AND DOCUMENTA-TION

PERIODIC STOCK TAKING ADVANTAGES:

1. It is easy to follow being practical 2. It highlights individual performance indices of the product3. It eliminates to the barest minimum the incidence of stock obsolescence4. It tells management in taking marketing decision by analysing stock into fast, slow or dormant item. This can be useful in making market segmentation.

DISADVANTAGES:

1. It is difficult to decide appropriate period for review.2. Larger stocks may be required as re-order quantities must take account of the period between reviews, as well as the lead time.

CONTINOUS STOCK TAKKING

Under this system, stock are counted much more often as systematically all through the year. And in such a way that each category of stock is counted a number of times within each year.

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ADVANTAGES:

1. No disruption of activities/production during the year end stock taking2. It helps management pay more attention to high value items, fast and slow moving items. The continuous stock taker get experience unlike periodic stock taking which is often carried out in a hurry and often with the assistance of inexperience staff.3. Frequent comparison of results of continuous stock taking in perpetual records enables losses and any discrepancy in record keeping to be discovered easily and attention of man-agement brought to such for early action, this serves as a deterrent to those who might think of pilfering. It draws attention to the condition and age of stocks so that damage, ob-solete and dormant stocks are identify easily and action taken on them.4. It serves as a moral check on stores official and discourages fraudulent practises.

RESPONSIBILITY OF THE TEAM LEADER

1. Ensure that the stock taking sheet, writing materials and other stock taking requirements are available in the location.2. Ensure that stock taking arrangement are adequate.3. Ensure that the cut—off date for the movement of stock s are strictly adhere to4. Ensure that all records, bin card in particular are updated before the stock taking date.5. Ensure that the stock managers and his staff stack and label all stock items properly.6. Ensure that an engineer or technician is available in assisting to identify technical stock items and evaluation of work in process.7. Ensure that the pack sizes and full descriptions of items is on the stock sheet8. Ensure that damages, bad items and obsolete are identified and separated.9. Alterations on the stock sheet must be initial10. The team leader must sign all stock taking sheets11. Stock sheet should be pre numbered12. Any stock taking sheet not signed by the stock taker should be rejected.

STOCK RECONCILIATION METHODS, PROCEDURES AND DOCUMENTATION

tock discrepancies are always harmonize through the process of reconciliation, after such discrepancies have been investigated.S

OVERAGES & SHORTAGES

OVERAGES:

Under normal circumstances, there should not be surpluses except for item requiring meas-urement.E.g LPG requiring the use of dip-stick to measure or certain technical items mis-classified as wares, spares for motor vehicles are recorded against generator spare parts thus increasing the stock of one and reducing the stock of another by the same quantity.

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CAUSES OF OVERAGES

Error in record keeping Faulty mechanism, as in faulty LPG plant Deliberate act by store keeper e.g. by altering stock figures

REMEDIES

Constant and careful posting of stock records possibly on daily basis Regular or continuous sock taking Stock reconciliation must be promptly carried out after stock taking and all differ-

ences investigated and resolved.

SHORTAGES:

Shortages occur when items on stock record differ from the actual quantity and the latter are found to be less than the former.

CAUSES OF SHORTAGES

The cause are almost the same as for overages plus the following: Theft Natural effect e.g. petroleum product reducing in quantity due to evaporation

REMEDIES

These are the same as for overages

IDENTIFICATION & MANAGEMENT OF FAST, SLOW, OBSOLETE STOCKS

egular and continuous stock taking will highlight all causes of fast, slow and obsolete items of stock and management should in all such cases take necessary decision.R

FAST MOVING STOCKS

Where fast moving stock items have been identified. Effort should be made to determine:1. The average usage over a determine period of time.2. The lead time. That is the time taking to replenish supplies.3. The penalty cost of stock out.4. Any other parameter that will aid the re-calculation of economic order

quantity(EOQ),re-order level etc.5. These calculations will enable adequate stock of the items to be available at all times

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SLOW MOVING STOCKS

Slow moving stock items are known to tie down funds that would otherwise have been available for other uses. Therefore, the identification of slow moving stock item would help make available such funds that would otherwise have been tied to stock.

OBSOLETE STOCKSThe identification of obsolete stocks items tells management to take decisions on whether to:

1. Write off the entire stock2. Sell them off at scrap value3. Where possible, recycle such stocks and use them to produce other stocks in high

demands. This is much more possible in certain engineering tools manufacturing outfit.

The decision to be taken will among other things depend on one or more of the following:1. The cost of holding the stock, such as cost of warehousing etc.2. The availability of technical skills for possible recycling of the product.3. The perceive future demand of the product.

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FRAUDSt can be defined ass taking advantage illegally of what belongs to the company through criminal deception. Fraud is a type of risk.I

Risk can be defined as those things that will erode the ability of management to achieve its objectives. The objective is profit making. There is companywide risk management and de-partment risk.Risk can be classified into:

Fraud Operational risk Marketing risk Non-compliance to statutory law/regulations

RISK MANAGEMENT STEPS

1. Risk identification2. Risk avoidance3. Risk mitigation ( loss reduction)4. Risk transfer5. Risk evaluation6. Treating the risk/risk treatment-internal controls7. Reporting and reviews

INTERNAL CONTROLS

It can be defined as the whole system of controls financial and otherwise established by the management in order to run the business of the enterprise in an orderly and efficient man-ner. Ensure adherence to management policies, safeguard the asset and secure as far as possible a completeness and accuracy of the record.

INVENTORY FRAUD

ccupational Fraud is fraud committed by an employee in the course of their employ-ment on their employer. They are more common and cause more financial loss in total to businesses than other third party frauds. As employees will continue to

work at the business, they will generally try to hide these frauds permanently, meaning that most occupational fraud will be committed over an extended period of time.

OWhat is inventor y fraud?Inventory fraud is the misappropriation of inventory items by an employee from their em-ployer.

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The three major types of inventory fraud, each hide the theft by attacking the business sys-tem in a different manner.

a) Inventory record schemes-attack the perpetual Inventory records.b) False Sales schemes- attack the sales documents that affect the perpetual records

andc) Purchasing schemes-attack the purchase documents that affect the perpetual

records

Differences between these frauds. These frauds differ by:1. Whether the target of the fraud is inventory on hand or inventory being pur-

chased but yet to be received and 2. What records are falsified TO HIDE THE LOSS

Who commits inventory fraud?

Anyone with physical access to or who controls the purchase of inventory has the opportu-nity to steal it. Employees may have to commit different types of fraud depending on their access to inventory or the business system. A purchasing officer will usually find it difficult to adjust inventory records and a sales person may only have access to sales records, so they will have to commit fraud in different ways.

INVENTORY RECORD SCHEMES

This is inventory fraud that is hidden by the manipulation of the inventory record them-selves, not the sales or purchases documents that lead to entries in these records. This fraud is usually committed by an employee with access to these records-whether during business hours, after hours, or at other times when there are not sufficient controls in place.

The three common inventory record frauds are:1. False write-offs2. Perpetual record manipulation and 3. False stock takes

In all cases, the stolen inventory item must be removed from the site. The reduction of the inventory level must then be hidden.False write-off fraudFalse write –off frauds are done by causing the item to be recorded as damaged or dis-carded in the inventory system. False write-off schemes can be done by anyone with access to the inventory records or with the authority to write off inventory as damaged or scrap or whose supervisor does not adequately check these requests. The stolen item is not missed when a stock-takes is performed, as it is no longer in the records.Perpetual Record manipulationPerpetual record manipulation falsifies the inventory records directly-without generating the usual source document. The employee simply adjusts the inventory records to show one less item held in stock, that when the stock-take is performed, the amount in the records should match the physical count. This can be done by changing the ending balance in the in-ventory ledger or inserting a false credit (a sale, write off etc.).It does not rely on a source

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document being prepared and authorized. How the fraud is actually done will depend on the sophistication of the record keeping system and the controls that are in place.False stock takesStock takes are meant to uncover differences between the perpetual records and physical counts. False stock takes do not adjust the records, they falsify the stock count to equal the inventory records. This scheme does not permanently hide the theft and must be repeated at the next stock take. This is sometimes known as “pushing the stock balances”.

DETERENCE AND DETECTION OF INVENTORY RECORD FRAUDS

One common factor in these frauds is the theft of the item and its removal from the premises. Physical security over the items should reduce the opportunity to actually steal the item. Independent verification of records and separation of duties in the recording process also reduces the opportunity to commit these frauds.Stock takes should be performed by people independent to the stock area or independent to the business. Write-offs in the records should be verified by a supervisor and the item properly handled (sold as scrap, returned to suppliers etc.).Rarely is a written off item worth nothing.Entries in the perpetual record should be checked against a separate purchase, sale or other record and checks should be performed on those documents from time to time. The belief that the fraud may be uncovered will stop a lot of people from committing the act in the first place. This is called the “perception of detection”.

FALSE SALE SCHEMES

This is theft of an inventory item that is hidden by recording a fictitious sale of the stolen item. This can be done by recording a credit sale of the item where that debt is never col-lected or only recording the cost of sales part of the transactions in the inventory records and not recording the sales part of the transaction in the sales register.What is the difference from inventory record frauds?This fraud is similar but the inventory records themselves are not directly attacked. The en-try in the inventory records will originate from a false source document which usually was prepared in another area of the business. False sale frauds record the stolen item as legiti-mately sold.How do false sale frauds work?The aim is to have the stolen item recorded as sold by falsely producing sales documenta-tion. The false sale is recorded in the inventory records, reducing the stock level. Then ei-ther:

1. The sale is not recorded in the sales records, which may be kept independently from the inventory records. As there is no sales recorded, no amount is expected to be collected or banked.

2. A credit sale may be recorded (probably under a false name) and the amount is eventually written off ass uncollectable.by the time that the sale is written off, the trail will be cold. This fraud is generally done by someone who has control over the accounts receivable ledger.

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3. In manufacturing businesses, the stolen item can be allocated to work in progress as opposed to a sale. This is effectively an internal sale of the item

DETERENCE AND DETECTION OF FALSE SALE FRAUDS

Internal controls over the generation of sales documents limit the opportunity to commit the fraud but it may not be practical to have a lots of controls if there is a high turnover of smaller inventory items. The use of computerized point of sale registers provides some con-trols with the automatic updating of inventory records along with the recording of the sale. But computerized systems will not stop people stealing inventory and not recording the sale.Where the individual items are of large value (cars or boats), it is easier to manually verify each sale to a stock item and ensure proper recording. Manufacturing businesses have their own special needs as the stock is not recorded as sold but allocated to a job or process. The controls on these allocations are usually less stringent than for sales of stock as the use of the stock is internal.The best prevention technique is ensuring that the recording system will provide verification of sales at the time of the release of stock.

P URCHASING FRAUDS

Purchasing fraud is the theft of inventory as it is being purchase and before it is received and recorded in the inventory records. This is the opposite of a false sales fraud where the item is already in the system. The purchase is recorded and the business receives the invoice for the item but the receipt of the item is not recorded in the inventory records so the item itself is not missed.There are two sets of transactions in any purchase. The first is the monetary side. This records a debt to be paid. The other side records the receipt of the item. This second part of the transaction is bypassed in the fraud.

HOW DOES PURCHASING FRAUD WORK?

Authority to order inventory is not necessary but the fraud is more difficult without it. The item is ordered and delivered to the location specified by the fraudster or he may collect it directly from the supplier. One benefit of the fraud is that the item does not have to be physically removed from the site. The purchase is recorded in the financial records but the order is not recorded in the inventory records.As the order paperwork is not forwarded to the inventory area, the item is never expected to be received according to the inventory records, the business does not have the item, so it is not missed during stock takes. The approved invoice is processed under the belief that the items on the invoice have all been received. The business will then pay for the item.

DETERRENCE AND DETECTION OF PURCHASING FRAUDS

The fraud can be committed when the authorization of invoices for payment are not well controlled. Recording the item in physical inventory should be linked to the authorization of

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the invoice for payment. If these two steps are connected and properly checked, the chances of conducting this fraud will be reduced.If the inventory is immediately recorded when delivered and referred to the invoices, miss-ing items should be noticed. Payment of the invoice should only be authorized after the item has been recorded as received in the inventory records. This will limit the ability of con-ducting the fraud to a few people.

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......................................................................................................................................Ethics, Etiquette and Effectiveness in the Workplace

LECTURE OBJECTIVES • By the end of this lecture, you should be able to:

1. Explain the functions of management2. Leadership

3. Skills Management 4. Ethics

5. Workplace Etiquette 6. Office Dress Standards

7. Key Elements to a productive, happy workplaceFUNCTIONS OF MANAGEMENT

• Planning, Organizing, Leading; & Controlling (PLOC)• Planning

1. defining goals and objectives2. deciding what type of activities the company will engage in

3. determining the resources needed to achieve the organization’s goals & ob-jectives.

• Leading1. Attracting people to the organization.

2. Specifying job responsibilities3. Grouping jobs into work units

4. Marshalling and allocation of resources5. Creating good working conditions

• Organizing1. Directing, motivating, and communication with employees, individually & in

groups. 2. Conflict resolution.• Controlling

1. Monitoring performance of people & units.2. Provision of feedback or information about progress.

3. Identification of performance problems & actions to correct problems.

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Functions of ManagementPlanning, Leading ,Organizing, & Controlling (PLOC)

Planningdefining goals and objectives

deciding what type of activities the company will engage indetermining the resources needed to achieve the organization’s goals & objectives.

Functions of ManagementOrganizing

Directing, motivating, and communication with employees, individually & in groups. Conflict resolution.

ControllingMonitoring performance of people & units.

Provision of feedback or information about progress.Identification of performance problems & actions to correct problems.

LEADERSHIP & MANAGEMENTLeadership – the business or activity of trying to influence people to strive willingly to attain

the goals and plans of the organization Management is the function of running an organization from a policy standpoint.

MAIN BASIC REQUIREMENTS FOR LEADERSHIPPeter Drucker’s three main basic requirements for leadership:

1. Leader must think through organization’s mission, defining it and establishing it clearly and

visibly 2 BASIC LEADERSHIP REQUIREMENTS

Leader sees leadership as a responsibility; not rank and privilege. The effective leader ac-cepts responsibility for subordinates’ mistakes but sees their triumphs as triumphs. For this

reason, effective leaders do everything possible to surround them selves with able, indepen-dent, and self-assured people.

3 BASIC LEADERSHIP REQUIREMENTS Leader must earn trust; leader’s actions and professed beliefs must go hand in hand.

Sensory reminders of how to get along in the workplaceSensory reminders of how to get along in the workplaceSensory reminders of how to get along in the workplace

Relationships at Work

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Examples of Business AbuseExamples of Business Abuse (Continued)Examples of Business Abuse (Continued)How Do We Rationalize Business Abuse?

How Employers Respond to Business AbuseHow Employers Respond to Business Abuse (Continued)

As Employees, What Are Our Choices?Professional Dress Standards

What is appropriate attire for the workplace Professional image

Applies to all office employees Uniformly enforced

Professional Dress StandardsStaff should have an appropriate

well-groomed appearanceMake reasonable accommodation when situation requires exception (e.g., pregnancy, medi-

cal excuse)Since opinions of appropriate

attire can differ, administration reserves the right to serve as final authority

Appropriate Apparel for WomenInappropriate Apparel for the Women…

Inappropriate Tops for the OfficeOff-the-shoulder

Spaghetti string or camisole style

Tube topsKey-hole or cutouts

Backless or cutaway backs

HaltersNo Midriff’s

Other Inappropriate Items Short skirts and dresses

Skorts (shorts with skirt flap)Skin-tight clothing

(dresses, pants or tops)Overalls

Culottes/split skirtsLeggings

Appropriate Apparel for GentlemenFor the Gentlemen…No

T-Shirts Tank Tops

Polo shirts with designs (except office logo)For the Gentlemen…NoInappropriate Footwear

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Tennis shoes/athletic shoesTennis shoe mules

Heel or platform soles 3 inches or more

Thongs Bare feet

Birkenstock-like sandalsViolations of Dress Code

Thank you!................................................INCONCLUSIVE REPORT...................................................

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i Stock Quantification, Valuation and Documentation