CH 3: Processing Data Through the Accounting System

Source: http://blog.friendseat.com/small-businesses-affected-by-haitian-earthquake/

Summary:

Port-au-Prince is one of the largest cities in Haiti, which was recently devastated by an earthquake. This city produces many of the fresh fruits, vegetables, and other resources that are necessary to businesses world-wide. Due to the destruction of the resources, Haiti cannot produce or ship any goods out to the market. Haiti is especially famous for its mangoes, but it's feared that the facilities producing these fruits have been destroyed as well. Since the mango season starts in April and ends in August, it is very possible that the facilities will not have been rebuilt by the end of the growing season. This is why many markets around the globe are looking for replacements.

Connection:

The connection between this article and chapter 3 is extraordinary events. Due to the earthquake that hit Haiti, many businesses have lost assets that could have been sold to generate profit. Since the losses of assets are caused by an infrequent event, we can assume that the companies that suffered this loss have recorded extraordinary events somewhere in their income statements. Although this depressing and disastrous event was nobody's fault, the Haiti companies that suffered also lost business opportunities. For example since Haiti can't fix their mango producing facilities in time, many regular customers that have purchased from them have turned their backs to Haiti and gone to find replacements.

Reflection:

I find it astonishing that companies who have purchased from Haiti for years and years have now turned a blind eye on them because of an incident that no one could have prevented. I believe what should have been done is instead of finding replacement suppliers, they should contribute funds and donations to get Haiti businesses back on track. This way, the mango producing facilities and other resources would be able to recover in time for the mango growing season.