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Deducting the expected litigation gain from cost of good

Explain the justification that could be given for deducting the expected litigation gain from cost of good sold and explain why Cardinal Health chose this alternative rather than reporting it as a nonoperating item.
Explain what the senior Cardinal Health executive meant when he said, “We do not need much to get over the hump, although the preference would be the vitamin case so that we do not steal from Q3.” Include specific clarification of the phrase “not steal from Q3.”
Explain specifically what Cardinal Health did to get into trouble with the SEC.
Justify the timing of the $10 million and $12 million gains, and explain how Cardinal Health’s senior managers defend these decisions.
Cardinal Health received more than $22 million from the litigation settlement. Discuss whether the actions of Cardinal Health senior managers were so wrong that they justify the actions of the SEC. Classify Cardinal Health’s behavior on a scale from 1-10, with 1 being “relatively harmless” and 10 being “downright fraudulent.” Justify your rating.

Sample Solution

giving physical care. In turn, patients of all cultures could misinterpret the actions of care, (Underman Boggs, 2011). Similarly, this relates back to gestures in that different hand movements and signs could be received in offence by other cultures, (Royal Collage of Nursing (RCN) 2004). Therefore, healthcare professionals should have an understanding of cultural diversity and value the differences, otherwise known as ‘respectful curiosity’, (Giger et al., 2007). Furthermore, the use of direct eye contact throughout the ‘Persuasion’ video creates a feeling of credibility and confidence in the speaker which is reinforced by Underman Boggs (2011, p.104) who states that ‘maintaining eye contact communicates honesty’. This therefore enables the patient to trust the speaker in the advice given on lowering sugar intake and strengthens the positive therapeutic relationship that has been identified. However, personal use of this communication in practice can be misjudged and for some cultures prolonged eye contact communicates aggression, (Sellman and Snelling, 2010). Similarly, barriers occur when communicating with patients who have sensory learning disabilities and those on the autistic spectrum who are inclined to avoid eye contact. Research carried out by Phoebe Caldwell (2010) has suggested that the observation and replication of body language, including vocal behaviour, can be used to initiate meaningful conversations, otherwise known as ‘Intensive Interaction’. As the interactions develop they support the learner in taking a more active role in communicating, allowing them to understand conversational rules and turn taking in modern society, (Field, 1979, cited by Nind, 1999). It is also suggested that such patient’s should have personalised care around their needs ensuring the best treatment is provided, (National Institute for Health and Care Excellence (NICE), 2015). Similarly, person centred approaches should be used when treating a patient with Dementia who may have difficulty in communicating their needs. James (2011) says that healthcare professionals should ‘recognise behaviours signalled by their patients as feeling distressed or being driven by a belief’. In turn, this reinforces the culturally sensitive understanding nurses should have by providing holistic care and valuing the individual, (Brooker, 2007).

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