FirstGroup plc Essay Example | Topics and Well Written Essays - 1000 words

FirstGroup plc - Essay Example As of 2009, the group earned the annualized net profit of around 6 billion pounds, which is a growth of around 31.4% from what the company earned last year. Similarly, this group has remained unaffected by current global economic backdrop, which is an amazing achievement by the company. In the future, the group also wants to maintain its market leader position and wants to expand its operation to the global market. The company wants to develop a new business plan which should not in any way ignore the aspiration of stakeholders. Stakeholders can be any group or an individual that has a stake in the organization's performance. In simple words, any one within or outside the organization who is affected by the decision taken by the business is known as stakeholder. First Group's stakeholders are its shareholders, employees, government, customers and its board of directors. According to Richard Daft, shareholders are those people who own the business and have invested the money in the business. So they would like the business to make decisions which are going to increase its profitability and lead to rapid growth of the business. Similarly, First Group's decisions are also going to affect its employees, in some way or the other. First Group PLC's decision to downsize can result in loss of job for some of these employees. First Group PLC's working policies and pay-rate is another factor that is goi ng to affect the employees. Government might be interest in the decision taken by First Group PLC because if it earns good profit, it will result in revenue for the government in the form of taxes. Similarly, government will want First Group PLC to flourish not only because it will result in revenue collection for the government, but also because it will provide employment opportunities in the economy. Customer will affected by the pricing decisions of First Group PLC. Board of Director will be interested in growth decision of the business because their salaries may be dependent on the size of the business. So they would like the owners to plough back earned profit back into the business for the purpose of expansion and this could lead to conflict of interest between various groups of Stakeholders. (Daft, 1997) Business aim is the future-vision of the business, which can be anything that the business wants to achieve in the future or the reason behind its existence. The major aim of First Group PLC is the transforming the way people travel and changing their perception about the public transport by providing people with safety and luxury and in doing so becoming the leading company of the world. In general terms, Business objective is a business strategic position that it is trying to achieve through its activities and policies. If we look at the business objective of First Group plc, we can say that it is aiming toward higher market share by offering distinct services like safety travel and other features which are not present in conventional transport companies. Another business objective of First Group PLC is rapid growth and in doing so, it is increasing the value of investments of its shareholder by increasing the market-price of the company's stock. Many businesses carry out SWOT analysis to focus on the internal strengths and

Basic Assessment of a Cuban American with limited English proficiency Assignment

Basic Assessment of a Cuban American with limited English proficiency - Assignment Example Here, the nurse might face linguistic difficulties because they speak different languages. Whereas the nurse speaks English, the patient does not even understand it. For a nurse to deal with such a situation, they need to be patient, understanding and tolerant. Besides, they should sharpen their communication skills. Meaning, they should not shun away the patient, but look for an interpreter to intervene. It would be advisable to incorporate the intervention of an interpreter as it would facilitate the communication process between the nurse and the patient. It is only through effective communication that the nurse would manage to interact with, listen to and understand the patient before offering any required services. Communication is a paramount activity in the nursing profession. When it is effectively done, the nurse would definitely involve the patient in the treatment process as they offer benevolent

An acceptable defense Essay Example for Free

An acceptable defense Essay Insanity: Insanity defense has been considered by many as a â€Å"loophole† in the law allowing a number of guilty people to be set free. However, this so-called â€Å"loophole† does rarely set people free of criminal charges. Moreover, most of the cases involving insanity defense are murder cases. Many scholars, judges, attorneys and clinicians are said to be divided concerning the definition of insanity. In reality, though, it is not possible for them to be truly divided concerning the definition of insanity seeing that clinicians today have modernized means of determining a person’s mental state by means of psychological testing and interviews. What is more, psychologists are aware that there are neurological processes affecting a person’s mental state. Hence, brain scans can easily be used to understand the physiological condition of an individual charged with murder. Even the history of insanity will be made available through such brain scans, seeing that there is a genuine difference between the neurological processes of people showing abnormal and normal behavior. Therefore, scholars, judges, and attorneys must know that their understanding of the definition of insanity is irrelevant if clinicians are available with scientific evidence of insanity of an individual charged with murder. Given that psychological testing too is scientific, there should be no â€Å"loophole† whatsoever in this area. As a matter of fact, insanity is an acceptable defense. Eric Michael Clark shot a police officer to death because he was suffering from paranoid schizophrenia and believed that aliens were stalking him. According to the law of Arizona concerning insanity defense, the man had to prove with â€Å"clear and convincing† evidence that he was too mentally ill to know that he was wrong to murder an innocent police offer. The Supreme Court got involved in Clark’s case. Fortunately, the man was backed by the American Psychiatric Association in addition to the American Psychological Association – two entities based on true scientific principles. Most states of America have differing laws regarding insanity defense. Now with the support of both the American Psychiatric Association as well as the American Psychological Association – who believe in helping out mentally ill individuals that have been charged with murder although their mental health is not in their control – it is hoped that the states of America will work on a single law on insanity defense in order to make the â€Å"loophole† in the law completely vanish. This single law would also make insanity defense cases more straightforward than before. After all, abnormal psychology is a science which has made it clear that there is an illness called paranoid schizophrenia, and there are many people suffering from illusions, delusions, and hallucinations. To doubt that these people are ill is, in fact, insanity as well as a sin. This is because we will be depriving of treatment a lot of mentally ill folks if we do not even believe that they are mentally ill. And, what if these people enter jails to commit more murders? What if they kill themselves in prison after they have been unlawfully charged with crime? Whose responsibility would that be? In point of fact, mentally ill people require immediate healing instead of punishment. Besides, putting them through court trials may be worsening their mental condition. Many people who oppose the insanity defense have assumed that mental illness is a myth, and that those who label others as mentally ill are actually imposing violence and control on people. Thomas Ssasz argued that psychologists and psychiatrists use such labels only to make political and ethical decisions. It can be argued, however, that people who are unaware of the scientific basis of abnormal behavior are ignorant at best. Such people are the reason why books on the history of abnormal psychology claim that in the olden times people killed numerous mentally ill people simply because they were mentally ill. There was no treatment for such people, and nobody cared enough to stand for their right to be treated. Slowly but surely, future generations began to believe in the reality of mental illness. ‘Humane treatment’ of the mentally ill was suggested as a cure. Today, however, we are abusing the principles of ‘humane treatment’ by putting the mentally ill people through prolonged court trials. It would be best, therefore, for society to acknowledge that first of all, psychology is a science just as much as biology; and psychologists and psychiatrists are qualified to determine the mental condition of an individual. If, in fact, mental illness were a myth, the Supreme Court and everybody else involved in insanity defense trials would have worked on also closing down mental hospitals as well as the clinics of the well-educated psychologists and psychiatrists, who happen to know their science more than lawmakers would ever be expected to understand psychology. The fact that the government has not closed down psychiatric clinics and mental hospitals shows that society at large does instinctively believe in the reality of mental illness and realizes how painful it can be. Hence, it is utterly useless to argue against the insanity defense. Bibliography Lane, Charles. â€Å"Supreme Court to Review Insanity Defense. † Washington Post. April 20, 2006. â€Å"The Insanity Defense,† Cyber Essays, http://www. cyberessays. com/Politics/126. htm, Accessed 4 May 2007. â€Å"The Insanity Goes On,† Crime Library (2007), http://www. crimelibrary. com/criminal_mind/psychology/insanity/11. html, Accessed 4 May 2007.

Impact of Fair Value on Creative Accounting

Impact of Fair Value on Creative Accounting 1 Introduction As Blake and Lunt (2000, p.375) rightly surmise within their work on accounting standards, the term â€Å"creative accounting,† was originally coined by the media, and it was particularly prevalent around the time of the Enron financial disaster. It was partially because of the financial collapses of firms like Enron and the major debate that followed these events, that International Accounting Standards were introduced. Amongst the main objectives of these standards, which were intended to make financial statements easier to understand and provide for more transparency (Alfredson et at 2007, p.6), one of the aims was curtail future opportunities for creative accounting. The IASB, when designing these standards started from the premise that corporate business had an obligation to account to investors, creditors and other stakeholder on a regular basis, usually within the annual financial statements, about the â€Å"performance, situation and future prospects of that business† (Alfredson et al 2007, p.4), which the focus being on the accuracy of this information. It thus sought to legalise this obligation and, through the standards, ensure that this result was achieved. However, despite the introduction of the standards and regulations, as Mulford and Comiskev (2002), Blake and Lunt (2000) have observed, irregularities in financial statements are still occurring. Many academic and professional observers are of the opinion that the measurements introduced by the IASB is serving to â€Å"obscure concrete evidence† in financial statements (Swanson and Miller 1989, p.1). In particular these concerns are centred around the boards movement away from historical cost accounting to a system of â€Å"fair value† accounting (Alfredson et al 2007, p.48), the introduction 4 of which was against the wishes of many stakeholders (Williams 2006). Fair value is intended to improve the accounting measurements used in financial statements by ensuring that these reflect relevant and current valuations of the business (Blake and Gowthorpe 1998, p.1). However, the argument against fair value, quite apart from the fact that it takes up an inordinate amount of management time (Scott 2003, p.2), is that it provides opportunity for manipulation and misuse and thus increases the potential for creative accounting. This is particularly prevalent in the area of asset valuation. The intention of this study is to investigate the arguments and debate that continues to surround the concepts and practices of creative accounting and the impact, if any, that â€Å"fair value† has had upon this issue. In particular, the study will concentrate upon these elements in relation to their use in the valuation of property, plant and equipment and investment property, which can in many companies, form a major part of their current balance sheet valuation. The objective is to assess and evaluate whether the introduction of the fair value concept has led to the intended improvement of financial reporting in these specific areas of the financial statements, or if creative accounting methods and processes are still being used to circumvent these improvements. It has been decided to conduct this research by using a literature review format. 2 Definitions, meanings and theories of creative accounting 2.1 Definitions and meanings Before being able to assess the extent to which the concept of â€Å"fair value† has impacted upon the reporting accurate values of assets in financial statements and the reduction of the prevalence creative accounting following the introduction of new standards and measurements, if any, it is important to understand the meaning and theories of creative accounting. Furthermore, understanding the reasons why these actions are being taken by so many corporate organisations is of equal relevance. Within the wealth of literature surrounding accounting and accounting standards, there are a wealth of diverse definitions for the term creative accounting Hey Cunningham, D (2002). For example, from an academic viewpoint Blake and Lunt (2000, p.375) define it as â€Å"that which does not faithfully represent the underlying commercial activity and is therefore not neutral.† Amat et al (1999, p.3) use even stronger terms to define creative ac counting, which they indicate is â€Å"a process whereby accountants use their knowledge of accounting rules to manipulate the figures reported in the accounts of a business.† As is perhaps to be expected, other stakeholders have been more forthright in their definitions and opinions. A business journalist, Ian Griffiths (quoted in Amat et al 1999, p.3), reveals the media view when he stated, â€Å"Every set of published accounts is based on books which have been gently cooked or completely roasted† commenting further that â€Å"It is legitimate. It is creative accounting.† An Investment analyst, Terry Smith, interviewed by the same authors (Amat et al 6 1999), also showed the level of concern felt about creative accounting in this segment of stakeholders. He commented, â€Å"We felt that much of the apparent growth in profits which had occurred in the 1980s was the result of accounting sleight of hand rather that genuine economic growth.† 2.2 Acceptance and reasons Acceptance levels and appropriateness in regards to the performance of creative accounting also show similar differences of opinions depending upon which particular stakeholder views are garnered. Whilst many say that manipulation, which is at the foundation of creative accounting, is an inevitability that cannot be addressed, whilst others believe that is the weakness of rules and measurements that allow this practice to continue (Langendijk et al 2003, p.31 and p.350). It is apparent that the media and investors support the latter of these opinions. However, according to a survey conducted by Amat et al (1999, p.13) as part of their research into creative accounting, the auditor profession not only believed that it was inevitable, with 91% of UK respondents believing that it could not be solve, but also over a third were of the opinion that it was a â€Å"legitimate business tool.† As indicated earlier, it is also felt that the introduction of the â€Å"fair value† concept as a measurement that would reduce the incidence of creative accounting is criticised as not being capable of fulfilling this role. The consensus is that this concept is expensive to implement, difficult to determine and verify, due mainly to objectivity characteristics, and is therefore easy for the opportunistic organisation to manipulate (Benston 12008, p.103). 2.3 Manifestation and methods of creative accounting Historically, creative accounting methods are used in a number of ways, all of which are designed to influence the financial statements and results produced by commercial organisations. Irrespective of whether these are directed towards the profit and loss account or balance sheet, all of these methods will have the effect of altering, or manipulating, the value of the business. One popular method is that known as â€Å"income smoothing† (Alfredson et al 2007, p.682). The objective of this method is to avoid the appearance of volatile changes in profit growth levels. For example, if a business moves from  £1 million profit in one year to  £2 million in the next, but it is expected that the third year profits would fall by 25% in comparison to year two, income smoothing may be implemented in this year. The smoothing effect is designed to show a more controlled and sustained level of growth The smoothing process can be achieved in a number of ways. One of the most obvious routes of achieving this situation is by the manipulation of provisions or accruals (Antill and Lee 2005, p.129). In the case described above increasing accruals or reducing debtors would have the desired effect of moving profit from the second year into the third, thus smoothing out the volatile look of the profit curve that previously existed. As some of these provisions are based upon estimations, manipulation is difficult to verify (Alfredson et al 2007, p.682). For example, within the financial statements of financial institutions such as banks, there is a requirement to provide for existing and potential bad debts. As an significant element of the bad debt provision calculation is based upon judgement, which can be biased, it is possible for these figures to be manipulated to show a more favourable position than might in reality be the case. Another method of manipulating the financial results is related to earnings management. In this case the management of the business will have a particular target in mind (Mulford and Comiskev 2002, p.15). One target might be to move earnings from one year to another with the specific intent of manipulating the profitability of the business for that particular year. An example of this is given in the research of Amat et al (1999), where they took an existing investment that had a historical cost of  £1 million but a current value of  £3 million. As the business managers in this situation have the freedom to choose exactly which year they can sell the investment and realise the profit, they have the ability to manipulate the financial statement results by their decision. Alternatively, sometimes a special â€Å"one off† charge may be included within the accounts, which will depress the profits and earnings. For example, if the payment of a lawsuit has been agreed to be completed over a period of years, it is possible that the management will decide to include all of these payments within one year. The management is then able to explain away part of the poor performance as result from this exceptional event. The difficulty is that, upon further examination of some exceptional items in corporate financial statement, it is often difficult to justify them being excluded from normal business operations. Therefore, it could be argued that they are, in effect, simply attempts to â€Å"window dress† the figures in an effort to put a more positive view on the results (Stolowy and Beton 2004). One element of earnings management that has proven popular with corporate management is the â€Å"big bath† scenario, which is seen by academics as an opportunistic method of creative accounting (Reidl 2004, p.823). The theory behind the â€Å"big bath† is particularly useful when an organisations management can foresee that the results for a current year are going to be poor. To limit the impact that this might have upon the future, and effectively to show that this situation will soon be reversed, management will seek to increase these losses. In other words, they will â€Å"dump† as much expense as they can into the bad year (hence the term big bath) so that the next years profit show a more significant improvement in the companys fortunes. Often this method of creative accounting will be used where there has been a change of management during the year. By affecting the big bath method, the new CEO is able to pass the blame for poor results onto the previous m anagement team (Riahi-Belkaoui 2004 p.58). Of course, the manipulated improvement to the following years profits will have the benefit of improving the new teams reputation with investors and other stakeholders. Another example of creative accounting is apparent in the methods used by corporations to move items off balance sheet, particularly in the case of debt and financing (Pierce-Brown and Steele 1999, p.159). For example, where corporations sell property portfolios through a process of sale and leaseback, profits can be enhanced by manipulating the value of the portfolio. The downside of this process is that increases the rental amount but, the advantages are that this is spread over a number of years and, in addition, the increased values will have an immediate positive effect upon the current value of the business. In addition, companies are also afforded the ability through these processes to violate and circumvent debt covenants (Mulford and Comiskev 2002, p.91). As Pierce-Brown and Steele (1999, p.162) suggest, all it requires to achieve this situation is a change in the accounting policies put in place for the organisation. In a number of creative accounting methods described within this section, particularly those relating to fixed assets, the key element of the method is its reliance upon judgement. If corporations therefore wish to manipulate their results in any of these ways therefore, all they have to do is ensure that the judgement secured is biased in the direction they require (Alfredson et al 2007, p.259). With auditors, actuaries and other experts having differing standards by which they would estimate valuations, for example some would be more cautious than others, influencing financial results in a particular direction is not impossible to achieve. One of the concerns that have been expressed following the change to fair value is that, rather than reducing the opportunity for manipulation and creative accounting that previously existed, in certain areas this measurement has increased the potential. This is particularly seen to be the case in terms of business assets (Antill and Lee (2005) and Stolowy and Breton (2004)). For example, as with other areas of manipulation, the ability to be able to choose between some elements of asset valuations being based upon the historical cost basis, or using the fair value method of revaluation, this area can also be seen to have the potential of being influenced by biased judgements. 2.4 Purpose of creative accounting We have seen that the main result achieved from using the various methods of creative accounting is to change the revenue, earnings and value of the business, but the real question is for what purpose is being employed? In other words, which stakeholders does it benefit or disadvantage? The answer to these questions, as the literature being reviewed has indicated, the purpose of creative accounting has different objectives for each segment of stakeholders (Blake and Lunt 2000). Firstly, many academic have concentrated upon the effect and benefit that creative accounting might have for the one group of stakeholders who are closest to the corporate operations, which would be the management team. The salaries, bonuses and other rewards for most CEOs and senior management are linked to the performance of the business and, if these performance levels are not reached, the rewards will not be forthcoming. However, there is no negative impact on salaries related to the amount by which targets are missed, for example, whether the results are  £1 million of  £5 million below target salaries will remain the same. Therefore, if the CEO believes that in a particular year the business will not reach the required target, it is to his or her advantage to shift earnings from that year into the next in order to enhance and improve the potential size of future rewards (Investopedia 2008). Furthermore, as has already been indicated in the previous section, management earnings manipulation is also a useful tool in enhancing the reputation of the management team itself. In addition to the benefits available to a new CEO and team as outlined, it is also possible that the same process will be used by management teams exiting the business to improve their attraction to future employees (Riahi-Belkaoui 2004). In other words it is being used for self interest purposes by the management (Scott 2003, p.91). Wealth transfer is another popular reason for manipulation (Stolowy and Breton 2004). This is especially prevalent where there is a group situation with a number of subsidiary companies involved, where it is not difficult to manipulate the accounts by moving earnings or assets from one of the businesses to another. Such a scenario might be seen as favourable where part of the corporate assets, in terms of one of the group corporations, might be being groomed for possible tak eover or flotation. Furthermore, in the case of a multinational, this method of Creative accounting is useful in transferring wealth from a business located in one country to that operating in another national location. In this case it can be helpful in combating political pressure that might be being exerted to transfer wealth away from the corporation (Pierce-Brown and Steele 1999, p.161). Further evidence of manipulation for political purposes was examined in the work of Stolowy and Breton (2000, p.13). In this case they looked at this mode of creative accounting as related to corporations within the oil industry. What they found was that, during periods such as the Gulf War, which resulted in increased retail prices of fuel, these corporations adopted accounting policies that were designed to reduce their revenue. The purpose of this exercise was to limit the potential â€Å"political consequences† that might result from their organisations being seen to make higher profits during this period. Finally, and perhaps the most important reason for creative accounting methods, it is the impact that these changes have upon current and potential investors that is often the focus of these actions. Most academic and professional researchers and observers, including Tweedie and Whittington (1990), Antill and Lee (2006), Barker (2001) amongst others, see this purpose as being the prime objective of creative accounting. Manipulating revenues and balance sheet items, as well as earnings management are intended to present the corporation to the investor in a good and positive light, encouraging them to make and/or retain the investment (Stolowy and Breton 2000, p.10). These methods can also be used to have a positive impact upon investors decision making indicators, such as the P/E ratio (Barker 2001, p.2) and cash flow statements (Mulford and Comiskev 2002, p.354). One of the adverse problems of this manipulation process is that it also has an effect upon the â€Å"accounting for risk† (Babbel et al 2003, p.16) and this can affect a whole industry. A typical example of this happening in practice can be witnessed in the current credit crunch (2008). There are those who argue that the effects of this event were exaggerated because of the financial institutions propensity for manipulating bad debts. It can be argued therefore that, whatever the immediate benefits are of creative accounting, and irrespective of which stakeholders receive those benefits, at some future stage there is likely to be witnessed an adverse reaction that will eliminate the short-term benefits. Furthermore, as the current bank crisis has indicated, the potential losses from this future reaction can threaten the continued existence of the corporation. 3 Accounting measurements and controversial issues The international financial reporting standards, as indicated previously, were designed to reduce creative accounting. Two areas which were singled out for particular attention within this situation were the accounting standards to be used for the valuation of property, plant and equipment and investment property as these were seen as areas of the financial statements that have a significant influence upon the value of a corporation (IASB 2008). 3.1 Methods of measurements There have been a number of measurements used in the past to arrive at a realistic value for these assets. The most commonly used was the historical cost method. This method used the initial cost of the asset as a starting point and then, as it was used within the business, depreciated that asset over what was considered its useful life, often using what was known as the direct line method of depreciation or amortisation. Foe example, if a particular item of equipment cost  £10,000 and its life expectancy within the firm was set at 5 years, that asset would depreciate at  £2,000 per annum. However, as Mulford and Comiskev (2002, p.321) rightly observe, the drawback to this system is that it often does not â€Å"correlate with assets whose value did not diminish predictably over time.† In the case of the  £10,000 item used above, it might be that, at the end of its useful life to the company it was sold for  £2,500, which means that, if this is received at the end of th e useful life period, profits for the business for that year were enhanced by this amount. The argument against this system is that during the course of the previous four years the true value of the asset was not being reflected in the financial statements and this had an adverse effect on the value of the firm (Blake and Lunt 2000). Another method of measurement that was used within some financial accounting environments was replacement value (Lindsell 2005). This method takes the cost of replacement as its marker for valuation rather than the historical price paid. It also relies upon the current value of the used equipment to provide a calculation of the difference. Using the example of the  £10,000 asset as an example, if the replacement cost was  £11,000 and the amount receivable should the used asset be sold is  £9,000, there is a difference of  £2,000 to be accounted for. This differential would effectively replace the depreciation reserve used within the historical cost method and was deemed by some to be more appropriate in that it reflected known values (Bens and Heltzer 2004). The only risk element in using this method is taking into account the judgement on the sale of the used asset. A further method of measurement was introduced that relied upon exit value. The basic concept of this method was that it used the sales value of the corporations assets (Barker 2001, p.87). The calculation of this value might for example, be used in the case of the business being acquired by another or its value upon failure. The difficulty with both of these situations is that unless either situation was imminent, judgements and estimations had to be used to assess these values. One issue that arose with exit value, particularly in respect of the valuation of assets such as property, was the inclination to undervalue the asset for tax reasons (Mulford and Comiskev 2002, p.131). Others have referred to the asset sale element of this measurement as the net realisable value (NRV). This takes into account the market for the asset, the maximum return likely to be achieved, then deducts the cost of transportation and other ancillary disposal costs before arriving at the NRV value (Van Zij i and Whittington 2006, p.3). Prior to the settlement on fair value as being the most appropriate measurements, one measure that most academics thought would be favoured by the â€Å"Standard setters† was the deprival value approach (Van Ziji and Whittington 2006, p.3.). The intention of this process was to determine the cost of the asset based upon the removal effect that it would have upon the business, in other words what cost would the business incur if it was deprived of that asset. As indicated, many academics thought this method would produce the accurate results. However, the professionals were not of the same opinion (Van Ziji and Whittington 2006) and, through the process of consultation and lobbying it was their voice that one the day. One has to wonder whether to threat to manipulation and creative accounting had any influence upon the decisions made by professionals. Fair value was the concept introduced with the introduction of the IASB standards and measurements. The intention of fair value is to ensure that the financial statements produced by a corporation are a true representation of the physical values that could be achieved for the business assets and liabilities should these be liquidated at the date those statements were submitted. In this respect it differs from the historical cost method in that the most important statement under fair value is the balance sheet rather than the profit and loss account (Penman 2007, p. 8-9). Similarly, it favours realism rather than the conservative approach that was apparent in some of the previous methods (Swanson and Miller 1989, p.93). As most academics and professional observers are agreed, fair value has now become the most popular choice of all the available methods used within financial reporting statements (Stolowy and Breton 2000, Bens and Heltzer 2004, Staff team 2004 and Blake and Lunt 2000). However, one of its main disadvantages is its subjectivity. Those opposed to this method argue that â€Å"subjective valuations do not work when account objective values are what is needed† (Penman 2007, p.14). Although some believe that fair value has a use for investors (Schroeder et al 2005, p.310), there are others that argue the â€Å"lack of verifiability of the inputs necessary to implement such a system potentially adds noise and bias over and above the more traditional historical cost estimates† (Bens and Heltzer 2004, p.2). Even the fact that, in appropriate instances, the fair value still allows corporations to use the historical cost approach, as is the case with some asset valuations, rather than reducing the concerns over this method, it is felt that the mixed measurement can do more harm to values (Swanson and Miller 1989, p.90 and p.160). One of the major elements of the subjective argument is that fair values relies upon expert judgements and opinions, and that bias or error could lead to increased â€Å"volatility in financial statements† (Barth 2006, p.323) and also reduce the ability to be able to compare results across a specific industry or range of industries (Staff team 2004). As Antill and Lee (2005, p.67), the fact that fair value is reliant in most cases to expert opinion and natural bias means that the estimations included within the financial statements may differ from the actual values received for the assets, a position that will not be realised until the sale has taken place. Therefore, from the literature reviewed it is true to say that, irrespective of its increasing popularity, issues remain to be addressed in respect of the fair value method (Alfredson et al 2007, p.48). As Barker (2001, p.148) indicates, although the intention of this process is either to ensure there is a genuine relations hip between the asset and the profitability of the corporation or, by indicating an overpayment eliminate its value, the current concerns relating to judgement and verification of values brings the practical implementation of these objectives into question. 3.2 IFRS standards and measurements In its introductory framework document to the IFRS standards, the IASB (2001) identified the four main characteristics of quality to be exhibited within financial statements as being â€Å"understandability, relevance reliability and comparability.† It further identified that the elements of the statements to be concentrated upon were: a) An asset is a resource controlled by the entity because of past events and from which future economic benefits are expected to flow to the entity. b) A liability is a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits. c) Equity is the residual interest in the assets of the entity after deducting all its liabilities. in relation to the balance sheet and, in terms of the profit and loss account â€Å" The elements of income and expenses are defined as follows:† a) Income is increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants. b) Expenses are decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of l iabilities that result in decreases in equity, other than those relating to distributions to equity participants. In the early editions of the standards, references and definitions of the â€Å"fair value† method of measurement to be used were sparse. However, following consultations (IASB 2007 a and 2007 b), efforts were made to address this situation. This resulted in the creation of the following fair value definition: That fair value is â€Å"the amount for which an asset could be exchanged between knowledgeable, willing parties in an arms length transaction† (Van Ziji and Whittington 2006, p.6). The previous lack of guidance available was seen as a flaw in the standards (Alfedson et al 2007, p.7). This, together with the fact that the ISAB gave in to pressure from American corporations to give up on many of the changes that would have affected the asset of goodwill (Weil 2000 and Mard and Hitchner 2007), did not endear the system and standards to any experts, as continuing criticism from all sides has evidenced (Lee 2006). Both prior to and since the definition of fair value being introduced there has been strong criticism of the measurement systems and advice give for the need to resolve these issues (Tweedie and Whittington 1900 and Lindell 2005). Although regular consultations and improvements to the standards are ongoing, to date it is felt that the measurements still fail in their intention to increase transparency and comparability. This is particularly felt to be the case in terms of property, plant and equipment, and investment property, which will be discussed in th e following sections. 3.2.1 Measurements of property, plant and equipment The measurement and its definition relating to assets that belong within the group entitled as â€Å"Property, Plant and Equipment† are outlined within the summary of International Accounting Standard (IAS) 16. In this standard it defines the assets to be included in the financial statements in this section as being those which will produce a â€Å"future economic benefit† to the business. In terms of cost upon acquisition, the standard indicates that this will be calculated to include its purchase price and any other costs that are associated with transporting and installing the asset at the corporations premises. In relation to the measurement to be used in financial statements subsequent to the date of cost, the standard allows corporations to choose between the cost (historical approach) or the revaluation method (fair value) (IAS 16). The revaluation method requires an expert judgement of what the asset value would be at a given date. From this would be deducted any depreciation and impairment losses that had attached to the asset to the date of revaluation. It is also advised that this process should be carried out at regular intervals and certainly close to the date of the financial statements preparation. The fair value definition in this case is considered as being reliant upon the definition given in the previous section of this study (see page 19). 3.2.2 Measurements of investment property In many respects, for example, with the choice of measurements, the IAS 40 standard relating to investment property is similar to IAS 16. For example, in this case the choice is between: a) A fair value model, under which an investment property is measured, after initial measurement, at fair value with changes in fair value recognised in profit or loss; or b) A cost model. The cost model is specified in IAS 16 and requires an investment property to be measured after initial measurement at depreciated cost (less any accumulated impairment losses). An entity that chooses the cost model discloses the fair value of its investment property. The definition of investment property is considered to be â€Å"property (land or a building—or part of a building—or both) held (by the owner or by the lessee under a finance lease) to earn rentals or for capital appreciation or both, rather than for: a. use in the production or supply of goods or services or for administrative purposes; or b. sale in the ordinary course of business.† (IASB 2008). It should be noted at this point that the fair value indicated within this IAS standard would incorporated the same revaluation process as was explained within the previous section regarding IAS. 3.3 Issues arising from IAS 16

A Comparison of The Jewel in the Crown and Wuthering Heights Essay

Shared Elements of The Jewel in the Crown and Wuthering Heights       The Jewel in the Crown, by Paul Scott, and Wuthering Heights, by Emily Bronte', are romantic tragedies which share many common elements. Although written in two vastly different time periods, the shared elements reveal the continuity of romantic tragedies over time. Wuthering Heights, a 19th century realistic fiction, shares the same kind of passionate, violent and emotional characters as The Jewel in the Crown, a post colonial modernist fiction. Both stories contain a love triangle which subsequently end in death.    In both stories, Catherine and Daphne are much alike in that they are the point around which the two men in their lives dance circles around. Catherine and Daphne are both willful, doing as they please, Catherine fostering her love for Heathcliff, and Daphne secretly seeing Hari Kumar. "At fifteen, she [Catherine] was the queen of the country-side; she had no peer, and she did turn out to be a haughty, headstrong creature" (WH, p. 51). And of Daphne, "She had to make her own marvelous mis...

National Discipline Awardee Essay

â€Å"A person is not measured by his accomplishments or possessions, but how he deals with people and how deep his relationship with God is. † Young as I am, I have been taught by my God fearing parents to value everything – big or small – that we have. I am not from a prestigious clan or a well-off family but I feel privileged because I was able to see life more meaningful and worth living. It’s all because of my loved-ones that keeps me going. Amid the crucial days that come my way, I would be standing there because I believe that tests won’t be given to me if I cannot surpass them. Being chosen as a National Discipline Awardee is another challenge for me. Challenge because I have to prove everybody that I deserve that award. Nevertheless, they would probably look at me with their eyes stick on everything that I will do and on decisions that I will make. But, I don’t mind them. I have nothing to do. I just have to be myself. I don’t have to be somebody else just to please everybody. I am confident that what I have right now is the fruit of what my parents taught me ever since childhood. The virtues that they implanted in my heart helped me a lot in achieving my goals and dreams. And now, it’s my turn to give them something that they can be proud of. This award would definitely give them so much joy. And as for me, it’s indeed an honor. But I know, it doesn’t stop there, it is better if I could share something for our society especially for the youth. I have often wondered how some of our youth today were greatly influenced by the modern trend. Some lives have gone astray and dreams of a good future vanished. All because of the bad vices that they have been practicing which they learned from the BAD influences in our environment. My heart bleeds every time I will see parents working so hard just to give their child all the things they need. Yet, their deeds often neglected. I guess, what is lacking, is the discipline in our youth sector. Our teachers never failed to remind us that resorting to drugs, alcohol, premarital sex and other form of vices is an immoral act or habit. And this will definitely ruin their lives and bring nothing but trouble. So instead of doing so, I learned to respect y God-given life, and nurture the talents that I have. â€Å"Discipline† of the youth, is what we need, and that is being pure in thoughts, in words and in deeds. It has been said that you may whatever you resolve to be. You must be determined to be something in the world, and you will be someone or something. â€Å"I cannot† never accomplished anything. â€Å"I’ll try† has wrought wonders. Opportunities – that would direct my lives, trials – that would teach me lessons, and decision-making – where I can apply all lessons I’ve learned from my daily experiences, will always be just around the corner, playing a vital part in my personal life. But what really matters, is that I know I have this determination and will to overcome difficulties and hardships. I may not be from a well-off family nor has deformity in my physical aspect; I believe I would never get tired of trying and trying again. For it is only in the minds of my detractors that I can’t do it. Failure is not a hindrance for me to stop believing and dreaming rather I make it an inspiration for me to try and strive my best even more and have enough perseverance to attain success. Lastly, I learned to think less of myself. I found out that there should be selflessness and diminish in my heart selfishness. For I believe that it is only through selfless love that I can find true happiness. Reaching out for others especially in the needs of time and sacrificing my personal advantages or desires for the good of the masses gives me fulfillment in my heart. Sharing my time, talents as well as blessings with my brothers and sisters is the best way to say â€Å"Thank you† to God. Above all this, I would like to put emphasis that being a good role model for my fellow youth is simply what I can do to make this country a better place to live in.

Case study euro disney

Being a staff assistant to the Euro Disney president, a grand inaugural will be considered highly important. The maximum hype that the place is going to achieve is during the opening days. While we take all the efforts to bring in a big mass of people, it is also our responsibility to keep them with us for the future business. For the same reason price skimming and expensive accommodation Is not recommended to an extent. Making the people experience what we have to offer Is more Important than setting a high price. An entertainment business Is something that will be always up as long as we keep up their expectations.Glenn them a homely feel first and providing an exceptional satisfaction In the Minimal days will grow the customer database. So a pricey tag should not be received at first Itself. Keeping the price low would attract more customers and the volume of the business will be more In which all kinds of people could participate. Keeping a higher tier makes a particular set of p eople to be a part of and the volume could be less In terms of gross profit, So moderate pricing is advisable to keep the business up with the support of all the classes.Every organization keeps a target and the time frame in most organization would be around six months to have a fair analysis. If they are not being met, the contingency planning has to be in place. We will have to look deeply into the key factors being the decreased number of visitors. The main revenue is the visitors, if they are not coming in; there is no generation of revenue. So a much more effective business plan has to come into effect.I feel implementing a set of new packages has to be introduced where the one time entry fee includes all the rides, weekdays' unlimited rides, Group packages and bonus coupons has to be included too. In terms of marketing, this place should be a venue for major concerts and occasions. Issuing of a day pass that includes the concert fee and the rides can help to bring in a huge v olume. Serving unique food and refreshments will give them an entirely new experience and this crave can increase the revenue from the hospitality wing.Making eels with big corporations, educational institutions and organizations can also be an effective way of developing business. The place should be always lively by hosting various entertainment shows and good media attention has to be established by projecting new rides and testimonials. We need to make a monopoly in giving an unmatched experience and not by the brand name. It gets successful when people wont give a second thought about Euro Disney when It comes to leisure.As an Operational Vice President of Euro Disney, I will Implement strong professional ethics ND customer satisfaction culture Inside the organization. Also would make leaders among the groups who can oversee the employee performances and give adequate training or allocate them to different areas of the organization where they can out shine much better. This Ind ustry Is all about serving customers and making them happy. Employees are the better face of the organization, so they have to be well groomed In and out.