Fair Value of Accounting Research Paper Example | Topics and Well Written Essays - 1250 words

Fair Value of Accounting - Research Paper Example Fair value accounting has cemented its place really well in the world of accounting on the grounds that it gives more relevant information to users. This method is a realistic approach that gives the actual worth of an entity. According to Patricia McConnell1, fair value accounting method requires the preparers of financial statements to adjust them according to the fair values. This requirement helps the investors to make a better analysis of financial statements. The primary objective of financial statement analysis is the comparative measure of risk and return. General purpose financial statements do not provide the required data for this comparative analysis without significant adjustments. A clearer picture of financial statements provides the investors with a chance to make good decisions. â€Å"†¦fair value accounting method gives fair value estimates and discloses a range of possible outcomes which may help a sophisticated investor but at the same may plague the unsophisticated investor with ambiguity and information overload.† Fair value’s biggest drawback, and the major reason of its opposition, is the lack of reliability. It is because unless an asset is exchangeable in an arm’s length transaction, its value would always be an estimate. According to a study by Avinash, Arvi & Alan Reinstein3, critics have argued that fair value accounting method aggravated the recent crisis by requiring significant write-down of assets and hence resulting in sharp decreases in regulatory capital of banks and other financial institutions. Fair values tend to fluctuate vastly in a short period at times. According to Michael Power4, there are many arguments against the fair value accounting method but they don’t automatically become arguments in favor of historical cost accounting method. The definition of fair value shows that it is the amount which might be obtained in a market. Various commentators have argued about

Reflective Teaching in Teaching and Learning or Chilldren's Literature Research Proposal

Reflective Teaching in Teaching and Learning or Chilldren's Literature in Victorian Period for Teaching in Singapore - Research Proposal Example Overtime, other philosophers have become instrumental in developing the theory of reflective practice and among those notable are John Dewey (1933) and David Schon (1983). Dewey, much influenced by the Progressive Era of his time, employs the scientific process of generating and testing hypothesis as vital components to reflective thinking. Half a century later, David Schon revolutionised the concept of reflective practice emphasising the importance of context and experiential knowledge for continuous improvement. The integration of ideas from these two theorists is evident in current reflective practice literature. Reflective practice is borne out of the basic premise that changes in an organization starts within each individual. It is regarded as a â€Å"meaningful and effective professional development strategy† (Osterman and Kottkamp, 2004, p. 1). Although the goal remains synonymous (the development of individual competencies leading to improved organizational performance), reflective practice offers an alternative approach to traditional professional development approaches. The emergence of reflective practice in the educational setting, as discussed by Osterman and Kottkamp (2004), was a response to the failure of educational reforms to effectively address the need of academically and socially preparing students to meet the challenges of a rapidly changing world. Educators on a daily basis â€Å"routinely juggle multiple tasks, process information on many levels, manage a continual stream of interruptions, and make on-the-spot decisions to meet the changing needs and demands in the teaching environment† (York-Barr et al., 2006, p. 2). Though teachers are guided by their knowledge, a significant margin of uncertainty accompanies their practice as a result of unpredictable circumstances that require spontaneous responses. The reflective practice

Refute paper Article Example | Topics and Well Written Essays - 1000 words

Refute paper - Article Example It bears emphasis that the title of the piece as well as the timing in which it has come to light is of key importance to the understanding and analysis of the motives behind it. For those that are unfamiliar, Michelle Malkin is a conservative pundit that represents the extreme far right of the Republican Party. As an Asian American woman, she seeks to give a distinct ethnic flavor to a party that has previously been viewed as male, pale, and Yale. As a partisan critic, Malkin makes her money on being a polemic. Regardless of the virtue of the Democratic stance on a particular issue or the honest nature in which the current president makes a decision, Malkin’s readership have come to expect negativity on such topics as this is what helps her to pay the bills and provides such a rabid fan base as she enjoys among extreme elements of the conservative right in the United States. With this in mind, Malkin’s article begins with a snarky headline and image that depicts Presid ent Obama in the attire of the grim reaper. Furthermore, the headline makes a strong allusion to the flap that had earlier enraptured extreme elements of the conservative party regarding Obama’s religious nature. The article is entitled â€Å"Obama’s Layoff Bomb†. ... e will be an imminent layoff bubble which will burst very soon after the election (not surprisingly especially if Barak Obama were to be elected for a second term). Although the article itself expresses the claim of objectivity in the research, it is clear from even a cursory review that no such objectivity is included. Malkin’s rubric centers around the following flawed perceptions of the economy, BLS information, and the strong/innate belief that the Democratic party and liberalism specifically is responsible for nearly all of the ills of current society (Malkin 1). Firstly, with respect to Malkin’s use of BLS data to prove a point, the unfortunate fact of the matter is that the economy of the United States has been and a marked improvement since the second quarter of 2008 in nearly every imaginable financial metric and indicator. This has been proven by increase in new home sales, low inflation rates, the positive affects that QE1,2 have had on economic growth, and t he general decrease in unemployment figures. Although the economy is still decidedly weak, it is shortsighted and narrow-minded to offer up a view that merely because a slight decrease over the past month in the number of job cuts in firms precipitates a coming avalanche of job cuts if/when Barak Obama is re-elected to the office of President of the United States. Furthermore, such an approach does not factor in the cyclical nature of the employment sector within the United States economy. Although figures rise and fall on a host of global, domestic, and regional factors, there remain significant and measurable trends with relation to overall employment and layoff statistics that transcend the presidential election. Although this is no doubt a factor to a certain subset of employers, who wins the

Employment Law Essay Example | Topics and Well Written Essays - 250 words

Employment Law - Essay Example Doing so rules out the occurrence of exclusion of employees from protection against discrimination. Sexual harassment laws have provided for healthy relationships between men and women workers in their workplaces, and have further enhanced personal and organizational dignity by outlining the basis of interaction of workers in and out of their workplaces (Collins, 2010). Advances made in sexual harassment laws have made it possible for men and women counterparts to interact formally and observe the set limits of relations. This does not imply that mentorship activities between women and senior management mentors have been curtailed. Civil rights gains can result in unintended costs, but the underlying overall benefits cannot be disputed. Civil rights law enhances organizational coherence and subsequently improves workforce efficiency. Civil rights law safeguards the interests of both the employees and the

How Useful is it to See the World as a Society of States Essay

How Useful is it to See the World as a Society of States - Essay Example These individuals will experience a sense of solidarity and unity which drives them to establish, in essence a common social identity (Bar-Tal, 2000, 1). Conversely, the state is the body that according to Weber has the sole right or monopoly of power over anyone living within its jurisdiction. Lenin, on the other hand, has a similar definition of the state as being bodies of armed men (Parkin, 2003, 13). In the definitions of both men, one overriding theme in the interpretation of the state is the monopoly of power. If a body of people can claim this monopoly and have legal backing, for example, through elections or constitutions, they will then have then the right to claim the state tag on them (Dunne, 1998, 124). Origin of societies, states and man The societies and states have their origin in the Homo Sapien Sapien. This is the modern man starting from the Cro-Magnon Man all the way to the current man. There are a number of evolutionary stages, three in number that led to the com plex societies that exist today (Buzan, 1992, 343). The first stage is the structure of consciousness emerging, which consists of the magical, the mythical, the deep consciousness, and the ego-focused mental consciousness. The second stage is that of the development of communication from development of speech, writing, print, wired and wireless, electronic and now internet, and the third stage is that of three evolutionary stages namely the â€Å"human revolution† causing emergence of the Homo Sapien Sapien, the agricultural revolution and the scientific plus industrial revolution (Banathy, 2000, 107). This article wishes to recognize the Genesis story in the bible and will continue to draw comparisons between the evolution story and the creation story. A lot of similarities will be drawn from the two stories. For example, the evolution of agriculture features on both stories. The creation story is based around this stage, for example, the statement in Genesis chapter 3 verse s 17-19 where man is cursed to tend to the ground so that it may produce food for him. This ground is cursed to produce weeds and thorns as per the need to punish man. The bible is replete with agricultural settings that enhance this argument. The same applies to print technology, which allows the ancient writers to preserve the various works of God and Jesus as they form the state of Israel. Though many may beg to differ with this article, the facts are that the two stories are more similar than they are different. Back to Banathy’s argument, there are six stages of the change to the current status of man. These stages are archaic sapiens at the bottom; the Cro-Magnon Man who comprises the first stage in Homo Sapien Sapien’s evolution, the next stage is that of agriculture/ancient Civilizations, the next stage is that, of scientific and industrial evolution, the next stage is emerging stage. The final stage comprises the consciousness, intellect and the way of life cl usters. It is not easy to quantify the actual origin of human society. Question that begs an answer is when exactly human society began. Early man was quite social. This is driven by the fact that evidence points to small groups coming together to hunt, gather fruits as well as protection. At

Language & Literacy for Young Children Essay Example for Free

Language Literacy for Young Children Essay This paper will discuss developmentally appropriate methodologies in teaching language and literacy to young children across a developmental curriculum. Also to be discussed will be the aspects/knowledge’s of language, language diversity and Theoretical Perspectives. In the Beginning There is now evidence that it is never too early to teach a child. Through research it has been discovered that the infant even before he/she is born can hear sound and as we know that is how we acquire language, by hearing spoken words. According to Otto (2010), language development begins when language speakers assume that an infant is a participating partner in conversational settings, even though it is months before the child is able to begin using conventional words. In an article written by Dr. Carmelita Lomeo-Smrtic,Ph. D, she wrote that â€Å"Teaching children to become literate members of society is a daunting task, often relegated to the elementary teacher. However, research on teaching children to become literate suggests that this process must begin well before kindergarten. Research suggests that children are primed for learning language in utero. Also from the Otto text, â€Å"research on children’s perception of speech and the development of the auditory system in utero has determined that the fetus can perceive sounds beginning with the 25th week of gestation and at the 35th week a fetus’s hearing acuity is at a level similar to an adult’s(2010). Knowing all of this has prompted mother’s and some father’s to read to their unborn infant and even â€Å"talk† to him/her. Documented research suggests that infants can distinguish their mother’s voice from the voice of others-including other female voices a first few days after birth (Otto,2010). Aspects of Language It has been established that children begin learning at a very early age, even though they do not begin speaking words for many months. Now we will move on to speak about how they learn. There are five aspects or knowledge’s of language. -Phonetic, Semantic, Syntactic, Morphemic, and Pragmatic.

Effects of Changes to International Accounting Standards

Effects of Changes to International Accounting Standards CONTENTS PAGE (Jump to) (1)(a) REQUIRED CHANGES UNDER INTERNATIONAL  ACCOUNTING STANDARDS (1)(b) MERITS AND DEMERITS OF EXTINCTION OF  EXTRAORDINARY ITEMS (1)(c) RECOGNISED GAINS AND LOSSES AND HISTORICAL  COSTS (1)(d) CLASSIFICATION OF PREFERENCE SHARES  AND DIVIDENDS (2)(a) OBJECTIVES OF IAS 7 AND DISTINCTION  BETWEEN IAS 7 FRS (2)(b) PREPARATION OF A CASH FLOW STATEMENT UNDER  A DIRECT METHOD UNDER IAS7 FRS (2)(c) ASSESSMENT OF THE COMPANY’S LIQUIDITY IN  ACCORDANCE WITH THE INFORMATION ON THE CASH FLOW BIBLIOGRAPHY This report relates to the recent changes in the International Accounting Standards. Furthermore, it underlines the primary principles that Sky Corporation must comply with. (1)(a) REQUIRED CHANGES UNDER INTERNATIONAL ACCOUNTING STANDARDS After the introduction of the International Accountant Standards, all public limited companies must comply with these provisions. Sky Corporation must adhere to the IAS 1, effective on all financial statements dating on and from 1st January 2005. In effect the Sky plc will have to prepare its financial statements on a going concern basis unless there is an intension to liquidate the entity, accrual basis of accounting must be used in the preparation of financial statements except for cash flow statements, presentation and classification of items must be obtained from one period to the next, material class of similar items must be presented separately and dissimilar items must be included separately unless they are immaterial, items (individually or collectively) that are likely to influence the economic decision of the user must not be omitted or misstated, assets, liabilities, income and expenses must not be offset unless approved by an IFRS, financial statements must be presented a t least annually, all amounts relating to comparative information must be disclosed in financial statements. Furthermore, Sky must adhere to the disclosure requirements on the face of or in the notes to the balance sheet BS, income statement and statement of changes in equity. Current and non-current assets and liabilities must be present as separate classification on the face of the BS. Additionally, financial statements must include specified disclosure in relation to information, judgements, estimations, uncertainties and accounting policies. At present, Sky’s accountant made a statement indicating that the financial statements in the forthcoming November 2005 accounts will comply with the principles of IAS. In addition, the company’s financial statements included audited reconciliation of the 2005 Income Statement, Balance Sheet and Cash Flow to UK GAAP from IFRS detailing the impact of the Company’s new accounting policies, and unaudited quarterly 2005 Income Statements to provide comparatives for 2006. (1)(b) MERITS AND DEMERITS OF EXTINCTION OF EXTRAORDINARY ITEMS ISA 1 regarding the presentation of financial statements was issued in December 2003 and is applicable for annual periods beginning on or after 1 January 2005. International Accounting Standard (IAS 1) prescribes the grounds for presentation of general-purpose financial statements, to ensure comparability both with entity’s financial statements of previous periods and with financial statements of other entities. ISA 1 does not serve any application to interim financial statements prepared in accordance with the ISA 34. Under the SSAP 6 extraordinary items are material items which are transaction that fall outside the ordinary activities of the company and thus not expected to recur frequently or regularly. By excluding extraordinary items from the PL, this will reflect on the EPS. Exclusion of extraordinary items will benefit the current operating performance. As far as Sky Communications Plc is, concern there appears to be no extraordinary items in their PL account. Additionally, EPS will be greater than expected if extraordinary items were included since the EPS is used by investors to calculate PE ratio. The exclusion of extraordinary items could also lead to an increase in corporation tax. (1)(c) RECOGNISED GAINS AND LOSSES AND HISTORICAL COSTS Under the FRED 22 (revision of FRS3)which aim to reflect the international shift, makes provisions for reporting comprehensive income such as reporting all recognised gains and losses in a sole statement instead of splitting these gains and losses between the performance statement and the STRGL. There is a need for the display of recognised gains and losses as they are part of the company’s operating activities and some are financial in nature. There is a list of recognised gains and losses that should appear in the treasury section of the performance statement. According to Sky’s accounts for 2004 and 2005, there were no recognised gains or losses in either year other than those included within the profit and loss account. Primarily, statement of total recognised gains and losses are financial statements that enable users to consider all recognised gains and losses of a reporting company in assessing the company’s overall performance. Notes of historical costs are necessary as it identifies the resources acquired by the company at their original price. In effect, this identifies how the items are actually measured over a period. Additionally, it assists with the understanding of capital maintenance adjustments. Firstly, assets are recorded at the value of the consideration given to acquire them at the time of acquisition. Liabilities are recorded at the amount of proceeds received in exchange for the obligation. The purpose for this is to measure the process of determining the monetary amounts in which the element of the financial statements are to be recognised and carried in the balance sheet and in the income statement. (1)(d) CLASSIFICATION OF PREFERENCE SHARES AND DIVIDENDS According to the IAS 1 preference shares are reclassified to borrowings and the preference dividends are reclassified to finance costs. However, when preference shares are non-redeemable, the appropriate classification is determined by the rights attached to the preference shares. Classification is dependent upon an assessment of the substance of the contractual arrangements, equity instrument and the definition of financial liability. Furthermore, the classification of preference shares as an equity instrument or a financial liability is unaffected by a history of making distributions and an intention to make distribution in the future. Under IAS 10, a company must not recognise a liability for dividends in respect of dividends declared after the balance sheet date as it is not a current liability at the balance sheets date under IAS 37. In the event that a company purchases its preference shares for cancellation for more than their carrying amount (premium) then this should be treated as preferred dividend in the calculation of EPS. (2)(a) OBJECTIVES OF IAS 7 AND DISTINCTION BETWEEN IAS 7 FRS1 The structure of the IAS 7 had an influence on the revision of FRS 1. The objective of IAS 7 is that a cash flow statement of a company must correspond to the requirements and identifications under IAS1. In addition, the cash flow must identify movement in cash and cash equivalents during the financial period (cash equivalents are short term and highly liquid investments). Furthermore, there must be a provision identifying and classifying the changes in cash and cash equivalents to operating, investing and financing activities. In a number of cases, there are conflicting factors between the framework of the Financial Reporting Standards and the International Accounting Standards. In the event of conflict, the framework of the International Accounting Standards prevails over the Financial Reporting Standards. IAS 7 requires companies to present cash flow statements as part of a company’s financial statement. International Accounting Standards (IAS 7) is a mechanism that provide additional information on the company’s business activities, assess the present liquidity of the business activities, demonstrate substantial cash flow sources, assist with the estimation of future cash flows and finally will identify cash flow accumulated from trading activities rather than sources of finance. (2)(b) PREPARATION OF A CASH FLOW STATEMENT UNDER A DIRECT METHOD UNDER IAS7 FRS1 The following is a cash flow for Sky plc prepared in accordance with the direct method IAS 7: Notes for Guidance (1) Net profit before tax is taken from the extract of the income statement. (2) Depreciation is shown as a note to the income statement. (3) Loss on sale of the non-current asset; proceeds minus (cost less depreciation to date) see note A1 below. (4) Interest expense is shown on income statement. Changes in Working Capital Structure: Inventory, receivables and payables are differences in opening and closing balances shown on the balance sheet. Disposal Account ( £000’s) Non-Current Assets Notes: (A2, A3 and A4) The interest paid is the net interest cost shown on the income statement and is the 10% charge on loan notes shown on the balance sheet for June 2000. The dividend and tax paid in the year are those shown on the 1999 balance sheet extract under the heading Current Liabilities. (A5) Purchase of Non-Current Assets (A6 A7) Proceeds from the issue of shares and loan notes are the increases shown on the difference between the two balance sheet figures for 2004 and 2005. (A8) This is the net effect from operating activities  £7,975, net cash used in investing activities (8,525) and the net cash flow from financing activities 1,550. (A9) This is the bank figure under current assets 2004 balance sheet. (A10) Bank balance on 2005 balance sheet. (2)(c) ASSESSMENT OF THE COMPANY’S LIQUIDITY IN ACCORDANCE WITH THE INFORMATION ON THE CASH FLOW. Having examined the accounts and financial statements of Sky plc, there is clear evidence reflecting on the company’s liquidity level. Firstly, the measurement of the liquidity ratio revealed that the company was in healthy liquid position. Current Ratio= Current Assets / Current Liabilities Current Ratio of Sky = current assets  £1,830m/ current liabilities  £1,481m= 1.24 times The current ratio measures a company’s ability to meets its financial obligations as they fall due. A normal current ratio is two. Sky’s current ratio is relatively stable considering the type of industry of Sky plc. Acid Ratio= Current Assets- stock/current liabilities Acid Ratio of Sky= Current Assets  £1,830m- Stock  £627m/ Current liabilities  £1,482m=0.81 times The acid ratio clearly indicate that Sky has a high levels of stack and this also demonstrates that the current ratio overstated Sky’s ability to meet its financial obligations because of the inclusion of the stock in the numerator. The information provided in the cash flow, demonstrated clear evidence of liquidity in the flowing of cash. For example, there was a dramatic net increase in cash and cash equivalents of  £1,000m over a year. Furthermore, this indicate that the company’s economic activities are performing well in comparison to the previous year. However, amount  £8525m was invested in investing activities, this figure being greater than the company’s net cash flow from operating activities amounting to  £7975m. Nevertheless, the short fall in the financing of investing activity was meet by new issue of shares  £50m and issue of bank loans  £1500m. Inevitably, the bank loan increases company’s debt and the gearing level of the company. Nevertheless, over a year company’s bank balance increased from  £1250 to  £2250m. In conclusion, the accounts of Sky plc indicate substantial development but there are great expenditure resulting from investment in activities. However, there is not a real concern over the liquidity of the company nor any chances of bankruptcy. BIBLIOGRAPHY Cox .D. 1999 â€Å"Business Accounts† 2nd Edt Osborn Business Naylor.J. 1999 â€Å"Management† Financial Times Prentice Hall Pendlebury. M Groves .R . 2000 â€Å" Company Accounts, Analysis, Interpretation and Understanding† 5th Edt Thompson Russell. D et al 2002 â€Å"Cost Accounting an Essential Guide† Financial Times Prentice Hall. Watson . D Head. A. 2001 â€Å"Corporate Finance Principles and Practice† 2nd Edt Financial Times Prentice Hall.