Tuesday, January 28, 2020
Politics and Accounting Standards Essay Example for Free
Politics and Accounting Standards Essay Politics and Accounting Standards Introduction            The growth of an enterprise is very important for both internal and external stakeholders. It can be expressed by showing the true and fair view of a company using the financial reports that shows the actual capital allocation of the enterprise. Therefore, financial accounting is very important and it enhances the success of the business. In this context, both the definition and the body that is involved in setting the standard are important in helping to understand clearly the meaning of financial accounting. Financial accounting is the process of preparing and establishing a report on the financial information of an enterprise (.Ball, Ray, 2006).            It also shows the true and fair view of the financial statements which are cash flow statement, balance sheet and profit and loss statement. These statements are very essential for the enterprise stakeholders. Financial accounting takes into consideration the management of the business for example, its assets, liabilities and capital(Ball, Ray, 2006). Furthermore, it states its real capital and debts to enable the enterprise stakeholder evaluate the performance of the business. The true and fair view of financial accounting can be achieved by following the rules and policies that govern the people setting the rules.            The rules or rather the standards apply internationally to help ensure that the accounting standards used across the world are uniform (Armstrong, et al 2010). These are the professional regulatory bodies that are responsible for setting the standards for example the International Accounting Standards (IAS), and International Financial Reporting Standards (IFRS) among others. The board that is responsible for setting the standard is the Financial Accounting Standard Board (FASB) among other interested parties(Ball, Ray, 2006). FASB formulates a process that is followed so that it can be able to help in setting new accounting standards. First, the board has a duty to set up a committee that prepares an outline of the task at hand. Secondly, the committee board prepares the objectives for the board comments.            After this, the board gives its view on the task outline and then passes it to the committee which in return prepares a discussion paper which entails the committee’s statement of the application proposal standards. Eventually, the committee also obtains views from interested parties and after their view is in the favor of the principle, they go ahead in drafting an exposure and the draft is then published as the IFRS(Ball, Ray, 2006).            In order, for these standard to be effective and efficient, they are categorized into varies group therefore making it easy for the accounting. The IAS is classified into many classes for example,under the IAS 10, events that occur after the balance sheet date,should not be part of the balance sheet. Every company is required to prepare a balance sheet at the end of the year. Therefore, any entity trying to avoid or present a misleading financial statement is liable and the board provides the contents of the balance sheet. Under the IAS 19, which talks about retirement benefit costs, and the board takes into consideration the accounting of the benefits accruing from the retirement (Aboody, et a l 2004).            The board has a duty to see that no corruption is being practiced and therefore, companies are required to show the true and fair value in terms of the retirement costs. This prevents corruption of the prominent politicians. The IAS 17talks about accounting for leases. It is very important for a company to account for every lease taken since it is a liability. This is made possible because the board provides policies and procedures to be followed in disclosure of the account on lease. Lease is an expense for the company and if not accounted for can lead to false financial statements (Aboody, et a l, 2004).Furthermore, IAS 33talks about earnings per share,whereby all the companies are required to show their profit in terms of profit earned from share. The earning per share is used to the performance of the company which is based on the shares. It is also important for the shareholders.            Most company and influential parties do not support this standard and therefore it is criticized.IAS 39 is a financial standard which requires that accounting should have recognitionand measurement of assets as well as liabilities. It states that all the entities should take into account of all the assets, liabilities and equity of the business and no relevant material should be left out(Ball, Ray, 2006). The profit, loss and capital should be stated as they appear without any alterations. The IFRS is also divided into classes but in this context, the IFRS 13 is considered. This standard is concerned with the true and fair value of an entity (Armstrong, et al 2010). Itrequires all the entities to state real profit or loss incurred in their financial reports. However, accounting is not sparedfrom criticism and the board experience pressure for different organization that are not in agreement with the standard. Political pressure is one of t he areas whichexert pressure on the board. The standards of accounting requires the organizations or the enterprise to show the true and fair view of the performance of the business (.Ball, Ray,2006).Due to this, most business operating under a loss stand a chance to be wound up and there will be no investors interested in the business.            The political pressure that is experienced under the various accounting standards is in terms of legislations which they politicians enact. Some of the legislations contradict the accounting standards whereby businesses in a certain country are required to follow certain regulations in addition to the IAS and IFRS. This creates pressure on companies to try and evade the application of the IAS and IFRS in their reporting. The accounting standards are set to helpindicate the real performance of the business and therefore many world trading entities are affected by this since the competitors are in watch (.Ball, Ray,2006). The amendment of the standard brought about the reclassification of the IFRS and IAS so as to favor the entities that make losses in trading.            It has been noted that politicians own businesses across the world and closely monitor their businesses the best way they can so that they can make more profits (Armstrong, et al 2010). Therefore, considering that the politicians have the capacity of adjusting the laws on businesses as they deem right, there is likelihood that the policies that they will formulate do not match or support the accounting standards available (.Ball, Ray,2006). What this means is that there will be a lot of pressure on the accounting standards in terms of trying to ensure that the politician-owned businesses adhere to the reporting standards.            The other way through which politics may put pressure on the various accounting standards listed and discussed above is through the selection of the board members to the FASB (Armstrong, et al 2010). Politicians using their powers on formulation of policies may be inclined to have people in the board that will take care of their personal interest by formulating standards which are not supportive of all businesses equally. This means that whenever there are new standards to be introduced which can be beneficial to the whole business world, the politicians will always influence the final decisions that the board will make pertaining to the new accounting standards (Aboody, et a l 2004).            The other issue which is part of the political pressure and interference with the standards is that of political incentives, whichthe major reason for the reclassification of the accounting standards. It is to be noted that the growth of country’seconomy is important but in case where the growth does not reflect the true economic situation, the information shown does not indicate the true and fair values of economy (Aboody, et a l 2004). The same case applies to banks which hold government equity and using the reclassified standards will not show the true and fair value. Therefore, when politicians offer incentives to the board members through corrupt ways and with intentions of promoting their interests, the pressure on the standards continue to mount hence prevents the proper application of the standards.            Therefore, in conclusion on the effects of politics and politicians on the formulation and application of the financial accounting standards, it can be noted that there is need to prevent political interference on the FASB as well as other regulatory bodies which formulate the standards. The accounting standards are quite important in ensuring proper and accurate information which can be relied upon is produced and reported by companies and organizations. References Aboody, D., M. E. Barth, and R. Kasznik. 2004. Firms’ voluntary recognition of stockbasedCompensation expense. Journal of Accounting Research 42: 123-160. Armstrong, Christopher S./Barth, Mary E./Jagolinzer, Alan D./Riedl, Edward J. (2010). Market Reaction to the Adoption of IFRS in Europe.The Accounting Review, Vol. 85, No. 1, pp.31–61. Ball, Ray (2006). International Financial Reporting Standards (IFRS): pros and cons for investors. Accounting and Business Research, Vol. 36, Special Issue, pp. 5–27. Source document
Monday, January 20, 2020
A Comparison of London and Ozymandias :: Poems Poetry Civilization Essays
A Comparison of London and Ozymandias A theme of Mortality lives in both poems. In "London" Blake talks about the death and suffering of people, and in "Ozymandias" Shelley talks about the death of a civilisation. A sense of someone dominating, someone with greater power occurs in both poems. In "London" the rich have this upper hand against the poor, in "Ozymandias" this great leader is said to have this strength over his enemies and his own people. In "Ozymandias" Shelley writes about a fallen empire, a civilisation that must have gone down hill because now there is no sign of it. In "London" Blake tells us that the poorer people of this city are going through a bad time, their empire has fallen like Ozymandias's empire, but in this case London has not collapsed. Blake writes about how London had drifted to a time of poverty and disease. Moods ----- The two poems, both give a feeling of depression and melancholy to the reader. Shelley uses different words to create this effect, while Blake writes how everyone is sad and weak. Great arrogance is shown in both poems. In "Ozymandias" the king shows that he is arrogant, he describes himself on the pedestal, he talks about how great and powerful ruler he is. In "London" the arrogance of the church compares to this. In "London" the rich betray the poor, because they have put their name on everything. In "Ozymandias" the sculptor betrays the king when the statue is being made. Styles ------ Both poems have phonological techniques like alliteration, rhyme and onomatopoeia. They are both concisely written and although short in length are packed with layers of meaning and content. Strong modifiers are used throughout both poems, which creates tension. Good adjectives also help with imagery give a clear mental picture; for example when Ozymandias's face is described, with its sneer and frown. Differences ----------- Themes ------ In "Ozymandias" Shelley writes about an ancient civilisation. The poem is written in past tense. Blake writes about the London he is witnessing; "London" is written in the present tense. An obvious difference is that Blake writes about a civilisation, which is in existence while Shelley writes about a civilisation that has been disintegrated. The strength of authority is maintained in "London" while in "Ozymandias" it has dissipated. Moods ----- "Ozymandias" fills you with mystery about where the traveller came
Sunday, January 12, 2020
Many MNEs may want to start operations in some foreign country Essay
Establishment manner means that the MNE starts its operations from abrasion in the foreign state normally through a entirely owned subordinate where as in entry manner ; this can be accomplished by a subordinate or through partnership with a local party which involves shared ownership. In this survey the writers examine the consequence of same variables on both these picks available to a company. They do it through a series of hypotheses. The first hypothesis measures the positive consequence of greater institutional promotion on the pick that the company makes. Institutional promotion is defined in the survey as refering to alterations in formal establishments over a period of clip. It is argued that regulative forces are likely to be a large influence on a determination that an MNE makes with respect to its constitution or entry pick. Regulative forces or instead Regulative forces as described in the survey are non limited to Torahs and ordinances merely but besides include political and other societal factors. The writers conclude that institutional promotion has a positive consequence on the pick to set up a subordinate with shared ownership. The 2nd hypothesis postulated by the authors’ measures the chairing consequence of institutional promotion on the inclination of a technologically intense house to either travel for constitution manner or entry manner. It is argued that houses which are engineering intense should travel for constitution manner because their competitory advantages are embedded in their labour force accomplishments and organisational patterns so it is more efficient for them to get down from abrasion. They should engage and develop the local labour force. Furthermore in instance of a joint venture or portion ownership of the subordinate. protecting the rational rights can be an issue. Protection of such rights is dependent on the judicial system. In passage economic sciences where the bench is corrupt and rational belongings rights are non respected. an MNE would be loath to reassign its engineering. Therefore writers conclude that house with advanced proprietary engineering are likely to prefer establishment manner but degree of institutional promotion has a positive moderating consequence on such a house traveling for entry manner. The 3rd hypothesis measures the chairing consequence of institutional promotion on a multidomestic MNE to either travel for constitution of entry manner. Multidomestic houses are defined as those which pursue multidomestic scheme and want to set up a sustainable local market presence. For such MNEs geting a local company is a more attractive option because such acquisition can supply them with local trade names. market cognition. distribution channels and web relationships with the host country’s other concerns and authorities. How the restructuring and realignment of the acquired entity can be really ambitious. The houses in the host state are likely to be following a different paradigm. But on the other manus if an MNE goes for shared ownership or entry manner. it can carry through more without confronting these troubles. It is argues that a multidomestic MNE requires lesser control on the subordinate. If this is so so subordinates in the host state can hold considerable freedom and run on their ain to the full leveraging their local expertness. Hence it is concluded institutional promotion has a positive moderating consequence on a multidomestic MNE to travel for entry manner. Finally the writers have used an international study to garner the information to back up their findings. The study consists of a questionnaire with 33 unfastened and near complete inquiries. Furthermore the MNE’s latest constitution manner pick or entry manner pick has been taken as the dependant variable. Review This survey is no uncertainty a valuable plus for directors and pupils likewise in analyzing the behaviour of MNEs in doing their picks when it comes to Foreign Direct Investment but however it has a few defects and failings. But the biggest defect of this survey is the range. The writers have chiefly taken a sample of European MNEs. And the so called economic systems in passage are fundamentally east European states which were one time under the Fe drape. First we need to see the fact that Europeans MNEs may be really different from Nipponese or American MNEs and so forth. The constitution or entry manner pick for Nipponese houses may be dependent on or moderated by variables other than the 1s discussed here. Similarly an MNE whether European or Nipponese may make up one's mind to put in some state in Central Asia or North Africa or even South Asia. The market conditions in these states are really different from those of the passage economic systems discussed by the writers. This means that the findings in this survey are non universally applicable. Nevertheless it is a valuable add-on to our cognition sing MNE behaviour in doing Foreign Direct Investment determinations. But for any research worker seeking to confer with this survey. it is really of import to maintain the above mentioned restrictions in head.
Saturday, January 4, 2020
Factors in the Evolution to Bipedalism - 766 Words
The evolution of the human species has significantly changed during the course of evolution to what is now the modern day Homo sapiens. Some of the changes that have occurred through the evolution are bipedalism, changes in body features such as brow ridges, and an increase in brain capacity. Bipedalism is a form of locomotion that is on two feet and is the one factor that separates humans from other forms of hominoids. The first bipeds are believed to have lived in Africa between 5 and 8 million years ago. (Haviland et al. 2011, pg. 78). The evolution to bipedalism resulted in various anatomical changes. To be able to balance on two legs, the skull must be centered over the spinal column. As bipeds evolved, the foramen†¦show more content†¦Heavy lifting causes a strain on the back and can lead to back problems. Other back problems such as scoliosis, herniated disks, and pinched nerves are all results of bipedalism. (Ackerman). The evolution to bipedalism resulted in the narrowing of the pelvis. This narrowing was necessary for locomotion, but it increased the difficulty of childbirth for women. In other primates, birth is relatively easy. Babies come through a straight birth canal and are born facing their mothers. The mother can pull the baby out during birth without causing injury to spine of the baby. The human female pelvis is now smaller and babies are forced to be born facing away from the mother. Assistance is needed during birth to prevent injury to the babys spine. The birth canal is curved and there is barely enough room for the passing of the head and shoulders. (Ackerman). Three adaptive characteristics of early humans that are not present in modern humans are heavy brow ridges, sagittal crests, and facial prognathism. All of these characteristics were influenced by the change in diet of humans. Heavy brow ridges, or supraorbital ridges, are the bony ridges located above the eyes on primates. It is believed that early man had very pronounced brow ridges to reinforce the facial structure during chewing. As man evolved, their diets changed to softer foodsShow MoreRelatedBipedalism : What Is That All About?1114 Words  | 5 Pages Bipedalism: What is that all about? The issue at hand in these articles is the evidence for the development of bipedalism in hominids. Bipedalism seems to be one of the most important factors in the evolution of mankind and therefore the surrounding debate is rife with various hypotheses as to the background of this development in hominid evolutionary history. Although each of the three articles reviewed in this essay make different arguments, each seem to be cogent in their own way and do seemRead MoreWhy Do Primates Free Their Hands? How Is Walking Upright More Energy Efficient?806 Words  | 4 Pagesmoving with only two legs is the result of millions of years of evolution and adaptation. 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