THE EFFECT OF CONVERGENCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARD [IFRS]-BASED ACCOUNTING STANDARDS ON STOCK MARKET Essay Example

THE EFFECT OF CONVERGENCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARD [IFRS] THE EFFECT OF CONVERGENCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARD [IFRS]-BASED ACCOUNTING STANDARDS ON STOCK MARKET Essay THE EFFECT OF CONVERGENCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARD [IFRS]-BASED ACCOUNTING STANDARDS ON STOCK MARKET Essay THE EFFECT OF CONVERGENCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARD [IFRS]-BASED ACCOUNTING STANDARDS ON STOCK MARKET By ssoekarno THE EFFECT OF CONVERGENCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARD [IFRS]-BASED ACCOUNTING STANDARDS ON STOCK MARKET: EVIDENCE FROM MALAYSIA PUBLIC LISTED COMPANIES EVI OKTAVIANI SORAYA A project report submitted in partial fulfillment of the requirements for the award of the degree of Master of Business Administration International Business School UniversitiTeknologi Malaysia JANUARY 2014 I declare that this thesis entitled The Effect of Convergence with International Financial Reporting Standard [IFRS]-Based Accounting Standards On Stock Market: Evidence From Malaysia Public Listed Companies is the result of my own research except as cited in the references. The thesis has not been accepted for any degree and is not concurrently submitted in candidature of any other degree. Signature: Name Date :JANUARY 2014 Dedicated to ACKNOWLEDGEMENT BSTRAK laDle 0T content CHAPTER 1 INTRODUCTION 1 Background 0T study 1. 1 Background of International Financial Reporting Standard [IFRS] Financial statements are important for investor in assisting them in making decision on where to invest globally. This is why high-quality accounting standards enables investors to receive appropriate information which in turn will give investor confidence in making decision . There is a drive to globalize accounting standards and practices that will be accepted by the regulators, certification bodies, the accounting profession and the business and academic communities around the world in order to minimize the potential dangers of bias, misinterpretation, inexactness, and ambiguity. Over the years the business community has recognized accounting as the language of business and financial information as a form of language. Since accounting has been accepted as a language, it is advisable that companies around the world to speak in the same language. Recent political and economic events have focused on the pressing need for more uniformity in international accounting standards . There is a requirement for a universal set of accounting standards which can unite the language of accounting around the world and solve the problem of differences in accounting practice. It is no surprise that the globalisation of capital markets has been accompanied by calls for globalisation of financial reporting. Indeed, the globalisation of the worlds capital markets has created the need for comparable and reliable financial information to support the varied transactions and operations of the markets Hora et al.. The accounting profession has faced the pressure of globalisation and continues to look for ways to produce financial situation using a unique accounting procedures that can be understood by all business society in the last few decades . Not only that, to ensure usability, financial information also supposed to be understandable and comparable to make credit decisions and investment more easily retrieved. Though the process of internationalisation might be difficult, Anderson said that a set of international accounting standards will allow new horizons of financial statement evolution by the fact that the comparative analysis of the rate of return and profit/loss set written in balance sheet has made the competition between companies become more pertinent. In order to solve this problem, a novel global accounting standard International Financial Reporting Standard (IFRS) has been introduced. Currently IFRS has been increasingly adopted by accounting policy makers all over the world. It is estimated ver one hundred countries are using International Financial Reporting Standards. For example, Australia and all members states of the European Union which have adopted IFRS since 2005, whereas Canada, India and Korea has moved into IFRS convergence in 2011 . I ne aaoptlon 0T Internatlonal Accounting stanaaras/lnternatlonal Hnanclal Reporting Standards (IAS/IFRS) by a significant number of developing countries in the past years is considered as one of the biggest events witnessed in the international accounting field. For most of these countries, the application of IAS / IFRS accounting is the transition to a new paradigm. This paradigm, mainly based on the communication of good quality and useful financial information for decision-making , consider the investor involved in the stock market as a specific user of financial statements . The objective of this financial report primarily to offer investors the necessary information for them in order to properly evaluate the economic situation of the company which in turn allowed them to put their money in profitable investment opportunities. Countries which have already adopted the IFRS accounting standard foresee various benefits, for example Australian government hopes that the setting of IFRS ccounting standards in Australia can lead to production of higher quality accounting standards which in turn will facilitate Australian business in terms of lower costs of capital and enables Australian companies to compete on an equal footing overseas, while also maintaining investor confidence. In the meantime the Chairman of the Korea Accounting Standards Board and President of the Korea Accounting Institute stated that his organisation is optimistic about the benefits of IFRS adoption in that it will not only make Korean companies more competitive through their enhanced ransparency but also will allow the South Korean accounting industry to expand worldwide. From those two statements, we can conclude that one common benefit sought by adopting IFRS is to eliminate barriers to cross-border investing . Moreover, Ball argued that IFRS promises more accurate, comprehensive and timely financial statement information compared to the national standards which it replaces for the public financial reporting in most of the countries which adopted it, including Continental Europe. Better quality financial statement information can even lead to etter assessment by investors in making capital market decisions and thus reduce the risk to these investors. Another attribute of IFRS is that it requires more extensive disclosure. For example, asset impairment FRSI 36 requires disclosure of goodwill and other intangibles, particularly in relation to the allocation of goodwill to cash generating units, the main assumptions used to measure recoverable amount and impairment testing. Increased level of disclosure in the financial statements may affect the quality of reported earnings. According to disclosure system which set at high quality standard ives investor confidence in the credibility of financial reporting. If more disclosure is required, any attempt to manage earnings can be more easily detected and addressed by the internal oversight bodies (board of directors and auditors) in a company. The use of international accounting standards in promoting various players in the capltal market can De a good cnolce Tor developing countrles tnat seek to promote decent functioning of their capital markets. To satisfactorily fulfill their role in the evaluation and financing of companies and in the development of various sectors of conomic activity, listed companies have to communicate good financial information . Since worldwide adoption of IFRS would create a common language for accounting, new capital markets would open to companies who have been reporting only in accordance with their national standards. Communication of financial information helps to limit the problems associated with information asymmetry and establishes a climate of confidence in the capital market mechanism. This in turn acts to encourage different actors to make more transactions. IFRS would allow the financial statements to be in a simple, nderstandable, and standardized format for investors and other businesses who are interested in the firm. A research which conducted by Centre for Audit Quality on July in the United States shows that sixty-two per cent of investors agree that the creation of a single, uniform, international set of accounting standards would give them a higher level of confidence . In general, convergence to IFRS provides many benefits such as enhancing comparability as a company financial report can easily compared to another, increasing global investment flow through transparency, decreasing cost of capital hrough global investment opportunity, rising financial reporting efficiency and enhancing financial reporting quality by lowering the chance to do earning management practice. However, despite the optimistic expectations put on IFRS convergence, the reality seems more unclear. Previous research which have studied the relationship between IFRS adoption and market behavior has seen a variety of results, for instant Horton and Serafeim which investigate market reaction to IFRS and valuation of IFRS reconciliation adjustment, their study resulting a negative abnormal return for firms eporting negative earnings reconciliation, mandatory IFRS adoption alters investors beliefs about stock prices, proving that the new IFRS numbers give new information to the market. Meanwhile Armstrong et al. finds that equity investors perceived the expected benefits of more comparable financial reports and the prospects of increased capital flows outweighed the expected costs of implementation and any economic distortions arising from reduced local accounting diversity. Furthermore study result shows that annual report publication does not produce unexpected nformation either before, on, or after the adoption of IFRS, however she found an interesting fact that IFRS adopters are valued higher before the adoption, but not afterwards. . 2 International Financial Reporting Standard in Malaysia Malaysia cannot let itself to be left behind in this worldwide movement towards aaoptlon 0T tne S Malaysian companles nave to De In step wit n tnese developments in financial reporting practices adopted around the world in order to make their financial statements accepted globally. Malaysian Accounting Standards Board chairman foresee to that by becoming fully IFRS compliant, Malaysias capital nd financial market will be further enhanced. In a statement, Azmi explained another benefit of adopting IFRS in Malaysia which are not only it is accepted globally as it already used in more than 100 countries, but using a common language also will turn reporting costs decrement since there is no need to reconcile accounts, can increase credibility of local market to foreign investors, have comparability across boundaries and cross border listing. Full convergence to international accounting standards will put Malaysia in good stead for increased globalization of capital markets, providing comparable financial tatements to promote investor confidence. The milestone of IFRS convergence in Malaysia began in the period between 1978 and 1997 where Malaysia started to adopt International Accounting Standards (AS). However, those standards which were set by the Malaysian Association of Certified Public Accountant (MACPA) together with the Malaysian Institute of Accountants (MIA) were not enforceable on companies at that time. Following the passage of the Financial Reporting Act 1997 by Malaysias parliament on March 1997 prior to Asian financial crisis, the Malaysian Accounting Standard Board (MASB) was established with a given mandated to developed financial reporting standards, develop Islamic accounting standard and conduct an extensive consultative process. Before 2005 all accounting standards issued by MASB had the prefix MASS. Subsequently in 2005, concurrent with global standard setting development, the MASB renamed all issued standards as Financial Reporting Standards (FRS) that was meant to be in line with standards issued by IASB except for some minor modifications. In 2006, Malaysia introduced 2-tier financial reporting framework, started on 2007 Malaysian FRS standards (known as FRS framework) have been dentical to IFRS AS. The difference lies in the standards that Malaysia has not adopted. The FRS framework is made mandatory for non-private entities while the private entities can continue using the old MASB standards known as PERS (private entity reporting standards) framework. Further, a new numbering system to its FRS and the interpretations was introduced by the MASB in 2007. MASB together with Financial Reporting Foundation (FRF), make up the new framework for financial reporting in Malaysia. On 1 August 2008, they announced their plan to move to full IFRS convergence by 1 January 2012. To facilitate a phased changeover to IFRS convergence, Malaysia has adopted FRS 139 Financial Instruments: Recognition and Measurement with the effective date of 1 January 2010. By 2012, all approved accounting standards applicable to entities other than private entities will converge fully with all IFRS issued by the International Accounting stanaara In November 2011 , the MASB issued a new MASB approved accounting framework, namely the Malaysian Financial Reporting Standards (MFRS Framework). As defined by MASB, the companies that are required to apply MFRS framework are Entities Other Than Private Entities shall apply the MFRS framework for annual periods beginning on or after 1 January 2012, with the exception of entities (known as transitioning entities) which are given options to continue with the old FRS framework that has not adopted IAS 41 Agriculture and/or IC Interpretation 15 Agreements for the Construction of Real Estate. Next, MASB plans that the full adoption of the MFRS Framework will be mandatory to all companies for annual periods beginning on or after 1 January 2012. Because of this, approximately one thousand Malaysian public listed companies will be affected y the IFRS convergence in 2012, however the companies or the group of companies that are involved in agriculture or real estate industry still have time to defer its convergence. In addition, the International Accounting Standard Boards (IASB) future work plans on some other core standards will also affect Malaysian entities significantly after 2012. There are a few IASB exposure drafts and discussion papers that are now going through due process and soon to be adopted including leases, revenue recognition, financial instruments, fair value measurement, insurance contracts, and consolidated inancial statements. As a consequence of this convergence, when IASB issues a new or amended IFRS, Malaysia will adopt those standards in their entirety. 1. 3 Problem Statement Principles-based standard accounting may reduce the likelihood of scandals, as shown on study by Nisbettt and Sheikh . One example of a world phenomenon that has occurred related to financial statements matter is Enron scandal. Enron which was founded in 1985 is one of the worlds leading electricity, natural gas, communications and pulp and paper companies before it bankrupted in late 2001, its nnual revenues rose from about $9 billion in 1995 to over $100 billion in 2000. At the end of 2001 it was revealed that its reported financial condition was sustained substantially by institutionalized, systematic, and creatively planned accounting fraud. This scandal shows weakness of GAAP system as compared to principles- based standard such as FRS. The benefit of IFRS upon businesses that have adopted it is still debated. Previous studies have shown that the financial reporting process is influenced Jointly by the accounting standards and economic incentives of market participants . That said it follows that if companies can be shown the positive effect of adopting IFRS, they will be more willing to do so. I nls would Imply tnat companles mlgnt accept tne convergence witn IHRS positively IT, for example, they expect IFRS to impact favorably on company performance, and reduce information asymmetry and the cost of capital Hope et al.. In contrast, companies might expect the costs to surpass the benefits of IFRS adoption, or that IFRS implementation is followed by managerial opportunism to reduce the regulatory compliance costs or variation in the application of IFRS . Studies on the impact of adopting IFRS on market behaviour is still relatively new and unexplored, particularly in Malaysia. Most researches have only investigates its effect into financial statement and ratio such as Stent et al. or into accounting quality . Many have focused solely on the technical accounting impacts related to IFRS. Understanding the broader impacts that IFRS may have is also important. Knowing such effects of IAS/IFRS convergence on stock market behavior is of major importance for several different parties including primarily, the national accounting standardization body, the IASB, nternational investors, as well as for the companies themselves. Although previous studies have provided evidence on the benefits of IFRS to quality of financial statement, such as Paglietti and Wang et al. there is a possibility that IFRS might not have a positive impact on company performance at all, in which case companies would not be too enthusiastic in adopting IFRS (outside of for compliance reasons). Based on the above discussion, this study will investigate whether adoption of IFRS is acknowledged by investment community and influences the investment decision making. The research result expected will give insight to firm and Jurisd iction whether to move into a single standard on financial reporting or not. This can be useful information for other emerging markets that are still not fully adopting this new standard such as Indonesia and Thailand. 1. 4 Research Question Signalling theory explains that signalling is done by management in order to reduce information asymmetry. A signal is an action taken by the more informed that provides credible information to the less informed. The theory assumes that managers of high-quality firms will have an intention to signal their superiority to the arket as described by Copeland et al.. One such example of signalling is accounting conservatism in which firms provide financial statements information to show that they applying conservative accounting policies which resulting a higher quality of earnings because its principle is to prevents companies to exaggerate profits and helps financial statements reader by providing under representing income and assets. This accounting conservatism is traditionally defined by the adage anticipate no profit, but anticipate all losses . Understatement of profits and net assets stated in financial statements is a positive

8 Red Flags Employers See on Your Resume

8 Red Flags Employers See on Your Resume Do you send out lots of resumes and never hear back? Recruiters watch for certain items on a resume and, if you have any of those on yours, that might be the reason. Considering recruiters tend to spend under five minutes to look a resume over, according to the Society for Human Resource Management, what an individual puts on a resume is important. A few resume tips on what to do when applying for a job may help.   1. Your  Resume is Obviously RecycledIf you’re one of those individuals who sends out the same resume for every job application, you shouldn’t be surprised if you don’t hear anything back. Read the posting carefully and write your resume and cover letter toward that particular job. Include your relevant experience and how you would be an asset to the company. Otherwise, your application may be destined for the bottom of the pile. Recruiters say that it is surprising how many job applications have no relevance to the job.  2.  Your Resume is Too FlashyUnless you are applying for a job as an artist or graphic designer, over-embellishing your resume may backfire on you. Employers are looking for workers who are qualified for the job, and recruiters aren’t going to spend much time trying to figure out when and where you worked when they have to wade through decorative fonts, colors and other unnecessary decorations.  3.  Your Email Address is Not ProfessionalWhile the email address you use may on a regular basis might be something you consider cute or original, such as partythenight@email.com, the recruiter might not find it amusing. If an applicant has this type of email address, it is a better idea to create a new email with an address that won’t be perceived as frivolous or suggestive.  4.  You Have Spelling and Grammatical ErrorsPoor spelling and grammar are noticed by recruiters and can make a recruiter discount your application. This also counts for social media postings. Take a moment before sendi ng off your cover letter and resume to spell check, and make sure that everything is correct. Do the same for your social media posts.  5.  You Omit DatesWhile it may be easier for an individual to leave out dates it may seem suspicious to recruiters. This could mean there are gaps in employment history or that an individual changed jobs frequently. If you have a long history and great credentials, it may be less important.  6. Your Information is OutdatedWhen an individual does not update a resume when it is necessary, all the information may not be correct. While he or she might add a new job to the list, forgetting to check the current phone number and address is sometimes overlooked. Recruiters say it isn’t unusual to send an email to an applicant and have it returned or call and find out the phone number is different.  7. You’ve Changed Jobs FrequentlyThose who show frequent job changes are not likely to be looked upon favorably by recruiters. While worker s do change jobs more often than in the past, too frequent a change may be a red flag for recruiters. If an individual stays on a job less than two years, it might make that worker more likely to be overlooked for another individual with longer time at one job.  8. You Don’t Use Bullet Points on Your  ResumeRecruiters like resumes that get right to the point, and the use of bullet points makes that easier to do. Sometimes, a lack of bullet points is accompanied by a resume that is far too long. Try to keep a resume under two pages, and use bullet points to focus on what you did to be an asset at your earlier jobs. Be specific.  Looking for a new job can be easier if an individual is careful to ensure that a resume is prepared well. Searching for a job can also be easier by using a job search site to do exactly that. Sign up for our job match alert, and TheJobNetwork lets you list your qualifications and job interests and then does a 24-hour search for jobs matching that description.

The motivations of Chinese EFLs Term Paper Example | Topics and Well Written Essays - 3750 words

The motivations of Chinese EFLs - Term Paper Example People who are fluent in English are given almost celebrity-like honor and value in countries where English is not the official language. The wide ranged usage of English throughout the world be it, mass media, education, Internet, business, tourism, technology and such other fields is what gives the language an authoritative appeal and command over the whole world. Acknowledging the importance of the English language, the government of every country needs to be capable of providing facilities for the children to learn this language. Thus, this is the reason why English is being taught in almost all countries. Therefore, it is the responsibility of the parents to get their children enrolled into schools that teach English. It also becomes the responsibility of these children to learn well and excel in their academics to make their parents feel proud and in turn, serve their nation by staying committed to their jobs, which obviously, would require English as the main language. Therefo re, for students to learn languages, other than their mother tongue, they need motivation. The paper at hand focuses on Chinese EFL students. These refer to the students who come from China and settle in America or other such countries where the official language is English, and study English as a foreign language. It also includes EFL students who reside in China itself. Studies show that China accounts for the â€Å"largest number of English language learners in the world† (Influence of Instrumental Motivation on EFL Learners in China and its Implication On TEFL Instructional Design 1). According to JUDY F. CHEN in his article called, Motivators That Do Not Motivate: the Case of Chinese EFL Learners and the Influence of Culture on Motivation, the Language learning theory has widely accepted the saying that language learners with superior levels of motivation will be superior achievers. Finding what composes motivation for those who learn the language in a variety of cultura l settings remains a significant and difficult task. Motivation study frequently centers on cultural circumstances that are not very different from European values and North American. Language learning motivation study outcomes have tended to support the supreme importance of integrative motivation, which was primarily described by Gardner and Lambert (1972) and the newer version by Shaaban and Ghaith. Integrative motivation is successful because language abilities are perceived as essential to participation in various social groups that employ the target language. Noels, Clement, Pelletier, and Vallerand (2000) make out the preeminent significance formerly granted to the orientation of integrative motivation, but also state that this can be the case only in particular socio-cultural circumstances. Integrative motivation is frequently contrasted by way of the more outwardly affected instrumental motivation (JUDY F. CHEN 2005). The students face a lot of problems in their everyday li fe in the educational institutions they attend. This is due to the fact that English is totally foreign to them until they go abroad. Thus, there arises a great need for these students to be motivated. This paper therefore addresses various problems that the Chinese EFL students face in learning English, the

Insurance Essay Example | Topics and Well Written Essays - 750 words

Insurance - Essay Example A certain level of risk is assumed to be accepted given the risk appetite of the management relating to a particular risk. Risk limitation is considered as the blend of risk acceptance and avoidance such that the company designs its portfolio of risk components and considers as to which risk component needs to be accepted or avoided. Risk transfer is the most common risk management technique such that the risk component is transferred to third party. The most common example is insurance in which the risk is transferred to insurance company against the premiums that the insurance company charges from the business. For different home styles, the most appropriate policy is the special policy called as HO-3. This policy insures all main perils except earthquake, flood, nuclear accident and war. Through insurance coverage, one gets deep coverage up to 100% of the replacement cost of home. The home content that insurer generally covers is between 50 to 75% of the property’s value. As far as the tax implications are concerned on obtaining an insurance policy of any type, it is important to note that any loan obtained to purchase the insurance policy is not regarded as taxable income. However, in case of lapse of policy or the surrender of the policy in favor of the insurer, the amount of loan becomes taxable and it will entitle the policyholder to pay tax on the loan amount. Similarly, if the interest paid on that loan is from out of pocket, it will not be tax deductible and thus result in higher tax consequences. As far as the personal finance plan is concerned, in short-term, insurance on automobile, cellular phone etc. will be needed as these things are frequently replaced with the newer models or versions etc. For medium-terms based needs, insurance policies such as health/disability or home policies will be preferred. For long-terms insurance needs, life insurance policies will be included in the financial plan. Savings and

Home Depot and Lowes Essay Example for Free

Home Depot and Lowes Essay Case Summary Value Line Publishing analyst, Carrie Galeotafiore had followed the retail building-supply industry for approximately three years. Within a week the investment-survey firm will be publishing Galeotafiore’s quarterly findings on the industry along with the five-year financial forecast for the industry’s leaders, Home Depot and Lowe’s. In an effort to increase their top and bottom-lines, Home Depot and Lowe’s have implemented strategies like improving customer service, attracting professional customers, and introducing a more favorable merchandise mix. Combined sales from the two companies accounted for more than a third of the industry’s sales. In the mean time, smaller hardware stores struggled to remain in the game. Galeotafiore reports shows confidence in the methods Home Depot deployed to achieve their goals and attributed Lowe’s margin expansion to their thrust into the major metropolitan markets. This case will mainly focus on the strategic issues involved with Home Depot and Lowe’s, the industry trends, the financial outlook for the respective companies, and whether or not Galeotafiore has the depth of knowledge and experience to make a correct call on the companies’ performance.Finally, the report will be substantiated with financial ratios comparing one company with the other, showing possible alternatives and proposing recommendations. Case Analysis This segment will narrow down the major issues of the case, along with the quantitative perspective showing historical trends and the projected level of economic activity. In 2001, the Economist Intelligenc Unit (EIU) estimated the retail building-supply industry to be approximately $175 billion with stores similar to Home Depot and Lowe’s capturing one third of the 51% of sales in their category. Despite the slump in the economy in 2001, growth was at 4.2% which representd a decline from 7.7% in 1998. Strategic issues for Home Depot and Lowe’s Home Depot’s CEO, Bob Nardelli’s goal was to increase their margin through declining cost in product review, opening more tool-rental centers and improving purchasing aspects. All of the above were an effort to remain  competitive. Galeotafiore stated in her report that stores which provide programs similar to the Service Performance Improvement offered by Home Depot tend to fear better in operating margins, inventory turnover and productivity, than the do-it-yourself establishments. Jefferies’ analyst Donald Trott downgraded Lowe’s, due to a declining housing-market bubble and, based on an opinion that their stock price was richly valued compared to Home Depot’s. However, on the brighter side, Lowe’s management told analysts that over the next two years, it expected to maintain sales growth between 18% and 19% and over the next three years from 2002 to 2004 it is expected to open 123, 130 and 140 stores respectively entering metropolitan m arkets with populations over 500,000 like the Boston and New York markets.

Peregrine Systems Fraud Essay example -- Business Case Studies Account

Peregrine System's Accounting Fraud Wall Street's demand for high growth motivated Peregrine Systems' executives, to fraudulently inflate revenues and stock prices. According to the SEC, "Peregrine filed materially incorrect financial statements with the commission for 11 consecutive quarters." Steven Spitzer, a member of Peregrine's sales team admitted to meeting regularly with senior management near the end of the quarter to determine how much revenue was needed to exceed Wall Street's expectations. The primary fraud committed by Peregrine was done by inflating revenue by booking revenue when sales never occurred. By recognizing revenue from sales that never occurred, the accounts receivable balance and net income were fraudulently overstated; the accounts receivable would never be collected, because the merchandise was never sold. To cover up their high, outstanding, accounts receivable balance as a result of booking sales that did not occur, Peregrine fraudulently engaged in financial agreements with banks. Evidently, Peregrine Systems increased its revenues by pressuring distributors and resellers to build up their inventories (known as "parking" their inventory). Through secret side or oral agreements Peregrine distributors and resellers were not obligated to pay Peregrine for their software inventories. This conduct obviously became a problem. If they could not sell Peregrine's software, they would receive their money back. According to GAAP, revenue recognition on the sale of software requires evidence that an arrangement must exist, delivery must have occurred, vendor's fees must be fixed or determinable, and collectibility must be probable before recognizing revenue. Peregrine falsely recorded this tra... ... tempted to falsely inflate earnings is to take away their personal gains, if the company's stocks go up. I believe that when upper level management has too much incentive based on personal financial gain, which is directly based on the performance of the company; it compromises their judgments. I think that upper level management should not be allowed to receive stock options or to even own stock in the company as the financial statements would provide a neutral, bias-free report. Management would have no reason to "cook the books." I also feel that any management who still decides to falsify documents needs to be held more accountable for their actions and receive tougher punishments. I think that these strict guidelines would help the people in the United States and people all over the world feel more confident in investing their money into the stock market.

Murder in Cathedral Essay

T.S.ELIOT is one of the great drametists in English literary worlde. From his literature, we can feel the great aesthetic pleasure. I have studied various plays included in my course. But â€Å"murder in cathedral† really different in them. It has its own greatness and the literary heights. Poetic form Eliot felt, is the most apt form of expression in the theatre. In his view, Ibsen, Stirnberg, and Chekhov were the limits of prose. In contrast to them are Yeats and Hofmannsthal who kept alive the ancient and traditionally affinity between drama and poetry. â€Å"Doctor Faustus†, â€Å"Pygmalion†, â€Å"The Alchmeist†, â€Å"the playboy of the western world†, â€Å"look back in anger† and other plays which are in my course have different style, diction, story, language and all the literary things. But â€Å"murder in cathedral† has the strength that it is the great poetic drama written by Eliot. It is the great play as a poetic drama. In â€Å"the music of poetry† (1942) Eliot acknowledges his bias in favour of the poetry to which he was indebted as a poet, and says that the music of poetry is not independent of the meaning. The meaning of poetry is sometimes beyond the poet’s intentions. He saw possibilities of theme recurrence and transitions in poetry as in music, and thought the concert hall more likely to quicken poetry them the opera house. He said that without poets of unusual sensibility and command of language, culture will deteriorate â€Å"poetry and drama† is notable for the retrospective attention. Eliot gives to his own development as a playwright, he finds that he has been writing variations on the theme of poetic drama throughout his career. For Eliot the highest aim of poetic drama is to bring us to the border of those feelings which are expressible only in music, without leaving the everyday world of dramatic action. â€Å"look back in anger† was considered a revolutionary Play but it has no element of poetic drama. Ben Jonson’s â€Å"The Alchemist† has the great touch of great characterization and language but it has not the simplicity and continuous development of the story like â€Å"Murder In The Cathedral†. â€Å"Doctor Faustus† is a tragic drama but as a poetic drama â€Å"Murder In The Cathedral† has its own class in drama. â€Å"Pygmalion† is primerarly a play about speech and phonetics, but related to it are Shaw’s social concerns. Eliot was accurately aware of the fact that his play was to be performed like Greek tragedy. T.S.Eliot’s essays on drama can be devided in to three parts; first, the Elizabathen essaya which discuss the criteria for drama. Second his assessment of the situation in contemporary theatre and ideal of poetic drama. Eliot’s statement about his ideal of poetic drama are rarely useful for the critic and the writers. He was has own thoughts different from others on poetic drama. So, his drama â€Å"Murder in Cathedral† has all the poetic element on which Eliot gave statements and thoughts. He creats the different way for poetic drama in English literature. While advocating the need for a poetic drama in modern times, Eliot stated that â€Å" a new dramatic literature can not come about until audience and producers can help poets write for the theatre.† He thought about the future of poetic drama that time, we can believe that â€Å"Murder In Cathedral† is Eliot’s most successful integration of his dramatic theories. No doubt, there are many great plays in English literature but â€Å"Murder in Cathedral† is special for the readers.

Cask of Amontialldo †Character Traits Essay

The character of Montresor in, â€Å"The Cask of Amontillado† is one who can only be defined with words along the lines of evil, or wicked. He vows to avenge the bold and childish Fortunato, whom Montresor swears did him wrong. Montresor could be described with many bold words, one being guilty. Though he is guilty, he is determined not to get caught. For instance, Montresor declares, â€Å"I must not only punish, but punish with impunity† (Poe, 1). Essentially, he is saying he will seek revenge on Fortunato, but he will get away with the vicious crime. Another obvious character trait for the devious Montresor, is dishonest. He claims to have obtained a cask of Amontillado, when the reader can tell through situational irony this is not true. He claims, â€Å"†¦ I have received a pipe of what passes for Amontillado, but I have my doubts† (Poe 1). Fortunato unknowingly follows the fiend, and in theory, seals his own fate. Montresor is also quite sneaky. He slyly gets Fortunato into a small inlet in his wine cellar– also a home for skeletal remains. He hastily chains him up before the poor Fortunato can even realize what’s happening. Explaining the situation, Montresor says, â€Å"†¦ inding his progress arrested by the rock, stood stupidly bewildered†¦ a moment more and i fettered him to the granite† (Poe 4). Lastly, Montresor is just plain mysterious. Readers never know exactly why he decided to go after Fortunato, but it is hinted he offended the killer in some way. When asked about his coat of arms, Montresor blatantly states, â€Å"A human foot†¦ the foot crushes a serpent rampant whose fangs are imbedded in the heel† (Poe 3). The motto underneath is â€Å"nemo me impune lacessit† (Poe 3). To conclude, Montresor plays not only a degrading character, but one of many evils.

GDP Expenditure Categories

GDP Expenditure Categories Gross Domestic Product (GDP) is generally thought of as a measure of an economys aggregate output or income, but, as it turns out, GDP also represents aggregate expenditure on an economys goods and services. Economists divide the spending on an economys goods and services into four components: Consumption, Investment, Government Purchases, and Net Exports. Consumption (C) Consumption, represented by the letter C, is the amount that households (i.e. not businesses or the government) spend on new goods and services. The one exception to this rule is housing since expenditure on new housing is placed in the investment category. This category counts all consumption spending regardless of whether the spending is on domestic or foreign goods and services, and the consumption of foreign goods is corrected for in the net exports category. Investment (I) Investment, represented by the letter I, is the amount that households and businesses spend on items that are used to make more goods and services. The most common form of investment is in capital equipment for businesses, but its important to remember that households purchases of new housing also counts as investment for GDP purposes. Like consumption, investment expenditure can be used to purchase capital and other items from either domestic or foreign producer, and this is corrected for in the net exports category. Inventory is another common investment category for businesses since items that are produced but not sold in a given time period are considered as having been purchased by the company that made them. Therefore, the accumulation of inventory is considered positive investment, and the liquidation of existing inventory is counted as negative investment. Government Purchases (G) In addition to households and businesses, the government can also consume goods and services and invest in capital and other items. These government purchases are represented by the letter G in the expenditure calculation. Its important to keep in mind that only government spending that goes towards producing goods and services is counted in this category, and transfer payments such as welfare and social security are not counted as government purchases for the purposes of GDP, mainly because transfer payments do not directly correspond to any type of production. Net Exports (NX) Net Exports, represented by NX, is simply equal to the amount of exports in an economy (X) minus the number of imports in that economy (IM), where exports are goods and services produced domestically but sold to foreigners and imports are goods and services produced by foreigners but purchased domestically. In other words, NX X - IM. Net exports is an important component of GDP for two reasons. First, items that are produced domestically and sold to foreigners should be counted in GDP, since these exports represent domestic production. Second, imports should be subtracted out from GDP since they represent foreign rather than domestic production but were allowed to sneak into the consumption, investment and government purchases categories. Putting the expenditure components together yields one of the most well-known macroeconomic identities: Y C I G NX In this equation, Y represents real GDP (i.e. domestic output, income, or expenditure on domestic goods and services) and the items on the right-hand side of the equation represent the components of expenditure listed above. In the US, consumption tends to be the largest component of GDP by far, followed by government purchases and then investment. Net exports tend to be negative because  the US typically imports more than it exports.

Biography of Sociologist Charles Horton Cooley

Biography of Sociologist Charles Horton Cooley Charles Horton Cooley was born August 17, 1864,  in Ann Arbor, Michigan. He graduated from the University of Michigan in 1887 and returned one year later to study political economics and sociology. Cooley began teaching economics and sociology at the University of Michigan in 1892 and went on to receive his Ph.D. in 1894. He married Elsie Jones in 1890 with whom he had three children. The doctor preferred an empirical, observational approach to his research. While he appreciated the use of statistics, he preferred case studies, often using his own children as the subjects on his observation.  He died of cancer on May 7, 1929. Career and Later Life Cooleys first major work, The Theory of Transportation, was in economic theory. This book was notable for its conclusion that towns and cities tend to be located at the confluence of transportation routes. Cooley soon shifted to broader analyses of the interplay of individual and social processes. In Human Nature and the Social Order, he foreshadowed George Herbert Meads discussion of the symbolic ground of the self by detailing the way in which social responses affect the emergence of normal social participation. Cooley greatly extended this conception of the looking-glass self in his next book, Social Organization: A Study of the Larger Mind, in which he sketched a comprehensive approach to society and its major processes. In Cooley’s theory of the â€Å"looking glass self,† he states that our self-concepts and identities are a reflection of how other people perceive us. Whether our beliefs about how others perceive us are true or not, it is those beliefs that truly shape our ideas about ourselves. Our internalization of the reactions of others towards us is more important than reality. Further, this self-idea has three principal elements: our imagination of how others see our appearance; our imagination of the other’s judgment of our appearance; and some sort of self-feeling, such as pride or mortification, determined by our imagination of the other’s judgment of us. Other Major Publications Life and the Student (1927)Social Process (1918)Sociological Theory and Social Research (1930) References Major Theorist of Symbolic Interactionism: Charles Horton Cooley. (2011). http://sobek.colorado.edu/SOC/SI/si-cooley-bio.htm Johnson, A. (1995). The Blackwell Dictionary of Sociology. Malden, Massachusetts: Blackwell Publishers.

What Impact Does Technology Laws Have On Business In America Essay

What Impact Does Technology Laws Have On Business In America - Essay Example (Techtheory, 2012). The frontier of technology has been clouded by businesses since forever. Anything that can speed up production, make it more efficient and bring home more profits will fish in increased business. Technology brought with it a change in the system, for example online air-ticket bookings, ATMs and so forth (Winston 2011). The opulent past eras together with the nowadays growing anxiety of technical transformation would suggest that there is a detailed scholarly reflection on the relationship between decree and technical know-how. Though, such is not inevitably the situation. Most academic researches on law and technical expertise can be responsive to anxieties engulfing a certain machine or technically arbitrated goings-on. This conventional grant resides in a rationally constricted border of location related with safeguarding a required upcoming finished law as a tool of communal procedure the scholar-lawyer’s task is primitively expressive and graphic in thi s case; it comprises the documentation of the ‘concerns’, ‘ambiguities’ as well as the ‘holes’ which need to be taken care of by decree-makers and lawmakers. This conference targets to contest this conventional strategy. (Techtheory, 2012). ... ysver 2010) Technology plays a major role in changing the interaction of lawyers with the clients along with changing the ways through which advertisement is done. It is a primordial form of regulations that guards innovative designs, imaginative practices of communication, findings, creations and secrets of trade. Law of this framework is upheld on the notion which is there to encourage creativity, and thus people accountable for unearthing and advances in sciences deserve to be compensated for their efforts put in for start-ups and break-through. Trifling ventures, too, have now come to be much easily started up with the help via the Internet. Even stay-at-home housewives who believe that they are able to make exceptional bakery items can now find it easier to market them over the World Wide Web and transport them to their customer base. Of course it is not as easily done as said. Any transaction steered online has to consider the issue of copyright, privacy and security. The compe nsations are some degree of dominations rendered by patent and copyright laws. A person is shamefaced of infringement of copyright if any one out of the five exclusively selected privileges provided to copyright proprietors is violated, under the Copyright Act. Copyright concerns; domain name concerns; trademark concerns; defamation; and linking and framing. In those privileges are included the right to prevention of reproduction of product (or work) by others, public display of a product, or distribution of a product (Tsyver, Patent law in the United States 2010). Nowadays, courts all over the globe are pressing hard to bring about the creation of Internet Laws- a process that is anticipated as well as dreaded at the same time. These laws are considered necessary because there are no past