Concepts in Accounting and Developing Financial Statements

Concepts in Accounting and Developing Financial Statements There are likely to be various user groups with an interest in a particular organisation, in the sense of needing to make decisions about that organization. User group Competitors they use for: to assess the threat to sales and profits posed by those businesses. To provide a benchmark against which the competitors performance can be measured Employees (non-management) to assess the ability of the business to continue to provide employment and to reward employees for their labour Government to assess how much tax the business should pay, whether it complies with agreed pricing policies and whether financial support is needed. Community representatives to assess the ability of the business to continue to provide employment for the community and purchase community resources. To assess whether the business could help fund environmental improvements. Investment analysts to assess the likely risks and returns associated with the business in order to determine its investment potential and to advise clients accordingly. Suppliers to assess ability of the business to pay for the goods and services supplied. Lenders to assess the ability of the business to meet its obligations and to pay interest and to repay the mount borrowed. Managers to help make decisions and plans for the business and to exercise control so that the plans come to fruition. Owners to assess how effectively the managers are running the business and to make judgements about lively levels of risk and return in the future. There may be conflicts of interest arising between the various user groups over the ways in which the wealth of the business is generated and/or distributed. For example, a conflict of interest may arise between the managers and the owners of the business. Although managers are appointed to act on behalf of the owners, there is always a risk that they will put their own interests first. They may use the wealth of the business to furnish large offices, buy expensive cars or whatever. Accounting information has an important role to play in reporting, the extent to which various groups have benefited from the business. Thus, owners may rely on accounting information to check whether the pay and benefits of managers are in line with agreed policy. A further example of potential conflict is between owners and lenders. There is a risk that the funds loaned to a business will be used for purposes that have not been agreed. Concepts used in financial statement are: a) Money measurement concept accounting normally deals with only those items that are capable of being expressed in monetary terms. Money has the advantage that it is a useful common denominator with which to express the wide variety of recourses held by a business. However, not all such resources are capable of being measured in monetary terms and so will be excluded from a balance sheet. The money measurement concept, thus, limits the scope of accounting reports. b) Historic cost concept Assets are shown on the balance at a value that is based on their historic cost (that is, acquisition cost). This method of measuring asset value has been adopted by accountants in preference to methods based on some form of current value. Many commentators find this particular convection difficult to support as outdated historic cost are unlikely to help in the assessment of current financial position. It is often argued that recording assets at their current value would provide a more realistic view of financial position and would be relevant for a wide range of decisions. However, a system of measurement based on current values can present a number of problems. c) Going concern concept The going concern concept holds that a business will continue operations for the foreseeable future. In other words, there is no intention or need to sell off the assets of the business. Such a sale may arise when the business is in financial difficulties and it needs cash to the creditors. This convention is important because the value of fixed assets on sale is often low in relation to the recorded values, and an expectation of having to sell off the assets would mean that anticipated losses on sale should be fully recorded. However, where there is no expectation of the need to sell off the assets, the value of fixed assets can continue to be shown at their recorded values (that is, based on historic cost). This concept, therefore, provides support for the historic cost concept under normal circumstances. d) Business entity concept For accounting purposes, the business and its owner(s) are treated as quite separate and distinct. This is why owners are treated as being claimants against their own business in respect of their investment in the business. In the business entity concept must be distinguished from the legal position that may exist between businesses and their owners. For sole proprietorships and partnerships, the law does not make any distinction between the business and its owner(s). For limited companies, on the other hand, there is a clear legal distinction the business and its owners. For accounting purposes, these legal distinctions are irrelevant and the business entity convention applies to all businesses. e) Dual aspect concept each transaction has two aspects, both of which will affect the balance sheet. Thus, the purchase of a motor car for cash results in an increase in one asset (motor car) and a decrease in another (cash). The repayment of a loan results in the decrease in liability (loan) and the decrease in asset (cash/bank) f) Prudence The prudence concept holds that financial statements should err on the side of caution. The concept evolved to counteract the excessive optimism of some managers and owners, which resulted, in the past, in an overstatement of financial position. Operation of the prudence concept results in the recording of both actual and anticipated losses in full, whereas profits are not recognised until they are realized (that is, there is reasonable certainty that the profit will be received). When the prudence concept conflicts with another concept, it is prudence concept that will normally prevail. g) Stable monetary unit concept the stable monetary unit concept holds that money, which is the unit of measurement in accounting, will not change in value over time. However, in the UK and throughout much of the world, inflation has been persistent problem over the years and this has meant that the value of the money has declined in relation to other assets. In past years, high rates of inflation have resulted in balance sheets, which are drawn up on a cost basis, reflecting figures for assets, that were much lower than if current values were employed. The value of freehold land and buildings, in particular, increased rapidly during much of the 1970s, 1980s and 1990s, at least partly as a result of reduction in the value of each  £1. Where land and buildings were held for some time by a business, there was often a significant difference between their original cost and their current market value. This led to the criticism that balance sheet values were seriously understanded and, as a result, some businesses broke away from the use of historic cost as the basis for valuing this particular asset. Instead, freehold land is periodically revalued in order to provide more realistic statement of financial position. Although this represents a departure from accounting concept, it is a practice that has become increasingly common. h) Objectivity concept the objectivity concept seeks to reduce personal bias in financial statements. As far as possible, financial statements should be based on objective, verifiable evidence rather than matters of opinion. i) Separate determination concept the separate determination concept refers to in determining the aggregate amount of each asset or liability, the amount of each individual asset or a liability should be determined separately from all other assets and liabilities. j) Substance concept the substance over form holds if legal form of the transaction differs from its real substance, accounting should show the transaction in accordance with its real substance, i.e., how the transaction affects the economic situation of the business.

Connecticut Yankee in King Arthurs Court as a Dystopian Work Essay

Connecticut Yankee in King Arthur's Court as a Dystopian Work      Ã‚   For years, Mark Twain's "A Connecticut Yankee in King Arthur's Court" has been primarily viewed as a work of simple satire. Twain, desiring to poke fun at a group of America's cultural critics, chief among them Matthew Arnold, who claimed that cultural life in the U.S. treaded on shallow soil, takes aim at the venerated institutions of Britain. The author attempts to show that his country's lack of romanticized social structures, meaning an absence of royalty, the Catholic church, and long-dead knights and princesses, was far from a cultural weakness. Twain explodes the myth around idealized chivalric society and proves it to be no match for the Nineteenth Century man.    The book follows Twain's protagonist Hank Morgan, a pragmatist and the author's model of self-made, turn-of-the-century industrialist, through a time travel jump that lands him in Sixth Century England, specifically at the fabled Camelot. Here Hank, through ingenuity and entrepreneurial vigor, quickly ascends to the top of the socio-political structure of King Arthur's Court. What's more, Twain takes great pains in ridiculing both the role of the church in England and the ignoble position and lack of intelligence of the ruling royalty. He also pokes fun at the romanticizing of English culture during this period by illustrating the prostrate and dependent nature of the British aristocratic system -- a system void of democratic mechanism.    As a work of social satire, the beginning of the novel is fairly successful. At the outset of the work, Twain accomplishes what must have been his original task.    "The opening chapters, the direct attack, the... ...mbolic of American innocence and the Morgan and his machines of destruction as symbols of capitalism and industrialization, the novel becomes not chaotic literary failure, but dystopian science fiction popularized in the Twentieth Century. Where Huxley and others predicted enslavement to technology, Twain asserts that innocence and naivetà © have no place in and will be wiped out by modern society. His final analysis is that they cannot coexist.    Works Cited Bellamy, Gladys Carmen. Mark Twain as a Literary Artist. Norman: University of Oklahoma Press, 1950.   DeVoto, Benard. Mark Twain's America. Boston: Little, Brown, and Company, 1935. Twain, Mark. A Connecticut Yankee in King Arthur's Court. New York: P.F. Collier and Son Company, 1889. Wagenknecht, Edward. Mark Twain: The Man and His Work. Norman: University of Oklahoma Press, 1935.

Ethan Frome Key Passage Analysis Essay

Edith Wharton quite deliberately brings together human emotion and the environment in her novella Ethan Frome. The characters are circumscribed by the environment in which they exist and the impossibility of escape from the environmental forces of nature, heredity and place shape the characters of the text. A moment of hope arises as Mattie and Ethan walk home together from the dance and a more romantic sense of possibility emerges. The reader is drawn to the love of Ethan and Mattie quite subtly – it grows almost organically from innocent moments shared and this is perhaps why the reader does not see their ‘affair’ as adulterous. We share the hope that glimmers in the bleak cold that is Starkfield and its characters. Ethan’s sensitivity reflects an important aspect of his character that is shown to us in this section. His intelligence and the study in Worcester has exacerbated his isolation within the Starkfield community. Harmon Gow’s ironic observation that ‘most of the smart one’s got away’ heightens the reader’s perception that Ethan is trapped. The ‘appeal of natural beauty’ suggests a connection with the landscape that is romantic in its conception. Ethan ‘communes’ with the environment and is able to see beyond the harshness in a way that the frame narrator cannot. The fact that he feels this appreciation of beauty as a silent and solitary emotion typifies the lack of communication within his world. Similarly, the night walks of Mattie and Ethan become moments of ‘communion’. Wharton’s choice of diction suggests that their relationship is more than a response to the physical harshness of the environment or repressed emotions – the ‘sweetness of this communion’ implies a genuine meeting of souls and minds that transcends the physical. The fact that Mattie’s ‘spirit†¦ trembled with the same touch of wonder’ is inspiring for Ethan and the reader is encouraged to view the relationship as one of purity and innocence rather than adulterous. Wharton uses the environment as the meeting point for the lovers’ ‘wonder’ – looking up to the stars (an image often synonymous with dreams and hope) or across the fields. It is interesting to note the descriptive language Wharton uses to describe Ethan’s vision when he is with Mattie. The sunset is red with ‘cloud flocks over slopes of golden stubble’ with strong ‘blue hemlocks’ – the intensity of the colours reflect the intensity of his emotions and contrast with the blank, barren whiteness that has characterised descriptions of Starkfield up to this point. It is as if Mattie, whose surname sparkles with colour, transforms the landscape and Ethan sees the world anew when he is with her. His masculine ego is hinted at by Wharton in the admiration Mattie displays for his knowledge of the environment. We have been encouraged to view him as the powerless and emasculated husband, browbeaten by a shrewish wife. Mattie inspires a sense of manhood within him. This is interestingly displayed at the moment of crisis when the pickle dish is shattered as Ethan takes control and feels the ‘thrilling sense of mastery’ as he reassembles the dish. The symbolic nature of the dish representing the marriage of Ethan to Zeena is shattered and Ethan is liberated by the moment – however fleetingly. Wharton suggests that Mattie and Ethan are closely (and perhaps idealistically) suited to each other – she describes their walks as a ‘communion’. Mattie’s description of the landscape looking as it had been painted strikes a deep chord within Ethan and he feels that Mattie is able to articulate ‘his secret soul’. The closeness and intensity of their relationship is perhaps understated – depicted in the language of the environment rather than through eloquent dialogue. Wharton often plays upon Ethan’s lack of eloquence to show the difficulty he has in expressing his emotions.

OF DELAYS ~ Francis Bacon Essays

OF DELAYS ~ Francis Bacon Essays OF DELAYS ~ Francis Bacon Essay OF DELAYS ~ Francis Bacon Essay FORTUNE is like the market; where many times if you can stay a little, the price will fall. Again, it is sometimes like Sibyllas offer; which at first, offereth the commodity at full, then consumeth part and part, and still holdeth up the price. For occasion (as it is in the common verse) turneth a bald noddle, after she hath presented her locks in front, and no hold taken; or at least turneth the handle of the bottle, first to be received, and after the belly, which is hard to clasp. There is surely no greater wisdom, than well to time the beginnings, and onsets, of things. Dangers are no more light, if they once seem light; and more dangers have deceived men, than forced them. Nay, it were better, to meet some dangers half way, though they come nothing near, than to keep too long a watch upon their approaches; for if a man watch too long, it is odds he will fall asleep. On the other side, to be deceived with too long shadows (as some have been, when the moon was low, and shone on their enemies back), and so to shoot off before the time; or to teach dangers to come on, by over early buckling towards them; is another extreme. The ripeness, or unripeness, of the occasion (as we said) must ever be well weighed; and generally it is good, to commit the beginnings of all great actions to Argus, with his hundred eyes, and the ends to Briareus, with his hundred hands; first to watch, and then to speed. For the helmet of Pluto, which maketh the politic man go invisible, is secrecy in the counsel, and celerity in the execution. For when things are once come to the execution, there is no secrecy, comparable to celerity; like the motion of a bullet in the air, which flieth so swift, as it outruns the eye.

buy custom Organ Sales essay

buy custom Organ Sales essay Organ transplantation is a process by which an organ or tissue is surgically removed from one persons body (donor) to another (recipient). Organ transplant are an option when a particular organ is failing or absent (Winters, 2004). Kidney failure, heart disease, lung disease and cirrhosis of the liver are all conditions that can effectively be treated by transplant. Most of the organs and tissue donations occur after the donor has died though some organs and tissues can be donated while the donor is alive. For example, the kidney and the liver may be transplanted from a living donor since people are born with an extra-kidney and the liver is regenerative. There has been a debate over whether organ transplant should be legalized with various countries increasingly passing legislations which allow for the practice. The major argument in favor of the transplant is that it helps the patients to live a longer and a healthy life. Process for Eligibility of Transplant experienced It should be noted that organ transplant can only be considered as an option when medications and surgery has failed to manage the failure and the progression of the particular organ. In such situations, the transplant is then considered as a treatment option. However, before one is placed on the transplant list for any organ transplant, they must undergo a careful screening process (Winters, 2004). The process involves a review by diversity of professionals comprising of the doctors, nurses, social workers, and the bioethics. This team reviews the patients medical history and carries out a psychosocial evaluation to find out if the patient is able to survive the particular organ transplant procedure. They also find out the possibility of the patient complying with the recommended continuous care after the transplant (Winters, 2004). Tissue typing is also done during the evaluation to identify genetic markers on white blood cells. Other blood tests are also done to determine the compatibility of the pair. The evaluation of the patients support system is also done for clinic follow-ups and the subsequent medical care. Once the person passes this screening test, he/she is then placed on the waiting list until a matching donor becomes available (Winters, 2004). During this time, the patient will closely be monitored by the health care team to keep the organ failure in control. Once a matching organ is obtained, the transplant then takes place (Winters, 2004). Health and Emotional Risks of Transplants While transplant surgery is a cure for some patients, it has comes along with both health and emotional risks. Many survivors and caregivers experiences problems such as fatigue which is common medical condition for transplant. Almost all survivors feel weak exhausted and slow during recovery. Another common problem with survivors is anxiety which normally occur because most of them are always either worried or afraid of their condition. The patients are normally worried that they may return to their original state (Center for Bioethics, 2004). The specific risks related to transplant include; Organ acquisition related stress: In most cases, patients with organ related complications seem to believe that an appropriate donor must have died for them to secure an organ. Studies have also found out that in cases where the recipient dies, the donor may be stressed up by the feeling of a total loss.Secon is alcoholic addiction related stress. Because of the overwhelming temptation to take alcohol, alcoholic addicts waiting for organ transplant always find it difficult having to battle with the temptation. They may find it extremely difficult to maintain sobriety while abstaining as per the medication requirement. The third emotional issue is related to obtaining the organ from a living donor. The process of recovery after one donates an organ may in some cases be longer than expected.Some donors also develop complications after surgery. It is also common among the recipients to have a feeling of owing the donor.In cases where the transplant results into any surgical complication, the recipient may begin feeling feel guilty for having caused these problems. A donor who assisted a person whose situation was caused by drug abuse may be very sensitive to seeing the person drinking again. Forth issue is related to pregnancy after organ transplantation. This is normally experienced by the women patients who are still in their child bearing age. Such women normally worry about their ability to become pregnant and the effect the anti rejection may have on their unborn child. This is even more complicated among those who are barred from conceiving by the doctor. Fifth is the effect of transplant on children. In most cases, a child who has gone through organ planting may require mare limits in their behavior than is the case with normal children. These may affect their self esteem especially when they dont understand why their behavior is being restricted (Center for Bioethics, 2004). Organ transplant may also result into stressful relationships especially if it results into a long term illness. Adolescent patients who want to be independent may be stressed from having to depend on others. Finally, there are also a number of physical changes that are usually experienced by most organ transplant patients. The changes which may include weight gain, fluid retention and rounded face may cause mood swing and the emotional changes which are difficult to predict and harder to deal with (Center for Bioethics, 2004). Laws against Organ Sale Various policy makers in this field have argued that with proper regulative mechanisms, organ sales can be beneficial for both the patient and the donor. The most often sited argument in favor of organ transplant is that it helps the patients to live longer and healthy lives. The disparity in the low supply of organs for transplant has promulgated legislation and case laws. The laws seek to regulate the sale of the organs and to help establish equitable national system of how to best allocate the organs. The laws were promulgated to address a variety of medical, legal and moral issues involved in organ donation and transplantation (Fredrick, 2010). They include; The revised Uniform Anatomic Gift Act of 1987. The Act prohibited the sale of human organs and tissues with the exception of blood, sperms or human eggs. Another Act is the National Organ Transplant Act which expressly forbade selling human organs across state lines. The act made the sale of organs a federal crime. It prohibited the payments to those who provided the organs for transplantation. Though, it was designed to prevent the sale from the living donors, it also prevented the possibility of individuals selling the right to harvest their organs after their deathh . The third law is the Patent Self-Determination Act of 1991 that established the issue of donor cards. The cards can not be issued to those who are under the age of 18 years. It therefore made it difficult for them to donate organs. Elsewhere the Transplantation of Human Organ Act passed in India in 1994 made the sale of organs a punishable offence. Reasons why Organ Transplant can be Beneficial Organ sales would save peoples lives. Various proponents of organ transplant have argued that there is no reason for people to die if there is a way of saving them. Legalizing organ sales is also the most efficient measure of increasing the organ supply. Heather argued that the patients have the right to regain normal life. Secondly legalizing the sale of organs will discourage the existing black market (Heather, 2003). These practice has led to killing of people like was witnessed in China in 1998 when smugglers were found with 50 freshly harvested organs from prisoners. Corrupt Chinese officials are also making huge money by selling organs to rich foreigners. Legalizing organ sales will compel the brokers to resort into offering a cheaper alternative to potential recipients. This will enable the patients to save part of their money and while greatly reducing the length of time for which they have to wait. At the same time, it reduces the risk involved in receiving organs through a black market. An example is the case of Malaysia in 1994 when five kidneys purchased from India were found infected with HIV virus (Heather, 2003). Third, legalizing organ sales will also reduce the amount of money the government spend on Medicare and thus help save government money. For example in US dialysis will cause Medicare $240,000 while the patient with a new kidney will only cost $160,000 (Heather, 2003). This will enable the government save money to improve the life of its citizens. Forth, legalizing organ sales would possibly encourage more people to donate the organs. This is because of the possible compensation to the donors for the risk and time involved. Studies have shown that despite the willingness to donate organs by nearly 69% of Americans, the donation is currently merely around 4,000 people annually. Many people confessed that they are afraid of donating their organs to strangers because of the risks involved. Finally legalizing organ sales will protect the individuals right to choose. According to Hither, the decision to assume risk should be made by the individual. He argues that there is no different between legalizing the sale of blood platelets, eggs and sperms while legally denying people the right to sell other organs. They also argue that the individual will make decisions which reflect their need for money which is necessary for meeting their basic needs. Conclusion In conclusion it is therefore clear that irrespective of the many arguments against organ transplant, legalizing organ sales can be very beneficial to both the donor and the recipient. It will save more lives as many people are encouraged to donate organs. Such a move will result into an affordable medical cost for patients. The government will also save both the money that it spends on Medicare while greatly reducing the risks involved in black market enabling it to save and improve the lives of its citizens. Buy custom Organ Sales essay

Summary Essay Example | Topics and Well Written Essays - 750 words - 1

Summary - Essay Example Ordinarily, the aim of the justice system is to curb crime. For youth offenders, the phrase nip at the bud is more appropriate. However, when these youth offenders go through adult courts and end up in adult prisons the result does not reflect curbing crime. Schiraldi and Ziedenberg report that minors tried in the adult courts tend to regress back to crime compared to those tried by juvenile courts. Studies also show that; all states that allow state prosecutors the discretion to send youth to adult court have higher juvenile crime rates than those that do not. For instance, Florida’s juvenile crime rate is 48% higher than the national average (Hickey, 2012). This crime rates are high because the process of rehabilitation as reported by Schiraldi and Ziedenberg is not adequate. Studies further show that youth sent to juvenile facilities felt that the experience mitigated their onset of criminal life. This is because, in juvenile facilities, the youth offenders feel that they c an change, and this eases rehabilitation. Also, they viewed the facilities personal as understanding which helped them change their attitudes. On the other hand, youths sent to adult prison reported learning more negative behavior such as how to commit new, more aggressive crimes. In such a scenario, one can conclusively say that prison cultivates ground for future crimes. Secondly, the adult prison personal was not as understanding, and they make inmates feel doomed to a life in prison (Hickey, 2012). In addition to these systemic shortcomings of prisons, there are other dangers that the youth experience while in prison. One of the most common dangers is prison rape. Because of their vulnerable state, youth convicts are subject to sexual abuse by older convicts and even the prison personnel. This sexual abuse leads to psychological trauma and self loathing which is not a favorable environment for positive change. The young offenders also face risks such as attacks with weapons that cause injury or death. The result of the attacks is that the individual becomes aggressive and, thereby, resistant to change. The frustrations the youth experience in prison at such a tender age lead to despair. As such, the suicide rate of youths in prison is 7.7 % higher than in juvenile detention centers (Hickey, 2012). Granted, there are crimes that are gruesome and the prosecution got no choice rather than to refer them to adult courts. However, the studies reported by Schiraldi and Ziedenberg indicate that the crimes sent to adult court are so minor they qualify to be misdemeanors. Most of the suspects have no priors, do not commit violence and acknowledge their wrong doings. An excellent example is the case against Anthony Laster, in Florida. Anthony went through wrenching court proceedings for a one time non violent crime because the prosecution referred him to an adult court. Critiques argue that in other states, his issue was a Principals office matter and not even a juve nile offence (Hickey, 2012). As such, utilizing adult justice system on a delinquent in most instances is like shooting a mosquito with a shot gun! Ryder (2011) views juvenile delinquency as a social problem. He argues that, in the wake of the 21st century, parents and the community want to contribute to the rehabilitation of the

Families in a Global Context Assignment Example | Topics and Well Written Essays - 2500 words

Families in a Global Context - Assignment Example Until the 1990s, the issue of migration of women was discussed largely in the context of sex-trafficking. But globalization has unfolded a new phenomenon of overseas migration of women as job seekers. The book, Global Woman: Nannies, Maids, and Sex Workers in the New Economy edited by Barbara Ehrenreich and Arlie Russel Hochschild (2003) have revealed there is more to this phenomenon than breaking down of cultural barriers caused by communication revolution and relaxation of patriarchal restraints on the mobility of women. Exploring the avenues that lead to this social behavior, the authors have begun with the socio-economic context in which World Bank and IMF- imposed development models have forced third world governments to tighten their economies thereby leaving their citizens no other option than to leave the country to make a living (Ehrenreich, Hochschild, 2003, p.1-5). And what is peculiar about this migration is that â€Å"today half of all the world’s migrants are wo men.†( Ehrenreich, Hochschild, 1993, p.5) and they migrate mostly to take up low paid jobs as maids and nannies. The picture that emerges is that of a new kind of economic asylum seekers who are the refugees of globalization. These women, according to the book, ease a ‘care deficit’ that has emerged in the first world. This ‘care deficit’ was created in the developed world when the majority of women who used to take care of the young, aged and the sick of the society shifted their energies to paid jobs (Parrenas, 2003, p.35). Growing awareness about women’s rights and the pressure exerted by a competitive economy were the key factors behind this change. The middle class of US was finding it difficult to balance their budget without two paychecks. In the US, 65% of mothers of children aged six, are now doing paid work. (Ely, Scully, Foldy, 2003, p.404). As men were not considered sharing the domestic work even in this changed scenario, it was in evitable that substitutes had to be there to do the family scores.  Ã‚