The Cap And Trade System - 862 Words

Cap and trade is a system aimed at diminishing the rate at which carbon is emitted into the atmosphere by creating an economic system based on meeting a certain minimal threshold or paying low-emitting companies for the right to emit in their place. For example, if company A only emits half of the emissions cap, that company can sell (or trade) the remaining credits to company B, should company B choose to emit one-and-a-half times the cap. A main objection to the cap and trade system is that it is not a strong enough means by which to curb emissions of fossil fuels and is inferior to specifically stronger carbon taxes. While initially appealing, the notion of simply strengthening carbon taxes fails to properly stifle carbon emissions and to adequately incentivize â€Å"green† development in comparison to the cap and trade system, preventing carbon taxes from occupying a central role to mitigate carbon emissions. Carbon taxes are intended to drive down carbon emissions by crea ting a monetary cost to specific levels of emissions. These taxes are intended to extinguish the profitability of the goods associated with the emissions. While in theory, the passing of such taxes would stifle emissions, there are no set boundaries for total production. Exxon, for example, experienced a net profit of roughly 45 billion dollars in 2013 (Isidore) and is responsible for roughly 3% of all industrial emissions, dating from pre-Revolutionary America (Greenpeace). While a carbon tax wouldShow MoreRelatedA Brief Note On Cap And Trade System1945 Words   |  8 PagesCap and Trade â€Å"A carbon cap and trade system has long been rumored to be in the offing at the federal level as a way to both reduce emissions and raise revenue for transit, and transportation, investment. That said, few truly understand how the proposed system works and how it might impact their community† (An Introduction to Cap-and-Trade Programs). To better understand what is cap and trade, we have to know why we need to have this system. A long time ago, cap and trade use to be known asRead MoreHow Does Cap And Trade System Work?1224 Words   |  5 PagesCap-and-trade is environmentally and economically approach to capping and controlling greenhouse gas emissions which is the primary cause of global warming. It is a policy move aimed at controlling large amounts of gas emissions from a cluster of sources. This approach sets an overall cap which is the maximum amount of gas emissions per a stipulated compliance period, for all the sources under that particular program. The cap puts a limit on gas emissions which from time to time is lowered toRead MoreThe Cost Of A Carbon Tax Or Cap And Trade System1161 Words   |  5 PagesAnother implication with the imposition of a carbon tax or cap and trade system is that depending on the industry specialization of the country, it can result in primarily hurting the industries that are key actors in the local economy. Hence, at times, it is difficult for industries to promote clean energy at a reasonable time to internalize the extra cost imposed on them through a carbon tax policy. For instance, the Conservative government in Canada had opposed carbon pricing, arguing that itRead MoreReducing Carbon Emissions By Implementing A Cap And Trade System887 Words   |  4 Pagesaim at reducing carbon emissions by implementing a cap-and-trade system which claims to â€Å"put a price on everything from industrial emissions to gasoline and natural gas†. By explaining how the cap-and-trade system works to cut b ack the carbon emissions in industries operating, this article claims that this system will limit carbon emissions by making companies to purchase permits which are called allocations from the government to emit carbon. Cap on gasoline and natural gas means consumers will haveRead MoreAnalysis Of Carbon Taxes Versus Cap And Trade1328 Words   |  6 Pagespreviously turned to solutions surrounding cap and trade or carbon tax legislation. However, with every solution, whether it be cap and trade, or carbon taxes, comes pros and cons. Those who favor cap and trade value its long term environmental promises, economic incentives (allowances and allowance auctions), and efficiency. On the other hand, those appreciate carbon taxes because of their simplicity, promising tax revenue, and market certainty. Fans of cap and trade and carbon taxes, like David VictorRead MoreEffects Of Greenhouse Emissions On The Planet s Climate1604 Words   |  7 Pagespeople believe that this number can be g reatly reduced by implementing cap and trade on carbon emissions. D. Some people believe that cap and trade is the most environmentally and economically sensible approach to controlling greenhouse gas emissions. The cap sets a limit on greenhouse emissions that a company can release. This cap is lowered over time to reduce emissions. Then the trade allows companies to trade their emissions. So for example if company A has very low emissionsRead MoreEssay on Carbon Tax vs. Cap and Trade1290 Words   |  6 Pagespoliticians amongst many other eminent figures in society. The four major approaches to reducing carbon dioxide in the atmosphere include: subsidies of alternative energy, cap and trade, carbon taxes, and command and control regulation. We will examine and compare the effectiveness of two of these methods: The carbon cap and trade system, and carbon taxation. The popular solutions both propose placing a price on Carbon Dioxide, in hopes that it would cause households and industries to reduce theirRead MoreThe Pros And Cons Of Cap And Trade1055 Words   |  5 PagesCap and trade is a cost-effective method for reducing greenhouse gas emission/pollution. The amount of emissions that are produced by the economy (cap) is limited and allows those insured by the cap to trade amongst themselves (trade) in a flexible and cost-effective method/manner, creating a price on carbon pollution. The cap sets a maximum limit on the amount of greenhouse gas pollution that regulated emitters collectively can produce. Each year, the cap is lowered, requiring industry and otherRead MoreCarbon-Tax and a Cap-and-Trade Strategy Essay1299 Words   |  6 PagesDistinguish between a carbon-tax and a cap-and-trade strategy for reducing carbon dioxide and other so-called greenhouse gases (that are believed by many scientists to be causing global warming). According to the case, the carbon-tax and a cap-and-trade system are the best economic tool to employ to reduce emissions. As we know, taxes are the most important expense for a company or firm, if they would emit much more carbon dioxide and other gases, they need to pay more taxes on using carbon recoursesRead MoreEco Fiscal Policies And Carbon Pricing Policies759 Words   |  4 Pagescarbon pricing,, a carbon tax or a cap-and-trade system. A carbon tax is simpler as the government sets a price for greenhouse gas emissions. A cap-and-trade system is more complex as allowable emissions are capped, and then the government distributes emissions permits, which are tradable. Beale claimed that no one system is more superior than the other, especially as the differences between the two get blurred as more jurisdictions are adopting more blended systems. Beale concluded her lecture by looking

Pervasiveness of Marketing Free Essays

string(39) " light when owning a particular brand\." Vital marketing decisions are made by every business; but as important as it is to make the right business decision†¦ it is essential that marketing professionals understand how their marketing impacts our social values. There are several different ways that marketers get their message across to potential customers(1), each marketing communications tool can have different effects on us. Marketing is intrusive, businesses are constantly trying to push their brands in our faces†¦ we barely process one piece of information before the next one comes shooting our way. We will write a custom essay sample on Pervasiveness of Marketing or any similar topic only for you Order Now The pervasiveness marketing has undoubtedly influenced our mind-set and behaviour†¦ a disposable culture creeps closer to becoming reality. It’s because our buyer behaviour is image based, we care about how others see us more than how we see ourselves. This hugely changes our views on society; contemporary marketing has made us believe that we are what we buy, and that the brands we own†¦ are a direct reflection of us. Marketing is an integral business function, but is hardly respected. It continually aims to stimulate demand which leads to new customers†¦ and that leads to more market share. No longer can marketing be tunnel visioned in it’s pursuit for brand awareness. Certain companies have mastered the AIDA model and can use their understanding on countless consumers, the Sony Bravia advert with the bouncing balls(2) went through the whole cycle from attention all the way to stimulating action†¦ making them buy products they didn’t particularly need in the first place. Point-Of-Sale cues are used relentlessly and marketers are accused of not looking at how their decisions impact broader society. Our social values are changing to customers being more self-centred and buying everything that suits them. Our social values include friends, who we want to have a good time with. But playing on the back of our heads constantly, is how cool we think we look, have we impressed our friends? Do we have the right clothes on? Do we have the right phone? As I mentioned, we think that the brands we own are a reflection of us†¦ so we try and buy the right products, not only to suit our personalities; but to fit in. There is one thing that hugely influences our social values, and that’s technology(3). A wireless world is slowly becoming more of an actuality as time goes on. The internet, as enthralling as it may be, has made people ess sociable and more secluded. Perhaps one of the most important social values is quality time with our families; this is not possible if we are glued to the monitor during dinner time. In the past, dinner meant the whole family sitting around a table, having a laugh and eating to their hearts content. The internet has cut into this social value and is influencing young minds. But it’s been a fantastic medium for communication and a brilliant source for information. Both ways can be argued. Advances in technology will introduce location based advertising in the future(4), this makes us even more reliant on technology. This means that where ever we are, we will be targeted by businesses†¦ which directly impact our social lives; making us shop instead of talk to those we may know in the area. The whole notion of positioning is based upon understanding the consumer†¦ not society, making us feel like we can familiarise ourselves with the brand, so that it doesn’t feel like marketing but instead feels like a developing relationship. Segmenting customers is a common marketing tool used when it comes to deciding on a target market. But it has huge disadvantages on society; a common way for segmentation to take place is with airlines. First class, business class and economy are forms of segmenting the market. Customers who have high disposable income doesn’t necessarily have to fly first class†¦ but the positioning of first class in the consumers mind communicates the message that if you can afford it, go for it. First class passengers have made the association that flying in luxury means they are successful and are respected. When in realness, they simply have more money than the average person. Economy flyers are made to think that they are normal, nothing special, but some of them could actually be successful. Some of them may have significantly advanced in their careers, and may have even helped the world! The social values of first class travellers has changed into looking down on other passengers who aren’t flying first class†¦ the feeling of self accomplishment is just an illusion created by marketing. There are other marketing tools which de-individualises customers and sees them as groups and not individuals. An example of this is the postcode analysis, this influences the social values of consumers into thinking that they are only as good as the people who live near them. Marketing professionals need to start respecting customers as customers, and they need to understand the uniqueness of each individual consumer. There is a really important marketing tool that can assess how much marketers are impacting our social values. Businesses can construct a PESTEL analysis of themselves to gain a better understanding of what is in their way†¦ and what they need to take into account before implementing any marketing decisions. MOSAIC is another segmentation tool used by marketers to decide exactly how to target their target market. This generalises too much and doesn’t see customers as individuals, but as titles. There is one main point that marketing critics’ keep bringing up. They see branding as being misleading to consumers, that the associations made with the product or service is just an illusion†¦ and doesn’t reflect the actual quality of the product or service itself(5). Marketers definitely need to take this into account when taking care of brand management. However an argument against this is that branding gives people confidence, it helps consumers see themselves in a desirable light when owning a particular brand. You read "Pervasiveness of Marketing" in category "Essay examples" It makes them feel like they are a part of something, this positive feeling surely can’t be criticised. An example of a business who tries to create a strong association is Disney. Their chain of ‘Magic Happens’ adverts definitely play on our emotional strings(6). They play on portraying the dreamy effect with their brand communication, which withholds powerful emotional appeals. Disney sells an experience, something intangible. This works really well when it comes to targeting children, the imagination of a child is endless†¦ with hardly any limits. However this really affects children’s social values, making them almost worship Disney characters. Ultimately, this makes the children think that going to Disney Land is described as ‘a dream come true’; taking their minds off of the important things in life. Another example is Coca Cola. Their marketing strategy relies on making the consumer feel satisfaction when drinking Coke, making the consumer feel refreshed†¦ and ‘happy’. The Coke slogan is ‘Open coke. Open happiness’(7). The association that will be made is definitely an emotional one, and will make customers feel like someone when they drink a can of coke in front of people. This is probably the brand that endangers our social values the most, due to the obvious reason that happiness is achieved through success or through a positive social encounter. Not from drinking Coke, this is nothing more than a positioning strategy. Behavioural psychology explains the laws of classical and operant conditioning. This has been used by many businesses in order to condition a specific response from a customer. Classical conditioning can be, and has been used in various advertisements; in order to create lasting associations that will be profitable to the business. A psychologist called Pavlov tests classical conditioning in one of he’s experiments(8), and since then, he has influenced the use of he’s findings by many marketers. An example of this is McDonalds, the first time we heard the famous McDonalds short and snappy jingle we didn’t know what to make of it. But after a few more adverts we made the association between the jingle and the slogan ‘I’m lovin’ it’(9). Whilst this association was being made, you can visualise the McDonalds logo and any images they want you to see. The general feel of the adverts are happy and upbeat. With time, our association became so strong, that all McDonalds do now is play the jingle, and we all say or think ‘I’m lovin’ it’. This then becomes our unconditioned response to the jingle, which started off as being a neutral stimulus. So as you can see, classical conditioning is a powerful tool that marketers use, and we have attempted to create an advert; whilst trying to apply the laws of classical conditioning. Customers are almost hypnotised into thinking exactly what McDonalds wants them to think. This changes our social values into being more self-centred, making us seek pleasure for ourselves and gets rid of the whole idea of togetherness and sharing. The psychodynamic approach in psychology was devised by Sigmund Freud, an influential figure in psychology. He said that our conscious thoughts and actions are influenced by unconscious drives, such as the sex drive(10). Marks and Spencer food adverts take advantage of this idea. The woman speaking in the background speaks in a soft, sensual voice making it seem the food should be eaten in an intimate way(11)†¦ which almost makes us think their selling sex. According to the psychodynamic approach, our unresolved child issues and our sex drive will influence our conscious behaviour†¦ which is to ultimately buy the food. Marketers need to be very careful with this type of advertising; it’s almost as if the consumers are not in control of what they like. Our social values may have been having a laugh with friends of the opposite gender, but due to this kind of psychological approach to advertising†¦ it may unwillingly effect the perception of the customer. Using psychological approaches in adverts is legal, but it doesn’t mean it’s moral. The mind-set of the customer changes, their perception changes and so their behaviour changes; this can be seen as immoral. Companies ensure they put all side effects of certain products on the packaging†¦ but when are marketers going to actually take into account the side effects of their own decisions? If a certain type of marketing impacts broader society too much, and stimulates demand to an extent that the environment will suffer†¦ the marketers should definitely take it easy and refrain from these types of activities. Every career needs to work towards a better world to live in; this is what morality is all about. ‘The strategic business function that creates value by stimulating, facilitating and fulfilling customer demand’(12)†¦ this is on of the definitions of marketing. But how will consumer sovereignty affect this? The old definition was meeting customer needs profitably, customers may decide what will be produced or on the other hand marketers may decide what consumers should be interested in. It all depends on how society is looked after by marketers, and how society reacts to marketing decisions. Our social values stems from how society operates and how society holds up against continual marketing activities. The decisions that marketers make impact society hugely, it can increase demand and can decrease demand. McDonalds have been successful at stimulating demand, due to this they have had to create 4000 new jobs(13). But even though more demand means success to a marketer, there is always backlash. There is ‘a protest against the promotion of junk food, the unethical targeting of children, exploitation of workers, animal cruelty, damage to the environment and the global domination of corporations over our lives. Marketing strategies are successful at making a profit, but it’s time marketing professionals look after the society which they themselves are a part of. Not necessarily societal marketing, but just using some of the concepts of this type of marketing. I think that it’s a personal challenge to each and every one of us to act and speak in a way which doesn’t reflect the conditioned responses that marketing and movies have created. Our social values echo our personality and what we hold close to our hearts; marketing professionals can change or strengthen this. That means reliability is a necessity as a marketer. References http://inventors.about.com/od/timelines/a/ModernInvention.htm http://www.e-lba.com/ELBA%20Overview%20english.pdf http://nobelprize.org/educational_games/medicine/pavlov/readmore.html http://www.textart.ru/database/slogan/fast-food-advertising-slogans.html http://webspace.ship.edu/cgboer/freud.html How to cite Pervasiveness of Marketing, Essay examples

Review of Current Accounting Issues

Question: Discuss about theReview of Current Accounting Issues. Answer: Introduction The article selected for the purpose of this question is Dick Smith Collapse raises more questions for Accounting Profession, by Alex Malley, published in The Sydney Morning Herald on 22nd July 2016. As the Australian Securities and Investments Commission, administrators, and receivers work across the wrecked collapse of Dick Smith, there is an increased clarity in the fact that there is a need for confronting the accounting profession (Malley, 2016). There are several reasons for the failure of the company. Some factors are role played by rebates played by suppliers, their impact on the purchasing decisions of management, and their ability of masking the figures of earning. In the financial year 2014 to 2015, there was reporting of 72 million dollars as earnings before amortization, depreciation, tax and interest. With the exclusion of advertising subsidies and rebates, there was an adjustment in this figure with the loss of 119 million dollars. The auditors considered signing off o n the accounts of Dick Smith in the year 2015 for August. The key consequence for treating the accountancy of rebates is one of the key reasons for the collapse of Dick Smith, and no doubt, will be considered for further questions (Malley, 2016). In this year itself, Target was also spotted for the way its team of accounting had been focusing on the treatment of rebates that further lead towards inflated earning. The investigation of Wesfarmers resulted in the departure of several staff members from the business. This specific issue is being faced all across the globe. As a significant example, in Britain, Tesco was warned in the year 2014 about issues for treating accountancy of rebates in the year 2014 after the general counsel was contacted by the whistle-blower of the company. Tesco had flagged first to be an overstatement about the initial half profits but it had been found for overstating the performance for the past three years of financial accounting. The case of Tesco is still being investigated by the Financial Reporting Council and the Serious Fraud Office. Each and every liability is assumed and asset is acquired in the combination of business and there is a requirement of retrospective application in providing no justification about the IFRS (Hamberg et al., 2011). In addition, an improvement in the consistency of each and every procedures utilized in the accountancy for combinations of business such as international consistency. These are extremely helpful in alleviating key con cern that the competitive position of an entity holds as potential bidder are significantly influenced by the variations involved in the accountancy of business combinations (Glaum et al., 2013). Consistency across the procedures of accounting can also result in the reduction of costs for preparing the financial statement, specifically across businesses conducting international operations. Moreover, this kind of consistency will result in enhancing the scope of comparison for information. This will further provide a better understanding about the resulting information of finance and reducing the costs borne by users for the analysis of information. These problems in interpreting accounting standard tend to be arising in various entities under consideration of several jurisdictions. These are well understood and known in the framework of International Financial Reporting Standards (Hamberg et al., 2011). The ubiquitousness related to the issue and the seamless subjectivity in the global accounting standard to ensure application of transparency and consistency is within the scope of providing some comfort to 3,300 former employees of Dick Smith in New Zealand and Australia, or the investors under consideration for the loss of money. For the part of professionalism, across the higher level, the Independent Audit Regulators of International Forum has been flagging the quality of auditing as an issue. However, there is yet a lack of satisfaction among the body of IFIAR sufficient for the profession of audit in understanding and addressing challenges in the quality of audit (Malley, 2016). A new standard of accounting provides clarif ication for the recognition of revenue. This will be duly effective from the year 2018. In theoretical terms, there is a need for addressing certain issues in concern with the treatment of rebates. However, there is sole reliability upon the continuously introducing new standards of accounting under the key requirement. The profession of accountancy has key bounds with the code of ethics holding the requirement for acts of accountants within the public interest, and this is inclusive of a good reason. The code focuses on providing support based on principles for the professional while ensuring navigation across the complex environments of business. This is crucial for making decisions to treat inventory and revenue while being in compliance with strictly applied law and standard. This also involves compliance with the spirit for seeking achievement. Yet the failure of each company holds the potential of undermining the constant urge of a profession that an approach based on principles, instead of focusing more upon regulation. There is no denial in the fact that increment in the regulation eventually achieves a tip point in which there is shift in the focus of audit to comply at the cost of exercising the professional judgment. The profession of accounting is considerably apt for bringing expertise and value to the society and business at a broader context, while occupying a trust positioning across the community. Under the entrustment with a specific social licence comes in alignment with high expectations and responsibility for the sake of profession, while there is a need for having higher expectations. The like-for-like sales of retail at Dick Smith fell at a sharp rate after less than a year of the floating context of 2013 that triggers a number of events with key contribution in collapsing the ownership of 400 million dollars to the creditors. A public examination across the demise of Dick Smith heard the sales of same store retail by 7.5 per cent within a period of 15 weeks (Malley, 2016). The sales growth in same store was 1.7 per cent at the inaugural yearly meeting of the retailer later in the period. Irrespective of the dropping sales, the senior management and board of Dick Smith continued with the strategy to open up new stores, purchase more stock, borrow more money for overcoming pressures of cash flow, pay dividends with the lack of cash, and maximize the rebates of supplier for boosting profits (Buschhter Striegel, 2011). The officers and directors have been breaching the duties by the failure in appropriate systems of reporting and placement of controls, inflation of earnings for meeting the expectations of market by the deliberate purchases of more stocks, book rebates under the suppliers in terms of profits, and disguising upon weak sales with private commercial and label sales of low margin. The receivers have been focused for the establishment of fact if former executives and directors hold the key liability and if there can be any specific claims against the insurance policies of the officers and the directors of the company (Glaum et al., 2013). A business combination can be referred to as a transaction or an additional event within which control is obtained by the acquirer across one or more number of business organizations. There is accounting of transaction or anything related as a combination of business only in the case if the assumed liabilities and the acquired assets consists of a busin ess. This tends to be providing guidance for the identification of the fact if the assumed liabilities and the acquired assets are not constituting a business organization. The accountability of acquiring an asset is set out in the draft at paragraphs C3-C5. High secrecy and delays are standards procedure of operations with respect to insolvency. Different investors have been spending the money of Dick Smith for obtaining an extension of six months from the Federal Court. There had been a further delay in the second meeting of creditors. Seasons will be passing across the gift card holders (Hamberg et al., 2011). No information has been disclosed in front of the beleaguered gift card holders, shareholders, suppliers and other creditors. Time is taken in the achievement of right outcome with the increasing value of fees. On 30th November 2015, the company made an announcement of writing down 60 million dollars worth inventory. Failure has been faced by the company also due to the issue of inventory and this issue can be traced back from the time when Dick Smith was not floating across the ASX. As a contrasting view, the annual reports of Woolies considered recording their subsidiary inventories at 246 million dollars of book value. Also, these inventories are inclusive of the business of Dick Smith. As per the Anchorage, the inventories were worth the value of 58 million dollars in recording the expense of acquisition worth 312 million dollars. If the number of Woolworths is correct, however, then the inventories of Anchorage was worth at least 66 million dollars (Malley, 2016). On the basis of the figures of Woolworths though, there was an upward revaluation worth 14 million dollars. The financial report of Woolworths also depicts that the restructuring costs and asset write-downs of Dick Smith was worth 420 million as of 30th June, 2012. The exposure draft focuses on proposing amendments to the business combinations of IFRS 3. The proposal is inclusive of a draft standard developed by the boards in their very first major project in collaboration. The key objective focuses on the development of a single standard of maintaining high quality in accounting for combinations of business to be utilized for the purpose of both, cross border and domestic financial reporting. The standard proposed will consider the replacement of current requirement in the IFRS 3 Business Combinations by IASB and the Statement 141 Business Combinations by FASB. The key intention of the Board in the development of this Exposure Draft was for reflecting a number of changes regarding decisions in the project of Business Combinations by the time it reaches the second phrase (Buschhter Striegel, 2011). And hence, there is no consideration of all of these specific requirements as specified in IAS 27. The proposal of changes to IAS 27 showed primary concern with accountancy for the decrease and increase in interests of ownership across the subsidiaries after obtaining some control. There is also a required to account the subsidiaries in terms of loss of control. Introduction of Major Issues in the New Standards In the draft, the IFRS is considering the improvement of financial reporting by the requirement of applying acquisition method to more combinations of business. These include the ones only having involvement in mutual entities, and those under the achievement of contract alone. The boards hold the belief that the application of single method in accountancy to each and every combination of business will lead towards more transparent and comparable financial statement. This holds the requirement for acquirer in recognizing the acquired business maintaining fair values at the date of acquisition with restricted exceptions (Hamberg et al., 2011). The boards holds the conclusion to require in recognizing the acquire and the assumed liabilities, and the acquired assets maintaining fair value. The date of acquisition results in improving the reliability and relevance of financial data. The scenario is even true in combinations of business within which the control is obtained across the busi ness with less acquiring of 100 per cent of interests of equity within the achievement of business combinations or acquire within the stages. Reliability and relevance are key attributes making information of finance more significant across the users. This draft will be retaining each and every fundamental requirement in the past version of IFRS focused on method of acquisition in accounting to be utilized for each and every business and for the identification of acquirer in the business combination. The profession of accountancy has key bounds with the code of ethics holding the requirement for acts of accountants within the public interest, and this is inclusive of a good reason. The code focuses on providing support based on principles for the professional while ensuring navigation across the complex environments of business (Malley, 2016). This is crucial for making decisions to treat inventory and revenue while being in compliance with strictly applied law and standard. This al so involves compliance with the spirit for seeking achievement. Yet the failure of each company holds the potential of undermining the constant urge of a profession that an approach based on principles, instead of focusing more upon regulation. There is no denial in the fact that increment in the regulation eventually achieves a tip point in which there is shift in the focus of audit to comply at the cost of exercising the professional judgment (Glaum et al., 2013). The profession of accounting is considerably apt for bringing expertise and value to the society and business at a broader context, while occupying a trust positioning across the community. Under the entrustment with a specific social licence comes in alignment with high expectations and responsibility for the sake of profession, while there is a need for having higher expectations. General Consensus or Disagreement Between the Commenting Parties The boards strive upon issuing the draft with the crucial requirements in filling up a crucial need and for which there is imposition of costs in applying it (Hamberg et al., 2011). This is in comparison with each and every other alternative being provided with justification as per the crucial advantages of the information as a result. It was concluded by the boards that this will be making a number of improvements in reporting finance that is beneficial to the creditors, the investors and addition users of financial statements. The boards are supporting this claim for reducing the costs in application of the standard draft. The key requirement is of specific liabilities and assets for the continuous recognition and measurement with respect to the current IFRS instead of valuing it at fair value. The key requirements are for prospectively applying the provision instead of retrospectively applying it. It has been acknowledged by the boards that these two steps will result in diminishi ng certain advantages for the improvement of reporting presented in the draft. However, it was concluded that the related costs and complexities due to the imposed requirement of fair value measurement. Each and every liability is assumed and asset is acquired in the combination of business and there is a requirement of retrospective application in providing no justification about the IFRS. In addition, an improvement in the consistency of each and every procedures utilized in the accountancy for combinations of business such as international consistency (Glaum et al., 2013). These are extremely helpful in alleviating key concern that the competitive position of an entity holds as potential bidder are significantly influenced by the variations involved in the accountancy of business combinations. Consistency across the procedures of accounting can also result in the reduction of costs for preparing the financial statement, specifically across businesses conducting international operations. Moreover, this kind of consistency will result in enhancing the scope of comparison for information. This will further provide a better understanding about the resulting information of finance and reducing the costs borne by users for the analysis of information. Consistency across the procedures of accounting can also result in the reduction of costs for preparing the financial statement, specifically across businesses conducting international operations. Moreover, this kind of consistency will result in enhancing the scope of comparison for information (Buschhter Striegel, 2011). This will further provide a better understanding about the resulting information of finance and reducing the costs borne by users for the analysis of information. Key Assumptions of Public Interest, Capture Theories and Private Interest A business combination can be referred to as a transaction or an additional event within which control is obtained by the acquirer across one or more number of business organizations. There is accounting of transaction or anything related as a combination of business only in the case if the assumed liabilities and the acquired assets consists of a business. This tends to be providing guidance for the identification of the fact if the assumed liabilities and the acquired assets are not constituting a business organization. The accountability of acquiring an asset is set out in the draft at paragraphs C3-C5. In the combination of business, the acquirer may consider acquiring the equity based interests across the organization. The acquirer will also consider acquiring all or some of the assets of entity constituting the business. Control might be obtained by the acquirer over an acquiree in the following ways (Glaum et al., 2013): By the transfer of cash equivalents, cash or additional assets that include net assets in constituting the business By the issue of equity based interests By the provision of more than one specific category of consideration By coming in a contract alone Without the transfer of any specific consideration Without the involvement of acquired in the transaction In the measurement of fair value for the acquiree, the acquirer can consider measurement of fair value related to the acquiree on the whole, when considering the date of acquisition. Mostly, business combinations are exchange transactions at arms length within which unrelated, knowledgeable willing exchange of parties are the same as value. Hence, in the lack of evidence, the payment of exchange price through the acquirer on the date of acquisition in presuming the fair value at that date for the interest of acquirer within the acquiree. In certain combinations of business, either there is no transfer of consideration in the date of acquisition or the indication of evidence. There is no transfer of consideration on the basis of measuring the fair value on that date across the interest of acquirer within the acquiree. In these combinations of business, the acquirer will consider the measurement of fair value on the date within the interest of acquiree to utilize other techniques of va luation. There is provision of extra guidance for the performance of measurement at fair value within the Paragraphs A8-A26 (Hamberg et al., 2011). The transfer of consideration may be inclusive of liabilities or assets across the acquirer in order to carry the values different in comparison with fair value at the date of acquisition. As in this particular case, the acquirer will have to consider the re- measurement of the transferred liabilities or assets with the fair values and there is recognition of losses or gains in the loss or profit. However, if there is transfer of liabilities or assets to the acquiree, and there lies a combined entity after combining the business. References Buschhter, M., Striegel, A. (2011). IFRS 3Business Combinations. InKommentar Internationale Rechnungslegung IFRS(pp. 137-205). Gabler. Glaum, M., Schmidt, P., Street, D. L., Vogel, S. (2013). Compliance with IFRS 3-and IAS 36-required disclosures across 17 European countries: company-and country-level determinants.Accounting and business research,43(3), 163-204. Hamberg, M., Paananen, M., Novak, J. (2011). The adoption of IFRS 3: The effects of managerial discretion and stock market reactions.European Accounting Review,20(2), 263-288. Malley, A. (2016). Dick Smith collapse raises more questions for accounting profession. The Sydney Morning Herald. Accessed from: https://www.smh.com.au/business/retail/dick-smith-collapse-raises-more-questions-for-accounting-profession-20160721-gqagz5.html

Study Of Procter And Gamble Essays - Brand Management,

Study Of Procter And Gamble A Company like Procter and Gamble can attract the attention of any one in the whole world. It made and still makes the life of any individual much easier by providing him with reliable products that he appreciates for their superiority and their safety. Today, in Egypt, the products of Procter and Gamble have conquered the Egyptian market. In every house, one or more products are found. As a result, the Egyptian local products could not compete with this outstanding quality that P & G offers. The public is interested in gathering more information about the company. That is why, knowing more about the earlier foundation of the firm, its purposes and core values, the process of innovation of its products, its annual report and the link between it and its branch in Egypt could satisfy the people's curiosity. Procter & Gamble refers to William Procter, who established himself as a candle-maker, and James Gamble who apprenticed himself as a soapmaker (P&G History 1). Procter and Gamble first started in 1837 in Cincinnati. At that time, the marketplace in that country was not encouraging to run businesses because of many financial problems. Despite that, P & G ran their company. More specifically, on 12 April 1837, William Procter and James Gamble started to produce and to offer these products to customers. They both started with two main products, which were soap and candles. At the same year, and precisely on 31 October 1837, Procter and Gamble signed up the contract of their partnership and started their business together. Twenty years after signing the contract, P & G sales reached $1million and at that time the company had about eighty employees. In 1862, and during the civil war, P & G Company was ordered to produce a big quantity of soap and candles to fulfill the Union armies' needs. Seventeen years later, a new type of soap called Ivory was invented. By 1890, the types of soap that P & G was producing were about thirty taking into account the Ivory. In the same year, the demand for soaps was increasing. Thus, to be able to meet the customers' increasing demand of their products, P & G company decided to expand the business to go outside Cincinnati to reach overseas and this increased capacity and improved distribution of products to customers (P&G History 2). Later on, P & G started to develop more products and this happened in 1911 when P & G Company introduced for the first time Crisco, which is a type of vegetable equals to the butter, but was more economical. One century after the establishment of the P & G, sales reached $230million (P&G History 2). Throughout years, P & G continued developing new products. In 1987, the company was chosen to be the se cond oldest company among the 50 largest fortune 500 companies (P&G History 3). Five years later, P&G received the World Environment Center Gold Medal for international Corporate Environmental Achievement (P&G History 4). One year after this recognition, P&G Company's sales reached $30 million and even more. In 1995, P&G was given another medal, which is the National Medal of Technology, which is considered the highest award the United States bestows for achievement in technology (P&G History4). Generally speaking, P&G is one of the factors that led to the economic growth and the welfare of the world because it gave the chance to more than 110,00 people to work. Like any other company in the globe, Procter and Gamble Corporation, set their own objectives and goals in order to achieve their main purpose. Their purpose is to provide products of superior quality and value that improve the lives of the world's consumers. By achieving their purpose, they will be rewarded by their consumers with leadership sales and profit growth (P&G Goals 2), which will, in turn, affect their communities, their people and their share and stock holders to live and work in welfare. Moreover, P & G identify their core values such as leadership, ownership, integrity, passion for winning and trust as priorities (P&G Goals 2). By implementing a plan based on these core values, they will be able to achieve their