EU’s Adoption of IFRS

EU’s Adoption of IFRS Introduction From 1st January 2005, all European countries are required under EU law to use the IFRS[1]standards for their financial reporting statements, which includes corporations domiciled within the UK (Nobes and Parker, 2006, p.103). This applies to all year-ends that complete after that date. In addition to this requirement, it is a requirement of the standards that, for comparison purposes, the previous year financial included within the statements must be recomputed to reflect a true IFRS position. The main proposals for these standards and their first year usage are contained within IFRS 1. The change of standards has had a significant impact upon financial reporting in the UK. Therefore the intention of this paper is to discuss why the EU felt it necessary to adopt the IFRS; provide an understand of the IFRS main goals and to ascertain the areas in which this has affected the UK reporting methods, outlining the key areas of change by comparing them to the previous financial reporting methods used. Adoption of IFRS by the EU In previous books (published in 1998 and before), Nobes and Parker (2006) discussed the Varity of different standards that were being operated within the member states of Europe, including those that have converted to capitalism from the former communist bloc, which included countries such as Poland and Romania. These differences have been determined by the political and capitalist attitudes of individual nations and can be separated into two main groups, those where markets and reporting is driven by the state, with weak equity markets, and those driven by business, where the equity market is strong. It has long been accepted that the differing financial reporting standards that have existed in the past has led to difficulties, particular in terms of international trade and financing (Gregoriou and Gaber 2006, p.460). The EU recognised that, within its own region, this was affecting the flow of capital and finance between member states. In an attempt to address this issue, the commission sought to achieve harmonisation through raising legislation and regulations. However, when these failed to work, somewhat reluctantly the commission then changed its position and became an active supporter of the US dominated IFRS standards (Nobes and Parker 2006, p.105). IFRS standards have become increasing accepted as an international method of financial reporting, primarily because of its benefits in improving the globalisation of trade and financial activities, which will become less complex. In addition to the US, an ever-increasing number of countries have adopted IFRS, thus it was only a matter of time before the EU acquiesced. The intention is to move towards a system of fairer values (Bruce 2004), and to make the EU as a regional and international trading bloc far more competitive. However, the EU adoption of the standards, intended to be relatively straightforward, was not without difficulties (Bruce 2004). In the initial stages there were areas of dispute and, in particular, parts of the standards that the EU would not accept, for example IFRS 39 the standard that deals with â€Å"fair value†, although this has recently been adopted in a limited form. Furthermore, despite IFRS, differences between the financial reporting methods used in Europe still exist (Nobes and Parker (2006, p.19). Nevertheless, in view of the pressure from a number of stakeholders, it is inevitable that the impact of individual national standards will continue to be eroded in favour of a globally recognised system (Nobes and Parker 2006, p.13) Executive summary of IFRS IFRS 1, the mainstay of the standards has seen two amendments, the latest implemented in January 2007, although most of these have not affected the underlying core focus of the standards. Whilst each standard has a defined objective, there are a number of overall goals embodied within the process. Objectives The key focus and goal of the International Financial Reporting Standards is to achieve a position where, globally, one system will be seen to be the norm and form the basis upon which all trade, capital and financially motivated decisions in the international marketplace will be relied upon. The intention is that, through the acceptance of these standards, existing investment barriers will cease to exist as well, which will improve capital market performance. Furthermore, it is intended to promote reliable system of universal accuracy and comparability, together with a method that will ensure a standard model for corporate governance that can be referred to equally by all stakeholders, whether they are involved with the corporation or not. It is stated that the improvement to the reporting processes will also develop management data and lead to reduction of risk Individually, the standards have their own goals. For example, IAS 1.7 focuses on the presentation of the financial statements and Cash Flow in a manner that is understandable to everyone. Similarly, the objective of IFRS 7 are to ensure that corporate management discloses all information that has had an impact upon the business during the year covered within the financial statements. In particularly, emphasis is placed upon the accuracy of the corporate balance sheets, cash flows, as these are the areas where historically, as has been evidenced in cases such as Enron, and WorldCom, significant issues of financial stability arose, causing the loss of millions of jobs and investment monies. Achieving reliability within these areas is one of the fundamental goals of IFRS. Once of the main difficulties that arose with previous standards was the method of accounting for value, particularly with respect to assets and other balance sheet items. This situation was exacerbated in situations of the increasing incidence of mergers and acquisitions. Where a corporation takes over or merges with another, the cost of such a move, known as the goodwill payment, under the â€Å"historical cost convention† would be reflected in the balance sheet as the current value. However, goodwill is not a tangible asset in the sense that one can physically touch or use it. Its value will fluctuate in accordance with market determinates. Under the IFRS system items such as goodwill have to be accounted for in respect of the â€Å"fair value† at the time of the statements. Therefore, the core objective is that the statements reflect a realisable value rather than one that may have been eroded over time. To ensure that the financial statements of individual corporations reflected these objectives, IFRS also requires officers of the company and external experts to warrant that all the statements made, and financial information provided within the statements have been prepared in accordance with those objectives. The process of measurement is another key factor within the reporting standards. Here again, concentrating upon the relationship to the â€Å"current fair value,† the individual standards set our prescribed rules and guidelines as to how each item contained within the financial statement should be measured and what will be recognised as an acceptable method. Meticulous attention is paid to the valuation of assets, which apart from the year of acquisition when cost can be used, should have been based upon current realisable value as certified from a reliable and expert source, unless there is a justifiable reason for not doing so. These measurement guidelines are also extended to debts, other liabilities and equity items contained in the financial statements. Requirements for presentation and disclosure in financial statements feature prominently within the IFRS standards. The presentation requirements in particular determine the way in which the financial data should be analysed within each segment of the corporation’s main financial statements and supporting notes. The purpose of this is to ensure that relevant information cannot be, either deliberately or inadvertently, concealed from interested stakeholders. For example, IAS 1.68 identifies the minimum requirement for information analysis in the business balance sheet, and there are similar instructions in IAS 1.81 that relate to the revenue statements, which identify how revenue, finance costs, and profit or loss distribution should be displayed. As indicated earlier, the IFR standards include numerous requirements in respect of the information that corporations are expected to disclose, as can be evidenced from the information checklist that has been prepared by Deloitte (2005), one of the â€Å"big four† auditing firms. In addition to all of the factors already discussed within this papers, further disclosures are expected to be made in relation to the how the business has complied with corporate governance rules and regulations and the assessment of risk. Despite the arguments that have arisen in various circles in respect of individual aspects of the IFRS system, it is generally accepted that they do provide a framework which, when fully implemented and adopted internationally, will be of benefit in relation to the globalisation of trade. A case study of the IFRS impact on a UK corporation The financial statement of every UK Corporation has been affected by the implementation of IFRS and it has impacted upon the resultant financial information. To provide an example of these changes British Telecom is being used as an example. The 2006 statements in support of this analysis are attached in the appendix of this paper. As is allowable under IFRS 1, BT has availed itself of some of the exemptions and exceptions that are provided for in the preparation of the accounts. The exceptions applicable in this case are defined as follows: Business combinations. Employee benefits Share payments Cumulative translation differences Financial Instruments In the main, these exceptions relate to the retrospective treatment of the above items together with other aspects of the treatment of these items at the date of transition. For example, IFRS 3 is not being applied in a retrospective manner to business combinations. Pages 111 and 112 of British Telecom’s annual report for 2006 outlines the major areas of change that have impacted on the financials: Equity. The most important change relates to the reduction in equity. Brought about mainly by the change in employee benefits and adjustment to leases, this has seen a reduction of  £3.9 billion. Profit. As can be seen from the pages referred to, there was little impact from IFRS on the returned profit earned by the business during the year, with the debit and credit amounts cancelling themselves out. Except for an addition of  £8 million. Under the UK GAAP system, firma were allowed to account for divided provisions within the profit and loss account. IFRS standards state that this should not be the case, and that the dividends can only be included within the year that they are payable, therefore these has been excluded. Assets and Liabilities. In terms of the Individual items heading, as can be seen, there have been a number of significant changes, for example with the reorganisation and re-evaluation of the various assets. However, overall the net reduction of the equity format of the balance sheet was only just over  £200 million. In terms of the cash flow statement, there has been no change to the cash flow that has been generated by the business during the year. In essence, this shows that whilst UK business have been concerned with the impact of IFRS, when one takes into account that all competitors are likewise affected, these changes make little or no difference to the market position of BT. Bibliography Whittington, Geoffrey (2005). The adoption of International Accounting Standards in the European Union. European Accounting Review, Vol. 14, issue 1, pages 127-153. Nobes, C. and Parker, R. (2006). Comparative International Accounting. 9th Edition. FT Prentice Hall. UK. Deloitte (2005). IFRS 7: A disclosure checklist. Retrieved 1 May 2007 from http://www.iasplus.com/fs/0510ifrs7checklist.pdf Gregoriou, Greg N and Gaber, Mohamed (2006). International Accounting: Standards, Regulations, Financial Reporting. Butterworth-Heinemann Ltd. Oxford, UK. Blake, John and Amat, Oriol (1993). European Accounting. FT Prentice Hall. Perry Michelle (2005). IFRS – The Next Steps. Accountancy Age. London, UK. Flower, John (2004). European Financial Reporting: Adapting to a changing World. Palgrave Macmillan. London, UK. Bruce, Robert (2004). Setting a new standard. Financial Times. London, UK. IFRS (2007). Summary of reporting standards. IFRS. Delaware, US. Retrieved 1 May 2007 from http://www.iasb.org/NR/rdonlyres/8177F9A2-EB2F-45A3-BBF3-3DE7DCB13E1A/0/IFRS7.pdf Footnotes [1] International Financial Reporting Standards

Fossil Fuel Consumption, Co2 And Its Impact On Global Climate Essays

Fossil Fuel Consumption, CO2 and Its Impact on Global Climate Background: At the beginning of human history, we had to satisfy our energy needs (for food, heat and movement) by using our own muscle power and gathering or hunting naturally available plants, animals and wood. Each stage in the evolution of human society (the development of farming, domestication of animals, harnessing of wind and water power) increased the average per capita energy use, but it was the Industrial Revolution and the exploitation of fossil fuels which marked the transformation of societies into the energy-intensive economies of today. Since the eighteenth century the industrialising countries have come to rely on non-renewable energy resources, and at present about 80 per cent (Myers, 1994) of the world's commercial energy is derived from oil, coal and gas. Although it has been observed that the growth of energy consumption is closely correlated with the increases in gross national product thus our economic development, the major sources of energy (that is fossil fuels) are 'stock resources'. Fossil fuels are consumed by use and the current consumption patterns are non-sustainable. It is recognised that energy conservation and the development of renewable energy sources will be needed to sustain economic growth. The quantity of ultimately recoverable fossil fuels is limited by geology and remains a matter of suspicion, but the view of the 1970s that scarcity was imminent is still popular. It is the 1973 Oil Crisis marked the transition from abundant, low-cost energy to an era of increasing prices and scarcity. Today concerns over scarcity have been overtaken by the question of whether human beings can afford to meet the environmental costs of continued fossil fuel consumption. One of the most widespread concern related to global climatic changes. Introduction: Climate represents normal weather condition of an area over a period of many years. This is in contrast to weather which is the day to day changes in the atmosphere. It is now realised that our global "climatic normals" had fluctuated in the past millions of years which was nowhere related to human activities. Nevertheless, with the increasing human population and our reliance on fossil fuels since the last century, we have definitely 'participated' in the climatic changes which are taking place to a certain e... ...creasing over the last decade. More on that, it is a fact that the burning of fossil fuels do release infrared-absorbing carbon dioxide to our atmosphere. Therefore, it is just a logical conclusion that the greenhouse is here, as it always does. It appears that there is excessive heating within the greenhouse which is induced by our increasing rate of fossil fuel consumption, and the problems that lies behind global climatic change are far reaching . Perhaps, the real limit to our fossil fuel consumption will be the CO2 problem but not the size of the resource. A Chinese proverb says that "prevention is better than cure." Approaches to energy conservation could be the key. Bibliography: Benarde, M. A., 1992, Global Warning†¦ Global Warming, John Wiley & Sons, Inc., 52-65. Goudie, A., 1994, The Human Impact on the Natural Environment, Cambridge: The MIT Press, 301-7. Kraushaar, J. J. & Ristinen, R. A., Energy and Problems of a Technical Society, John Wiley & Sons, Inc., 394-400. Myers, N., 1994, The Gaia Atlas of Planet Management, London: Gaia Books Limited, 96-113. Tolba, M. K., 1992, The World Environment 1972-1992, London: Chapman & Hall, 61- -71.

Liberal arts and counseling

Another important skill that is in application in counseling is writing. This can be described as the presentation of thoughts and ideas in textual medium which is quite different from illustration.Every aspect of academics employs this skill and therefore they is no way we can have counseling without writing. Writing is very important because during counseling sessions, notes should be taken because in the end, you will use those notes in deducing your verdict.Writing skills here are very important because the notes taken have to take a certain logical order. Notes well taken in previous sessions can be used in various ways like in researches especially when a particular problem is recurring and no permanent solution is forthcoming (Chen, Noosbond, & Bruce, 1998).Research done in counseling field is based on those notes that is taken or gotten from clients therefore the format of writing and how it is done is very important. This writing is not important to the counselor only but so metimes communication between the counselor and counselee may be through writing because of barriers in verbal communication.The goodness of this is that it tries to personify the problem and create two entities. This makes analyzing the problem easier because you can look at the problem alone and the counselee alone thereby studying the two entities separately and then combining your findings so that you can give a clinical and professional solution to the problem (Tomm, 1989).Writing option is a very effective method of counseling especially with the adolescents that are shy in expressing themselves and it exploits strength based approach not neglecting the cultural aspects of the society. This is essential in setting up individual paces because traditionally the adolescent is usually at a slower pace than the counselor.When the pace is set up, it builds up confidence on the part of the adolescent thereby speeding up the whole process and making drawing of conclusions easy. Howeve r, the writing method may not be applicable to all adolescents especially those that are poor in writing skills (Tomm, 1989).The above liberal arts skills are phenomenal in effective counseling. They rely on one another such that it is almost like a mandatory requirement to have them or at least consider them before advancement of career in counseling.Humanity study comes naturally despite it being included in most curricular in university studies. Oral expression is learnt especially when one is involved in literature studies where poetry is involved. The writing skill covers the other skills since after all is said and done; one has to put down something.Writing is important in keeping records and conducting the counseling itself because sometimes it is a means of communicating with the clients. Contribution of liberal arts to counseling is immense almost making the two disciplines one because of interdependence on one another.ReferenceChen, M., Noosbond, J. P., & Bruce, M. A. (19 98). Therapeutic document in group counseling:   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   An active change agent. Journal of Counseling and Development, 76, (2).404-411.Fristad, M. A., Gavazzi, S. M., & Soldano, K. W. (1999). Naming the enemy: Learning to   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   differentiate mood disorder mood disorder   symptoms† from the â€Å"self† that experiences   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   them. Journal of Family Psychotherapy, 10, (9). 81-88.Hall, A. S., & Jugovic, H. J. (1997). Adolescents' self-determination: Assuming competency,.   Ã‚   Journal of Mental Health Counseling, 19, (6): 256-267Tomm, K. (1989). Externalizing the problem and internalizing the personal agency. Journal of    Strategic and Systemic Therapies, 8, (10).54-59Zimmerman, T. S., & Shepherd, S. D. (1993). Externalizing the problem of bulimia:     Ã‚  Ã‚  Ã‚  Ã‚   Conversation, drawing, and letter writing in group therapy. Journal of Systemic   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã ‚  Ã‚  Ã‚   Therapies, 12, (1). 22-31.

Children s Support Systems At Home, Strong And Loving...

CHAPTER 1 - INTRODUCTION Introductory statement: According to numerous studies and research, children who have support systems at home, strong and loving relationships with parents, and educators who are willing to reach out and help a student succeed, will also have a higher rate of success in education, relationships, and overall accomplishments (Cotton, 1980). Studies from researchers at Pepperdine University in California claim a connection to middle schoolers who start algebra early and the probability of finishing college; the correlation suggested in high. With studies such as these claiming high correlation between specific caring relationships and the focus of timing on school academics, it is alarming to know that the state agencies who have full responsibility of over 400,000 children per year (Kelly, 2004) are failing drastically. Research proves that around 50% of children in foster care drop out of high school. Another 20% become homeless; living on welfare (Zetlin, Weinberg, 2010). This research proposal is a focus on the support systems that needs to build upon in the school. Research proves that children with a strong support system have a better chance for success, therefore implementing programs that support foster children individually, should greatly decrease dropout rates for this population. Problem Statement: The purpose of this study is to examine the impact of foster care liaisons on academic success when liaisons are placed in schools andShow MoreRelatedWendy Came Into My Life1258 Words   |  6 Pages Wendy Lankford was raised within a â€Å"traditional† family and grew up alongside her mother, father, and younger brother in my home state of Maryland. Today, she is married to Shane Lankford and together they care for three adopted sons; ages 22, 7, and 4. Wendy is a stay at home mom and home schooler who is also actively engaged with her church community and several service groups. Both she and her husband have dedicated themselves to raising awareness and working on behalf of orphans, those withRead MoreFamily Interview : Wendy Lankford944 Words   |  4 PagesFamily Interview Wendy Lankford was raised within a â€Å"traditional† family and grew up alongside her mother, father, and younger brother in my home state of Maryland. Today, she is married to Shane Lankford and together they care for three adopted sons; ages 22, 7, and 4. Wendy is a stay at home mom who is also actively engaged in her church community and with several nonprofit service groups. Both she and her husband have dedicated themselves to raising awareness and working on behalf of orphans,Read MoreThe Role Of Aboriginal And Torres Strait Islander People1586 Words   |  7 PagesIslander people, mostly children, were taken away from their families between the 1890’s and the 1970’s (Korff, 2014). Children were taken to institutions or adopted by non-Indigenous families and most never saw their families again. In the early 1900’s the Australian public was persuaded into believing Aboriginal children were deprived, mistreated and at risk in their own communities. P eople believed that Aboriginal children would receive a better education, a more loving and caring family and aRead MoreAnalyzing Brain Research Influence On Children s Brain Development1371 Words   |  6 Pagesphysical activity and the emotional interactions between parent and child. Brain Development The brain mainly consists of three parts: the brain stem, cerebrum, and cerebral cortex. The cerebral cortex is divided into four different lobes and is made up of neurons. The fine and gross motor skills and vision and memory are controlled by the brain. During a child’s brain development, many things are happening to the function of the body. Children can learn so much in the early years because the brainRead MoreAssessment 2 Essay2000 Words   |  8 Pagesevent on Indigenous Australians, reflect on the relevance of educators having an understanding of this historical event and lastly will discuss how the event undermines and supports the use of Indigenous language. The ‘Stolen Generations’ is a term used to describe the actions of which Aboriginal and Torres Strait Islander people, mostly children, were taken away from their families between the 1890’s and the 1970’s (Korff, 2014). Children were taken to institutions or adopted by non-Indigenous familiesRead MoreEarly Childhood Education1761 Words   |  8 Pagesof two educators that work in the early childhood setting. The main objective is to identify key elements and issues in relation to the families, diversity and difference. In particular how an early childhood educator implements, different approaches to honour culture and diversity, and to advocate for social justice in an early childhood settings. As such, it allows an insight into the important role that families and their background plays in the everyday lives of the children and educators withinRead MoreThe Four Pillars Of Education2169 Words   |  9 Pageslink in to today’s educational system. Education as a discipline and as a practice is informed by four bodies of knowledge and four separate inter related disciplines: Philosophy, Sociology, Psychology and History. These are known as the four pillars of education. Philosophy provides the epistemological basis of education, there are two main philosophical positions in education, they are realism and constructivism. These two factors shape the ways in which educators view the purpose of education.Read MoreBonding And Attachment Between Mothers And Their Children5089 Words   |  21 PagesIntroduction Bonding or attachment between mothers and their children has been a topic of research for many decades. John Bowlby, a British psychologist, psychiatrist, and psychoanalyst began his work with attachment began in the early 1950 s and continued through 1990. His theories, along with Mary Ainsworth s research, an American-Canadian developmental psychologist, was the basis for Attachment Theory. Ainsworth and Bowlby s collaboration on attachment eventually led to the current classificationRead MoreEthical Issues in Marital and Family Therapy Essay3695 Words   |  15 Pagescompromise their privacy and confidentiality. Another imperative to conducting ethical marital and family research is to avoid dual relationships. According to Hohmann-Marriott (2001), when a researcher takes on roles in addition to research, conflict of interest may occur. Some common dual relationships that are likely to result in conflict are: therapeutic relationships; oversight of consent agreements; and sole evaluators of proposed research study. To minimize likelihood of conflict, researchersRead MoreChild Abuse Is A Global Problem4877 Words   |  20 Pagesbeen no understanding of the extent, magnitude and trends of the problem. The growing complexities of life and the dramatic changes brought about by socio-economic transitions in India have played a major role in increasing the vulnerability of children to various and newer forms of abuse. Child abuse has serious physical and psycho-social consequences which adversely affect the health and overall well-being of a child. 1. CHILD ABUSE – BASIC DEFINITIONS â€Å"Child abuse or maltreatment constitutes