Accounting For Leases And New Proposed Models Essay

Accounting For Leases And New Proposed Models - Essay Example The International Accounting Standards Board calls for a new lease accounting principle that relates to assets and liabilities. This write up proposes criteria to be set for deciding between two interpretations of whether the lease increases or decreases both assets and / or liabilities. SFAS no. 13, which was issued by FASB, was at that time, 2001, showing improvement on the setting of accounting standards for leases. Many write ups on leases followed suit such as 9 FASB amendments, 12 FASB technical bulletins, EITF consensus, 6 FASB interpretations and others. The FASB is continually working to come up with an adjustment to the Statement of Financial Accounting Standards no. 13 (lease) because it has failed to address many questions by many sectors of the accounting, school, business and other companies on the accounting procedures and interpretation of leases. SFAS no 13 states that an asset can be considered a capital lease, where the value of the leased property is included in the balance sheet of the lessee, If the four conditions listed a are met: a) The lease conveys ownership to the lessee at the end of the lease term. b) The lessee has an option to purchase the asset at a bargain price at the end of the lease term. c) The lease term covers 75% or more of the economic life of the asset. d) The present value of the rental payments when using the lessee’s incremental borrowing rate is ninety percent or more of the fair market value of the asset. TWO ALTERNATIVE CONCEPTS OF LEASE ACCOUNTING One of the main points of SFAS 13 is that all lease contracts generate obligations that should be presented in the balance sheet, contrary to what the Financial Accounting Standards Board believes. In fact, SFAS no. 13 states that "a lease that transfers substantially the entire benefits and risks incident to the ownership of property should be accounted for as the acquisition of an asset and the incurrence of an obligation by the lessee and as a sale or financing by the lessor. All other leases should be accounted for as operating leases. (FASB 1976, para. 60)" FASB differs this by saying that not all lease contracts create both a new asset and a new liability. The FASB and G4+1 group have been implementing the FASB standard on lease recording. Companies in Canada, Australia, United Kingdom and New Zealand have also been following the FASB standards. THE CONCEPTUAL FRAMEWORK AND ACCOUNTING FOR LEASES When assessing the generally accepted accounting principles states that accounting information that should be included in the financial statements are those that are submitted on time to the decision makers. These financial statements must also be relevant to the decision making process. Further, the financial statement items should stated in such a way as to permit comparability between two accounting periods or two or more financial entity who are subsidiaries, branches or competitors. Therefore, when rights and obligations are recorded in a lease contract, intangible assets are created. An airline company comes into "existence" when it buys an airplane. According to monsoon, There is a possibility that lessees may record the lease asset in the balance sheet will be boundless because intangible assets cannot be easily estimated. When a bank

Slavery Comes to the American Colonies From 1492-1750 Essay

Slavery Comes to the American Colonies From 1492-1750 - Essay Example Development in the South American colonies and the West Indies were retarded due to the control and dominance by the Spaniards. There was also a drift towards an economy based on agriculture. These two factors contributed to the development of slave-holding societies in the American colonies. In the initial stages local natives were use in the development of commercial agriculture, but the local natives were not able to withstand the heavy workload they were expected to perform and withered away. The decimation of the local communities had the benefit of providing even more land for commercial agricultural production. The lack of local natives for slave labor and the added land available for agricultural production cause the induction of the hardy African Negroes into these lands, as slaves to work on commercial agricultural production sites. (Hinton, K.V., 2005). The use of African Negroes as slaves in the American colony started when King Charles V of Spain granted a license for bringing four thousand African Negroes into the West Indies as slaves. From then on the American colonies were to witness the growth of slavery. The English involvement in trade and use of slaves started in 1562, and subsequent to the revolution in 1688 trading and use by the British was to flourish. With the royalty involved in the slave trade its growth was only enhanced. An English company was formed in 1713 with Queen Anne of England holding a quarter share, and King Philip V of Spain another quarter. This company was given the privilege of supplying 144,000 Negro slaves to the Spanish American colonies for a period of thirty years, and is an indication of the growth in slave trade and the use of slaves in the American colonies. The spread of the use of Negro slaves into the United States of America was a natural extension of the wide use

Churchill, hitler, and the unnecessary war Term Paper

Churchill, hitler, and the unnecessary war - Term Paper Example Germany was also barred from building up large army. Tanks, aircrafts and submarines were also not allowed to be held by Germany. All these steps were deemed to be taken to prevent Germany from initiating any other war. Germany abided by the restrictions imposed by this treaty only by the end of second decade of the 20th century. In January 1933, Adolf Hitler was powered up by the disgruntled and poor people of Germany to take over the throne. The basis of their belief in Hitler was that they wanted a person who might empower Germany again and pull to pieces the unjust and unfair treaty. As a result, Hitler became the Chancellor of Germany. Soon after he became the Chancellor, he started the building up of German forces. He also empowered the German army by equipping it with modern weapons. Initially, all this was done secretly but soon it came to light. However, the Great Britain and France took it lightly. They were of the view that these actions will strengthen and will be helpful in stopping the flourish of Communism in Europe. After having built up the German forces for 2 years, Hitler gave them order to enter into Rhineland in 1936. The reason provided by Germany for this invasion is the threat that Germany was facing as a result of treaty with Russia. So, it became very important for Germany to post its troops in Rhineland. It is also considered by many historians reasonable that as Rhineland was a part of Germany, so, there is no bar if German troops are posted there. However, Germany was very weak at this point and little intervention by Britain or France could have defeated them. However, neither of these two intervened as they did not want to start another war with Germany. Meanwhile, Hitler also stepped forward to make allies with two important countries of Japan and Italy. Later on, Hitler advanced to take back the land of Austria. In March 1938, Hitler ordered German army to march in Austria to occupy the land. Austrian leader was then forced to c onduct a poll to decide whether the people of Austria wanted union with Germany. The results showed the favor of 99% of the citizens of Austria to live with Germany. The Austrian leader asked for help but, on been satisfied from Hitler side, none of Britain and France came to help Austria. Adolf Hitler promised that the union of Austria with Germany will end the aims of expansion of Hitler and he will not move further on. However, breaching his own words, Hitler insisted that the region of Sudetenland of Czechoslovakia should be handed over to Germany. Neville Chamberlain, the then British Prime Minister, met Hitler thrice in September, 1938. Chamberlain was himself of the view that Treaty of Versailles was not just and equitable for Germany. So, he took a soft corner for Germany. Finally, it was decided in Munich Agreement that the region of Sudetenland would be handed over to Germany on the provision of Hitler’s assurance that he would not make claims for any further territ ories. The agreement was mutually decided and signed by German, British, French and Italian leaders. However, Czech government was not involved in the agreement upon which they recorded their protest. However, Hitler occupied whole of the Czechoslovakia in 1939 March. Czechoslovak government asked for help but none of Britain and France intervened in the invasion. However, both of these countries promised that they would take military action against Hitler if the German forces advanced towards Poland. On September 1 1939, German forces occupied Poland

Hewlett Packard takes project management learning to a higher level Term Paper

Hewlett Packard takes project management learning to a higher level - Term Paper Example ency, productivity and profitability of their firm was being negatively impacted by the lack of direct training they provided to middle management; specifically project managers. Accordingly, the firm endeavored to change by providing a visionary and optimistic training program that proved to be the envy of many firms. As a means of understanding and appreciating the approach that Hewlett Packard engaged in, with respect to an overarching project management and training program, the following analysis will seek to draw inference with respect to the key inputs of the deliverables for the project in question, how some of the challenges to the project management process may be defined, and the opinion of this analysis with respect to the quality of the project management that was exhibited within the case in question and why. The key inputs that provided the mechanism for change with regard to the case in question are contingent upon the desire and wherewithal to change, investment in training, and promoting core concepts of interaction and business development. Within such a rubric, HP was focused on achieving a competitive advantage over their rivals by focusing on the quality of the training process and ensuring that the inputs – ability to change, investment in training, and promoting core concepts of interaction and business development – would serve as the platform through which a greater level of IT provision within the firm and a higher level of productivity. Of all the inputs, the investment in time and money that such a program required was immense. As such, many individuals outside HP would have been hesitant to commit such a high level of resources on a thus far unproven program that was intended to maximize future project organization and profitability within the firm. Another relevant input that must be discussed is with regard to the training that took place prior to the program being offered at all. Rather than bringing in outside

Analysis of Bubonic Plague Research Paper Example | Topics and Well Written Essays - 1500 words

Analysis of Bubonic Plague - Research Paper Example Due to the severity and intolerableness of its effects, this plague was considered as a lethal cause of death. The origins of this plague are associated with the East and a rapid spread is acknowledged all around Europe. The plague resulted in a diminishment of entire communities and a lack of resources and manpower to deal with the bodies was also accounted (HistoricUK). This paper will analyze the situation of England by considering social, economic, religious and political grounds during that era. Political Factors The most devastating era for London was during 1563 when the death rate due to the bubonic plague reached its peak. Approximately 80,000 deaths were reported and further analysis reveals almost 1000 weekly death in August 1600 weekly in September and 1800 in October (Miller & Orr). As a result of frequent death reports, people started to migrate from London. The elite class had no issues escaping the infectious plague and left the premises of London easily. Like many ot her accounts, poorer families and the financially unsound population were left to die. Queen Elizabeth also fled without paying heed to the people left behind. The political powers, yet again, seemed to support the privileged rich families with no regard given to the humanity and precious lives of poor people. This was not the end of Elizabeth’s political power and justice, she further passed a law to hang any person who enters from London. This justice was not to protect anyone except her own life. The restrictions on imports were also imposed to protect herself from the deadly plague. However, the plague still prevailed and crossed the borders without paying heed to Elizabeth’s orders and laws in 1578. Elizabeth took a rather realistic step and physicians were directed to find cures and prepare preventions for the plague diseases. Economic Factors The economic condition of England was greatly affected by the Plague. Almost half of the London population died due to th e devastating effects and ultimate demise of the victims. The poorer labor force was affected the most as this class could not flee or escape the horrifying effects of the plague. The high death rate of the labor class resulted in the shortage of labor force in England. This resulted in high pay demands of labors and landowners were forced to move towards money rents and dodge high labor costs. In addition, farming was replaced with grazing practices which needed fewer workforces. The peasants remained privileged due to high wage rates, as long as the rulers or elite class did not put hands on the state’s funds for their personal expenditures and motives. In order to overcome the labor availability issues at reasonable rates and curb the power of labor class, the political step was taken with the fixation of wage rate. The migration, in addition, was prohibited to keep the labor facilities available for their own needs. These steps created a negative attitude of the workforce and the rise of Priests’ Revolt is often associated with these political actions taken during the plague period. Religious Factors The Plague appeared for unknown reasons and the indistinct reasons led to chaos in the minds of the people regarding the underlying reasons for its spread.  Ã‚  

Micro economics Term Paper Example | Topics and Well Written Essays - 2250 words

Micro economics - Term Paper Example Aside from stocks and bonds, other investment instruments are mutual funds, stock options, and other financial derivative securities, which are briefly defined and described here. A stock is ownership of a corporation represented by shares that are a claim on the corporation’s earnings and assets (Downes, John & Goodman, Jordon Elliot, p. 556, Barron’s Educational Series). The price of a stock is the equivalent of the present value of all future dividends; it is also the present value of a dividend stream for the number of years it would have been held, plus the present value of the anticipated price of the stock after that time period (Block, Stanley B. & Hirt, Geoffrey A., p. 284, McGraw-Hill Irwin). Common stocks entitle the shareholder to received dividends in stocks and bonds, and to vote in the election of directors and other matters taken up at shareholder meetings or by proxy (Downes, John & Goodman, Jordon Elliot, p. 556, Barron’s Educational Series). The stock market is the general term referring to the organized trading of securities through the various exchanges and the over-the-counter market (Downes, John & Goodman, Jordon Elliot, p. 563, Barron’s Educational Series). It is likely that the role played by the market in gathering and disclosing information may be more important for large firms because their stocks are traded more often and are followed by many analysts (Demirguc-Kunt, Asli & Maksimovic, Vojislav, p. 49, Finance & Development). Small firms may not benefit as much from stock market development, at least initially, because their access may be limited by high fixed issuance costs (Demirguc-Kunt, Asli & Maksimovic, Vojislav, p. 49, Finance & Development). Even the stock of small firms that are listed on an exchange may not be traded as often as the stock of larger firms, since it

The Nature Of Reality Essay Example for Free

The Nature Of Reality Essay What is reality?   Throughout the history of mankind it seems that we have all been searching for the answer to this question.   The nature of reality cannot be explained in a way that will satisfy us all.   I believe that the nature of reality is lies within the mind of each of us.   What is reality for one person is not reality for another.   Reality is based on individual perception, and the evolution of each person.   What I mean by this is that each person goes through a type of evolution in his/her life where the mind begins to develop a higher awareness. Most of us begin to realize that there is more to the process of life than being born, aging, and dying.   Greek philosopher, Thales thought that â€Å"beneath the world of life and death there must be some basic substance which explained and made possible everything else,† (The Ionian School, undated website article). Many of us begin to believe that we are much more than our physical bodies.   And that leaving our bodies through death is not the end of our existence. Our life force, energy, or soul will continue to live on a different level or dimension.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Of course, believing in a sort of ‘life’ after death is a major topic of debate.   Philosophers continue to ponder if this could be reality, Christians structure their lives around this belief, and scientist argue that reality is only that which can be proven. â€Å"Clearly, the mere fact that one believes in and lives by something is not of itself sufficient evidence that that something has real, as distinct from fictional, existence; that, intellectually, it makes sense, as distinct from nonsense,† (Somerville, 1967).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   I believe that just because we can’t prove something through science does not mean that something can’t exist.  Ã‚   For example, well-know psychics seem to be able to communicate with the dead, and predict future events often with amazing accuracy.  Ã‚   Even ordinary people who have had near-death experiences insist that there is something more, and often claim to have seen the other side of physical life.   Therefore, I believe that the nature of reality is different for everyone.   And the secret to reality is in our own minds.   I believe that what will be real in our lives, will be that which is real in our minds. References Somerville, J. (1967).   The Nature of Reality: Dialectical Materialism.   In The Philosophy of Marxism: An Exposition (pp.3-32).   Minneapolis: Marxist Educational Press. The Ionian School.   Retrieved February 24, 2007, from http://www.hol.gr/greece/texts/aristo.1txt.