Econometrics Essay Example | Topics and Well Written Essays - 1500 words

Econometrics - Essay Example Moreover, the scatter plots of income versus consumption and income versus investment are also plotted. The graphs show that the actual plots of all the variables except the government non-wage income show fluctuating trends with alternative peaks and troughs in the period of analysis. The correlograms of all the variables except the government non-wage income become zero from the third order ones. This shows that all the variable except the government non-wage income show fluctuating trends in the period of analysis. Government non-wage income show steady rising trend in the period of analysis. The correlogram of this variable is not gradually declining and remains the same. The scatter plots show that there is a significant positive correlation between income and consumption .Though a positive correlation can be seen income and investment, it is not so significant compared to the previous one. The OLS estimation for consumption shows perfect model fit. The coefficients for wage income and profit income are positive and significant. One percent rise in wage income leads to a significant rise of 19 percent consumption while one percent rise in wage income leads to a significant rise of 79 percent in consumption. The actual and fitted values of Consumption shows perfect fit as shown from the graphs in appendix 2. The 2SLS estimation shows that only wage income is significant in determining consumption .Here the coefficient for wage income has increased to 81.6 percent compared to the OLS estimation. At the same time profit income lost its significance here. The actual and fitted vales show perfect fit in this case also. For the estimation of investment with OLS, current and lagged values of profit income are positive and significant while lagged value of capital stock is significant and negative in determining investment. One percent rise in current and lagged

Disscus How ethics applies to police work. and how ethical decisions Essay

Disscus How ethics applies to police work. and how ethical decisions should be made by law enforcement - Essay Example They take vow of office, are anticipated to meet the terms with certified codes of ethics, and are subject to numerous rules, laws, and protocols. An officer matures his or her moral scope, ethical base, or character from cooperating with other characters and reviewing ethics. Ethics exercise for police authorities assistances them do the following: Surrounded by an agencys code of ethics are precise provisions endorsing the protection of lives and belongings, the meaning of escaping bias and the accepting that the badge is the representation of the public trust? To be brief, the code of ethics necessitates that officers are not only equipped to impose the law, but to shadow it. They are entitled to be illustrations to the public and to make evident the right way to perform, instead of the entitlement mentality they are so repeatedly reproached of exhibiting (Gleason,

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

Reflective Paper - Essay Example For example, some sniff. Sniffing can cause injury to their nose and increase their chances of getting nose and airway infections. Other drug addicts use injections to administer drugs in their systems. Injections cause infections because they are shared and reused by different people. An example of an infection that spreads by using injections includes HIV/AIDS. This practice has a negative impact on the society because most of the youths end up being infected with AIDS leading to an increase in the mortality rate. This in turn decreases the total population of the youths and the workforce of the country. In my opinion, drug addiction is an evil culture that must be eliminated from our society. According to my Muslim religion, anyone who indulges in an act that impairs their mental alertness and judgment should be excluded from the rest of the Muslim worshipers. The reason is to prevent peer pressure and bad influence to others. According to my religion, culture, and environment, Muslims do not allow children to mingle with drug addicts because they fear that their children might start using drugs. I have encountered several experiences of drug related problems, but the one of them really caught my eye. I remember a well-known businessperson in my region that was famous, not only for his success in business, but also for his over indulgence in alcohol consumption. Over indulgence in alcohol consumption eventually caused him his job and social life as he ended up breaking his marriage and being fired from his job. As a health care personnel under constant exposure to drug addicts there is a higher risk of developing some degree of biasness, because of the first impression I get when encounter them as patients. I feel like they are joking and have wasted part of their lives abusing drugs rather than doing something constructive. This can interfere with my decisions to offer support and health care. Another form of biases that may arise

Contract tender process in the work environment Essay

Contract tender process in the work environment - Essay Example It is interesting that computer crime is compared with the crime of serial killing, but computer criminals are more subtle, erratic and evasive. Therefore, it requires serious anti-computer crime control mechanisms to check this devastating crime that has defrauded corporations, societies and individuals to the tune of millions of dollars each year. One issue that has become a disturbing phenomenon to corporate stakeholders, as well as business management process decision-makers and leaders of communities is computer crime. But the impact of this modern-day problem is mainly felt in the corporate world, where organizations stand to potentially lose millions of dollars a year. For the fact that computers are becoming household commodities, and Internet access is ubiquitous and cheap, there is no end to the threats from what is termed the computer criminal. This report would investigate the sources of computer crime, its trend now, the losses it causes many corporate entities, and some of the criminal types behind the ever increasing range of scams. Relevant literature from peer-reviewed sources would be explored in order to elicit vital information about how computer crime has developed to ravage our societies. Findings from these scholastic sources are highlighted and discussed with the view of offering recommendations about the appropriate ways to tackle the endemic problem of computer crime. Experts dealing with this major problem have attempted to give specific definitions of what is a computer crime. This has been made more difficult by the crime type evolution, the fact that over the years, this kind of crime has developed into several interwoven forms comprising all crime types involving the use of computers. It has also been discovered that computer crime is a crime that could be categorized as white-collar: for a computer

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

Reflective Paper - Essay Example For example, some sniff. Sniffing can cause injury to their nose and increase their chances of getting nose and airway infections. Other drug addicts use injections to administer drugs in their systems. Injections cause infections because they are shared and reused by different people. An example of an infection that spreads by using injections includes HIV/AIDS. This practice has a negative impact on the society because most of the youths end up being infected with AIDS leading to an increase in the mortality rate. This in turn decreases the total population of the youths and the workforce of the country. In my opinion, drug addiction is an evil culture that must be eliminated from our society. According to my Muslim religion, anyone who indulges in an act that impairs their mental alertness and judgment should be excluded from the rest of the Muslim worshipers. The reason is to prevent peer pressure and bad influence to others. According to my religion, culture, and environment, Muslims do not allow children to mingle with drug addicts because they fear that their children might start using drugs. I have encountered several experiences of drug related problems, but the one of them really caught my eye. I remember a well-known businessperson in my region that was famous, not only for his success in business, but also for his over indulgence in alcohol consumption. Over indulgence in alcohol consumption eventually caused him his job and social life as he ended up breaking his marriage and being fired from his job. As a health care personnel under constant exposure to drug addicts there is a higher risk of developing some degree of biasness, because of the first impression I get when encounter them as patients. I feel like they are joking and have wasted part of their lives abusing drugs rather than doing something constructive. This can interfere with my decisions to offer support and health care. Another form of biases that may arise

The Spirit and Personality of Man Essay Example for Free

The Spirit and Personality of Man Essay The Spirit and Personality of Man In your opinion, how is the spirit and personality linked? Where does the idea of a spirit fit within your own theory of personality? What is the spirit of a man? Where did our personalities come from? What influences our personality? We know that our environment which includes our family, culture and communities’ influence us but what is behind our personalities? Should we think of the self as a complex chemical substance or as a spirit? We find ourselves identified with God in Genesis 1:26 (New International Version) in this book the Lord God is found speaking to other members of the Godhead and says, â€Å"Let us make mankind in our image, in our likeness, so that they may rule†, in Genesis 2:7 (NIV), he continues to tell us about our creation in the next chapter by saying, â€Å"the LORD God formed a man from the dust of the ground and breathed into his nostrils the breath of life, and the man became a living being. This tells us that our personality comes from God and that it is he that has made us and not we ourselves† Psalms 100: 3 (NIV). From a biblical standpoint of view it tells us that we come from God and that our personality is mostly spiritual since Adam had no life until God breathed into him and we likewise. When people die the body is lifeless and is returned to the ground. The Jewish, Christian and Muslim communities believe in the God of heaven (who is a Spirit, John 4:24) and that we took our personalities from him. On the flip side of that Satan worshipers believe that Satan (who is a spirit) is greater than God and they devoutly worship him and are lead by his Principalities, Power and Rulers in their everyday life. That seems to be about or close to half of the world’s population which believes that a spirit being controls their mind, will, and emotions. This informs us of where (I believe) we come from and where our personalities come from. No one, or no thing, is an island unto itself (Hoffman, 1993). Many people believe that we are sovereign unto ourselves, and that there is God’s ways (personality), my ways, and the Devils ways and that is not true. When Adam sinned against God, he gave authority over to Satan which allowed the kingdom of darkness a legal obligation to oppress, and possess me when they sin. Although we did not see happen physically nor do we see it reoccurring physically today, we see the result of the relationship between sin, personality and evil spirit. Every week or two I log on to scoan. org to watch Christian services by Prophet T. B. Joshua. Prophet T. B. Joshua is a Christian, minister, televangelist and faith healer. He is leader and founder of the ministry organization The Synagogue, Church of All Nations (SCOAN) located in Lagos, Nigeria. Most of time during his services before he begins to pray he says, â€Å"Whatever your situation is, whatever your problem is, it might be sickness, disease, cancer, bad luck; whatever your problem, a Demon is behind it†. Then when he begins to lead his congregation in prayer people who are possessed or oppressed by demons began to crawl, slither, gag, spit, and sometimes even want to fight him. What about these people’s personality causes them to behave inhumanly? I would say they are faking but I grew up around the same church environment, plus it is common to read about Demons reacting to Jesus the same way in Mark 9:14 – 20 (New International Version), the man with a deaf and dumb spirit, Mark 1:23-24, King James Version, a man with an unclean spirit in the synagogue, and the man with a legion of demons (Mark 5:15 NIV). When the man with the legion of demon had them cast out he was instantly changed from being a savage, into a man of solitude, a sound mind and peace. I do not understand how our spirit and personality actually connected but I do understand that the kingdom of heaven and the kingdom of darkness are in a war to save or destroy the spirit and personality of man. The bible says that our struggle is not against flesh and blood, but against the rulers, against the authorities, against the powers of this dark world and against the spiritual forces of evil in the heavenly realms.

International Accounting Standards: UK Financial Reporting

International Accounting Standards: UK Financial Reporting APC311 INTERNATIONAL FINANCIAL REPORTING ASSIGNMENT (Word count: 3, 080) Introduction The growth of international activities has been rapid over time. These activities include areas of international trade, international investment, international bond and equity offerings, capital movements between countries and the number of multinational firms. Countries, entities and bodies who carry out these activities continuously seek to achieve growth and higher returns at lower cost of financing. This implies that there is often the need to consider international rather than national or internal alternatives of raising finance. The differences in accounting systems and principles that exist in different countries are a barrier to towards the comparability of financial information that is published by companies using different sets of accounting standards (Alexander, 2007). This led to ‘the pressure for international harmonization to regulate, prepare and use financial statements which are reliable, comparable and transparent (Nobes and Parker, 2000). This can only be achieved if countries employ the same accounting standards through the harmonization of accounting principles. International harmonization may be defined as a political process aimed at reducing the differences in accounting practices across the world in order to achieve comparability and compatibility (Hoarau, 1996). To achieve this feat, accounting regulators such as the IASB have attempted to advance harmonization projects in an attempt to minimize differences between different national accounting standards (O’Regan, 2006). As argued by Choi et al (2002), harmonization will make it more likely for users of financial statements to interpret the information correctly and make better decisions based on that information. It will also reduce drastically the information asymmetry between stakeholders and companies and hence save manpower, money and resources. The International Accounting Standards Board (IASB), issuers of International Accounting Standards (IASs) was established in 2001 and is the independent standard-setting body of the International Financial Reporting Standards (IFRSs) Foundation, an independent, private sector whose principal objectives are to develop in the public interest, a set of high quality, understandable, enforceable and globally accepted international financial reporting standards (IFRSs) based on clearly articulated accounting principles. IFRSs are a set of high quality, understandable, enforceable and globally accepted Standards based on clearly articulated accounting principles. The need for International Accounting Standards The international investor The information age and the advent of high-tech computers makes possible the availability of massive amounts of international financial information. Institutional and individuals who are interested in making international investments can therefore benefit from the global harmonization of accounting standards. International Accounting firms The role of international accounting firms include providing auditing and consulting services in many countries. The absence of international accounting principles implies that they have to gain expertise in areas of domestic financial accounting principles and related laws. Gaining this expertise can substantially increase their operational costs. International intergovernmental organisations International intergovernmental organizations including the United Nation (UN), the European Union (EU) and the Organization for Economic Cooperation and Development (OECD) extend credits for projects to other countries. They are therefore interested in obtaining comparable financial information in order to evaluate the projects they carry out in the various countries.as the organization. This can be achieved only if there is harmonization of international accounting principles. Developing countries Developing countries often seek international financing sources for their development. It is important for their governments and accounting regulating bodies to adopt international accounting standards in order to make it easier for them to access international financing sources. Stock exchanges The use of international accounting principles can enable the internationalization of Stock exchanges which can in turn increase international financing activity. This essay will make particular reference to the UK equivalent of accounting standards i.e., the  Financial Reporting Standards (FRSs) to examine the different accounting treatments in the individual accounting standards of interest in this assignment. IAS 38 Accounting for intangible assets Definition: An intangible asset is an identifiable monetary asset without physical substance. An asset is a resource that that is controlled by the enterprise as a result of past events and from which future economic benefits are expected [IAS 38.8]. The objective of IAS 38 is to prescribe the accounting treatment for intangible assets that are not dealt with specifically in another IAS. The standard deals with: the criteria to be met before an enterprise can recognise an intangible asset; how to measure the carrying amount of intangible assets and the disclosures that needs to be made. Examples of assets that may qualify as intangible assets under IAS 38 are: computer software, copyrights, customer and supplier relationships, franchises, licenses, rights patents. The three critical attributes of intangible assets are: Identifiability: In order for an intangible asset to be identifiable, it must be separable and it arises from contractual or other legal rights, regardless of whether those rights are transferable or separable from the entity or from other rights and obligations. (IAS 38.12) Control (power to obtain benefits from the asset) An intangible asset must be under the control of the enterprise in order for it to have the power to obtain future economic benefits from the asset. Control will usually but not necessarily emanate from legally enforceable rights, in the absence of which it is more difficult to prove the existence of an asset. For example, control over technical know-how is deemed to exist only if it is protected by legal right such as a copyright or patent. Recognition and measurement: IAS 38 stipulates that an intangible asset should be recognised only if both of the following occur: It is possible that the future economic benefits that are attributable to the asset will flow to the entity, and The cost can be reliably measured. The cost of an asset must be reliably measured if the asset is acquired in a normal transaction. Also, the fact that a price has been paid for the asset, is a reflection of the expectation that future economic benefits will flow to the entity. Goodwill and brand image In order for goodwill and brand image to be classified as intangible assets and included as assets of the enterprise, they need to be identified separately. If goodwill and brands have been acquired externally, then their cost and existence can be identified and capitalised. As regards internally generated goodwill, it cannot be recognised as an asset because: it is not separable from the business it has not arisen form contractual or other legal rights, and its cost cannot be reliably measured (IAS 38). A reconciliation of the carrying amount at the beginning and the end of the period. FRS10, accounting for goodwill and intangible assets is the equivalent UK Financial Accounting standard to the IAS 38. The standard views goodwill arising on acquisition as not constituting an asset or an immediate loss in value. But it relates to the cost of an investment in the financial statements of the acquirer, hence the values are attributed to the acquired asset and liabilities in the consolidated financial statements. The standard is of the view that even though purchased goodwill is not in itself an asset, including it in the assets of the reporting entity rather than deducting it from shareholder’s equity recognises that goodwill is part of a larger asset whose investment the entity’s management remains accountable. Thus, the objective of the FRS10 is that it ensures that purchased goodwill and intangible assets are charged to the income statement in the periods they are depleted. A comparison of the different accounting treatment of intangible assets by the IFRS and UK GAAP can be seen in Appendix 1. Discussion The IAS definition for intangible assets has its limitations as many intangibles such as patents and related drawings do have a physical substance (Tiffin, 2005 p.67). However the real issue with intangible assets is that intangibles are difficult to value and as such, attempting to measure their impairment is plagued with problems Godfrey Koh, 2001). The uncertainty about asset values and their impairment renders them susceptible to creative accounting. Intangible assets can be generated internally by firms. But it is difficult to accurately identify and cost such assets. IAS38 states that ‘internally generated goodwill shall not be recognised as an asset’. Research and development are therefore considered to be different parts of creating an internally generated intangible asset. The research phase is defined by IAS 38 as ‘original and planned investigation undertaken with the prospect of gaining new scientific or technical knowledge and understanding’. This implies that research costs incurred are expensed when they occur. There is consistency in classifying what constitutes an intangible asset by the standard. Of course, this treatment of research is appealing as there is a probability that an initial research may not actually lead to any economic benefit. Accounting for leases (IAS 17) Definition: A lease is an agreement whereby the lessor conveys to the lessee in return for a payment or series of payments the right to use an asset for an agreed period of time. A lease falls under two main categories; a finance lease and an operating lease. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incident to ownership. All other leases are classified as operating leases. Classification is made at the inception of the lease. [IAS 17. Thus, in order to accurately classify the type of lease, it is important to determine whether the risks and rewards associated with owing the asset are with the lessee or the lessor. An asset will be classified as a as a finance lease if the if the risks and rewards lie with the lessee. However, it will be classified as an operating lease if the risk and rewards lie with the lessor. As regards a finance lease, the concept of substance over form is applied. The substance is that even though the legal owner of the asset is not the lessee, the commercial reality is that the lessee has acquired an asset by obtaining finance from the lessor, this implies the recognition of an asset and liability. Other distinguishing factors of a finance lease include: The present value (PV) of the minimum lease payments at the beginning of the lease amounts to substantially all of the fair value of the asset. By the end of the lease, the lease agreement transfers ownership of the asset to the lessee. The option rests with the lessee to purchase the asset at a price expected to be substantially lower than the fair value when the option becomes exercisable. The leases asset must be of a specialised nature. A comparison of the different accounting treatment of intangible assets by the IFRS and UK GAAP can be seen in Appendix 2. Discussion Operating leases appear to be more popular as both the leased asset and liabilities can be effectively kept off the balance sheet with future lease obligations disclosed as footnotes. However, a finance lease, often treated as an ‘in substance’ purchase by the lessee and a sale by the lessor, is less popular as it requires both leased assets and liabilities to be recognized on the balance sheet. But the finance lease does produce a tax benefit because of a larger expense, interest plus depreciation, compared to an operating lease which only reports the lease payments as an expense. IAS 17 (IASB, 2008) allows managers to structure a lease in such a way as to avoid the reporting of lease assets and liabilities. In order to ensure a complete and transparent recognition of assets and liabilities arising from lease contracts on financial statements, the IASB decided to make no distinction between finance leases and operating leases and employ the ‘right-to-use assets’ and its lease obligations that is based on the present values of future lease payments using the incremental borrowing rate of the lessee at the inception of a lease. Capitalization of lease can impact negatively on earnings because of the increased cost due to the depreciation of the asset and interest expense. This will in turn affect expected profit margin, return on earnings (ROE) and return on assets (ROA) (Bradbury, 2003). IAS 37 Accounting for provisions, contingent liabilities, and contingent assets Definition A provision is a liability of uncertain timing or amount. IAS 37 ensures that a provision should be recognised only when there is a liability i.e. a present obligation resulting from past events. Contingent liabilities: Definition: A contingent liability is: a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence of events not wholly within the control of the entity; or A present obligation that arises from past events but is not recognised because it is not probable that an outflow of economic benefits will be required to settle the obligation; or A present obligation that arises from past events but is not recognised because the amount of the obligation cannot be measured with sufficient reliability. Disclosure An entity should disclose a contingent liability in a note, unless the possibility of an outflow of economic benefits is remote. Contingent assets A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. An entity shall not recognise a contingent asset. When the realisation of income is virtually certain, then the related asset is not a contingent asset and its recognition as revenue is appropriate. A comparison of the different accounting treatment of intangible assets by the IFRS and UK GAAP can be seen in Appendix 3. Discussion IAS 137 aims at ensuring that only genuine obligations are dealt with in the financial statements i.e. planned future expenditure even when authorised by the board of directors or equivalent governing body, is excluded from recognition. Appropriate recognition criteria and measurement bases are applied to provision, contingent liabilities and contingent assets and that sufficient information is disclosed in the notes to enable users to understand their nature, timing and amount. The standard seeks to ensure that for example assets are not overvalued. Accounts receivables may be overvalued if reasonable provision for bad debts is not made. This has the tendency to inflate earnings and in such instances the provision for bad debts will prove to be inadequate in future, whilst in the short term account receivables and earnings receive a temporary boost. Also, contingent liabilities which are obligations that are dependent on future events for the confirmation of the existence of an obligation. If companies fail to record a contingent liability that is likely to be incurred and subjected to reasonable estimation, it has the effect of understating their liabilities and overstating their net income or shareholders equity. The above examples are indications of how companies use creative accounting to manipulate their financial statements especially their balance sheets. Conclusion Accounting for intangible assets, accounting for leases and accounting for provisions, contingent liabilities, and contingent assets are all complex areas which are prone to manipulation in the form of creative accounting which is defined as â€Å" the transformation of financial accounting figures from what they actually are to what preparer desires by taking advantage of the existing rules and/or ignoring some or all of them† (Kamal Naser, 1992). Creative accounting in whatever form it takes is usually meant to overstate assets or understate liabilities. The collapse of a number of corporate giants such as Enron Corporation, Tyco International, World Com, Global Crossing, Arthur Anderson, Parlmalat etc. have not only destroyed investor confidence and shareholder values but it has also damaged the accounting profession. The situation is even made worse when there are different accounting standards that are used in preparing financial statements. This is made even worse when there are different accounting standards used in preparing financial statements. The adoption of one set of global financial reporting standard such as the international financial reporting standard (IFRS) that confers with investors, stock markets, accounting professionals and accounting standards setters will go a long way to reduce the practice. Arguably, accounting standards whether in the US, UK, Australia or the IAS will not have all the answers to accounting and financial reporting problems but it is hoped that it will largely reduce its occurrence. APPENDICES APPENDIX 1 Comparison of IFRSs with UK GAAP treatment of intangible assets Appendix 2: Comparison of IFRSs with UK GAAP treatment of Lease APPENDIX 3 Comparison of IFRSs with UK GAAP treatment of provisions, contingent liabilities, and contingent assets