Accounting standards and principles Essay Example for Free

Accounting standards and principles Essay In 1973, international accounting standards committee issued international accounting standards (IAS) which lasted till 2000 when they were replaced by IFRS. These are standard based principles, accounting practices guidelines, interpretations and framework adopted by the (IASB) (Epstein Jermakowicz, 2010). In 2001, IASC was replaces by IASB which was mandated in setting international accounting standards. The objective of IFRS is to make companies financial statements to reflect truth and fair view of companies’ affairs as at particular date (Epstein Jermakowicz, 2010). Generally accepted accounting standards are principles and accounting guidelines recognized by a given territory, jurisdiction or most countries especially the United States to supplement the role and objectives of IFRS. Financial statements should be presented, summarized and recorded based on particular generally convections, rules, ethics and standards in a certain jurisdiction i. e. GAAP. Formulation of GAAP and IFRS For consistency and fairness in financial statements which detail the performance of a company, certain rules and standards must apply. See more: Satirical elements in the adventure of Huckleberry Finn essay These are commonly referred to as â€Å"generally accepted† and all accounting professionals apply them as appropriate and ethical. Failure to apply them in accounting field result to agreed penalty by either body governing the practice or the territory restraining unethical practices to professionals. Various committees and bodies are put in places as setters which formulate and develop these accounting standards. International Financial reporting standards are developed and formulated by International Accounting Standards Board while Generally Accepted Accounting Principles are formulated by local financial reporting standards board. In the United States, the establishment and development are influenced by the United States Securities and Exchange Commission (SEC), American Institute of Certified Public Accountants (AICPA), Financial Accounting Standards Board (FASB), and Government Accounting Standards Board (GASB) (Miller Bahnson, 2002). All these bodies and committees have different roles and objectives which are agreed upon on influence to different accounting sectors profession generally accepted principles. International financial reporting standards are based in International Accounting Standards which are accepted globally. ISA changed its operations in 2000 and IFRS were added to cope with the changing dynamics of global accounting profession. Through discussions, contributions and comparison agreements, different bodies through their representatives contribute to the principles developed by IASB. Complete responsibility in all technical matters that include; preparation and issuing of international financial reporting standards, are based on the selected IASB (ISCF IASB, 2007). Thus, the efforts of IASB involves, setting standards, formulating process of adopting standards ensuring the needs of different countries in the globalizing accounting profession (Mwaura Nyaboga, n. d). Difference between GAAP and IFRS GAAP and IFRS have difference in their jurisdiction of usage, enforcement and the way these standards are formulated. International financial reporting standards are globally recognized accounting standards, which are set by IASC from 1973 to 2001 and from 2001 by IASB. GAAP are accounting standards recognized as â€Å"generally accepted† by the United States. In summarizing, recording and presenting accounting information within a nation, the process is dictated by rules and convection of GAAP in the United States. International accounting standard board does not directly set or control provisions of rules and convections adopted by GAAP. Standards set by this powerful board are based from agreements and suggestions from various local accounting boards e. g. Kenya accounting board (KAS). Various nations will try to incorporate the set standards within the GAAP in their country. FASB in America has a mandate to set accounting rules, convection and standards that are later adopted by the US GAAP (Mwaura Nyaboga, n. d). This means that the role of formulating and developing the rules and standards principally lie to the local accounting boards. Various nations have made it compulsory for their accounting practice to adopt IFRS rather than developing jurisdiction GAAP (Mwaura Nyaboga, n. d). In addition, differences on the implementation and formulation exist in financial presentation between GAAP and IFRS. These differences are commonly in consolidation, statement of income format, inventory valuation and recognition, earning per share calculations and development cost recognition in financial statement. For example, in United States, consolidated financial statements are prepared on risk and reward models while international financial reporting standards prefers control based model where consolidation is done on the percentage of control and influence in subsidiaries and associates (Forgeas, 2008). Risks and rewards is more complicated since risk are subjective valued. Extraordinary items such as depreciation and amortization are included in the income statements under IFRS and in the US GAAP are accounted for after net income. This means extraordinary expenses are not taken to contribute net profits (Forgeas, 2008). Under the US GAAP, companies have option to use either LIFO OR FIFO methods of inventory valuation while in IFRS, LIFO method which is historical valuation method is recommended. When computing for earning per share under IFRS average on interims calculations are not included whereas in the US GAAP, computation requires that individual interim increase in shares be done averagely (Forgeas, 2008). Capitalization on development expenditure is done under IFRS and recognized as fixed asset while in the US GAAP; capitalization is not done on development expenditure but is accounted for in income statement as expenses (Forgeas, 2008). Another difference between GAAP and IFRS is how transactions are interpreted to mean. It is commonly argued that GAAP within a nation is rule based and IFRS is principle based. This means that transactions are interpreted based on the stated rules and standards. Ruled based interpretations lies with the professional judgment on certain transaction treatments in account. For principle based interpretation, the IFRS provide on more judgmental way to interpret transactions. This implies that principles are there to the interpretation of transaction and in rule based is on the professional judgment. The problems arise on whether judgment is accurate professional judgment or guessed professional judgment to transactions treatment (Forgeas, 2008). Benefits of GAAP and IFRS Uses of standardized procedures to financial statements summarizing, recording and presentation to the users bears a number of benefits to both the reporting entity and the user such as shareholder, lenders, creditors or the government taxation organ. Adoption of GAAP in the US and IFRS by other countries gives significant economic and financial benefits to decision making. Both approaches give consistency in managing companies and it is easy to compare companies using the same standards. Both standards put strict measures on deviation from the rules and ethics in a particular standard. In most countries for a company to trade public GAAP and IFRS must be followed and they require all financial statements be subjected to an independent audit and opinion thereby be given on the applicability of standards in the company. These independent accountants (auditors) must certify financial statements and any notes to financial statement have been prepared and to be presented in accordance of either of the standard. These two provide adequate explanations and definitions to transactions, provide needed assumptions to these transaction and methods applied in either computations or accounting for the transaction. By this, companies are able to follow the requirements year by year enhancing comparisons/benchmarks between companies and consistency in business operations. Valuation of various assets and liabilities both at the start and at the end of the year would be different between companies giving hectic time in comparison and auditing. These two standards enhance transparence and uniformity of valuation procedures of assets. For example, valuation of assets like investment and stocks unrealized profits can be ambiguous if such standards are not in place. Conclusion To make financial statement present a true and fairly performance and position of the business at a particular date, financial accounting standards are needed. High quality standards need to be set for reliable information that is adequate and useful to investor or creditor. These high quality standards and enforcement will provide transparency in business operations and promote full discloser to financial information which gives consistent application making statement user perform comparison of year by year and among competing companies.

Graduation Speech -- Graduation Speech, Commencement Address

Good afternoon ladies and gentlemen, distinguished guests, faculty, staff, graduates of the Class of 2012, families and friends. I tried to think of something profound to say today, but it may be too presumptuous to assume that my short life experience is enough to impart any great wisdom. However, I will at least share with you something that I have learned. As a brief disclaimer: individual results may vary; drowsiness and/or dizziness are the most common side effects. Contact your doctor if symptoms persist. Wisdom is something of an enigma that cannot be achieved by the pursuit of knowledge alone. It comes from the lessons of trial and error coupled with determination, persistence and commitment. This idea can best be illustrated in the famous words of Thomas Edison when he said, "I have not failed. I've just found 10,000 ways that won't work." Wisdom is a never-ending cycle of blending knowledge with life experience and lessons learned that are not soon forgotten. Ultimately, these things are the tools and materials we use to build our futures. Based on the values and in...

Emma Goldman

You can never imagine a world without Emma Goldman. Emma Goldman died on May 14, 1940. Emma dedicated her life to the creation of a radically social order. Also, she embraced anarchism for its vision; and it offered liberty, harmony, and social Justice. She had a deep commitment to absolute freedom and that led her to espouse a range of controversial causes. Goldman was a radical thinker. Forty years on she is more than emblematic, she is iconic. Emma Goldman was born in the imperial city of Russia of Kovno on June 27, 1869. Emma's mother Taube was married to a man when he was 15 years old He later died and she was left with two children.Emma's mother had a second marriage arranged to Abraham Goldman. First of all, when Emma was a child she constantly was abused by her stepfather when she displeased him. Emma was uncontrollable and rebellious to her stepfather â€Å"I'll kill that brat†, he often said. (Gornick 7). Also, the family constantly moved from Konovo to Konigsberg to Petersburg. Emma's education was very limited. Although she passed the exam to secondary school, she was denied the character reference necessary for admission. The religion teacher declared her â€Å"a terrible child who would grow into a worse woman† (Gornick 7. When Emma became 12 years old education came to an end for her. When Emma was 16 years old her father told her it was time for her to get married and he would arrange this. She begged once more to return to school instead of getting married. Emma begged her father to immigrate to the United States with her sister Helena; they both wanted to Join their older sister Lena already living in upstate New York. She had threated suicide to her stepfather because her stepfather did not let her immigrate and later he let her go. In 1885, Emma immigrated to the United States and settled in Rochester, New York.She began working in clothing factories in 1886 and by the age of fifteen she worked in a corset factory. Also, Emma w orked 10 hours a day and Emma only made two and a half dollars a week. Emma met Joseph Kershner at one of her Jobs and he also shared a love for books and hatred for work. She was only 18 years old when he had convinced her that they should marry. Moreover, she learned that he was depressed and he was attracted to Emma because he thought his vitality would rescue from himself. She sued him for divorce and left him within a few months of their wedding.By 1889, she developed anarchist ideas. Her speeches attracted attention in the United States. Emma formed a close association with Alexander Beckman who was imprisoned during 1892 for attempting to assassinate Henry Clay Flink during the Homestead Steel Strike. Beckman was Goldman's first real love. Hecklers suppressed her lectures. Also, police officers would suppress her speeches and writing. Eventually, she was arrested so often that she began to carry a book wherever she went because she feared sitting in Jail with nothing to read. Emma was arrested in New York City in 1893 for inciting a riot when a group of unemployed workers reacted to a speech she had given. Goldman embarked on tours in Europe and the United States after her release from prison. In 1906, she had founded Mother Earth, a Moreover, in 1908 Goldman's naturalization as a citizen was revoked by a legal stratagem. She had published â€Å"Anarchism† and other essays two years later. Emma Goldman went to Jail because she spoke freely on birth control. When World War I broke out in Europe she opposed United States involvement and she later agitated against military conscription.In June 1917 she was sentenced for two years for these activities. In 1901, Leon Czologosz claiming he was acting under Goldman's influence, assassinated Although she had not been involved and only met him briefly, she was arrested immediately as an accomplice. Lack of evidence eventually forced the authorities to release her from prison. In September 1919 she was caug ht in hysteria over a largely imaginary network of communist operatives. Emma was called Red Emma because she was declared a subversive alien and she was deported to the Soviet Union. She did not stay there for very long.Two years after leaving she ecounted her experiences in her book My Disillusionment in Russia (1923). Goldman was an advocate for birth control, workers' rights, equality, sexual freedom, and independence for women. Also, she was either harassed or arrested anytime she gave a lecture and she was also banned outright for speaking sometimes. Goldman had become a prominent fgure as a woman in the fght for freedom in America, for economic freedom for women, racial education, and anti-militarism Even though Emma was hostile against religion she had core beliefs emerging from a Jewish tradition that had championed a universal Justice.Emma applied her ideas about free love to women, men, homosexuals, and heterosexuals consistently. Emma believed that individuals should ent er into and leave personal relationships with no constraints, a view determined by her commitment to the principle of absolute freedom and her experience of a failed marriage. She stated, â€Å"If I ever love a man again I will give myself to him without being bound by the rabbi or the law, and when that love dies, I will leave without permission. † (Goldman 1889). Goldman helped launch the No Conscription League in May 1917, soon after the entry into World War .She and Berkman were arrested for conspiring against the draft in 1917. Emma had argued her actions far from being anti American, were intended to prompt her adopted country to live up to its own ideas. Emma believed that the United States they had no right to make a war and she was a pacifist. Also, rather than organizing a conspiracy to obstruct the draft, she said, she had been claiming to exercise her rights to free rights and she had been educating her audiences about conscientious objection. After Goldman's rele ase she was re arrested on the order of the young J.Edgar Hoover, who had persuaded the courts to deny Goldman's citizenship. In 1920 she and Beckman had questioned the Soviet leader on the lack of freedom of speech and the press and the persecution of anarchists in Soviet Russia. Goldman spent the rest of her days in exile from the United States wandering through Sweden, Germany, France, England, and Canada. In 1925, she married an English Coal Miner but it was only a formality to obtain her British citizenship. In the 1920s and 1930s she struggled economically and was frustrated by the restrictions on her status as an xile on political activities.Also, she engaged herself in literary projects and in 1931 she wrote an autobiography Living My Life. Emma became increasingly concerned about the rising tide of Fascism and Nazism. The next several years she lectured Canada where she worked to gain asylum for Spanish refugees and helped foreign born radicals threatened with deportation t o fascist countries. For example in July 1936, when the Spanish American War erupted Goldman supported the Loyalist cause with an enthusiasm reminiscent of her early years in America. â€Å"In addition, narchists had succeeded in receiving popular support in parts of Spain.

Practice in Supporting a Topic Sentence with Specific Details

AÂ  topic sentence contains the main idea upon which a paragraph is developed. Often it appears at (or near) the beginning of a paragraph, introducing the main idea and suggesting the direction that the paragraph will take. What follows a topic sentence are a number of supporting sentences that develop the main idea with specific details. Practice Excercise Here is an effective topic sentence for a descriptive paragraph: My most valuable possession is an old, slightly warped, blond guitar—the first instrument that I ever taught myself how to play. This sentence not only identifies the prized belonging (an old, slightly warped, blond guitar) but also suggests why the writer values it (the first instrument that I ever taught myself how to play). Some of the sentences below support this topic sentence with specific descriptive details. Others, however, offer information that would be inappropriate in a unified descriptive paragraph. Read the sentences carefully, and then pick out only those that support the topic sentence with precise descriptive details. When youre done, compare your responses with the suggested answers below: It is a Madeira folk guitar, all scuffed and scratched and finger-printed.My grandparents gave it to me on my thirteenth birthday.I think they bought it at the Music Lovers Shop in Rochester where they used to live.At the top is a bramble of copper-wound strings, each one hooked through the eye of a silver tuning key.Although copper strings are much harder on the fingers than nylon strings, they sound much better than the nylon ones.The strings are stretched down a long slim neck.The frets on the neck are tarnished, and the wood has been worn down by years of fingers pressing chords.It was three months before I could even tune the guitar properly, and another few months before I could manage the basic chords.You have to be very patient when first learning how to play the guitar.You should set aside a certain time each day for practice.The body of the Madeira is shaped like an enormous yellow pear, one that has been slightly damaged in shipping.A guitar can be awkward to hold, particu larly if it seems bigger than you are, but you need to learn how to hold it properly if youre ever going to play it right.I usually play sitting down because its more comfortable that way.The blond wood has been chipped and gouged to gray, particularly where the pick guard fell off years ago.I have a Gibson now and hardly ever play the Madeira any more. Suggested Answers The following sentences support the topic sentence with precise descriptive details: 1. It is a Madeira folk guitar, all scuffed and scratched and finger-printed. 4. At the top is a bramble of copper-wound strings, each one hooked through the eye of a silver tuning key. 6. The strings are stretched down a long slim neck. 7. The frets on the neck are tarnished, and the wood has been worn down by years of fingers pressing chords. 11. The body of the Madeira is shaped like an enormous yellow pear, one that has been slightly damaged in shipping. 14. The blond wood has been chipped and gouged to gray, particularly where the pick guard fell off years ago.