FireArt, Inc. Essay -- Managing Management Business Essays

FireArt, Inc. Diagnosis of team ineffectiveness and corrective action plans   Ã‚  Ã‚  Ã‚  Ã‚   FireArt, Inc. has encountered a dilemma where their competitors are now able to profitably make short runs in the production of glass. Because of this competition, Jack Derry, the CEO of FireArt, Inc. has asked Eric Holt to put "together a team†¦one person from each division, and have a comprehensive plan for the company’s strategic realignment up, running, and winning within six months." Eric, being the newly appointed Director of Strategy, knew his overall goal and creates a formal group in order to fulfill the overall organizational mission of turning the company around. However even though a formal group is created, there is a lack of specific goals and tasks. Eric who only had experience managing working group with professional from similar backgrounds actually created a working group than a team. Moreover, the members did not interact with one another prior to coming together, and did not perceive themselves to be in a group. While the team cons ists of various division heads of the organization, Randy Louderback the director of sales and marketing does not believe that groups are worthwhile. Eric formed this temporary group, which would ceases to exist once the job is carried out. This group, although temporary, never really gets off the ground due to lack of leadership-management skills, lack of clear attainable goals, team structure and incompatibilities of the group members. Team Dynamics and Structure:   Ã‚  Ã‚  Ã‚  Ã‚  One issue that is faced by the group is the lack of team dynamics as well as the pressure being felt to devise and implement a comprehensive plan in six months. Some managers create groups to aide in team dynamics as groups serve functions such as organizational, psychological, and personal. The group that Eric set up was created to generate ideas in order to beat the competition. However, due to the conflict from the team members, idea creation was never brought about. Additionally, the psychological functions that give an outlet for affiliation needs and the personal functions of increased self-esteem, increased security, and a sense of identity are never achieved. With the creation of his group, Eric was faced with a peer, in particular, that strongly believes â€Å"that groups are useless†. There are variables that affect the integration in groups of org... ...uctive thinking will help members think better to solve problems and contribute innovative ideas. The lack of ideas is demonstrated on how the first couple of times the members met they had difficulty coming up with innovative/creative ideas on how to solve the company’s troubles. Also, when Ray, Maureen, and Carl presented their ideas they did not challenge Randy’s comment, â€Å"Let’s do everything, why don’t we, including redesign the kitchen sink!† If they had, the team could have had an open discussion on the merits of each and possibly evolved into a more cohesive problem solving group. Lastly, FireArt Inc. is family owned business and probably Jack Derry ultimately authorizes a lot of decisions. However, for the team to be fully effective it will be important for the team to be granted decision-making authority. This will prevent the team from forming easily acceptable and non-controversial solutions to the problem. Once the team is functioning properly any ideas on how save the company must be accepted. It is also important for the team to be aware that they are anchored in organizational realities that are outside of their control and affect the success of their efforts.

Behavioral Implications Of Biological Developmental Changes In The Human Past

Behavioral patterns of the humans are no less influential in its biological development. In fact, one had complemented the other in many ways, and it is a never ending process. It is this process which have manifested in humans the most, after they justified their candidature before natural selection through its various stages of evolution, ranging from bipedalism to the development of language, save the development of brain-size in between.As behavior is found to be mostly species-specific, it speaks of its biological connection; on the other hand, biological development also keeps track of the behavioral changes and adapts to them, all the while environment playing a catalyst between (Descent, 2007). It's like gene-text facilitating the course of behavior and behavior at other times, influenced by the environment, scripting new traits in the gene-text.Some might call humans lucky to find the environment conducive to reach this stage, some would stress on the fact that bipedalism ho lds the key, while some other would stress on the behavior that humans achieved after bipedalism through the development of brain. Thus this essay explores the behavioral implications of biological developmental change, before coming to the conclusion of holding both equally responsible and complementing to each other. Bipedalism Two-legged activities are called bipedalism (bi=two, and pedalism= pedaling acts).It basically covers the four states of movement through a pair of legs, such as standing, walking, running and hopping. It has long evolving history among the vertebrates, ranging from dinosaurs to birds, save the ostrich, who has an estimated speed of 65 km per hour that once matched by the maniraptors, now in the extinct list of dinosaurs (Bipedalism, 2003). However, bipedalism is not a habit of those who have four legs, like the larger section of mammals.However, to match with the uniqueness of nature's diversity, the kangaroos lead in representing the mammals who use biped al movement, through hopping. But it is the humans who provided more variation in their bipedal movements, while the gibbons and giant pangolins prove to be distantly resembling to it. Understandably, bipedalism involves a firm ground beneath the feet; and that takes away the amphibians' scope to earn this scope. More so, it is mostly a reared-up action and barring a few instances of some lizards and cockroaches this action is also unfamiliar in arthropods.Same can be said about the reptilians. With exception being the rule of the nature, two kinds of octopus are seen to resort to bipedal movement at times or some of the animals can be trained to exploit the bipedal movement. , much like the humans who can train themselves to walk on their hands. These are deviations and have no bearing to the mainstream evolution. Bipedalism is considered to be one of the major causes of bringing humans where they are today. The reasons are far too many, as they range from elevation of perception t o the improved condition of survival.Between them lies the factors like utilization of free hands, swimming, faster movement, greater reach, etc. , that speak of several advantages of adapting to the living conditions. This trait has evolved independently, that is, not in a set pattern, having various lineages. As for example, the lizards, the recognized pioneer in bipedalism, have a proven track record of this since 290 million years! Dinosaurs and birds follow closely with their record of 230 million years, much before the groups of extant mammals resorted to bipedalism, mostly evolved independently.However the quest to find the reasons behind this elevation of humans fetch us 12 hypotheses and also points at the fact that the human brain-size could develop only after attaining bipedalism. Brain Development Bipedalism facilitated the humans with a new kind of freedom that they enjoyed with hands, letting them to be more organized in their survival and developmental processes. Howe ver, the gradual manifestation of intelligence in humans has a complex process, and still invites lot of research and observation.Charles Darwin attributed its development in humans as an evolution through the process of natural selection, where humans have become successful in manipulating the brain-body ratio, as well as the development of brain-size for a longer period after birth, rather than other creatures (Creationists, 2007). Overall the situations proved more conducive for the humans to develop their brain-size, like the bipedalism, or front-facing, binocular vision. The work-power of the two hands saved free zone for the brain for them, which led to the exploration of new avenues, thereby increasing the horizons of thinking through more number of activities.Once they adapted to giving birth to their offspring with soft skull that would grow on later, the humans were the decided master of the Earth. The evolution of intelligence always follows a pattern, where, a solution t o a problem takes the solver to another plane, where it faces a new set of problems – upon solving which, it again arrives at another plane to face the similar situation; in the process its thought-processing faculty also fights to gear up for the new challenge, finally succeeding in increasing its ability.Humans, after discovering their new life in the post bipedalism era, when they also had the scope to develop their brain-size in the post-natal period, faced the challenge of securing their offspring, who proved to be totally unfit to survive alone. This situation forced them to remain in groups and explore the ways to enhance the communication among the group members.This state again, commanded for using the brain more than earlier, and responding rightly to that challenge, the humans arrived at a new plain of existence, where they could mastermind their ventures and be joyous with more productivity, with the more secured system for their offspring. The power of interperso nal communication earmarked the new bend in the history of development of humans and finally propelled them to an astoundingly different height from the rest of all other creatures of the earth, with sophisticated set of body and brain complementing each other.Language Faculty The advent of the concept of communication gradually helped humans to shape their behavior, and those acquired traits again worked on their biological evolution apropos their interdependency. As like in its earlier stages where the new solutions fetched new problems which ultimately proved ladder to another developed state of being, the progress of language also had a similar route and is still evolving on with time. It started with signs and sounds and finally followed by the scripture forms, all generated with the intensity to express the ideas bubbling within.The behavioral process at this stage dealt with the urge to create the identity of the individual and the group; another new challenge with the invita tion of reaching another plane of refined existence. They then started identifying various sounds as the representative of various emotions, and needs; with time, these set ideas gave birth to proto-language, which, it could be well-assumed, were influenced and conditioned by the environment, much the way it helped them to achieve bipedalism, and thereafter the larger brain-size.Now it worked on to them find their identity, which generated the races with their certain features distinguishable from one group to another. This tendency of uniqueness gave way to the quest of tracing the uniqueness in an individual greater than ever, and in the process, the started reshaping the language by broadening its base from sound to scriptures, the cuneiforms. These activities also helped to serve the group or the race, helped to maintain the balance in the demand and supply ratio of the resources, it again indicated towards a better state of living with every requisites of it being more organize d and handy (Scientists, 2003).Thus a new avenue of collective living was opened with the cohesion in language. Some also earmark this period as the involuntary manifestation of the desire to form better society or race, a period of precursor of eugenics in the recent times; some attribute this stage as the moment before the giant leap of the civilization. However, concepts apart, there is no doubt that the advent of language among humans helped them to find their ways and means of more comfortable life-style and that attributed further to the evolution of their body that gradually adapted to that newly acquired lifestyle.CONCLUSION The history of the evolution of humans may be counted from the natural selection to the time from when humans started selecting their living conditions. Between these two poles, lie millions of years of graduation or probation period entwined with millions of influencing factors, in which its behavioral patterns and biological developments played stellar roles, both being interdependent and determiner of the development of the other.Likewise, it's the bipedalism facilitating the development of the brain, and then brain's behavior affecting the working pattern of the humans, which in turn influencing the body to adapt to that new working condition, and again that acquired new formation of the body ventures to some new action which is supported by the brain.. this never-ending process of evolution is still on; with body, brain and environment, all the three components achieving new dimensions, nevertheless influencing one another as ever.It can be said, thus, the human past is a fascinating, interactive journey of body and brain (the determiner of behavior), where environment all along served the input for the development of both. In the maze of body-brain communication, any of them can rule over the other, depending on the situation, i. e. , the state of environment, who works on as a stimuli, be in on the mental or on the physical plane. Ends BIBLIOGRAPHY Adaptation by Natural Selection. http://www2. wwnorton. com/college/anthro/bioanth/ch1/welcome. htm. Retrieved on march 28, 2007 Bipedalism http://www. stanford. edu/~harryg/protected/chp15.htm Retrieved on march 28, 2007 â€Å"Creationists Arguments: Brain Sizes† http://www. talkorigins. org/faqs/homs/a_brains. html â€Å"Evolution of Man†, BBC http://www. bbc. co. uk/sn/prehistoric_life/human/human_evolution/index. shtml : Retrieved on march 29, 2007 â€Å"Human evolution†, http://en. wikipedia. org/wiki/Human_evolution , Retrieved on march 29, 2007 Press release. â€Å"Scientists discover hominid cranium in Ethiopia†.. Indiana University (March 27, 2006). Retrieved on march 30, 2007 â€Å"The Descent of Man† http://en. wikipedia. org/wiki/The_Descent_of_Man%2C_and_Selection_in_Relati on_to_Sex Retrieved on march 27, 2007

Sas Case Analysis

International Case #: 6-2 T h e C a s e o f (Scandinavian Airlines S A S System) INTRODUCTION SCANDINAVIAN AIRLINES SYSTEM (SAS) originated when the airlines of Sweden, Norway and Denmark formed a consortium. 1970’s – competition are fierce and resulted in a loss market share. 1981 – Jan Carlzon, The CEO, undertook drastic decentralization. Top-Down authority replaced by open communication. SAS Strategies is to become known as â€Å"the businessman’s strategy† (with rather high fares), with upgraded service, on-time performance, good food and comfort. For the Future SAS has 2 goals 1. To become the most efficient airline in Europe by 1992 2. To be one of the five major airlines in Europe after 1995 Keystone is SAS’s global strategy is to form strategic alliances. -? An agreement to exchange equities with Swissair was reached in 1989. -? Alliance was also made with All Nippon Airways, LanChile, Canadian Airlines Intl and Finnair. I. TIME CONTEXT II. VIEWPOINT 1981 Jan Carlzon SAS CEO III. CENTRAL PROBLEM Fierce competition, Loss of market share & Reduced profitability IV. STATEMENT OF OBJECTIVE Must: to cope up with competition Wants: to become the most efficient airline in Europe by 1992 and to be one of the five major airlines in Europe after 1995 V. AREAS OF CONSIDERATION THREATS 1.? Competition with larger airlines 2.? High fuel price 3.? Rising operational costs 4.? Decrease in demand for air service 5.? Price Wars OPPORTUNITIES 1.? Strategic alliances with other airlines 2.? Offer high-quality service V. AREAS OF CONSIDERATION WEAKNESSES 1.? Deterioration of services 2.? Low morale of the workforce STRENGTH 1.? Workforce 2.? Upgraded Services 3.? On-time performance 4.? Good food & comfort 5.? Decentralization VI. ALTERNATIVE COURSES OF ACTION 1. Continuous implementation of decentralization (+) Faster decision-making Address and solve the problem right away Open communication Training and development for employees (-) Mistakes or wrong decisions are prevalent Policies and rule must be reviewed and change Training cost Great deal of time in communication a.? b.? c.? d.? a.? b.? c.? d.? VI. ALTERNATIVE COURSES OF ACTION 2. Strategic alliance with other airlines (+) Access to different airlines hub Leverage Able to compete with larger airlines Opportunity to sell shares (-) a.? Control issue b.? Possible waste of money a.? b.? c.? d.? VI. ALTERNATIVE COURSES OF ACTION 3. Upgrade service strategy (+) a.? High-quality service b.? Punctual and on-time performance (-) a.? High fares b.? Research and development cost c.? Training cost VII. RECOMMENDATION Adapt ACA 2 (Strategic Alliance) VIII. ACTION PLAN Person Responsible Jan Carlzon / Marketing Research Jan Carlzon Jan Carlzon Jan Carlzon / Negotiating Team Negotiating Team Jan Carlzon / Allies Finance Department Activities Gather data through business intelligence & competitive analysis Set a meeting with the SAS Board Form a negotiating team Set meetings with possible allies Time Frame 30 days 1 day 7 days Prepare proposals/MOA/Service agreement Contract signing / sign-off Prepare budget 3 days 1 day 5 days â€Å"Mistakes can usually be corrected later; the time that is lost in not making a decision can never be retrieved†. – Jan Carlzon

Client Understanding Paper

University of Phoenix ACC/541 Client Understanding Paper As per your request of an analysis of the following topics: Adjusting lower of cost or market inventory on valuation, Capitalizing interest on building construction, Recording gain or loss on asset disposal, and Adjusting goodwill for impairment. The Financial Accounting Standards Board (FASB) established clear guidelines addressing the items mentioned above. I will outline that FASB generally accepted accounting standards (GAAP) affect each area, and how these improvements to the company will benefit the company’s financial health (FASB, 2010). The methods of inventory valuation are different according to companies, but at the end of the day the chosen method should be consistent each year according to the general accepted accounting principles. A manufacturing company will generate inventories for finished product, raw materials and work in progress, so lowering the cost of market inventory can be very intimidating and consuming. Inventories and prepaid expenses present some additional valuation issues. With the emphasis on net income reporting, the inventory valuation process has become secondary to the matching of expired inventory costs to sales. The use of any of the acceptable inventory flow assumption techniques prescribes the amount that remains on the balance sheet, and it is likely that each of these flow assumptions will result in different inventory valuations in fluctuating market conditions. In addition, the accounting convention of conservatism requires that a lower of cost or market valuation be used for inventories (Schroeder, Clark, & Cathey, 2005). Using the first-in-first out (FIFO) or the last-in-first-out (LIFO) method is the perfect way to identify the cost of each inventory item. â€Å"A valuation method (e. g. LIFO, FIFO, average cost and specific identification) is used to compute the cost of the inventory dollar amounts and then it is compared to the market dollar amount. † LIFO is not commonly used because the last goods purchased are the first to be sold. The inventory at the beginning of the year will have the earliest goods purchased acquiring a valuation of an early price. FIFO is better used for lowering cost especially during periods of increase prices. It is also important to identify a method for valuing the items in the inventory and calculating the cost of goods sold. This can be done through the cost method, the lower of cost or market and the retail method. â€Å"A valuation method is used to compute the cost of the inventory dollar amounts and then it is compared to the market dollar amount. The lower of the two amounts must be used when recording inventory. † The cost method involves all direct and indirect costs to acquire the inventory. The cost of the products purchased consists of the invoiced purchase price minus discounts or trade with and addition of transportation, shipping additional cost incurred for attaining the product. Lower of cost or market method â€Å"determine the market value of each item on hand as of the inventory date, compare the market value with the cost of each item, and use the lower of the two as the inventory value of that item† (Hagen, 2005). The American Institute of Certified Public Accountants (AIPCA) in conjunction with the Financial Standards Accounting Board (FASB) issued ARB No. 3 that lower of    cost or market rule apply to all inventories. Lower of cost or market aspect (LCM) is also supported and defined by SFAC No. two and SFAC No. 6. The LCM rule considers the market that purchases and sells the inventory. In general, the conservatism principle applies to LCM method of accounting. Conservatism principle directs a company to choose the more â€Å"conservative† dollar amount when considering two amounts that represent inventories. This helps a Company to report accurate losses on their income statement. To determine LCM, one must also consider net realizable value (NRV). This value represents the selling price of inventories minus the fees associated with completion of sales. The NVR is key to determining true LCM. Conclusion of market value also refers to an items current replacement cost. This cost falls between the NRV (ceiling value) and the floor value (NRV- normal profit). Inventory cost adjustments are required by accounting standards. Incorrectly reporting inventory values at higher levels is a fraudulent act (with harsher penalties under Sarbanes Ox). Inventory valued at $10 with a true value of $5 is a punishable event (FASB, 2010). When a building asset is developed, a vast amount of time is required between the start and completion of the project. Normally the cost of should include all cost to prepare the asset for its useful life of the asset or for sale. The capitalization of interest cost on a building give a guideline on the amount of interest to be capitalized and for the financial statement disclosure. The expenditures must be qualified ahead of time, activities must be in progress and the company must be paying interest. Capitalization ends when the building fully constructed and is in use. Interest is not capitalized on inventories manufactured on a repeated basis or if the building is acquired using gifts or grants under restriction by the donor or grantor. â€Å"When additional financing is incurred after construction expenditures have begun, a firm may capitalize interest on construction expenditures either using an end-of-period average interest rate that includes all financing outstanding at the end of the period (general or specific, as appropriate) or using only the finance outstanding when the construction expenditure was made. Scofield, 2004) The average capitalized rate can be computed using the weighted-average or the specific method. If you were to purchase a building after it was completed, the sales price would include all costs (plus a profit to the seller). Part of the costs in building something is the interim borrowing costs†¦ in this case, the construction loan. Adding the loan to the other costs (brick, mortar, labor) is called â€Å"capitali zing† the interest expense. This creates a higher cost basis for the building and can be â€Å"recovered† through the depreciation expense deduction (over the life of the building). The three main events in the life of an asset are the acquisition, useful life, and disposal or retirement. At the end of an asset’s life, gain or loss of its disposal is recorded. A gain or loss will take place at the disposal of any assets and should be logged as journal entry along with any related incidental cost. The unrealized gains and losses are noticed according to its earnings. All changes whether upward or downward that involves investment shares are shown as income or losses with a change in market value that requires an adjustment to its carry value. At the time disposal there can either be a gain or loss or no gain or loss. Schroeder, Clark and Cathey states that all unrealized gains and unrealized losses will be valued the same for asset valuation purposes. For trading securities, the gains and losses are noticed in those periods in which they occur; for these assets the method is consistent with other accrual accounting requirements. A consistency with the SFAC No. six definition of comprehensive income is determined because comprehensive income is determined by the changes in net assets and would include changes in the market values of assets. For trading securities, no further masking of gains against losses that occurred under the aggregate valuation approach of SFAS No. twelve is needed. Goodwill for impairment must be assessed by companies at least once per year. If an impairment of goodwill the carried amount will be lessened and there will be recognition of impairment loss. Goodwill for impairment test must be recorded as reporting units. These could be the company’s operating segments identified under SFAS 131, or a â€Å"component† of a reportable operating segment as defined in paragraph 30 of SFAS 142. (Huefner and Largay III, 2008). Goodwill is comparing each unit’s estimated fair value of the reporting unit with the unit’s fair values of its identifiable net assets. This process and the process of allocating purchase price differentials of asset acquired, goodwill and liabilities assumed is very similar. The total of the tentative assignments of goodwill to reporting units can surpass the total goodwill recorded by the total entity but when this occurs, the tentative unit assignments are reduced in some reasonable fashion to make the sum equal to the total recorded goodwill (Huefner and Largay III, 2008). Losses on impairment cannot be changed but according to Schroeder, Clark and Cathey, an impairment loss for goodwill should be reversed only if the specific external event that caused the recognition of the impairment loss reverses. A reversal of an impairment loss should be recognized as income in the income statement for assets carried at cost and treated as a revaluation increase for assets carried at revalued amount. At the end of the developing period, the annual impairment test is done on an aggregate basis, which means an increase in goodwill on some books annot offset impairments found in other units. Huefner and Largay III also states that given the potential significance of the change in the accounting treatment of a major asset, the authors expected to observe numerous large impairment write-offs due to implementing the new standard, and large increases in net income because of eliminating goodwill amortization as an expense. In conclusion assets involving current assets, long-term investments, fixed assets, and intangible assets at some point can be changed into cash. Intangible assets except goodwill can either be determinable or indeterminable useful lives. Schroeder, Clark and Cathey explain that those with determinable useful lives are written off over the period of benefit. The cost of acquiring goodwill as well as intangible assets with indeterminate useful lives, is not amortized. References Schroeder, Richard G. , Clark, Myrtle W. , and Cathey, Jack M. (2005). Financial Accounting Theory and Analysis, The Development of Accounting Theory. Financial Accounting Standards Board. 2010). Financial Accounting Standards Board home. Retrieved April 5, 2010 from, http://www. fasb. org/. Scofield, B. (1994) Full disclosure of interest capitalization decisions. The National Public Accountant. Retrieved on April 5, 2010 from http://www. allbusiness. com/accounting. Huefner, R. J. , Largay J. A. (2008). The CPA Journal. The Effect of the New Goodwill Accounting Rules on Financial Statements. Retrieved on April 5, 2010 from http://www. nysscpa. org/cpaj ournal/2004/1004/essentials/p30. htm Client Understanding Paper University of Phoenix ACC/541 Client Understanding Paper As per your request of an analysis of the following topics: Adjusting lower of cost or market inventory on valuation, Capitalizing interest on building construction, Recording gain or loss on asset disposal, and Adjusting goodwill for impairment. The Financial Accounting Standards Board (FASB) established clear guidelines addressing the items mentioned above. I will outline that FASB generally accepted accounting standards (GAAP) affect each area, and how these improvements to the company will benefit the company’s financial health (FASB, 2010). The methods of inventory valuation are different according to companies, but at the end of the day the chosen method should be consistent each year according to the general accepted accounting principles. A manufacturing company will generate inventories for finished product, raw materials and work in progress, so lowering the cost of market inventory can be very intimidating and consuming. Inventories and prepaid expenses present some additional valuation issues. With the emphasis on net income reporting, the inventory valuation process has become secondary to the matching of expired inventory costs to sales. The use of any of the acceptable inventory flow assumption techniques prescribes the amount that remains on the balance sheet, and it is likely that each of these flow assumptions will result in different inventory valuations in fluctuating market conditions. In addition, the accounting convention of conservatism requires that a lower of cost or market valuation be used for inventories (Schroeder, Clark, & Cathey, 2005). Using the first-in-first out (FIFO) or the last-in-first-out (LIFO) method is the perfect way to identify the cost of each inventory item. â€Å"A valuation method (e. g. LIFO, FIFO, average cost and specific identification) is used to compute the cost of the inventory dollar amounts and then it is compared to the market dollar amount. † LIFO is not commonly used because the last goods purchased are the first to be sold. The inventory at the beginning of the year will have the earliest goods purchased acquiring a valuation of an early price. FIFO is better used for lowering cost especially during periods of increase prices. It is also important to identify a method for valuing the items in the inventory and calculating the cost of goods sold. This can be done through the cost method, the lower of cost or market and the retail method. â€Å"A valuation method is used to compute the cost of the inventory dollar amounts and then it is compared to the market dollar amount. The lower of the two amounts must be used when recording inventory. † The cost method involves all direct and indirect costs to acquire the inventory. The cost of the products purchased consists of the invoiced purchase price minus discounts or trade with and addition of transportation, shipping additional cost incurred for attaining the product. Lower of cost or market method â€Å"determine the market value of each item on hand as of the inventory date, compare the market value with the cost of each item, and use the lower of the two as the inventory value of that item† (Hagen, 2005). The American Institute of Certified Public Accountants (AIPCA) in conjunction with the Financial Standards Accounting Board (FASB) issued ARB No. 3 that lower of    cost or market rule apply to all inventories. Lower of cost or market aspect (LCM) is also supported and defined by SFAC No. two and SFAC No. 6. The LCM rule considers the market that purchases and sells the inventory. In general, the conservatism principle applies to LCM method of accounting. Conservatism principle directs a company to choose the more â€Å"conservative† dollar amount when considering two amounts that represent inventories. This helps a Company to report accurate losses on their income statement. To determine LCM, one must also consider net realizable value (NRV). This value represents the selling price of inventories minus the fees associated with completion of sales. The NVR is key to determining true LCM. Conclusion of market value also refers to an items current replacement cost. This cost falls between the NRV (ceiling value) and the floor value (NRV- normal profit). Inventory cost adjustments are required by accounting standards. Incorrectly reporting inventory values at higher levels is a fraudulent act (with harsher penalties under Sarbanes Ox). Inventory valued at $10 with a true value of $5 is a punishable event (FASB, 2010). When a building asset is developed, a vast amount of time is required between the start and completion of the project. Normally the cost of should include all cost to prepare the asset for its useful life of the asset or for sale. The capitalization of interest cost on a building give a guideline on the amount of interest to be capitalized and for the financial statement disclosure. The expenditures must be qualified ahead of time, activities must be in progress and the company must be paying interest. Capitalization ends when the building fully constructed and is in use. Interest is not capitalized on inventories manufactured on a repeated basis or if the building is acquired using gifts or grants under restriction by the donor or grantor. â€Å"When additional financing is incurred after construction expenditures have begun, a firm may capitalize interest on construction expenditures either using an end-of-period average interest rate that includes all financing outstanding at the end of the period (general or specific, as appropriate) or using only the finance outstanding when the construction expenditure was made. Scofield, 2004) The average capitalized rate can be computed using the weighted-average or the specific method. If you were to purchase a building after it was completed, the sales price would include all costs (plus a profit to the seller). Part of the costs in building something is the interim borrowing costs†¦ in this case, the construction loan. Adding the loan to the other costs (brick, mortar, labor) is called â€Å"capitali zing† the interest expense. This creates a higher cost basis for the building and can be â€Å"recovered† through the depreciation expense deduction (over the life of the building). The three main events in the life of an asset are the acquisition, useful life, and disposal or retirement. At the end of an asset’s life, gain or loss of its disposal is recorded. A gain or loss will take place at the disposal of any assets and should be logged as journal entry along with any related incidental cost. The unrealized gains and losses are noticed according to its earnings. All changes whether upward or downward that involves investment shares are shown as income or losses with a change in market value that requires an adjustment to its carry value. At the time disposal there can either be a gain or loss or no gain or loss. Schroeder, Clark and Cathey states that all unrealized gains and unrealized losses will be valued the same for asset valuation purposes. For trading securities, the gains and losses are noticed in those periods in which they occur; for these assets the method is consistent with other accrual accounting requirements. A consistency with the SFAC No. six definition of comprehensive income is determined because comprehensive income is determined by the changes in net assets and would include changes in the market values of assets. For trading securities, no further masking of gains against losses that occurred under the aggregate valuation approach of SFAS No. twelve is needed. Goodwill for impairment must be assessed by companies at least once per year. If an impairment of goodwill the carried amount will be lessened and there will be recognition of impairment loss. Goodwill for impairment test must be recorded as reporting units. These could be the company’s operating segments identified under SFAS 131, or a â€Å"component† of a reportable operating segment as defined in paragraph 30 of SFAS 142. (Huefner and Largay III, 2008). Goodwill is comparing each unit’s estimated fair value of the reporting unit with the unit’s fair values of its identifiable net assets. This process and the process of allocating purchase price differentials of asset acquired, goodwill and liabilities assumed is very similar. The total of the tentative assignments of goodwill to reporting units can surpass the total goodwill recorded by the total entity but when this occurs, the tentative unit assignments are reduced in some reasonable fashion to make the sum equal to the total recorded goodwill (Huefner and Largay III, 2008). Losses on impairment cannot be changed but according to Schroeder, Clark and Cathey, an impairment loss for goodwill should be reversed only if the specific external event that caused the recognition of the impairment loss reverses. A reversal of an impairment loss should be recognized as income in the income statement for assets carried at cost and treated as a revaluation increase for assets carried at revalued amount. At the end of the developing period, the annual impairment test is done on an aggregate basis, which means an increase in goodwill on some books annot offset impairments found in other units. Huefner and Largay III also states that given the potential significance of the change in the accounting treatment of a major asset, the authors expected to observe numerous large impairment write-offs due to implementing the new standard, and large increases in net income because of eliminating goodwill amortization as an expense. In conclusion assets involving current assets, long-term investments, fixed assets, and intangible assets at some point can be changed into cash. Intangible assets except goodwill can either be determinable or indeterminable useful lives. Schroeder, Clark and Cathey explain that those with determinable useful lives are written off over the period of benefit. The cost of acquiring goodwill as well as intangible assets with indeterminate useful lives, is not amortized. References Schroeder, Richard G. , Clark, Myrtle W. , and Cathey, Jack M. (2005). Financial Accounting Theory and Analysis, The Development of Accounting Theory. Financial Accounting Standards Board. 2010). Financial Accounting Standards Board home. Retrieved April 5, 2010 from, http://www. fasb. org/. Scofield, B. (1994) Full disclosure of interest capitalization decisions. The National Public Accountant. Retrieved on April 5, 2010 from http://www. allbusiness. com/accounting. Huefner, R. J. , Largay J. A. (2008). The CPA Journal. The Effect of the New Goodwill Accounting Rules on Financial Statements. Retrieved on April 5, 2010 from http://www. nysscpa. org/cpaj ournal/2004/1004/essentials/p30. htm

Cpca comunication phenomenon and concept or artifact Term Paper

Cpca comunication phenomenon and concept or artifact - Term Paper Example The girls are shown either walking leisurely along the beaches or swimming in the waters in a manner that highlights their beauty and the serenity of the environment. In some sense, the advert reinforces the notion and stereotype of slimness and feminine beauty. This Paper will discuss the impact of swimsuit video advertisements of female audiences. The message in the video CPCA is anchored in the flow of images, which keep shifting in rapid succession. There is no use of language such that only a mellifluous melody accompanies the images. The melody is enhances the aesthetic elements of the other features in the video advert in a way that increases the visual rhetoric of the CPCA. The bright yellow, pink, and purple colors are effectively used to attract the female audiences, who comprise the primary targets of the advertisement. The images in motion effectively bring out the beauty in diverse dimensions in a way that enabled the viewer to appreciate the many different aspects of th e swimsuit. By involving models from various continents, the advert aims to give a universal quality to the message of beauty as represented in the image of the swimsuit. The theories of constructivism and symbolic interactionism as developed by Jesse Delia and George Herbert Mead respectively could be used to apply explain the meaning of this CPCA. Delia in his theory of constructivism argues that individuals whose perceptions of others are more cognitively complex will tend to have the mental capacity for constructing sophisticated message plans, which pursue multiple goals(Griffin 97). According to the theory, such individuals will possess the capacity to supply person-centered messages, which conform to the outcomes they desire (Griffin 97). This theory could be seen within the context of socio-psychological traditions. It could also be explained within the rhetorical traditions (Griffin 97). When applied to the swimsuit advert CPCA, it might be argued that the video was specifi cally tailored to suit the complex cognitive abilities of the urban young women. At the psychological and rhetoric level, the CPCA has subtle and subliminal influences that would influence the targeted audience to pursue the items and meanings used in the advert. On the other hand, the theory of symbolic interactionism holds that the actions of individuals towards people, events, or things, is largely determined by the meanings that they assign to such things (Griffin 59). When people choose to define certain situations are being real, then the consequences also become real (Griffin 59). The theory foregrounds the aspect of language as central to thought, sense of self, and the socializing presence of society in the individual (Griffin 59). Basing on the identified CPCA the target audience will connect the meaning of the advert with the notions of slimness, which they assign to beauty. At the psychological level, they will strive to imitate the models in the video as the embodiment of beauty due to the cultural and social associations they assign to them. The identified CPCA helps in the understanding of the constructivism theory and the theory of symbolic interactionism because it highlights on the value of images in promoting meaning and reactions in the target audience. The CPCA also expands on the understanding of the kind of strategies that advertisements use to appeal to the

Fashion trend, Prints for Aged Women Article Example | Topics and Well Written Essays - 500 words

Fashion trend, Prints for Aged Women - Article Example The paper "Fashion trend, Prints for Aged Women" talks about the trend in fashion, Prints for Aged Women. Women’s contemporary attire styles are more varied and compliant to individual preferences than ever and no more does a tapered group of designers state how to wear. Though the aged women may not have a model’s svelte body, there is a wide selection of fashion fits that can suit them. Though aged women face the difficulty of finding obsequious fashion style, they have more money to spend in clothing. For this reason, they are left with few choices to make in fashion. Prints fashion trend is versatile and can easily be included into daily wardrobe. This fashion trend has been modified to be age apposite and stylish. A fashion garment possesses various attributes that can be manipulated to reflect changing fashions. These attributes include color, fabric, print, silhouette, and trim. In the recent past, a fashion garment would sell, all things equal, if it were the ap propriate color. Now it is not important to have the right shade. Prints fashion trend has a variety of clothing that comes in different colors. An aged woman has a changed complexion and the colours that seemed useless in the early years could become the colors to choose. Prints fashion trend comes with softer colors; pale pink and blue, burgundy rich fabrics such as, crimson, grape and navy. Prints fashion trend adds some much needed color in the wardrobe. In addition, prints fashion clothes comes in orange color.

Business case study on Bell Assignment Example | Topics and Well Written Essays - 1000 words

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