Reasons for excluding home grown brands from a balance sheet The WritePass Journal

Reasons for excluding home grown brands from a balance sheet Reasons for excluding home grown brands from a balance sheet It is likely that assets are considered as crucially important aspects of an entity that stakeholders pay attention to when looking at a balance sheet. International Accounting Standard Board has defined asset as â€Å"resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity† (IASB 1989, para.49a). However, there are a number of items that satisfy this definition but cannot appear on a balance sheet. One of them is the internally generated brand one type of intangible assets which has been a controversial topic in accounting context. This paper will particularly evaluate the reasons why this type of brand is excluded from a balance sheet and propose an argument for its conclusion. Adherence to accounting conventions, such as historic cost convention and money measurement concept, home-grown brands should not be recorded in a balance sheet. According to Atrill and McLaney (2008), the historic cost convention means that the acquisition cost or historic cost should be used to record assets on the balance sheet. Furthermore, in accordance to money measurement concept, only if the value of assets can be measured with reliability, they can have a place on a balance sheet (Marriott et al., 2002). IASB has issued a standard reflecting these conventions: â€Å"an asset is recognised in the balance sheet when: it is probable that the future economic benefits will flow to the entity and the asset has cost or value that can be measured reliably† (IASB 1989, para.89). According to Weetman (2006), internally developed brands do not satisfy these recognition requirements. The main reason is that it is impossible to obtain the fair value or cost of them. Furthermore, v alues of these assets are subject to fluctuation due to both internal and external circumstances, for example, only because of a rumour about the quality of products, brand name reputation of the company could be considerably affected. Experts in brand valuation might argue it is possible to obtain a reliable value of brand by a number of complex methods. However, Roslender and Hart (2006) insist that due to the problems in recognising the values at which brands could be included amongst assets of a business, the task of valuing brands has proved a â€Å"problematic exercise† (p. 230). Similarly, Collier and Agyei-Ampomah (2008) explain that it is infeasible to differentiate the cost of them between the expenditure of developing the businesses as a whole. Furthermore, Seetharaman et al. (2001) claim the differences between brands and other intangible assets such as goodwill or trademark are often confused. This problem leads to further difficulties when deciding how to value and include them in a balance sheet. Nonetheless, there are a number of justifications for reporting internally generated brand on a balance sheet. One of the reasons is that it is probably one of the most important and valuable assets of an entity (Lunt, 2008), therefore it should be recorded to inform stakeholders. According to   Motameni and Shahrokhi (1998), brands are crucial for entities due to the fact that they guarantee customer loyalty which resulting in steady demands and future cash flows. In addition, with a successful brand, it could be easier for a company to attract the promotional investment overtime. For these reasons, the authors argue that brands are considered as the â€Å"primary capital† for many companies (p. 286). An example is the famous brand â€Å"Coca Cola†. Anil (2007) points out that its brand value was around $67.4 billion in 2004, equaling to approximately 63 percent of market capitalization of the whole company (about $106.5 billion). According to accounting convention of material, financial statement should include information that can influence the decision-making (Needles et al., 2007). Such notable and valuable assets like brand, therefore, should be recorded. Moreover, Tollington   (2000) insists it is likely that the absence of home-grown intangible assets, such as internally created brands, is one of the reasons making the management be poorly informed. Another reason is that accounting is often vulnerable to be accused of being inconsistent because accountants do not record internally-developed brands whilst recording purchased ones (Tollington, 1998). This problem could contribute to â€Å"an incomplete view of the balance sheet† (p. 181). He argues that the accounting transaction based recognition procedure of assets is â€Å"largely inappropriate† for recognising home-grown brands because basically, purchased brands and non-purchased brands are the same, they are capable of generating wealth for businesses (p. 181). This argument is further explained in his later article in 2000. Tollington (2000) also conducted a survey which includes interviewing 294 accountants across the UK. In this study, the questionnaire result reveals the accountants’ awareness of their failure to recognise and capitalise many home grown intangible assets such as internally developed brands. The â€Å"inconsistency† of record ing purchased brands whilst excluding non-purchased ones is also â€Å"readily acknowledged† by almost three fourths of interviewees agreeing that home-grown brands are â€Å"assets irrespective of whether they arose from a transaction or event† (p. 92). In addition, Leo (1999) points out that the International Accounting Standards Committee, in principle, concurs that there should be no difference between acquired intangible assets and internally created ones. In conclusion, this essay has evaluated a number of reasons for excluding home grown brands from a balance sheet. The main cause is that they associate with a high level of uncertainty so it is not possible to measure their cost or value with reliability. Therefore, due to accounting conventions, they should not be recorded in a balance sheet. This essay has also provided a number of justifications for their inclusion. That is, because brand is one of the most important and valuable assets of a business, the act of reporting it would be useful to help stakeholders make informed decisions. Furthermore, its inclusion could prevent accounting procedure from being accused of inconsistency and ensure a more complete view on a balance sheet. References: Anil, C. (2007), Fundamentals of Accounting and Financial Analysis (For U.P.T.U.), Chennai, India: Pearson Education. Atrill, P. Mclaney, E. (2008), Accounting and finance for non-specialists, Essex: Financial Times Prentice Hall. Collier, P. Agyei-Ampomah, S. (2008), CIMA Official Learning System Management Accounting Risk and Control Strategy, Oxford, UK: Elsevier Science. International Accounting Standard Board, IASB (1989), Framework for the Presentation and Presentation of Financial Statements, para.49(a), para. 89 Leo, K. (1999), Intangible assets: seeking consistency, Australian CPA [Online], Vol. 69, No.10, pp. 30 32, Avalailable: highbeam.com/doc/1P3-46511579.html [Accessed: 5th December 2010] Lunt, H. (2008), CIMA Official Learning System Fundamentals of Financial Accounting, Oxford, UK: Elsevier Science Technology. Marriott, P., Edwards, J. Mellett, H. (2002), Introduction to Accounting, 3rd edition, London: SAGE. Motameni, R. Shahrokhi, M. (1998), Brand equity valuation: a global perspective, Journal of Product and Brand management [Online], Vol. 7, No.4, pp. 275 290, Emerald Available: emeraldinsight.com/journals.htm?issn=1061-0421volume=7issue=4articleid=857666show=html [Accessed: 5th December 2010] Needles, B., Powers, M. Crosson, S. (2007), Principles of Accounting, Boston: Houghton Mifflin. Roslender, R. Hart, S. (2006), Interfunctional cooperation in progressing accounting for brands, Journal of Accounting Organisational Change [Online], Vol. 2, No.3, pp. 229-247, Emerald Available: emeraldinsight.com/journals.htm?issn=1832-5912volume=2issue=3articleid=1571668show=html [Accessed: 5th December 2010] Seetharaman, A., Nadzir, Z. Gunalan, S. (2001), A conceptual study on brand valuation, Journal of Product and Brand management [Online],Vol. 10, No.4, pp. 243-256, Emerald Available:   emeraldinsight.com/journals.htm?issn=1061-0421volume=10issue=4articleid=857763show=html   [Accessed: 5th December 2010] Tollington, T. (1998), Brands: the asset definition and recognition test, Journal of Product and Brand management [Online],Vol. 7, No.3, pp. 180 192, Emerald Avalaible: emeraldinsight.com/journals.htm?issn=1061-0421volume=7issue=3articleid=857660show=html   [Accessed: 5th December 2010] Tollington, T. (2000), The cognitive assumptions underpinning the accounting recognition of assets, Management Decision [Online],Vol. 38, No.2, pp. 89-98, Emerald Avalaible: emeraldinsight.com/journals.htm?issn=0025-1747volume=38issue=2articleid=865125show=html   [Accessed: 5th December 2010] Weetman, P. (2006), Financial and management accounting: an introduction, 4th, Essex: Financial Times Prentice Hall.

The U.S. Financial Crisis- Impact on Trade Research Paper

The U.S. Financial Crisis- Impact on Trade - Research Paper Example As a result of the crisis starting in 2007 and building up by 2008, the Wall Street could be said to have been remade (Jones, 2009, p.2).     The Financial Crisis of 2007/2008: The international trade and the economic growth in the world had presented significant positive results before the economic crisis of 2007/2008. From the time period from 2000 till 2007 the gross domestic product of the world had reflected an increase of 3.2 percent in a year that surpassed the annual growth of the 1990s that figured around 2.5 percent. Countries like China, India, and Russia that were emerging as economic countries in the market also reflected expansions in their growth to as high as 6.5 percent in a year resultant of the different economic reforms. The farmers in the U.S. also benefitted from these growths leading to rising farm income of around 43 percent. The financial crisis affected the world starting in 2007 and deepening in 2008 leading to recession in several countries (Appendix A ) (Liefart & Shane, 2009). The crisis had initiated in the US when the housing bubble burst out and there were increasing defaults in mortgages, particularly in the subprime mortgages, that had grown for the borrowers who were not worthy of such loans, thereby leading to instability in the financial institutions and subprime losses (Appendix B) (Helleiner, 2011, p.69). The different causes that were obtained to have led to the crisis include: imprudent mortgage lending relaxing the standards of lending, housing bubble reflecting rising prices of houses, global imbalances, securitization, lack of transparency and responsibility in mortgage finance, rating agencies giving AAA ratings to several downgraded securities, mark to market accounting, deregulatory legislation, shadow banking system with financial activities moving out of government safety, non bank runs, off balance sheet financing, subprime lending mandated by government, failure of risk management systems, financial innovat ion, complexities, human infirmity, bad models of computer, excess leveraging, relaxed regulation of leverages, credit default swaps, over the counter derivatives, fragmented regulation, no systemic regulation of risks, short term incentives, and tail risk (Jickiling, 2010, pp.5-10). These issues initiated in the US and gradually affected the world and the international trade. With the crisis deepening in 2008, various measures that imposed restrictions on trade activities were initiated by different countries. General hikes in tariffs, particularly in iron and steels, primary products, agricultural foods, were incorporated in countries like Russia, India, Turkey, Vietnam, Ukraine, EU, Brazil, and Ecuador. Standards and certifications in trade also changed in several countries like Malaysia, India, Indonesia, Ecuador, Thailand and South Korea with bans and restrictions on several business issues. Licensing system of imports also altered from ‘free’ to ‘restrictedà ¢â‚¬â„¢ in many countries as a result of the recession.  Ã‚  

Health and Safety Essay Example | Topics and Well Written Essays - 1000 words - 1

Health and Safety - Essay Example release of harmful substances or petroleum products into structures on the site, the ground, underground water or surface water in the property (Hughes & Ferrett, 2008). ISA encompasses the following aspects: analyzing relevant and existing documents and maps explaining local geological and hydrogeological conditions. It also evaluates existing aerial photographs of the site in order to determine prior activities and developments that will give a hint of the potential existence of harmful substances. ISA will also focus on the terrain of the site in order to determine if the project to be established will not pose a health or safety risk if constructed on the site. The topography is also critical in projects that will require the pumping of water or waste which is in liquid form as it will require pressure. Examples include water and sewerage projects. Access and exit routes to the site will also be addressed by the initial assessment report. These two factors are important in that it will determine efficiency of entry into the site. Such considerations are also important in cases of accidents and emergencies as knowledge of exit routes will ensure fast evacuation of the site (Hughes & Ferrett, 2008). The boundaries of the site are also important in the initial site assessment because if the project will entail the emission of hazardous waste, it is important that the boundaries are clearly defined to avoid contamination of adjacent surrounding areas. Such acts can result in healthy concerns for the nearing environs and costly law suits. Site controls are important in ensuring that health and safety concerns are addressed before the actual project is started. Planning is critical in ensuring that health and safety is integrated into the project from the initial stages of the project to avoid future complications that may arise in installing safety measures in the site. Some of the considerations that must be factored in include installation of fire exits,

Looking for Methods Essay Example for Free

Looking for Methods Essay With the rampant use of the inter net today, the students in todays generation get their resources from the world wide web. In effect, most of the resources are easily copy-pasted to the students word documents. It is very likely for them to be accused of plagiarism. Now research resources can still be integrated into paper works without the worry of plagiarizing. There are certain methods on how to properly cite resources. First thing that would leave a writer out from damage is to cite their sources. Acknowledge the author of the source and then discuss the details of the specific source. It can be done through paraphrasing and quoting from the original source. The method of quoting first and then explaining what that specific passage is can also be effective. Quoting is a harmless way of integrating a source into ones work. The citation is very important as well. It is important to indicate page numbers and even line numbers for the sake of references. Another good method would be introducing the author and then following it with a brief summary (Alred, 2003, p. 153). An example would be: Fear Itself: Depression Life is written by Robert McElvaine and discusses how the Great Depression has hit Americans. It talks about how Americans in the early 20th century battle with starvation and unemployment, which affected a lot of Americans. Soon, the situation helped them change to become a better person. The country has suffered the Great Depression in the 1930s. People got mixed perceptions in this difficult time though (McElvaine, 1993, p. 23). Notice how the paragraph started with the authors name and immediately gives a background of the article he wrote. The importance of doing this right away in the first paragraph is for the sake of coherence in writing. With proper citation, paraphrasing and summarizing research sources can be integrated into another persons writing without plagiarism. References Alred, G. (2003). Handbook of Technical Writing. Michigan: St. Martins Press. Lester, J. (2005). Research Paper Handbook: Your Complete Guide. California: Good Year Books. McElvaine, R. (1993). The Great Depression: America, 1929-1941. New York: Times Books.

Drowsy Driving: A Health Promotion Teaching Tool Proposal Essay

Drowsy Driving: A Health Promotion Teaching Tool Proposal This paper is a proposal for a health promotion teaching tool to raise awareness of the dangers of drowsy driving and to provide some tips and hints to help people reduce their risk and increase their safety while driving. The target audience is primarily the status post motor vehicle accident patient recovering as an inpatient on the medical/surgical unit of New London Hospital. However, there may be a useful spill-over effect and this tool could also be used by families and visitors to the Medical Surgical unit. The tool would be available on the medical/surgical unit of the hospital in the form of a tri-fold color pamphlet, placed in a hallway between the patient rooms and the rehabilitation gym. The expected outcome is that after picking up and reading the tool, patients would be more aware of the risks and hazards of drowsy driving and make choices to reduce their risk and increase their personal safety when driving. DROWSY DRIVING In the past several decades, our society has grown from a ‘one for the road’ attitude to a zero tolerance approach to driving while intoxicated. A quick look at the evening news shows us that many different states considering measures to prevent texting while driving, and ‘distracted driving’ is now a phase in common use. We understand the dangers of driving under the influence, texting while driving and distracted driving; however, drowsy driving continues to be a problem on our roads. Needs assessment Between 1998 and 2008, 16.5% of fatal car accidents in the US involved a drowsy driver, and 13% of non-fatal accidents where at least one person was admitted to the hospital involved a drowsy d... ... the American Medical Association .1998; 279(23):1908-1913. doi:10.1001/jama.279.23.1908. Microsoft. (2014) Test Your Documents Readability. Retrieved from http://office.microsoft.com/en-us/word-help/test-your-document-s-readability-HP010148506.aspx#BM2 National Highway Safety and Traffic Administration (n.d.) Drowsy Driving and Automobile Crashes. Retrieved from: http://www.nhtsa.gov/people/injury/drowsy_driving1/drowsy.html Tefft, B., (2012). Prevalence of Motor Vehicle Crashes Involving Drowsy Drivers, United States, 1999-2008. Accident Analysis and Prevention. 45(2012) 180-186. http://dx.doi.org.ezproxy.snhu.edu/10.1016/j.aap.2011.05.028 U.S. Department of Health and Human Services. (2013). Healthy People 2020 Initiatives: Injury and violence prevention. Retrieved from: http://www.healthypeople.gov/2020/topicsobjectives2020/objectiveslist.aspx?topicId=24

Are historians probably the least recognized movers and shakers of the society?

Historians are probably the least recognized movers and shakers of the society. As historians, it is always about their works and not about them. Well, there may be quiet a few historians who are popular, but again, they became famous because other historians chose to study and write about them. Behind every historical figure, behind every icon, is a historian. So for me, this is a chance to shine the light on these people, a good way to return the favor. Going back to the discussion question, my affinity is more towards psychohistory.For me, this is probably the most challenging one, since it goes beyond the available information for a certain topic or person (385, Breisach). It involves reading between the lines, of how an event in a person’s life, say in his childhood, may influence his service as the president of a nation. It goes beyond gathering data and piecing them together in something that could be easily understood by others. It is not limited to a single person or event, as it could also be applied to a group of people at a certain time.Psychohistory deals with much more interesting works aside from the endless researches and investigations usually conducted by historians. Response 1: From your response, I can see that your deep interest with literature and art somehow influenced your affinity to Romantic historiography. I agree with what you said about how Romantic historians wanted to hold the reader’s attention, and it is because the topics included in this aspect are anything but the ordinary, thus keeping the focus and the attention of those studying Romantic history. This is very broad, and I doubt that you’ll run out of anything interesting.Response 2: I admire the set of criteria for a historian that you have laid down, but I think it’s rather hard to follow. First and foremost, just choosing on a subject would still be subject to bias. Why would do a historian choose to write about the Greeks and not about the Ro mans? There is a big difference between a historian and a news reporter. The biases that a historian possess is what makes history interesting. Despite all the facts about a topic, there is still a hint of uncertainty in it. For me, the need to clarify and verify facts about our history is what defines historians. Response 3:I agree with you that psychohistory is indeed very interesting. In fact, it is also my choice in this discussion. From your response, you focused on collective psyche, which for me is a defining aspect of psychohistory. It is usually the leaders who are subjected to this, since they are prominent and their actions affect a larger scale. However, I think that this could also be done to anyone else worth studying, since it involves informed interpretation. All you need to have is a basis for that interpretation, and that entails gathering data about the subject, something which is common to all historians.

Schizophrenia †Frightening and Exciting

Schizophrenia – Frightening and Exciting People have always been and always will be attracted by the visions of strange, frightening and mysterious; and what can be more so, than the things that happen inside human’s mind, when the mind itself seems to rise against the human? The word â€Å"schizophrenia† is derived from the Greek words meaning â€Å"to split† and â€Å"mind†, the literal translation being something like â€Å"split mind† and it is truly so – it affects the person’s cognitive process, destroying the connections between reality, thought, emotion and behavior. It often results in hallucinations, delusions (mostly bizarre or persecutory), as well as disorganization of thinking process. The first signs of schizophrenia generally appear during the period of adolescence and early adulthood, severely impairing the person’s abilities to interact with the outer world. It goes without saying that such individuals can hardly lead normal social life. Although, however, there have been a number of rather picturesque examples of people suffering from this serious mental illness, who still showed considerable capacity to live and act, finally achieving a lot more than an average normal human being. One of the most well-known of them is John Forbes Nash, an American mathematician who was diagnosed as a schizophrenic during his study at college. Notwithstanding the fact that he refused to take medications and undergo treatment, he not only continued to work in the field of Mathematics, but also was awarded the Nobel’s prize in 1994. His case became famous enough to inspire a book â€Å"The Beautiful Mind† and the film based on it. All in all, schizophrenics range in the acuteness of their mental disorder and their possibility to fight them off. Generally they are much more dangerous for themselves, than for the other people.