Tesco Plc Essay Example | Topics and Well Written Essays - 2250 words

Tesco Plc - Essay Example Through the concept of corporate social responsibility (CSR), companies have been forced top look beyond the economic returns of the business but also consider their impact on the environment and community around them. The importance of value creation through positive stakeholder relationships has an impact of significantly increasing the profitability of a firm (Edwards 1998). The increase in environmental legislation and the emerging trends of ethical consumers, the incorporation of social responsibility in the business strategy is more of a necessity in the competitive market. This report seeks to analyze the annual report of Tesco Plc for the year 2011 to investigate the way it accounts for its social, ethical and environmental impact. The report further compares the performance of the company with other companies in terms of environmental policies. Another aspect that is considered in this report is the nature of reporting that the company uses and recommendations for future str ategies to improve on the presentation of the company’s stakeholder’s strategy. 2. Business Review of Tesco Plc in 2011 Tesco is the most dominant retailer in the United Kingdom with a market share of about thirty percent. The company has a presence in several countries. It reported revenues in excess sixty billion in the financial year 2010/2011. The core purpose of Tesco Plc is to accord quality service to customers. The company’s goals are aligned to this vision that is clearly aimed at giving the company a competitive advantage in its market. The company has underpinned its commitment to the community and the environment by having a goal to put its responsibilities to the communities that they serve. To achieve this goal, the company has broken down its policy on environment and social issues into five key performance indicators that it uses to analyze the impact of its strategies. The key performance indicators on the social and environment issues for Tesco Plc for the period ending 2011 are analyzed below. 2.1 Responsibility in Buying and Selling of Products The customers require safe and affordable products. The company also lays emphasis on ensuring that the products that it sells are sourced in a way that is robust and meeting the required standards. Tesco has laid out strategies to help improve its relations with the suppliers through a program called â€Å"Trading Fairly†. However, the impact of this program cannot be quantified because the metrics of measuring the results are not available. In fact, it can be argued that these programs are publicity stunts since the same buying processes were used prior to the introduction of this program are still in place. A case in point is the widely documented practice by Tesco Plc to buy potatoes from the grey market instead of the official supply chain through Tyrells Crisps. The other issue of fair trade has been recently brought to the fore due to the price undercutting by super markets on bananas. The price wars between Tesco and Asda almost brought down the banana industry. The supermarkets opted to lower their margins and in turn reduced the amount they pay to their suppliers. According to Michaels (2004), the demand for cheaper products by supermarkets has become a ruthless way by the supermarkets to exploit the supplier. The net effect of lower supplier prices is that the workers in the farms are paid much less and this impacts negatively on the society. Sainsbury was the first supermarket to announce that it will sell one hundred percent fair trade bananas. Other supermarkets have followed suit but it is worth noting that Tesco was reluctant to commit to this cause. The increased money paid to the suppliers will have a positive impact on the community where the products are sourced from. The style of disclosure of the responsible sourcing and buying of products the Tesco

The UK Government is Right to Listen to Claims that Large Banks should Essay

The UK Government is Right to Listen to Claims that Large Banks should be Broken up - Essay Example From this study it is clear that  the impediment is that every niche of this argument is based on a myth. The first misleading notion is that the materialization of huge, universal banks- uniting investment banking with commercial banking- was an unnatural or artificial development. This disjointed market means that banks could not accomplish the economies of scale or simply supply clients on a global or national level. The market needs stimulated the consolidation and gave birth to an evolution towards greater competency in the banking sector.This paper stresses that  a second erroneous belief is that these universal, large institutions were primarily to give guilt for financial crisis. As most grave observers recognize, an amalgamation of risk management and bad lending by poor regulation, bank management and poor-advised consumer performance all played a role. A third misleading notion is that huge financial institutions have become too intricate to supervise. A firm of any si ze needs strong management and control to supervise complication. In reality, big global institutions have frequently proved more elastic than others because their expansion in business model makes sure that loss in one department of enterprise can be stifled by revenues in other departments of the organization. In some instances, intricacy can be a remedy to risk, instead of a reason of it.  The opponents of huge banks that are seldom aired similar to they don’t qualify for examination.... Critics point to the excessive influence huge banks mostly has on the political procedures. They panic that those regulators are intimidated by a big bank’s power and position. These opponents appear to consider that regulators are not capable of coming up with independent verdicts. In the practical world, this instance is not true. That supposed, it is genuinely right and mandatory for politicians and regulators to employ with industry and experts practitioners to be trained about these issues. These regulators are not browbeaten, but they usually do require more capability and improved cooperation with each other to take on the tasks lucratively (Duffie 2011). Another condemnation is that huge banks receive large, implied subsidies from government and can borrow money more reasonably because they are considered to ‘too big to fail’. But the facts don’t stay out. Big banks invest billions of dollars to bring services and products want, investments that a f irm has accomplished scale can make. The scale permits them to carry, like huge-box stores, more invention, more consistent and convenience, dependent service (Wilson 2012). Breaching the huge banks would damage their clients, customers, and the economy as a well. In actuality, it would insert novel risks into the financial arena. If the globalized, multifunctional, universal banks are obligated back into dedicated lending firs, they will require figuring out novel ways to give the returns to shareholders. This could easily lead the way to an augmentation in risk lending. Most of the banks in United Kingdom function all over the globe and have to function with international banks. If they are not able to work with banks in UK, they will then work with banks based

Depression Anxiety in Older Adults: Gaps in the Knowledge

Depression Anxiety in Older Adults: Gaps in the Knowledge Depression and Anxiety in Older Adults:Â  Are there gaps in current knowledge regarding diagnosis and treatment? Introduction Mental health problems in older adults can cause a massive social impact, often bringing about poor quality of life, isolation and exclusion. Depression is one of the most debilitating mental health disorders worldwide, affecting approximately 7% of the elderly population (Global Health Data Exchange, 2010). Despite this, it is also one of the most underdiagnosed and undertreated conditions in the primary care setting. Even with estimates of approximately 25% of over 65’s living in the community having depressive symptoms severe enough to warrant medical intervention, only one third discuss their symptoms with their GP. Of those that do, only 50% receive treatment as symptoms of depression within this population often coincide with other later life problems ( IAPT, 2009; World Health Organisation (WHO), 2004). Chapter 2: Literature Review 2.1: Depression and Anxiety in older adults Many misconceptions surround ageing including the fact that depression is a normal part of the ageing process. Actual evidence indicates that other physical health issues often supersede the presentation of depressive symptoms in older adults which may suggest that the development of depression is highly influenced by deteriorating physical health (Baldwin, 2008; Baldwin et al, 2002). Depression may present differently in older adults in comparison to adolescents or even working age adults. Although the same disorder may be present throughout different stages of the lifespan, in older adults certain symptoms of depression may be accentuated, such as somatic or psychotic symptoms and memory complaints, or suppressed, such as the feelings of sadness, in comparison to younger people with the same disorder (Baldwin, 2008; Chiu, Tam Chiu, 2008). O’Connor et al (2001) carried out a study into ‘the influence of age on the response of major depression to electroconvulsive thera py’ and found that when confounding variables are controlled (age at the beginning of a study), there is no difference in the remission rates for depression in both younger and older adults, however, relapse rates remain higher for older adults. Backing this up, Brodaty et al (1993) conducted a qualitative naturalistic study into the prognosis of depression in older adults in comparison to younger adults and again confirmed that the prognosis and remission for depression in older adults is not significantly worse than for younger adults. However, the rigor of a qualitative naturalistic study is argued by proponents as being value-laden in nature, while criticisms of this study approach highlight it as being subjective, anecdotal and subject to researcher bias (Koch, 2006). In addition to depression, anxiety disorders are also common among older adults, often presenting as a comorbid condition. In 2007, 2.28 million people were diagnosed as having an anxiety disorder, with 13% of those individuals aged 65 and over. By 2026, the projected number of people diagnosed with an anxiety disorder is expected to rise by 12.7% to 2.56 million with the greatest increase expected to be seen in the older adult population (King’s Fund, 2008). Despite the prevalence rate, anxiety is poorly researched in comparison to other psychiatric disorders in older people (Wetherell et al, 2005). Of the anxiety disorders, phobic disorders and generalised anxiety disorder (GAD) are the two most common in older people (Bryant et al, 2008). It wasn’t until 1980 that the American Psychiatric Association (APA) published the Diagnostic and Statistical Manual of Mental Disorders (DSM) 3rd Edition which introduced Generalised Anxiety Disorder (GAD) into the psychiatric nome nclature, distinguishing it from other anxiety disorders for the first time (APA, 1980). MCManus et al (2009) estimate that in England alone, as many as 4.4% of people in England suffer with GAD with prevalence rates between 1.2 and 2.5 times higher for women than men (Prajapati, 2012). Post-Traumatic Stress Disorder (PTSD) has received more clinical interest lately, correlating with individuals from the Second World War, Holocaust and Vietnam Veterans reaching or being well into old age and increasing recognition of PTSD. Despite this, data relating to prevalence rates still remains limited with research tending to focus on specific populations as opposed to community figures, for example, with regards to UK war veterans, approximately 30% will develop PTSD (pickingupthepieces.org.au, 2014). Unfortunately, stigma tends to misrepresent PTSD statistics as sufferers tend not to seek diagnosis or researcher bias is present. Britt (2000) found that many service personal within the military stated that admitting to a mental health problem was not only more stigmatising that admitting to a physical health problem but they also believed it would have a more detrimental impact on their career prospects. Furthermore, Mueller (2009) conducted a study into disclosure attitudes in which it was concluded that these attitudes can strongly predict symptom severity. With this in mind, it is important to stress the importance of practicing within the limits of NMC (2008) code of conduct in which unconditional positive regards must be show by all nursing staff whilst incorporating a non-bias attitude in practice. Anxiety and depression comorbidity is well established. A longitudinal study, noted for its beneficial adaptability in enabling the researcher to look at changes over time, conducted by Balkom et al (2000) found that in a random community sample of adults (55 and older), who were diagnosed as having an anxiety disorder, 13% also met the criteria of major depressive disorder (MDD). Adding weight to the evidence of anxiety and depression comorbidity in older adults, Schaub (2000) who also conducted a longitudinal study, found that 29.4% of a sample of older adults in a German community met the criteria for a depressive disorder. Longitudinal studies are thought to vary in their validity due to the attrition of randomly assigned participants during the course of the study, thus producing a final sample that is not a true representation of the population sampled (Rivet-Amico, 2009). King-Kallimanis, Gum and Kohn (2009) examined current and lifetime comorbidity of anxiety with depression. Within a 12 month period they found 51.8% of older adults with MDD in the United States also met the diagnostic criteria for an anxiety disorder. There is evidence to suggest that the first presentation of anxiety symptoms in older adults suggests an underlying depressive disorder (Chiu et al, 2008). Unfortunately, comorbid anxiety and depression in older adults is associated with much higher risks of suicidal symptoms (Bartels et al, 2002; Lenze et al, 2000) in addition to increased reports of more severe psychiatric and somatic symptoms and poorer social functioning when compared to depression alone (Lenze et al, 2000; Schoevers et al, 2003). 2.2 Diagnosis and Screening Tools APP TO PRACTICE Dementia, along with depression and other priority mental disorders are included in the WHO Mental Health Gap Action Programme (mhGAP). This programme aims to improve care for mental, neurological and substance use disorders through providing guidance and tools to develop health services in resource poor areas. Synthesis and utilization of empirical research is an important aspect of evidence-based care. Only within the context of the holistic assessment, can the highest quality of care be achieved. References: Baldwin, R., Chiu, E., Katona, C., and Graham, N. 2002. Guidelines on depression in older people: Practising the evidence. London: Martin Dunitz Ltd. Baldwin, R. 2008. Mood disorders: depressive disorders. In: Jacob R et al, Oxford Textbook of Older Age Psychiatry. Oxford: Oxford University Press. Balkom, V., Beekman , A., de Beurs, E., et al. Comorbidity of the anxiety disorders in a community-based older population in the Netherlands [Online]. Acta Psychiatrica Scandinavica 101(-). Pp 37–45. Available at: https://www-swetswise-com.abc.cardiff.ac.uk/FullTextProxy/swproxy?url=http://onlinelibrary.wiley.coc/resolve/doi/pdf?DOI=10.1034/j.1600-0447.2000.101001037.xts=1409279416128cs=1533436201userName=0000884.ipdireciemCondId=884articleID=25446758yevoID=1585273titleID=2498remoteAddr=131.251.137.64hostType=PRO [Accessed: 29th August 2014]. Bartels, S., Coakley, E., Oxman, T., et al. 2002. Suicidal and death ideation in older primary care patients with depression, anxiety, and at-risk alcohol use. American Journal of Psychiatry.159(10) pp.417–427. Brodaty, H., Harris, L., Peters, K., Wilhelm, K., Hickie, I., Boyce, P., Mitchell, P., Parker, G., and Eyers, K. 1993. Prognosis of depression in the elderly. A comparison with younger patients [Online]. The British Journal of Psychiatry 163(-) pp589-596. Available at: http://bjp.rcpsych.org/content/163/5/589#BIBL [Accessed 27th August 2014]. Chiu, H., Tam,W., and Chiu, E. 2008. WPA educational program on depressive disorders: Depressive disorders in older persons. World Psychiatric Association (WPA). King’s Fund. 2008. Paying the price: The cost of mental health care in England to 2026 [Online]. London: King’s Fund. Available at: http://www.kingsfund.org.uk/sites/files/kf/Paying-the-Price-the-cost-of-mental-health-care-England-2026-McCrone-Dhanasiri-Patel-Knapp-Lawton-Smith-Kings-Fund-May-2008_0.pdf [Accessed: 17th August 2014]. Koch, T. 2006. Establishing rigour in qualitative research: the decision trail. Journal of Advanced Nursing 53(1) pp. 91-100 Lenze, E., Mulsant, B., Shear M, et al. 2000. Comorbid anxiety disorders in depressed elderly patients [Online]. American Journal of Psychiatry. 157(-): pp.722–728. Available at: http://ajp.psychiatryonline.org.abc.cardiff.ac.uk/data/Journals/AJP/3712/722.pdf?resultClick=3 [Accessed: 29th August 2014]. O’Connor, M., Knapp, R., Husain, M., et al. 2001. The influence of age on the response of major depression to electroconvulsive therapy: a CORE report. American Journal of Geriatric Psychiatry. 9(-): pp. 382–390 Rivet-Amico, K. 2009. Percent Total Attrition: A Poor Metric for Study Rigor in Hosted Intervention Designs [Online]. American Journal of Public Health 99(9): pp 1567-1575. Available at: http://www.ncbi.nlm.nih.gov/pmc/articles/PMC2724469/ [Accessed 22nd August 2014]. Schaub, R., Linden, M. 2000. Anxiety and anxiety disorders in the old and very old—results from the Berlin Aging Study (BASE) [Online]. Comprehensive Psychiatry. 41(-) pp 48–54. Available at: http://ac.els-cdn.com.abc.cardiff.ac.uk/S0010440X00800085/1-s2.0-S0010440X00800085-main.pdf?_tid=25fb884e-2f25-11e4-ae4a-00000aab0f6bacdnat=1409279912_0012d28347b6791e31a8b5199f3daaa1 [Accessed: 29th August 2014]. Schoevers, R., Beekman, A., Deeg, D., et al. 2003. The natural history of late-life depression: results from the Amsterdam Study of the Elderly (AMSTEL) [Online]. Journal of Affective Disorders.76(1): pp 5–14. Available at: http://ac.els-cdn.com.abc.cardiff.ac.uk/S0165032702000605/1-s2.0-S0165032702000605-main.pdf?_tid=1814aa80-2f34-11e4-a381-00000aab0f27acdnat=1409286331_4cb7efb58af9c004b37dc4825f8831d5 [Accessed 19th August 2014].

Hiroshima Essay -- essays research papers

The most significant theme in John Hersey’s book â€Å"Hiroshima† are the long- term effects of war, confusion about what happened, long term mental and physical scars, short term mental and physical scars, and people being killed. The confusing things after the A-bomb was dropped on Hiroshima where that the city had been wiped out, all means of communication where gone, all the roads and street signes where wiped out, destroyed or blocked by collapsed buildings â€Å"†¦saw through the darkness that all the houses in her neighbourhood had collapsed.†1 People not knowing what had happened as there had been no siting of a plane before the bomb was dropped, not being sure if a bomb or a fire had caused all the damage â€Å"The Americans are dropping gasoline. They’re going to set fire to us!†, and not knowing what the site effects of the bomb would be on the people and land such as acid rain â€Å"The drops grew abnormally large.†2 The long-term mental and physical scars left on the people of Hiroshima would have been not knowing what happened to family members, and friends who where missing and still are missing to this day, â€Å"You’ve go to find him†3, and â€Å"†¦.search for him.†4 The physical scars left on the people of Hiroshima after the bombing are, organ damage, disease, accelerated aging, eye brows burnt off and skin damaged on faces and hands. People forgetting what Americans did to Japanese civilians, by dropping that awful thing, â€Å"He was slowing a bit. His memory, like the world’s was gettin...

Smirnoff Nightlife Exchange Media Campaign

SMIRNOFF NIGHTLIFE EXCHANGE MEDIA CAMPAIGN CHAU Hong Duc Table of content I. Analysis 1. Overview 2. Significant figures 3. Why is it successful? II. Recommendation III. References I. Analysis 1. Overview Smirnoff Night Life Exchange project is an annual promotion campaign integrates series of nightlife parties, leading to the biggest party in the November each year, along with global dancing competition judged by Madonna.Initiated by Smirnoff – the 1st worldwide vodka brand from 2010, Night Life Exchange reached a huge success in 2011; marked with November 12th 2011 night, with (1)50 countries and 10 million people around the world involved and celebrate the best world’s nightlife. 2. Significant figures (2) 10 million participants 50 countries 3000 tracks of partygoers 5000 â€Å"liked† Smirnoff cocktails on Facebook 8000 photos uploaded on Facebook One of 11 best social media campaigns in 2011 selected by Econsultancy. com (3) 3. Why is it successful?In this p art, I’ll just discuss on the media’s aspect, which I believe is the major factor leading to its success. Firstly, Smirnoff heavily takes advantages of social media, specifically Facebook fan pages. It created 50 fan pages for each country involved, such as Smirnoff Vietnam, Smirnoff. These pages are altogether connected to the main fan page of Smirnoff with the special application called Around the world, which earns more than 386,000 likes. Fan pages significantly make a huge impact on earning participants for the project. Along the line, they also generate local ebsite in each country to promote the event, to attract people signing up for the event and receiving any ideas for the biggest night, varied from which drinks are suggested, which singers should be put in and so on. On both pages and sites, they put on valuable information about cocktails recipes as well as creating amazing and viral small contests with prizes good enough for calling attendants. The two mos t important elements in this media campaign are: First, Smirnoff had a great idea of hosting an enormous one-of-a-kind event locally, which means people from all over the world can enjoy a mutual experience.This obviously woke up either the feeling of national pride or the toward-global tendency. Second, Smirnoff created the two-way communication with their target customers. They can technically involve in organizing â€Å"their† own party through the possibility of sharing thousands ideas. It’s excellent that Smirnoff is having an open dialogue rather just informing information to audiences. In conclusion, Smirnoff successfully created the shared value for an event, which is social media all about.Besides, the logo is very well designed with the theme color is red, which is also the theme color of Smirnoff with the symbol of an eagle, represents a feeling of powerful and courtesy. II. Recommendation However, there is still room for improvement if Smirnoff want to get bigger achievements through this project. I went through some of Nightlife Exchange’s local website and realized that the design, as well as domain name of those websites is not consistent, for example in Vietnam, it’s bethere. n but in another country, it’s totally different. Therefore, I recommend that instead of having separate websites, they should link all of countries into one mother site and from there, direct to local page, such as bethere. com/Vietnam or bethere. com/brazil. This would help them organize better customer database, better statistics and easily keep track of their customer. I also highly suggest using mobile marketing, which is cheap and fast method to spread out the information to audiences as well as check-in function on Facebook.They should encourage their fans to do check-in whenever they go to the party. This will create an impressive appearance on fan pages. Last but not least, the slogan â€Å"Be There†, though it’s qu ite suitable for the beginning phase, should be change into some words more encourage the individual uniqueness like â€Å"Be Yourself There† or â€Å"Be Unique There†. I think it will encourage people to join party and prove themselves to all people in the world and create a vast diversity of styles, bringing more liveliness to an event. III. Refernces (1)Madonna Resurfaces in Smirnoff Social Media Promotion http://mashable. com/2011/08/17/madonna-smirnoff/ – Todd Wasserman, Mashable, Aug 2011 * (2)Smirnoff Nightlife Exchange Project Gathers Millions Globally for the World's Biggest Nightlife Experience http://www. marketwire. com/press-release/smirnoff-nightlife-exchange-project-gathers-millions-globally-worlds-biggest-nightlife-1586027. htm – Marketwire, 2011 * (3)11 of the best social media campaigns of 2011 (and what we can learn from them) * http://econsultancy. om/fr/blog/8452-the-best-social-media-campaigns-of-2011-and-what-we-can-learn-from-them – Steve Richards, Econsultancy. com, Dec 2011 * Superstar line-up for the Smirnoff Nightlife Exchange Projectâ„ ¢ with The Potbelleez, Fourplay DJ's And DJ Gordo http://www. irishtimes. com/events/smirnoff-nightlife-exchange/thailand-exchange. html – Iristimes. com * https://www. facebook. com/Smirnoff * http://nightlifeexchange. vice. com/en * The Smirnoff Nightlife Exchange Project 2011 video clip http://www. youtube. com/watch? v=k9lCf8VkMio

The Epidemic Of The Ebola Essay - 1497 Words

Since March 2014, in excess of 3,000 individuals have passed from the unstoppable spread of the Ebola infection all through the West African nations of Guinea, Sierra Leone, Liberia and Nigeria. Notwithstanding the colossal and miserable loss of human life, the Ebola broad sickness is having shocking and ruinous consequences for these West African economies in a mixed bag of greatly imperative parts/territories by ending exchange, harming cultivating and startling speculators. Capacity to move around confinements, exchange and transport: To end the spread of the infection, the nations most influenced by Ebola have put into utilization disconnects (or times of detachment) (to ensure from spreading illness) in territories where danger of disease is high while close-by nations, for example, Cote d ivoire and Senegal have constrained (by law) limitations on the development of individuals and merchandise, including fringe terminations. These measures, thusly, have lessened inner and (ide ntified with an expansive zone) exchange, transport and, obviously, tourism. In any case since authority exchange insights don t catch casual exchange -including cross-fringe exchange which could extend from 20 to 75 percent of the population for West African nations -the speculated a number effect proposed by the World Bank may ignore the extensive decrease in casual exchange because of capacity to move around confinements. While these activities intend to break the chain of transmission,Show MoreRelatedThe Epidemic Of Ebola Epidemic1476 Words   |  6 PagesLeone have obtained Ebola according to the World Health Organization, 3,000 people or more have died. The epidemic of Ebola spreading is a threat to Africa and other countries that’s healthcare isn’t strong enough to combat a disease alone (Burgess). This means the United States must step in to prevent the spread of this epidemic to prevent some estimates of the worst case scenario. The United States is morally r esponsible for the health of others and by containing the epidemic to these few countries;Read MoreThe Epidemic Of Ebola Virus Ebola1814 Words   |  8 PagesThe virus Ebola, or formally known as Ebola haemorrhagic fever, is something most, if not all, Americans have heard of in these past few months since it has taken American media by storm. Ebola is a severe, often fatal illness, with an astonishingly high case fatality rate. It is considered one of the world’s most virulent diseases and is transmitted by direct contact with the blood, body fluids and tissues of infected animals or people (Ebola Virus Disease). This, however, is not the only aspectRead MoreThe Epidemic Of Ebola Virus Ebola1943 Words   |  8 PagesThe virus Ebola, or formally known as Ebola hemorrhagic fever, is something most, if not all, Americans have heard of in these past few months since it has taken American media by storm. Ebola is a severe, often fatal illness, with an astonishingly high case fa tality rate. It is considered one of the world’s most virulent diseases and is transmitted by direct contact with the blood, body fluids and tissues of infected animals or people (Ebola Virus Disease). This, however, is not the only aspectRead MoreEbola Virus : An Epidemic856 Words   |  4 Pagesthere is the possibility that it will become an epidemic. For centuries, deadly diseases have threatened to infect and possibly eradicate mankind. The Ebola virus, which causes an extremely fatal hemorrhagic fever, is considered to be one of the most aggressive contagions in the world. The Ebola virus is a member of a family of RNA viruses known as, â€Å"Filoviridae† and is composed of multiple distinct subspecies (Bausch et al. 2007). It causes Ebola Virus Disease, a fairly new disease that plaguesRead MoreThe Epidemic Of The Ebola Virus1132 Words   |  5 PagesThis is essentially what having the Ebola virus would be like. The three affected West African countries of Gui nea, Sierra Leone, and Liberia are doing all that they can to contain and eliminate the Ebola virus. However, every country has a different method for handling crisis. These differing methods can be shown in the recent bringing of the Ebola virus to the United States from Western Africa. The strategies used for containment as well as elimination of the Ebola virus in both Western Africa andRead MoreThe Epidemic Outbreak Of Ebola4936 Words   |  20 PagesIntroduction The recent outbreak of Ebola has promoted international involvement from many organizations and governments. Most of these efforts have been focused on short-term solutions to control the disease. However, while many organizations provided medical workers, aid, and supplies to combat Ebola, their actions were insufficient to stop the spread of disease. There remains a multitude of problems in Sub-Saharan Africa, including lack of locally trained medical professionals and poor coordinationRead MoreThe Epidemic Of Ebola And Hiv / Aids Essay1363 Words   |  6 Pagesoutbreak of Ebola in Western Africa. Examining the distinctions between the two can give us a better understanding of how to combat potential outbreaks in the future. Ebola and HIV/AIDS are two infectious diseases with many similarities. Both diseases are caused by viruses, originating in Africa, with no approved vaccines available, leading to mass casualties. Even with their similarities, the two outbreaks had vastly different outcomes. This is due to the â€Å"visibility and latency† (Ebola vs. AIDS,Read MoreThe Epidemic Of The Ebola Outbreak1375 Words   |  6 Pages In today’s fragmented news society ratings have become the dominate motive behind news stories. Recently that has been a lot of information in the news concerning the Ebola outbreak. This coverage has posed many questions from an ethical and a legal standpoint. Many of the issues that have plagued the coverage of the Ebola outbreak can be attributed to the consolidation of the American media market. Because of relaxed regulation by the Federal Communication Commission, large corporations haveRead MoreThe Epidemic Of Ebola Hemorrhagic Fever1893 Words   |  8 Pages â€Æ' Introduction Ebola hemorrhagic fever is a severe and often deadly illness named after a river in the Democratic Republic of Congo (formerly Zaà ¯re) where it was ï ¬ rst identiï ¬ ed in 1976 with a high case fatality rate lying between 50 and 90%. Outbreaks between 1972 and 2007 are shown in Table 1. The disease ï ¬ rst came into the limelight in 1976 in Zaà ¯re and Sudan in 1976 [17]. Its origin is still unknown and it is widely believed that Ebola virus is transmitted to humans from discrete life cyclesRead MoreThe Epidemic Of Ebola Virus1206 Words   |  5 Pagesfear of the dark, the panic caused by the Ebola virus is largely due to misunderstanding and is often blown out of proportion. The Ebola virus is discussed in the media because it generates hysteria, even though it is nowhere near as threatening as it is often claimed to be. Do not make the assumption that the virus itself is not lethal, as indeed it is one of the deadlier pathogens in the world; however, a variety of factors contribute to making the Ebola virus a less than perfect killer; in order

The globalised business - Free Essay Example

Sample details Pages: 9 Words: 2663 Downloads: 3 Date added: 2017/06/26 Category Business Essay Type Narrative essay Did you like this example? 1. Introduction Businesses have never been as globalised as they are today. Numerous corporations from developed, newly industrialised and developing countries operate on a global basis and need to create financial statements using the accounting practices of their home country, as well as those existing in their areas of operations. The divergence in accounting practices of different countries creates the need for the preparation of separate financial and accounting statements and subsequent reconciliation of differences. The international accounting fraternity is now steadily moving towards global commonality in accounting practices and procedural reporting. The International Accounting Standards Board (IASB) has been working towards convergence of global accounting standards. Its mission is to develop and enforce a single set of global accounting standards, based on preparation of high quality, transparent and comparable financial statements for local and gl obal users. The IASB has been working on compiling a stable set of International Financial Reporting Standards (IFRS) for first time users. The IFRS was mandated for all publicly listed companies in the European Union in 2005 and has also been adopted by other countries like Australia. The IASB has also been working very closely with the US Financial Accounting Standards Board (FASB), since 2002, to bring about convergence between US GAAP and the IFRS. However, while significant work has been done on harmonising IFRS with US GAAP and many pending issues are being currently addressed, a number of accounting topics are still treated differently by these two systems. It is the purpose of this assignment to examine the differences and similarities between US GAAP and IFRS for the treatment of Goodwill, Research and Development costs, Brands, Patents and Trademarks. A number of texts have been referred for this assignment, especially â€Å"International Accounting and Multinationa l Enterprises† 6th edition by Radebaugh, Gray and Black, â€Å"International Financial Reporting: A Comparative Approach† by Roberts, Weetman and Gordon, the US GAAP and IFRS websites, a number of specialised publications by PWC and Deloitte and the published accounts of many multinational corporations. Accounting statements and established practices are often subject to individual interpretation and the perusal of a number of texts has enabled the researcher to prepare a holistic assessment of the selected topics. Inputs from all these texts and publications have been used in the preparation of this paper. 2. Goodwill Goodwill arises as an intangible asset and comprises of the difference between the cost of an acquisition and the fair value of its identifiable assets, liabilities and contingent liabilities. A recent analysis by PricewaterhouseCoopers (PWC) estimates that intangible assets accounted for approximately 75 % of the purchased price of acquired compani es in recent years. Increasing attention is now being paid on the management of intangible assets and the IFRS3 has responded to this need by detailing accounting procedures for intangible assets. Goodwill makes up approximately two thirds of the value of intangible assets of US companies and the figure for companies registered in the EU would presumably be similar. Accounting of Goodwill arises in the case of acquisitions where the purchase price exceeds the net cost of purchased tangible assets, the monetary difference being attributed to goodwill and other intangible assets. IFRS procedures, unlike US GAAP, previously required the amortisation of goodwill over a specific number of years, thus establishing an artificial life for this asset. This procedure has since been changed and with the IFRS position converging with that of GAAP, goodwill is not considered to be a wasting asset anymore. It however needs to be emphasised that this refers only to goodwill obtained from acquis itions. Internally generated goodwill is not reflected as an asset either under IFRS or under US GAAP The IFRS enjoins companies to distinguish between goodwill and other identifiable intangible assets. As such the value of other intangible assets like Research and Development, Patents, Trademarks, Brands and others need to be removed from the goodwill basket to arrive at the residual goodwill value. The treatment of goodwill is different from other intangibles as, subject to periodic assessments for impairment, it is expected to maintain its value indefinitely. While both IFRS and US GAAP require goodwill to be valued, reconciled, detailed by way of factors and reflected in financial statements, they have dissimilar modes for its accounting treatment. a) Goodwill under IFRS Goodwill is not amortised any longer under IFRS procedures and is considered to be an asset with indefinite life. It however has to be subjected to a stringent impairment test, either annually, or at sh orter notice if the need arises, to assess for erosion in value. In the event of impairment, the Profit and Loss Account is charged with the computed impairment amount to ensure the immediate highlighting of poorly performing acquisitions. Goodwill is thus not seen as a steadily wasting asset but one with indefinite life; and with a value linked to the performance of the unit. Another significant change in the treatment of goodwill has arisen out of the requirement for treating all business combinations as purchases. This will eliminate the possibility of companies’ not recording goodwill by pooling the assets and liabilities of various companies together for preparation of financial statements. The test for impairment of goodwill under the IFRS is carried out at the level of the Cash Generating Unit or a group of CGUs representing the lowest level at which internal managements monitor goodwill. The IFRS also stipulates that the level for assessing impairment must never be more than a business or a geographical segment. The test is a one stage process wherein the recoverable amount of the CGU is calculated on the basis of the higher of (a) the fair value less costs to sell or (b) the value in use, and then compared to the carrying amount. In case the assessed value is lesser than the carrying cost, an appropriate charge is made to the profit and loss account. The goodwill appropriated to the CGU is reduced pro rata. The IFRS requires detailed disclosures to be published regarding the annual impairment tests. These include the assumptions made for these tests, and the sensitivity of the results of the impairment tests to changes in these assumptions. M/s Radebaugh, Gray and Black, in their book â€Å"International Accounting and Multinational Enterprises† stress that these disclosures are intended to give shareholders and financial analysts more information about acquisitions, their benefits to the acquiring company and the efficacy and r easonableness of impairment reviews. Negative goodwill arises when the cost of acquisition is less than the fair value of the identifiable assets, liabilities and contingent liabilities of the company. While its occurrence is rare, negative goodwill can well arise when loss making units are acquired or a distress sale gives a company the opportunity to acquire a bargain. In such cases IFRS procedures stipulate that the acquirer should reassess the identification and measurement of the acquiree’s identifiable assets, liabilities and contingent liabilities and the measurement of the cost of the combination. The excess of net assets over the cost should be recognized and taken to the profit and loss account, b) Goodwill under US GAAP Goodwill was treated as an asset with indefinite life by US GAAP even when IFRS procedures allowed for its amortisation. The change in IFRS procedures is a thus a desirable step towards convergence. In US GAAP, goodwill is reviewed for i mpairment at the operating level, which specifically indicates a business segment, or at a lower organisational level. In no case can an impairment assessment be made for a level higher than a business segment. Impairment must be carried out annually or even at shorter intervals, if events indicate that the recoverability of the carrying amount needs to be reassessed. While these requirements are similar to those stipulated by IFRS, the procedure for assessment of impairment is significantly different and comprises of two steps. In the first step the fair value is computed and compared with the carrying amount of the concerned unit including goodwill. If the book value is higher than the fair value, no further exercise is suggested and goodwill carried forward at the same value. If however the fair value of the reporting unit is lesser than its carrying amount, goodwill is considered to be impaired and the second step is applied. Goodwill impairment, under US GAAP, is measured by computing the excess of the carrying amount of goodwill over its fair value. The computation for this is fairly simple and constitutes of determining the fair value of goodwill by allocating fair value to the various assets and liabilities of the reporting unit, similar to the procedure used for the determination of goodwill in a business combination. The calculated erosion in goodwill needs to be shown specifically as an impairment charge in the computation of income. The assessment and treatment of negative goodwill is also somewhat different in US GAAP, even though the basic accounting principles are similar to that followed by IFRS. In this case the excess of fair value over the purchase price is allocated on a pro rata basis to all assets other than current assets, financial assets, assets that have been chosen for sale, prepaid pension investments and deferred taxes. Any negative goodwill remaining after this exercise is recognised as an extraordinary gain. 3. Intangibl e Assets other than Goodwill Intangible assets other than goodwill are identifiable non-monetary asset without physical substance. M/s Radebaugh, Gray and Black state that intangible assets need to be identifiable, under the control of the company and capable of providing future economic benefits. While formulation of appropriate modes of accounting for these assets pose challenges to accounting theory and concepts, their importance in business is significant enough to warrant the application of detailed accounting thought. All the texts consulted have devoted significant attention to the treatment of intangible assets. A July 2006 paper on â€Å"Accounting Standards regarding Intellectual and other Intangible Assets† by Halsey Bullen and Regenia Cafini of the United Nations Department of Economic and Social Affairs is also very explanatory and deals with the subject both in depth and with comprehensiveness. This section deals with the similarities and dissimilaritie s under US GAAP and IFRS for specific intangible assets e.g. Research and Development Costs, Brands, Trademarks and Patents. While the growing importance of intangible assets call for their inclusion in financial statements, their intrinsic nature makes it difficult to do so. Firstly, there is little connection between the costs incurred for creation of intangibles and their value. Second, it is also difficult to predict the extent of benefits that intangibles will be able to deliver. Both the IFRS and US GAAP have certain commonalities in the accounting treatment of intangible assets. In case of acquisitions, managements are enjoined to isolate specific intangible assets and value them separately from goodwill. All these assets have to be identified, valued and indicated separately in the balance sheet. The list of intangible assets that need to be recognised separately, as a result of IFRS 3 is extensive and includes a host of things like patents, brands, trademarks and compute r software. IFRS 3 demands that the identification and valuation of intangible assets should be a rigorous process. Experts however feel that while valuing intangibles is essentially associated with subjectivity, logical mental application and the use of working sheets should be able to satisfy the demands of regulators. IFRS and US GAAP classify intangible assets, other than goodwill, into assets with limited useful life and assets with indefinite useful life. Assets with finite life are amortised over their useful life. While arbitrary ceilings are not specified on the useful life of those assets, they still need to be tested for impairment every year. An asset is classified as an asset with indefinite useful life if there is no probable limit to the period over which it will benefit the firm. It is however rare for intangible assets other than goodwill to have indefinite useful lives and most intangibles are amortised over their expected useful lives. Assets with indefinite li ves have to be subjected to rigorous annual impairment tests. The fact that most intangible assets (other than goodwill) are amortised over their expected useful lives requires the determination of the expected useful life of each of the assets acquired. The general principles detailed above are common to both IFRS and US GAAP and are useful in determining the broad procedures for accounting and disclosure of intangible assets. As previously elaborated, accounting treatment primarily depends upon the determination of the life of an intangible asset, more specifically whether it has an indefinite or finite measurable life. All intangibles are governed by the same sets of disclosure requirements. Accordingly, financial statements should indicate the useful life or amortisation rate, amortisation method, gross carrying amount, accumulated amortisation and impairment losses, reconciliation of the carrying amount at the beginning and the end of the period, and the basis for determi ning that an intangible has an indefinite life Apart from these requirements, the differences, detailed below, between US GAAP and IFRS in the treatment of Research and Development costs, Brands, Trade Marks and Patents, also need consideration. a) Research and Development Costs IFRS procedures call for expensing of all research cost. Development costs are however assessed for valuation of long term benefits and, amortised over their determined benefit period. Capitalisation of development costs is allowed only when development efforts result in the creation of an identifiable asset, e.g. software or processes, whose beneficial life and costs can be measured reliably. If however a Research and Development project is purchased, IFRS provides for the treatment of the whole amount as an asset, even though part of the cost reflects research expenses. In the case of further costs being incurred on the project after its purchase, research costs will need to be expensed out while development costs will be eligible for capitalisation, subject to their meeting the required criteria. US GAAP however stipulates that all Research and Development costs be immediately charged to expenses. Certain development costs pertaining to website and software development are however allowed to be capitalised. Research and Development assets, if acquired are valued at fair value under the purchase method. However if the assets do not have any alternate use they are immediately charged to expense. Both PWC and Deloitte publications opine that US GAAP will most probably move towards the IFRS position on Research and Development as part of the short term convergence exercise. b) Brands The treatment of Brands is similar under both US GAAP and IFRS norms. It has been specifically clarified that the value of brands generated internally should not be reflected in financial statements. In case of brands obtained through purchase or acquisition the value of the brand wi ll have to be computed at cost or fair value and it will need to be determined whether the life of the brand is indefinite or finite. Brands with indefinite lives will need to be subjected to rigorous impairment tests every year, and treated like goodwill. Brands with finite lives, while subject to yearly impairment tests, will need to be amortised like other intangible assets. It needs to be noted that the mode of assessment of impairment in US GAAP is different from IFRS and this factor will accordingly come into play for assessment of impairment. c) Trademarks and Patents The costs of Patents and Trademarks, when developed and obtained internally comprise, mostly of legal and administrative costs incurred with their filing and registration and are expensed out as regular legal or administrative costs. The IFRS specifies that no revaluation is possible for Trademarks and Patents in accordance with IAS 38. This is because an active market cannot exist for brands, newspaper mastheads, music and film publishing rights, patents, or trademarks, as each such asset is unique. In the case of patents and trademarks obtained through acquisition, the treatment is similar to the broad category of intangible assets, for identification, valuation, measurement and recognition for purposes of separate disclosure. Acquired patents and trademarks are measured initially at purchase cost and are amortized on a straight-line basis over their estimated useful lives. Don’t waste time! Our writers will create an original "The globalised business" essay for you Create order