Wednesday, July 31, 2019
Audit Notes
Practitioners give the Users a written conclusion Accountable party must have an accountability relationship with the Users Auditors in an engagement must be independent because they would be perceived as unbiased Definitions:Accounting 0 Recording, classifying, and summarizing economic events in a logical manner for the purpose of providing financial information to have a proper decision making process Assurance 0 An engagement where a practitioner is engaged to issue a written communication expressing a conclusion concerning a subject matter for which the accountable party is responsible Auditing 0 Accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria Auditing should be done by a competent, independent person.Audit of FIS (Triangle diagram based on the conformity of the FIS with IFRS, GAAS, ASPE) Auditor 0 Shareholder's 0Management Auditor gives their written opinion to the Shareholders Management gives a stewardship relationship (to manage and look after the company for the S/H) with the shareholders Audit Objectives To gain reasonable assurance of FIS To ensure FIS are free from material misstatements For the auditor to express an opinion about the FIS being prepared with respects to the tlnancial reporting trameworks (IFRS Chapter 2 – The Public Accounting Profession Quality Control for Firms (Table 2. 2. 9) Leadership for Quality Control Should be present for all audits Quality control procedures should be implemented and communicated to everyone Firms should ensure all personnel are qualified Establish a formal code of conduct Ethical Principles are Required Principles include: Integrity Objectivity Professional Confidence
Tuesday, July 30, 2019
Imposing consumption tax on Saudi consumers and its contribution in promoting economic growth Essay
Introduction Saudi economy mostly relies on oil industry and its government has much control over natural resources and main economic activities in the land.  Ultimately, the economy of Saudi is centrally planned and therefore has free market economy. As it can be affirmed, oil industry contributes to approximately 45% of the total budget revenue hence making it imperative to the growth of the country. Till now, Saudi Arabia does not think that there is any need for consumption tax however, the country may face many problems in the future what may affect the economy if the oil dry out.            A recent analysis from Citigroup has raised the alarming possibility that Saudi Arabia might become a net oil importer by 2030[Could Saudi Arabia’s Oil Exports Dry Up?, 2012]. However, in order to Find a Solutions to contribute in raising Saudi Arabia economy for long run, and Focusing in another source rather than oil.  In order to maintain economic stability, we want to study the possibility of imposing consumption tax beside zakat on Saudi consumers and how it will contribute in promoting economic growth. Basic concept According to the dictionary, Zakat iscalled (Islamic tax) or (religious tax), it is an annual tax on Muslims comprising percentages of personal income of every kind to aid the poor in the Muslim community.[zakat] Research aim The research aim is to determine the possibility of imposing consumption tax on Saudi consumers beside zakat and how it will contribute in promoting economic growth Sub problems; 1.     How consumption tax contributes in promoting economic growth. A)    Why consumption tax. B)    Mechanism of economic growth. C)    Identify mechanism of promoting economic growth by consumption tax. 2.   The possibility of imposing consumption tax on Saudi consumer. A)   Analyze tax system for promoting economic growth. B)   Analyze Zakat system for promoting economic growth. C)   Compare (a) and (b) to determine the possibility of imposing consumption tax (the importance or how valuable is the consumption tax). 3.    Determine the possibility of using consumption tax for promoting economic growth of Saudi Arabia. Research Objectives As noted in the above information, the main aim or purpose of conducting this research is to investigate the possibility of imposing consumption tax on Saudi consumers beside zakat and how it will contribute in promoting economic growth. The following information provides the objectives and research questions for the study. Ø     To determine the importance of tax particularly in promoting the growth of economy Ø    To analyze all best and possible means of imposing consumption tax on Saudi consumer Ø    To determine the possibility of using consumption tax for promoting economic growth of Saudi Arabia Hypothesis Various studies conducted on consumption tax have revealed that consumption tax has a major effect on the country’s economic activities which can greatly affect economic growth, so in this paper we investigate how consumption tax contributes in promoting economic growth. We hypothesized that imposing consumption tax contributes in promoting the growth of Saudi Arabia’s economy. We also hypothesized that the difference between tax system and zakat system will contribute in determine the importance of the consumption tax. Literature review Essentially, previous research indicates a close relationship between introduction of consumption tax and economic growth in a country. Many economists argue that imposing a consumption tax implies increase in government revenue and thus increase in the country GDP which is essential in reflecting the country’s economic growth. There are limited studies tried to identify the relationship between tax structures and economic growth, Here is some of the related literature:            Arnold, J. (2008) has focused in studying and analyzing  the relationship between tax structures and economic growth by enteringindicators of the tax structure into a set of panel growth regressions for 21 OECD countries; he found the following results: 1.                 Income taxes are associated with significantly lower economic growth and lower levels of GDP per capita than consumption tax and property tax. 2.                 Respectively, property taxes, and particularly recurrent taxes on immovable property, then consumption taxassociated with the highest levels of GDP per capita. Therefore, these taxes are the most growth friendly taxes in economic growth. 3.                 Corporate income taxes have morenegative effects on GDPthan personal income tax. In general, the relationship between the income taxes and growth is negative relation. 4.                 The progressivity of income taxes and growth are negatively related. Also, Widmalm (2001), Padovano and Galli (2002) studied the relationship between progressivity of income taxes and economic growth in 25 countries, they reached the same result, the progressivity of income taxes and economic growth are negatively related. Various studies conducted on consumption tax have revealed that consumption tax has a major effect on the country’s economic activities which can greatly affect economic growth. Brys (2010) in his book ‘OECD Tax Policy Studies Tax Policy Reform and Economic Growth’ outlines the various effects consumer tax can have on economic activities of a country.In the book, he states that consumer tax will affect employment and working hours, affect international trade and regulate the activities of the underground economy. Brys continues to state that differentiated consumer tax will encourage people to work, lead to a yield in environmental benefits and reduce inequalities in income. When all these factors are brought together, economic activities of a country are likely to be affected in various ways. Methodology Research approach A good research is the one that provides answers to the research questions, validity, objectivity, accuracy, and economy. A research design is the plan and structure of investigation to obtain answers to research questions. The study adopted a qualitative survey structure. Qualitative research is also adopted since it investigates the social constructivist paradigm and relies on the socially constructed reality nature.  It aims to fundamentally record, analyze as well as determine the significance and meaning of imposing consumption tax on Saudi consumers and its contribution in promoting economic growth. The approach is not initially based on any data to be compared but on the perceptions of those who have experience and knowledge based on consumption tax and its potential in enhancing economic growth of a country. The qualitative research approach here supports positivism whereby although there is no data to be compared as part of quantitative research, the fundamental construct of the research is based on a reality that cannot be changed. The type of this study requires to use qualitative research, in this study we will gathering data from the past studies related to our theme (about the effect of tax on economic growth and then, we will analyses this data And weight all the Pros and Cons, advantage and disadvantage of all type of taxes and decide which type is best for the growth of the economy. We will analyze both of tax system and zakat system and their relation with economic growth, then comparing both system and find the similarities and difference between them. Then study those differences and find solutions that may contribute in the economic growth of Saudi Arabia. Data analysis and discussion            The raw materials were collected in a systematically organized manner that facilitates the analysis. To permit qualitative analysis, the data received was edited to ensure completeness, consistency, and uniformity before being analyzed to make it meaningful information regarding the study theme which is implications of imposing consumption tax in Saudi Arabia. Collectively the data analyzed enables the study to establish the relationship of consumption tax and economic growth. References Brys, B., & Organization for Economic Co-operation and Development.(2010). Tax policy         reform and economic growth. Paris: OECD. Could Saudi Arabia’s Oil Exports Dry Up? (2012Ã¥ ¹ ´octoberæÅ"ˆ3æâ€" ¥). Ã¥ ‚ç… §Ã¥â€¦Ë†: nvesting daily:http://www.investingdaily.com/15734/could-saudi-arabias-oil-exports-dry-up almohainykhaledmohammed. (2003). The role of the tax in the process of economic and social development. Damascus University Journal , Volume 19 – Issue II. zakat. (æâ€" ¥Ã¤ »ËœÃ¤ ¸ 明). Ã¥ ‚ç… §Ã¥â€¦Ë†: dictionary: http://dictionary.reference.com/browse/zakat Arnold, J. (2008), â€Å"Do Tax Structures Affect Aggregate Economic Growth?: Empirical   Evidence from a Panel of OECD Countries†, OECD Economics Department        Working Papers, No. 643, OECD Publishing. Bleaney, M.F.; N. Gemmell and R. Kneller (2001), â€Å"Testing the Endogenous Growth      Model: Public Expenditure, Taxation and Growth Over the Long-Run†, Canadian           Journal of Economics, Vol. 34(1), pp. 36-57. Schwellnus, C. and J. Arnold (2008), â€Å"Do Corporate Taxes Reduce Productivity and Investment at the Firm Level? Cross-country Evidence from the Amadeus Dataset†, OECD Economics Department Working Papers, forthcoming.
Monday, July 29, 2019
Textile industry in India Essay Example | Topics and Well Written Essays - 2000 words
Textile industry in India - Essay Example In this case, the paper has defined the Indian and Vietnamese textile industry’s macro-economic environment through a an economic analysis in order to illuminate the key factors that can be utilized to maximize the efficiency and competitiveness of the industry. Up to the point where the Indian economy was liberalized, the textile industry in the country was essentially disorganized. However, the industry has now risen to being the second biggest textile industry in the world; second only to China. In this way, textiles account for 38% of total exports in the country; therefore making textiles an industry of extreme importance upon which a great deal of India’s economic strength relies upon (Singleton, 2007, p. 22). Comparatively, the textile industry in Vietnam is one of its largest industries; as well as a key economic contributor. Textile exports from Vietnam, despite the economic difficulties facing the country, have continued to improve with present goals aimed at becoming the third largest textile exporter after China and India. The factors discussed in this paper affecting the Indian and Vietnamese textile industries such as political factors are vital since lack of stability would adversely affect it. Because the economies of Vietnam and India are dependent largely on the manufacture and export of textiles, which accounts for 29% and 27% of foreign exchange respectively, social and economic factors are also important as factors of influence (Nash, 2007, p. 21). Analysis of Macro environment in India & Vietnam Firstly, with respect to the GDP of these systems, the researcher can readily note that Vietnam represented a 2011 GDP of approximately 129 billion USD whereas India represented a GDP for the same period of approximately 1.85 trillion USD. Although the overall size of the Indian economy dwarfs that of Vietnam, this cannot be understood in and of itself as a defining factor or differential between the two. Ultimately, the extreme diffe rential in GDP can be understood as a function of the overall population differential that is extant between the two nations. Whereas India represents a population of well over 1.24 billion, Vietnam only boasts of a total population of around 88 million individuals. As a function of this differential, is it easy for the researcher to understand why the overall GDP differential is as expansive as it has been represented in the figures displayed. Comparatively, Vietnam has experienced a rapid rise in per capita income over the past decade. Whereas just a few brief years ago Vietnam struggled with massive amounts of poverty with many of its citizens earning less than 150 dollars per year, the rapid rise in the growth of Vietnam’s middle class and a high level of industrialization and trade has meant that the average per capita income has risen to nearly 1,130 per year by 2010. This rapid rise in the average per capita income in Vietnam can be attributed to a host of factors; how ever, for purposes of this analysis, it would not be unreasonable to assert that the rapid growth in the textile industry in Vietnam has been one of the main contributing factors to spurring economic growth and benefitting the overall quality of life for many
Sunday, July 28, 2019
Definitions of Freedom, Servitude and Slavery Change in Colonial Essay
Definitions of Freedom, Servitude and Slavery Change in Colonial America - Essay Example Over the years, however, the definitions of freedom and servitude changed, not for the better, but they grew to be a part of the daily life of the people of colonial America and the language and idiom that they use to convey their beliefs regarding the freedom of the marginalized and the subaltern make this very clear. The practice of assigning superiority to the white man was an intrinsic feature of the colonizer’s rhetoric. One may take the example of John Winthrop’s speech to the general court of 1645. Winthrop was a rich lawyer who settled in America and was one of the major settlers of the new colony. His speech talks of the hierarchies that were divinely ordained whereby even the wife of a white man was supposed to find â€Å"honor and freedom†in â€Å"her subjection to her husband’s authority†(Winthrop). Such convoluted notions of freedom were extended to other subaltern groups in the society which would then occupy various positions on the social ladder, thus justifying subjection in general and offering a justification for slavery and colonialism based on theories that were based on Christian ideologies that were not a part of the societies of the slaves or the indigenous residents of America. This fervor to foist one’s own ideologies and beliefs onto the cultural ‘other’ also finds expression in the cartography of the period. Captain John Smith’s map of Virginia is an excellent example of this tendency where a map of an Indian settlement is replete with symbols of British monarchy; thus seeking to subjugate the native tribes of the area even in one’s own mind, on the part of the colonizer (Captain). The situation of the people who arrived in America as indentured laborers was only slightly better than that of the black slaves. They were welcomed with diseases the like of which they had not seen before in their land. The lack of immunity to these diseases led to a great number of de aths, to which the authorities turned a blind eye. This reveals the shocking insensitivity to servants in the minds of those who held positions of power in colonial America. This can be understood from a letter written by an indentured laborer named Richard Frethorne, to his parents, in which he complains, I am not halfe a quarter so strong as I was in England, and all is for want of victualls, for I doe protest unto you, that I have eaten more in a day at home than I have allowed m here for a Weeke. (Richard) This makes clear the sheer inhumanity of the treatment that was meted out to indentured laborers and gives us an idea of how worse the treatment that the black slaves faced was. The treatment that the blacks faced however did undergo a change for the better. Attitudes that the colonizers held slowly started to change and the magnitude of the atrocities began to dawn upon some members of the colonizing nations. Alexander Falconbridge’s relatively sympathetic treatment of the narrative of the journey of the blacks to the slave markets is an instance that communicates to us the changing attitudes towards the inhuman treatment of slaves. There are several concessions that Falconbridge makes to the slave communities such as the occasion when they are forced to sing. Falconbridge accedes to the fact that â€Å"as may naturally be expected, melancholy lamentations of their exile from their native countryâ€
Saturday, July 27, 2019
Growing Customer Value of Apple, Inc Essay Example | Topics and Well Written Essays - 2500 words - 1
Growing Customer Value of Apple, Inc - Essay Example The company is located in the Silicon Valley in the United States that is currently experiencing economic turmoil. The recession has caused some technology companies to close shop and file for bankruptcy. Unemployment in the region has increased due to the economic downturn.  On the other hand, the high standards of living among Americans have prompted for an increase in labor wages. The problems of the American economy created threats to the sustainability of some companies. However, Apple saw the recession as an opportunity to pool potential talents for their new business ventures.  Laws and regulations related to mobile communications devices in the many jurisdictions in which the Company operates are extensive and subject to change. Such changes, which could include restrictions on production, manufacture, distribution, and use of the device, locking the device to a carrier’s network, or mandating the use of the device on more than one carrier’s network, could have a material adverse effect on the Company’s financial condition and operating results. Mobile communication devices, such as iPhone, are subject to certification and regulation by governmental and standardization bodies, as well as by cellular network carriers for use on their networks. These certification processes are extensive and time consuming and could result in additional testing requirements, product modifications or delays in product shipment. (Apple, Inc, 2008)  Information technology system failures, network disruptions and breaches of data security could disrupt the company’s operations by causing delays or cancellation of customer, including channel partner.
Friday, July 26, 2019
Marketing Manager Essay Example | Topics and Well Written Essays - 750 words
Marketing Manager - Essay Example Hiring a competent manager may be a difficult task, especially if you are not equipped with relevant interview questions. It is important to plan the interview because in a new company, the qualities of a marketing manager are very vital. Estimable behavioral qualities may comprise self-direction, motivation, high energy, financial ambition, and persuasive communication. At a beginning, the entrepreneur usually needs someone who is like moldable clay, not somebody who has the traits of a steel rod. They want somebody who will go an extra mile because small industries operate differently from big companies. A marketing manager is charged with the responsibility of making important decisions on behalf of the company (Einhorn, 2010). In this case, the questions for the job interview for the marketing manager aim at assessing their interpersonal communication skills, their analytical skills, marketing approach, and background. Any marketing practitioner is supposed to find out and identify what is trending in the market, the demand of products, their competitors, and prospective customers. They also need to define the product design and observe the development of the product. After developing the product’s pricing strategies, they also need to launch the new product. Finally, marketers need to use various marketing tools to sell the product (Smitt & Albaum, 2004). Open-ended questions are preferred in interviewing a marketing manager. As you ask these open-ended questions, listen not only to the content of a candidates response, but also to the voice and manner behind it. The questions to be asked should be narrowed down to professional experience of the interviewee. Sample questions are; These questions enable the candidate to know why the plan they designed failed and what they can learn from the failure. They are meant to scrutinize the
Absorption costing and marginal costing Assignment
Absorption costing and marginal costing - Assignment Example Simpson Ltd has produced more than its estimated sales volume. Hence closing stock got piled up which could be avoided if they would have followed methods like just in time inventory system, regular delivery system etc to reduce the stock holding costs (Chadwick. L., 1998). As of now, in this case, since the sales volume is lower than the production volume, the profit is higher in absorption costing than in marginal costing. This is because of higher valuation for the closing stock in absorption costing than what is valued in the marginal costing. The difference of increase in closing stock valuation is attributable to the fixed expenses charged to the cost of goods manufactured in the absorption costing while in marginal costing, the same are not being charged as it is guided by the contribution principal of sales less variable costs. Hence, as the costs of goods manufactured is more in absorption costing, naturally, its closing stock valuation would also be higher which is deducted from the actual sales (through deduction in the cost of goods manufactured) indirectly thereby increasing the profit figure. In this way, the profit figure gets inflated in the case of absorption costing than in marginal costing thereby misleading the management about the higher profit figures than what is really earned if we observe the data for only one term. However, as this closing stock gets utilized in the next period, if the production is lesser in that period, the absorption costing would record lesser profits than that of the variable costing thus nullifying the differences arising in this term. In this way, there is no difference in the reporting of the profit figures if taken on a long term basis in both the systems. (Walker.J. & Burke. L., 2003). Absorption costing is used for external reporting purposes as mandated by the financial statements under the guidelines of the generally
Thursday, July 25, 2019
Culture diversity in the media Essay Example | Topics and Well Written Essays - 1500 words
Culture diversity in the media - Essay Example This paper discusses the manner in which the general media – including the press, television and films report on ethnic issues how such reporting help or obstruct the effort to elevate the cause of social and cultural diversity and prevent serious issues concerning racism in such media. The media, to a considerable extent, unintentionally tend to emphasize negative images and stereotyping in the process of news reporting or in the course of collecting information relating to issues concerning the people belonging to diverse cultural or ethnic groups. According to previous research conducted in this behalf on the portrayal of issues of people belonging to different cultural and ethnic backgrounds in the British and American media, the migrants were omitted from voicing their opinions and were ignored while reporting issues regarding the problems faced by their community. Such an incident was witnessed in the year 1990 while reporting on the issue of wearing a headscarf that was debated in countries like France and Denmark. The migrants opinion was either not quoted at all or it was not given due prominence by the media while reporting on the issue. They were often misquoted or quoted in a discriminatory manner which exuded negativity and sounded superficial, aggress ive and stereotypical. It is also noted that the opinion of people belonging to a minority group are often misinterpreted since a single set of representatives are interviewed over and over again which loses the credibility of their opinion and views and less importance is given on reporting of such an issue from the point of view of a diverse range of interviewees. Another significant issue that emerged during the study was that the media is highly biased towards reporting of certain important events of political nature. Consequently the everyday aspect of the minority life, for instance their
Wednesday, July 24, 2019
State house statue Essay Example | Topics and Well Written Essays - 250 words
State house statue - Essay Example This is evidenced by not only the exposed chest, but also possession of a sword. In most occasions, the exposure of a man’s chest signifies an individual’s strength and boldness. On the other hand, possession of a sword is an indication of military participation of an individual. Thus, Washington played a significant role towards the close of the revolution. Although the congress was entitled to commemorate the first president of America, the statue was not designed in the right way. For instance, the sitting of Washington on a golden like seat portrays a bad picture to religious practices. To some extent, it is an indication of how Americans adore idols. Additionally, a half naked statue portrays a bad picture to the society; according to most societies, it is unethical for any person to expose private body parts. On the other hand, Washington’s possession of a sword is a sign of how he valued wars. From his offering of the sword, it is evident that Washington contributed towards the loss of many lives during his tenure as the president of America. From this, it is evident that the design of the statue does not honor Washington correctly. However, Washington deserves honor for not only being the first president of America, but also because of his contributions towards the success of the American
Tuesday, July 23, 2019
Create a visual aid that illustrates a problem Assignment
Create a visual aid that illustrates a problem - Assignment Example The worst polluted cities Time Magazine has a listing of the world’s most polluted cities. Two are in China, two in India, two in Russia and a city each in Peru, Ukraine, Azerbaizan and Zambia. There are criteria set for categorizing the most polluted cities, and these are: the high volume of people, traffic congestion, trash and air pollution; mercury contaminated water and sewerage; danger to humans in contracting cancer by 50%, and danger to death by more than 50% compared with those not living in these cities. The most polluted cities show various types of pollutants, such as coal and particulates coming from automobiles and industrial plants. The city of Linfin in China, for example, is at the heart of China’s coal belt. Its air is filled with smog from burning coal; laundry on clotheslines turn black before it can dry under the sun. Sad to say, little is being done about the situation in these cities, especially as warnings on pollutants are muffled by talk on glo bal warming, the more dominant environmental topic today. But the problem of pollution in cities is most urgent since pollution is a direct threat to human health. Even the World Health Organization reports that water and air pollution cause GREENING THE CITIES 20% of global disease (Time). The greenest cities Fortunately solutions exist, and greening can start in cities where it is most critically needed. There are five cities recognized as the â€Å"Five Most Amazing Green Cities†by experts who used a combination of criteria including urban planning and environmental statistics (energy sources, consumption, emissions, transportation options, habits). Green cities show the availability of public parks, sustainable buildings, green jobs, and other ecological perspectives such as recycling (Howstuffworks). The first of the cities recognized for its green practices is Malmo, Sweden, with its canals, beaches, parks, and harbours looking as fresh as they were during the Middle A ges. Sweden itself leads in the green electricity revolution, while Malmo’s Western Harbour is run by 100% renewable energy sourced from the sun, wind, hydropower ad biofuels. Buildings and homes have green roofing, and are designed to be energy efficient. Streets are pedestrian and cycle friendly with 70% commuters and other travellers going on bike. The other four leading eco-cities are: (a) Copenhagen, Denmark, which has reduced cars for green transportation using bikes and a metro system. Its 56.000 windmills supply 10% of Denmark’s electricity comprising the world’s largest offshore windmill park. (b) Portland, Oregon, has 92,000 acres of green space and 74 miles of biking, hiking and running trails. Its ambitious goal is the use of 100% renewable energy by 2010. (c) Vancouver, Canada, was GREENING THE CITIES named â€Å"The World’s Most liveable City†by the Economist Magazine. It has a 100-year plan for clean and green living, and it leads t he world in the use of hydroelectric energy, while reducing wind, solar, wave and tidal energy. (d) Reykiovik, Ireland, is described as the smallest amazing green community with its 115,000 population, which is almost half of the 300,00 total population of Iceland. It uses hydrogen energy in addition to heat, geothermal and electricity energy sources. Turning the tide through greening is illustrated by a planned proposal for the capital city of Manila with its urban pollutants caused by heavy congestion of crude fuel-run motor vehicles, buildings without
Monday, July 22, 2019
Enron Essay Example for Free
Enron Essay To provide the students with a thorough and detailed understanding of the underlying concepts and accounting treatment of inter-corporate long-term investments (consolidations and business combinations). To introduce and discuss topics including foreign currency transactions, translating foreign operations, hedge accounting, not for profit accounting, interim and segmented reporting. To discuss and draw student’s attention to current developments within the accounting profession. Course Description:Reporting relevant financial information subsequent to long-term inter-corporate investments. The preparation of consolidated financial statements with emphasis on their economic substance rather than legal form. Texts:Modern Advanced Accounting in Canada, Hilton/Herauf, 5TH Edition C. I. C. A. Handbook Canadian Institute of Chartered Accountants (specific sections indicated on the syllabus) Evaluation: Final grades will be determined as follows: Mid-term exam 30% Final exam 70% Although the completion of weekly assignments does not factor into the final grade, their importance cannot be over emphasized. The lectures provide the basic knowledge and the assigned problems build on that knowledge. Completion of these assignments is an absolute minimum for the student to gain an understanding of the subject matter. Assignments will be reviewed in class. Students are responsible for all materials for the exams, whether or not it is covered in class. Exams will be a combination of all types of questions based on all sources, and students may be required to integrate theoretical concepts from the text to substantiate their arguments. No make-up tests or make-up assignments are allowed in this course. â€Å"In the event of extraordinary circumstances beyond the University’s control, the content and/or evaluation scheme in this course is subject to change. †Course Requirements:Calculators Only non-programmable, no-tape, noiseless calculators are permitted. Calculators capable of storing text are not permitted in tests and examinations. Dictionaries Dictionaries are not permitted. Handheld Devices Handheld devices capable of storing text and having calculator functionality (e. . Palm, etc. ) are not permitted. Additional Information: Methodology The material covered in the classroom will be used to supplement textbook readings. Each class will consist of a lecture lasting approximately one and half to two hours. The remainder of the class time will focus on review of all assigned problems and exam writing techniques. Every chapter should be read twice. The first reading should be done prior to attendi ng class and the second reading should be done after the class discussion of the chapter. The questions at the back of each chapter follow directly from the reading. Students should be able to answer these questions after a thorough reading of the material. Academic Integrity:Code of Student Conduct McGill University values academic integrity. Therefore all students must understand the meaning and consequences of cheating, plagiarism and other academic offences under the Code of Student Conduct and Disciplinary Procedures (see www. mcgill. ca/integrity for more information). Luniversite McGill attache une haute importance a lhonnetete academique. Il incombe par consequent a tous les etudiants de comprendre ce que lon entend par tricherie, plagiat et autres infractions academiques, ainsi que les consequences que peuvent avoir de telles actions, selon le Code de conduite de letudiant et des procedures disciplinaires (pour de plus amples reseignements, veuillez consulter le site www. mcgill. ca/integrity). Final Exam Policy:Regulations Students should not make other commitments during the final exam period. Vacation plans do not constitute valid grounds for the deferral or the rescheduling of examinations. See the Centre Calendar for the regulations governing Examinations: http://www. mcgill. ca/conted-students/exams/regulations/ Students are required to present their I. D. Card (with photo) for entrance to their examination. Conflicts If you are unable to write your final examination due to scheduling conflicts, you must submit a Final Exam Conflict Form with supporting documentation at least one month before the start of the final examination period. Late submissions will not be accepted. For details, see http://www. mcgill. ca/conted-students/exams/conflicts/ Exam Timetable Examination schedules are posted at the Centre and on the following page approximately 6-8 weeks before the examination period commences http://www. mcgill. ca/conted-cms/exams/ The Centre cannot provide examination dates over the telephone. Classroom Rules:All electronic devices (cell phones and beepers) must be turned off during class time. Assignments Pickup:Marked assignments cannot be picked up from the offices at Continuing Education, therefore if your marked assignments are not available in class before the end of term you must submit a self-addressed stamped envelope to you instructor or these assignments will not be returned. Remember to keep a photocopy or back-up of your creative work before it is handed in to your instructor. Email Policy:E-mail is one of the official means of communication between McGill University and its students. As with all official University communications, it is the students responsibility to ensure that time-critical e-mail is accessed, read, and acted upon in a timely fashion. If a student chooses to forward University e-mail to another e-mail mailbox, it is that students responsibility to ensure that the alternate account is viable.
Juvenile delinquency and juvenile justice in Russia
Juvenile delinquency and juvenile justice in Russia Juvenile delinquency refers to crimes committed by young people or minors. A criminal is one who relapses and commits crimes repeatedly. Most legal systems consider specific procedures for dealing with this problem, such as juvenile detention centers. There are many different theories about the causes of crime, most if not all of which can be applied to the causes of juvenile crimes. Juvenile crime often receives great attention from the media and politicians. This is because the level and types of juvenile crimes can be used by analysts and the media as an indicator of the general state of morality and public order in a country and as a result can be a source of moral panic alarm. Like most types of offenses, the number of crimes committed by juveniles in Russia has increased since the mid-twentieth century. There are many theories about the causes of juvenile crimes, regarded as particularly important within criminology. This is because the number of crimes increases dramatically between fifteen and twenty years. Second, any theory about the causes of crime of juvenile crimes should be considered as adult criminals are likely to have had a beginning in crime when they were young. On the other hand, another possible origin of the juvenile delinquency problems such as schizophrenia, behavioral / mental stress disorder, conduct disorder or bipolar disorder, as stated in Juvenile Justice in the Russian Federation: Improving Services to Youth at Risk. Rational choice theory. Classical criminology considers that the causes of crime have their origin in the same criminal, rather than its external environment. For classicists, what motivates offenders is the rational self-interest, and highlights the importance of free choice and personal responsibility. The rational choice theory is the clearest example of this approach. Social disorganization theory. The current positivist approaches generally focus on culture, producing the breakdown of family relationships and community, values à ¢Ã¢â€š ¬Ã¢â‚¬ ¹Ãƒ ¢Ã¢â€š ¬Ã¢â‚¬ ¹and greater individualism.Studies show that only 16 percent of children do something bad, as opposed to 26 percent of adults do something illegal. The theory of stress. The theory of stress is mainly associated with the work of Robert Merton. Merton believed that in society there are institutionalized paths to success. The strain theory holds that crime is caused by the difficulty for those living in poverty to achieve through legitimate means socially valued goals. For those who, for example, fails the educational attainment, that is why it is more difficult to achieve wealth and social status assured by well-paid jobs, and therefore it is more likely to use criminal means to achieve these goals, as stated in Juvenile justice in Russia. Merton suggests five adjustments to this dilemma: Innovation: individuals who accept socially approved goals, but not necessarily the socially approved means. Retreat: those who reject socially approved goals and means to acquire them. Ritualism: those who are in the system of socially approved means but lose sight of goals. Merton believed that drug users are in this category. Conformity: those who meet the means and goals of the system. Rebellion: people who deny socially approved goals and means creating a new set of goals and acceptable means. One difficulty with the theory is that stress does not explain why children from low income families in Russia have a poor educational performance in the first place. Indicated is the fact that much youth crimes are not economically motivated. The strain theory fails to explain the violent crime, juvenile crime rate that causes the greatest anxiety to the public. Theory of Subcultures is related to the strain theory. The difficulty of youth to achieve goals and produce socially recognized status groups of young people, who are criminals and deviant subcultures from the right path, have their own values à ¢Ã¢â€š ¬Ã¢â‚¬ ¹Ãƒ ¢Ã¢â€š ¬Ã¢â‚¬ ¹and standards. Within these groups, criminal behavior can actually be measured, increasing the status of a youth. The notion of subcultures is important for offenders for crimes that are not economically motivated. The male members of the bands can argue to have their own values à ¢Ã¢â€š ¬Ã¢â‚¬ ¹Ãƒ ¢Ã¢â€š ¬Ã¢â‚¬ ¹such as respect for the ability to fight and daring. However, it is not clear why young people make them different from normal non-violators. Also, there is an explanation of why people are unable to reach socially recognized goals and must necessarily choose substitutes criminals. Theories of subcultures have also been criticized for having too big a distinction between what is normal and what behavior is deviant. There are also doubts about whether young people consciously rejected the generally accepted values. Differential Association Theory. The differential association theory is about young people in a group setting, and sees how peer pressure and the existence of bands can lead to crime. It suggests that young people are driven to commit crimes by delinquent peers, learning skills of criminals. There has also been cited a factor in reducing crime reduction as a peer influence, as the men they marry. There is evidence that young people with criminal friends are more likely to commit crimes. However, there may be cases of criminals who prefer to join, then the delinquent peers begin to make some offending. In addition there is the question of how delinquent peers group initially began to commit crimes. Labelling theory suggests that once you have been labeled as a young criminal, this person is more likely to commit crimes. The idea is that once that a person has been labeled, a youth becomes different, and can accept the role and it is more likely to join others who have been labeled the same way. Labeling theorists say that there is a greater likelihood that the male children of poor families are labeled as different, and this may partially explain why young male offenders belong to lower class Juvenile delinquency in Russia as a male phenomenon. Juvenile crime committed by men is much higher than the female. Other feminist theorists have studied the causes of this phenomenon. One suggestion is that ideas of masculinity may make young men more likely to commit crimes. Being resilient, having higher capacity, being aggressive, daring and competitive can be ways in which young people express their masculinity. The expression of these ideals can make it more likely that young people develop antisocial and criminal behavior. Alternatively, something that makes young men act as they do, is because of social pressure to conform to the ideal male, and young men may be naturally more aggressive, bold, etc. There may be biological or psychological factors, the way the parents treat young men can make them more susceptible to crime. According to a study conducted by Dr. Kevin M. criminologist at the University of Florida (USA), adolescent males who possess a certain type of variation in a specific gene are more proclibed to meet with other criminals, as stated in The colony for Russias young offenders. Risk factors. Certain risk factors are associated with the potential for violence against oneself and against others. It is very important to keep in mind that none of these factors alone is sufficient to predict violence. Using these factors simply as a checklist for a particular child may be inappropriate and even potentially harmful. This list will not be used to stereotype or stigmatize a young man by the mere fact that appears to have some risk factors. Personal risk factors include: à ¢Ã¢â€š ¬Ã‚ ¢ History of tantrums or uncontrollable explosions of anger; à ¢Ã¢â€š ¬Ã‚ ¢ Violent behavior; à ¢Ã¢â€š ¬Ã‚ ¢ Use past typically insulting or offensive language; à ¢Ã¢â€š ¬Ã‚ ¢ Abusive behavior toward peers or younger; à ¢Ã¢â€š ¬Ã‚ ¢ History of having been the victim of bullies; à ¢Ã¢â€š ¬Ã‚ ¢ A pattern of violent threats when angry; à ¢Ã¢â€š ¬Ã‚ ¢ Cruelty to animals; à ¢Ã¢â€š ¬Ã‚ ¢ Start fires; à ¢Ã¢â€š ¬Ã‚ ¢ Use and abuse of alcohol or drugs; à ¢Ã¢â€š ¬Ã‚ ¢ Have attempted suicide in the past; à ¢Ã¢â€š ¬Ã‚ ¢ Depression or frequent mood swings; à ¢Ã¢â€š ¬Ã‚ ¢ Tendency to blame others for their problems; à ¢Ã¢â€š ¬Ã‚ ¢ Experience personal humiliation, loss and rejection; à ¢Ã¢â€š ¬Ã‚ ¢ Too much interest in weapons or explosives; à ¢Ã¢â€š ¬Ã‚ ¢ poor relations with peers, exclusion of the group, few or no close friends; à ¢Ã¢â€š ¬Ã‚ ¢ Participation in cults or gangs; à ¢Ã¢â€š ¬Ã‚ ¢ Too much unstructured time. Mental disorders. Behavioral disorders usually develop in childhood and usually manifest during the teenage life. Some juvenile behavior is attributed to diagnosable disorder known as conduct disorder. According to the DSM-IV-TR code 312.xx (where xx varies with the specific subtype), adolescents with conduct disorder also show a lack of empathy and disregard for social norms. The DSM is the Diagnostic and Statistical Manual of Mental Disorders published by the American Psychiatric Association and referenced often by psychiatrists to diagnose mental disorders. Juvenile offenders who reoffend in the criminal justice system sometimes diagnosed behavioral disorders because they show a continued disregard for their safety and that of others and their belongings. Once the young still have the same patterns of behavior and reaches eighteen, then you are in danger of diagnosis with an antisocial personality disorder and it is much more likely to become a serious criminal. One of the main elements used in the diagnosis of adult antisocial personality disorder is to present a documented history of conduct disorder before age 15. These two personality disorders are similar in erratic and aggressive behavior. This is the reason why the common juvenile delinquents in Russia are diagnosed with conduct disorder is likely to show signs of antisocial personality disorder in adulthood. Once adolescents reach maturity, unacceptable social behavior becomes a lifestyle and they become career criminals. Career criminals start with antisocial behavior before entering graduate school and are versatile in the sense that they engage in an array of destructive behaviors, offenders with very high rates, and less likely to stop the crime while they are aging, as described in The colony for Russias young offenders. Family environment. Among the family factors that may have a negative influence can include:the level of parental supervision, how to discipline children by parents, a parental conflict or separation, criminal parents or siblings, a parental abuse or neglect, and the quality of parent-child relationship. Children raised by divorced parents are more likely to begin to commit crimes than those who grew up with both parents, however, if one takes into account the bond that a child feels toward his parents and the level of parental supervision, it is considered that children families of single parent, is more likely to commit crime. Just as if a child has a low parental supervision, many studies have found a strong correlation between a lack of supervision and crime, and this seems to be the most important influence of the family. When parents do not usually know where your children are, what their activities are, or who their friends are, they more likely to be absent from school and to have delinquent peers leads them to commit crimes. A lack of supervision is linked to poor relationships between children and parents, since children are often in conflict with their parents, who tend to be less willing to discuss their activities with them. Youth with a weak bond with their parents are more likely to commit crimes. Crime prevention. The prevention of crime is the general term for all efforts to prevent youth involved in criminal or antisocial activities. Increasingly, governments are recognizing the importance of allocating resources for crime prevention. It is often difficult for states to provide financial resources for adequate prevention, organizations and communities. For all these governments work in partnership is essential for prevention. With the development of delinquency in youth, influenced by many factors, prospects for prevention efforts are understandable. Among prevention services there are included activities such as education and substance abuse treatment drugs, family counseling, mentoring and youth protection, parental education, educational assistance, and social intervention. Consequences for society. Once the juvenile reaches maturity they are likely to continue showing maladjustment behaviors and increase their risk of being prosecuted through the criminal justice system as adult offenders. Due to the small percentage of normal adult and juvenile offenders who contribute a high percentage of violent crime (ie murder and aggravated assault), the criminal justice system should monitor the small population of professional criminals in an effort to prevent the proliferation of serious violent offenders, as described in Russia considering juvenile justice system. If mental disorders such as conduct disorder go undiagnosed and untreated, juvenile has the growing potential for developing an antisocial personality disorder and continue later life as a professional criminal. Most violent criminals exhibit traits of antisocial personality disorder and put on display before age of 15. The antisocial personality disorder is a common diagnosis for a mass murderer. Alvarez and Bachman found a similarity between the mass murderers that made his previous criminal convictions. In this case, the conduct disorder could become an element likely to serial murderer if not diagnosed and treated before it becomes fully into adulthood in an antisocial personality disorder. Conduct disorder and antisocial personality disorders are categorized as extremely similar personality definitions in DSM-IV-TR and as explained above in mental disorders. Some common features include the constant breach of social norms, aggressive behavior toward people, and a decoupling of the emotion of empathy.These features are also common among serial murderers and maladaptive behaviors if left untreated has the potential to create a person who fantasizes about killing several victims and then meet his impulsiveness when no longer able to restrain. All in all, the juvenile delinquency in Russia can be prevented and must be prevented, using new innovative approaches and different methods that will help youth to direct their efferts and interests in studying and working. Juvenile delinquency is a serious problem in Russia and the juvenile justice for it should be corresponding.
Sunday, July 21, 2019
Investment Appraisal Process: Objective, Inputs And Process
Investment Appraisal Process: Objective, Inputs And Process Introduction Decisions related to investments are one of the most important and vital decisions for any organization. Making investments is the only way to increase, and maximize return on the shareholders wealth. However, taking the right investment decisions is the biggest challenge that management faces. Investment decisions are always characterized by risk and uncertainty. According to Lumby (2004) investment decision defined in simple terms, is one in which organizations make an initial cash outlay, with the aim of receiving, in return, the future cash inflows. Investments can be analyzed from several perspectives, like its suitability according to the companys objective, social cause, environmental concern etc. Yet, for the purpose of investment appraisal, it is analyzed from the point of view of cash flow only. Thus, the basic aim of investment appraisal is to check whether the initial outlay would result in enough future cash inflows, to be considered worthwhile. In order to achieve this objective, companies require certain inputs. These inputs are put through the process of investment appraisal, to reach the final outcome. Inputs Required For Investment Appraisal Investment appraisal in broad terms requires only two inputs – the estimated cash flows, and discount rate. The estimated cash flows includes all the cash outflows starting from the initial stage till much later, and inflows taking place during the lifetime of the project. This gives the final figure, which is positive or negative cash flows i.e. either inflows are more than outflows which is the acceptable case, or outflows are more than inflows which obviously leads to rejection of that project. Calculation of these cash flow figures, involves the treatment of a number of items. Cash Flows And Time Value Of Money For the investment appraisal process as discussed earlier, cash flow estimates are the primary input. Initial outlay is easy to estimate as compared to future cash inflows, and even outflows. This is because current requirements for any project, would be ascertained according to which the required finance, can be obtained. Whereas, in the case of future estimates, all the figures are estimated on the basis of some premise, which is always prone to uncertainty. Once these estimated figures are available, companies calculate these future cash flows, in terms of todays value. This is known as the time value of money, according to which, a pound today is not equivalent to a pound tomorrow. According to the time value of money, the investor needs to be compensated for certain factors. Firstly, the investment made has delayed the current consumption of the investor. Current consumption is preferred over future consumption for which, the investor needs to be compensated. This compensation i s the interest that is expected on the money invested, for that period. The second factor is inflation, the current inflation rate in UK, is 1.8% (for the month of July Bloomberg.com) Thus, what can be bought for one pound today, will be available for 1.018 GBP, the next year. Thus, future estimates must be converted in terms of present value, so as to find out its present worth. In order to compensate the investor for these two factors, the rate of return offered, is called the risk free rate. This is equivalent to the rate offered by reputed government bonds, or bills. Other Inputs There are some other factors which are required to be considered for the calculation of cash flows. The first is depreciation, which does not form a part of cash flows. For the purpose of calculating true cash flows, the precise time when the cash flow has occurred, is needed. However, depreciation does not involve any cash transaction. So, this is not included while calculating the cash flow. The second is working capital. According to Arnold (2008) besides the large and obvious depreciable assets, investment is also made in working capital. It includes the items like cash, debtors, stock which are part of companys assets and creditors which is the part of companys liabilities. Another important factor is interest. Treatment for interest is again, not straight forward. Interest can be viewed from two aspects. Firstly, if the company is employing its own funds. In that case it is losing the interest which it would have earned, by depositing money in the bank. This does not require an y treatment here, because this has been considered as the opportunity cost, and treated accordingly. Secondly, if the organization has borrowed funds from the financial market, then the interest is paid on it, which is a cash expense, and must be included in cash flow calculation. Yet, what is seen in most of the cases is that, organizations use combination of both debt and equity. Now, the same item i.e. interest cannot be treated in two separate ways. As a result, it is considered as an opportunity cost. Besides interest on capital, opportunity cost also includes a number of factors, like a building used in any project, would have earned rent otherwise, which is also the opportunity cost of the project. Other similar factors could be machinery, human resources, and other assets. The last factor is the taxation which also reduces the cash flow, by the amount of tax paid. In this case the notable factor is that debt capital gets the tax shield. However tax is to be paid on equity ca pital, making it costlier. Once all the inputs are gathered there are number of techniques available to evaluate the investment, in order to find out whether it would be profitable or not. Discount Rate Once the cash flow figures are derived for the entire period of the project, there are several methods using which we can perform the task of investment appraisal. There are some methods in which there is no allowance for the time value of money, like payback method, and accounting rate of return (ARR). In such methods, the discount rate is not required. However the more sophisticated and widely used methods use the discounted rate of cash flows like net present value (NPV), and internal rate of return (IRR). What is the discount rate and its components is discussed below. Definition The rate of return used for the purpose of finding the present value of future cash flows, is the discount rate. This rate includes the time value of money. Thus, as discussed above it is the risk free rate, plus risk premium. Risk premium depends upon the risk involved, in any particular project. Risk Free Rate Risk free rate includes the expected inflation rate, and the interest on capital which is treated as the opportunity cost of capital. As Arnold (2008) has mentioned â€Å"The risk free rate (RFR), forms the bedrock for the time value of money. Calculations such as the pure time value, and the expected inflation rate, affect all investments equally†. Risk Premium The discount rate is not the risk free rate. Rather, it is always more that that. The rate which is above the risk free rate is risk premium. Risk is the probability of not receiving the estimated return, owing to the uncertainty in any business. Higher the risk, higher is the return expected, and vice versa. However calculation of risk in itself is a difficult task. There are numerous methodologies available, for evaluating risk. The most famous among these are, sensitivity analysis, scenario analysis, and probability analysis. After getting the cash flows and discount rate, the next step is to evaluate the project. This is to determine whether the project is worth undertaking, or not. For this purpose, there are various methods. Some of the most popular ones, used across the globe, are discussed here. Investment Appraisal Techniques Payback Method This method is used to find out the period in which the future cash inflows would be sufficient, to cover the initial investment. Once this figure is obtained, it is then compared with any arbitrarily chosen time period, set as a threshold by the company. If the payback period is shorter or equal to this chosen time period, then the investment is acceptable else it is rejected. Accounting Rate Of Return It is more popularly known as return on capital employed (ROCE), or return on investment (ROI). The ARR is a ratio of the accounting profit to the investment, in the projects. It is notable that here, accounting profit is used, and not the final cash flow figure. Net Present Value This method uses the discounted cash flows. In this, the present value of outflows is subtracted from the present value of inflows. If the result, known as NPV, comes out to be positive or zero the project is accepted else not. Internal Rate Of Return This method also takes into account, the time value of money. This is used to find out the rate of return, at which net present value of an investment is zero. If this rate is higher or equal than the discount rate, then the project is acceptable else it is rejected. Issues To Be Addressed Research Question How an investment appraisal technique helps companies move in the right direction, regarding investment decisions? Other related questions are: What are the pre-requisites for this? What are the methods applied? What are the challenges faced by an organization? Why The Question Is Important? This holds a lot of importance for the organizations since the sizeable investments made by the companies, have long term consequences. The companys strategic position too, is determined by such large investments made in terms of tangible or intangible assets. It impacts the future cash flows. Thus, in order to ensure that every thing moves efficiently in future with any investment made by the company today, investment appraisal is not only necessary, but also inevitable. Research Objective The main objective of this research is to find out if there is any gap between the theoretical concepts studied and analyzed, and its implementation. In practice, matters are always little different, than what it is taught academically, or found in literature on any subject. However, to what extent there is a level of variance in case of investment appraisal, between theory and practice, is attempted to be determined, in this research. The previous research on investment appraisal discussed in broad terms, about changes in methodologies with time; factors to be considered for appropriate calculation of cash flows; and components of discount rate. Yet, none of these studies have shed much light on its practical application, which is empirically investigated, in this research. In particular, three divisions of investment appraisal – objective, inputs and process, is examined. Introduction In this section research work already done on investment appraisal process and its various other aspects have been studied. It will also reveal some elements which are quite important but still not treated appropriately to achieve effective and unambiguous evaluation of capital investments like inflation and taxation. Companies have limited resources. In order to achieve the best utilization and maximum output from these resources companies require a mechanism to decide or analyze which investments are worth taking and which are not. It is a multifaceted and analytical process and many prior studies on this practice exist. A number of surveys scrutinizing the investment appraisal process have been conducted from time to time. These surveys shed light on the changes in the use of methodologies and other practices, which formed an integral part of investment appraisal. A review of the existing literature reveals that, there have been continuous changes in the techniques used for investment appraisal. Different models and methods have been developed for investment appraisal and risk analysis. Over the period of time these developments have been incorporated into corporate practice. What does this investment appraisal process involve as found in literature analyzed and secondary sources providing quantitative data regarding the same is discussed below. Estimation Of Future Cash Flow Investment appraisal requires detailed cash flow forecasts as inputs for sophisticated evaluation methods which have been discussed above. For an investment decision to be considered as successful, it must add value to the firm. Such a project would surely increase the cash flows of the firm, but how much? At this juncture, the firm confronts the problem of estimating the future cash flow, investment outlay and cash inflows emanating from any new project, and finding out whether it adds value to the firm or not. Considering the case of Alaska pipeline project setup by many oil majors, initially its cost was estimated to be $700 million. The final cost, however, came out to be $7 billion. This shows estimation of project cash flows is one of the most important and critical parts of investment appraisal, because in case these estimates turn out to be unreliable or biased, the project would lead to poor business decisions. There are many variables involved and numerous people participat e in this exercise. Capital outlays are estimated by engineering and product development departments; revenue projections are delivered by the marketing department; and operating costs is aggregate of estimates given by number of departments like production people, cost accountants, purchase managers, personnel executives, tax experts and others (Chandra, 2008: 304). To estimate the possible future values, past events are generally used in order to estimate what possibly could be the future outcome or results for the same, or similar kind of event. Earlier, the most conventional method was to find out the best estimate from the information available. This estimate is generally the single value derived, using the mode or average, or a similar likely outcome. However, evaluations based on the single value estimates, show that the estimated value is certain, with no possible margin of error or variance. As a result, instead of using a single value as the best estimate, a new methodology of using a range of outcomes, is used. These outcomes are based on the probabilities of occurrence or non occurrence of events, which affect the cash flows (Dayananda, 36: 2002). Stages In Cash Flow Estimation According to Dayananda (2002) cash flow estimation comprises of four stages: Forecasting the initial capital outlays and operating cash inflows and outflows. Tax factor, which is an important element to be adjusted against these cash flows. There are certain other variables apart from tax like inflation, opportunity cost and depreciation etc. which need to be checked in order to find out its impact on cash flows. Allocating any further resources in order to improve the accuracy and reliability of the variables which have greatest influence on cash flow estimate. This entire process requires close monitoring and early intervention, when required. Monitoring is required at all stages from data acquisition process to projects implementation (Dayananda, 2002: 37 39 – capital budgeting: financial appraisal of investment projects). Estimating Incremental Cash Flows For Investment Apraisal The fundamental principle for the inclusion of cash flows for the purpose of investment appraisal is to include only the incremental cash flows. This refers to the cash flow incepted after the implementation of the project. The time when the investment is made, is considered as time 0, and the cash flows generated after time 0 constitutes a part of the incremental cash flow. For ascertaining the firms incremental cash flow, it is required to identify the cash flow of the firm in two situations i.e. with the project and without the project. The difference between the two gives the incremental cash flows. In estimating incremental cash flow all incidental effects are also considered. Incidental effects lead to an enhancement in the value of some existing activities, such as a rise in the demand of an existing product. However, incidental effects may also turn out to be negative like product cannibalization i.e. with the introduction of a new product, the sale of some existing products may decline (Arnold, 2008: 99-100; Chandra, 2008: 307-308). Opportunity Costs And Sunk Costs There are also certain aspects which are not apparently detected and need to be treated in the valuation of cost of capital. Opportunity costs and sunk costs are the two types of costs which fall under this category. Opportunity cost is the revenue lost by using the resources forming part of the project, under consideration. These resources might be rented out or sold, or used elsewhere. The sunk cost is the cost which the firm has already incurred, and has no effect on present or future decisions. It is the previous cost which was incurred in the past, and is irrecoverable irrespective of the fact, whether the company accepts the project or not. Furthermore, Rustagi (2005) classified the cash flows associated with a project as original or initial cash outflow, subsequent cash inflows and outflows, and terminal cash flow. Initial Cash Outflows, Subsequent Cash Flows, And Terminal Cash Flows Original or initial cash outflow is the initial investment, occurring at the beginning of the project. This is required to get the project operational. Since the investment cost occurs in the beginning of the project, it is easy to identify the initial cash outflow. It includes the acquisition of assets like machinery, building, technology etc. Along with the cost of assets, other incidental costs must also be considered, like the cost of transportation and installation. Sunk costs and opportunity costs as discussed above are also a part of this. Subsequent cash inflows and outflows are generated after the initial outlay of capital. The investment is expected to generate a series of cash inflows, through the project that has been initiated. These inflows may be the same every year or may vary from one year to another throughout the lifespan of the project. In addition to inflows, capital budgeting decisions also consider the subsequent outflows, that might be required for periodic repairs or maintenance. The third classification is the terminal cash inflows. These are the cash inflows in the last year. Firstly, this would include the scrap value, or the salvage value of the project, which is realizable at the end of the economic life. The second, is the working capital which gets released at the completion of the project. This is again, made available to the firm. Estimation of cash flows as a measure of the cost and benefits of any project, includes these three forms of cash flows, and forms the part of any good technique to evaluate a proposal (Rustagi, 2005: 486 489). In addition to all these factors, cash flows also get affected by the factors which are unlikely to be precisely forecasted, and keeps changing with time, like inflation and taxes. Treatment Of Inflation Inflation has a direct impact on the final outcome of investment appraisals. It affects both the future cash flows, and cost of capital. If inflation is not properly adjusted, the future cash flows are increased, over and above, what they would be. For the adjustment of inflation, cash flows have to be either presented in the real terms or money (nominal) terms. Adjustment Of Future Cash Flows In Real And Money Terms In real terms, future cash flows are adjusted in terms of todays current purchasing power, and in money terms cash flow is adjusted, according to the purchasing power, at the time they occur. For applying the correct treatment, companies are required to discount the real cash flows at the real discount rate, and nominal cash flows at nominal discount rates (Drayery and Tayles, 1997). As per Carsberg and Hope (1976) in Arnold and Hatzopoulos (2000) the companies earlier, adjusted for inflation in a rather inappropriate manner. Companies have been either estimating the future cash flows in nominal terms. For the purpose of discounting, they have used real rate of return. Or, they have been estimating the future cash flows in real price terms, but discounted at the money discount rate. There is a significant change in this practice from the last two decades (Arnold and Hatzopoulos, 2000: 12). However in contrast to this, according to the data collected by Drayery and Tayles, 1997 There are still a majority of firms, treating the problem of inflation, incorrectly. The survey was conducted on 195 firms in UK,out of which only 53 or 27% are doing the correct treatment of inflation, with regard to future cash flows (Data attached in appendix 1). Common Mistakes In The Adjustment Of Inflation Thus, we can see that the adjustment for the treatment of inflation, regarding future cash flows and relative discount rates, is not a very uncommon mistake. The most common mistake is using the money discount rate of return for discounting the cash flow estimates, available in terms of real prices. This leads to the undervaluation of NPV, leading to the rejection of the project in some cases, which are worth undertaking, yet, are not. In case of the converse scenario, the result would be overvaluation of the NPV, leading to the failure of projects in the long run. Long term projects, are more prone to this kind of mismatch, because with a longer time period, the variation in cash flows, due to non inclusion of inflation, gets compounded. The cash flows accrued after many years, are valued in current terms, and that turns out to be highly distorted. In case of short term projects, even if inflation has not been included, the distortion in the values of future cash flows, is not very high (Drayery and Tayles, 1997: 3). Treatment Of Taxes Taxes have a direct and considerable impact, on the project viability. For a complete project appraisal, it is important to consider the complete taxation implications, over the cash flows. It is vital for the purpose of investment appraisal, to consider the cash flows after paying taxes, since only these are available to shareholders. There are many important aspects to be considered, regarding taxation. According to Arnold (2008) if the tax liabilities of the firm gets increased due to the project, then the increased tax effects must be incorporated in the analysis, to reach the actual cash flow figure. Secondly, taxes are not generally paid in the same year in which they occur. Companies pay a part of the current years taxes and part of the accrued taxes, which must be considered accordingly. The time factor must be correctly accounted for, while analyzing the cash outflow of taxes. According to Rohrich (2007), due to the investment, tax would arise and NPV must be calculated only after taxation. The implications of taxation would affect the NPV considerably. Firstly with taxes, cash flow will decline and so will the NPV calculated out of that cash flow. Secondly, the capital structure of the project also results in the decline in discount rate, with an increase in gearing ratio. Since the interest on debt is tax deductible, it reduces the cost of capital, and thus leads to fall in the discount rate. Besides these Lumby (1988) has also thrown light on one more important aspect. This is the system of writing down balances, which also provides tax relief on capital expenditure. Thus, the net effect of the taxation could be seen as a decline in NPV, due to a decrease in cash flows, on one hand. On the other hand there was an increase in NPV, due to a decrease in discount rates. Cost Of Capital â€Å"The cost of capital is the rate of return that a company has to offer finance providers to induce them to buy and hold a financial security. This rate is determined by the returns offered on alternative securities with the same risk†(Arnold, 2008: 717). The definition given shows that the rate of return on the capital, is what determines its cost. This rate of return is the discount rate used by the companies. If it is evaluated higher than what actually it should be, then it constrains the investments. Like Arnold (2008) has quoted Michael Haseltine, one time President of the Board of Trade â€Å"Businesses are not investing enough because of their excessive expectations of investment returns†(Arnold, 2008: 717). High Rate Of Return According to Ashford et al. (1988) companies use considerably high discount rate than required, as per the opportunity cost of capital. The reason for this, is the risk premium which companies apply, especially in case of investments made in the projects using new technology. Such projects are considered to be more uncertain, so the discount rate is higher than in other investments (Ashford et al., 1988: 2). Arnold and Hatzopoulos (2000) have quoted Antle and Appen (1985) and Antle and Fellingham (1990) that managers in order to keep a strict control over corporate resources and to reduce the tendency to over invest, keep high discount rates (Arnold and Hatzopoulos, 2000). Similarly according to Dimson and Marsh (1994) in Drury and Tayles (1996) firms in UK use excessively high discount rates, which in turn, have led to the under-investment in UK firms. In USA too, firms use hurdle rates for project evaluation, which are higher than their estimated cost of capital (Drury and Tayles, 1996: 12). Wacc In order to attract investors, companies have to provide returns, higher than the opportunity cost of capital. Companies use a standard means to express their cost of capital, using weighted average cost of capital (WACC). According to Bruner et al (1998) WACC is the method used by most of the companies, advisors and even textbooks, as a method to derive the discount rate used as the cost of capital. Bierman (1993) conducted survey in which 74 Fortune 100 companies participated. The results obtained showed that all the companies use some form of discounting in their capital budgeting, and 93% use a weighted-average cost of capital (Bruner et al, 1998: 2-3). Arnold and Hatzopoulos (2000) presented information given by Westwick and Shohet (1976) stating that companys bank overdraft rate was the most popular method among UK companies for selecting the rate of return to be used for evaluating capital investment. At the same time WACC was in practice by less than 10% of firms. However, th is trend changed substantially over the period of time and according to the data collected by Arnold and Hatzopoulos (2000) more than half of the firms use WACC to calculate the cost of capital (results attached in appendix 2). In addition to this, it is also notable that still significant minority firms use interest rate payable on debt as a measuring tool to calculate the cost of capital (Arnold and Hatzopoulos, 2000: 17). For calculating the WACC a company needs to acquire information about the cost of various sources of capital and their proportions in the capital structure. Considering that we have two sources of finances i.e. equity and debt, here cost of capital is determined by the formula: WACC = KEWE + KDWD Here, KE = cost of equity KD = cost of debt WE = proportion of equity finance to total finance WD = proportion of debt finance to total finance Cost Of Debt Debt entails to more or less fixed payments, so estimating the cost of debt is relatively easy. Arnold (2008) has covered three factors which determine the cost of debt, these are: 1. Existing rate of interest on debt capital. 2. The risk of default by the debtor and recovery rate or chances in case of default. 3. Benefit derived from debt capital due to the tax shield. Cost Of Equity While the estimation of cost of debt is easy, the cost of equity is rather difficult to estimate. This is due to the fact that companies do not have any commitment towards the shareholders to pay dividends. However, companies have been reaching some reasonably good estimates of the cost of equity using some prevalent methodologies like Capital asset pricing model. Although, some firms mention other models as well like arbitrage pricing theory but these are in small proportion. Another model which was most influential in 1960s was Gordon growth model. However, there was a problem of obtaining a reliable estimate of future growth rate of dividends in this model. This was obtained objectively using past data which was not considered to be a trustworthy estimate (Arnold, 2008: 726). According to Bruner et al. CAPM is the most popularly used model for estimating the cost of equity. In a wide survey conducted by Trahan and Gitman (1995) of 84 fortune 500 large firms and best small Forbes 200 companies it was found that 30% of respondents use the capital asset pricing model. Similarly, in a survey conducted in Australia, CAPM is the most commonly used method in estimating the cost of equity, with 72% of the companies under survey, using this model (Truong et al., 2006: 3). In contrast to this Arnold and Hatzopoulos (2000) has mentioned views from several sources stating that According to Bruner et al there are theoretical, practical and empirical doubts cast on the most heavily promoted method of calculating the equity component of WACC, that is, the CAPM (Lewellen, 1977; Mullins, 1982; Lowenstein, 1989; Tomkins, 1991; Fama and French, 1992; Rosenberg and Rudd, 1992; Mills et al., 1992; Strong and Xu, 1997; and Adedeji, 1997). The difficulty faced under this model is to determine a particular divisional beta and cost of capital. This problem has been discussed in quite an elaborate manner by Bruner et al. using different beta rates and expected market return. The result produced shows substantial variation in the cost of equity and in turn had a great variation on cost of capital (result attached in appendix 3). To conclude, what can be seen is the result drawn out of study on the corporate cost of capital and the return on corporate investment. This shows average corporate investment produced returns that exceed the cost of capital. This is analyzed for the period of 1950-96, the real cost of capital for non-financial firms is high, 5.95 percent. The real return on cost is higher, 7.38 percent as a result on average investment seems to be profitable (Fama and French, 1999). Analysing The Level Of Usage Of Appraisal Techniques Since decades companies have been in continuous search of reliable investment appraisal techniques. These techniques helps to rank the multiple competing projects on the basis of benefits that can be derived out of each one as against the costs incurred over the same. Conventional Methods The first analysis studied here is the survey conducted by Arnold and Hatzopoulos in the year 1997. The survey examines the level of usage of four main conventional appraisal techniques – payback method, accounting rate of return (ARR), internal rate of return (IRR) and net present value (NPV). 300 companies are surveyed which are ranked in the Times 1000 companies according to capital employed (results attached in appendix 4). This survey is also compared with two previous surveys one is by Pike covering the period from 1975 to 1992; and Alkaraan and Northcott for the year 2002. These are chosen for comparison because of similar characteristics in all the three surveys. According to the results, it is quite clear that payback method has been the most widely used technique till early 1990s as compared to discounted cash flow methods – IRR and NPV. However, thereafter rise in the usage of NPV can be seen and as for now it became the most popular appraisal technique. Yet, this was not at the expense of a decline in the usage of the payback method. Even payb
Saturday, July 20, 2019
Small Country Farm at Bordighera :: Essays Papers
French, 1840-1926 Small Country Farm at Bordighera 1884 Museum Purchase, 1943.39 In January 1884 Monet set out alone for the Mediterranean village of Bordighera, just across the Franco-Italian border. Originally intending to stay only for three weeks, Monet became so absorbed in the challenges of capturing brilliant hues of the lush landscape (so different from the cool, gray tonality of northern France) that he spent over two months there and produced forty paintings. Monet recorded his progress and frustrations in copious letters to friends back in Paris: "These palms are driving me crazy; the motifs are extremely difficult to seize, to put on canvas; it's so bushy everywhere, although delightful to the eye.... I would like to do orange and lemon trees silhouetted against the blue sea but cannot find them as I would like." Small Country Farm at Bordighera was probably painted in March and represents his finest achievement there. Years later Monet mentioned it with one other painting of the sojourn as a work with which he was especially satisfied. In it, Monet used remarkably varied brushwork to create a wide range of optical effects and to organize his pictorial space as the viewer's eye is carried from the thick, bushy vegetation of the foreground to the hazy mountain peaks of the distance. Above all, the painting is remarkable for its bold handling of color and rainbowlike palette, which point away from the years of classic Impressionism to the color-saturated paintings of Monet's final decades in Giverny. Monet often represented the times of the day when light is at its most dramatic: sunrise, midday and sunset. In such views as Cap Martin, near Menton (1884), Monet contrasts the intense light of the southern sun burning bright on the coastal road against the deep calm blue waters of the Mediterranean. In other pictures of olive groves and olive trees he focuses on the volley between light and shadow Monet's pictorial style is the quintessence of Impressionism -- an investigation of the transformational properties of light. Emile Zola, the 19th-century French novelist and critic, wrote that Impressionism is a perception of the world "through a temperament." A scrupulous observer of light and color, Monet could define what he was feeling with loose brushwork and
Friday, July 19, 2019
Augustines God Vs. Epictetus God :: essays research papers
At first glance, I was immediatly inclined to argue in epictetus' favor, because it pains me to argue that Christianity is good for anybody. In the following paragraphs, i will contrast the God of Epictetus, and the God of Augustine, and in the end, my stand will be clear. Epictetus and Augustine both identify God on basic level. Epictetus says, "Where the essence of God is, there too is the essence of good. What is the essence of God?......Right Reason? Certainly. Here then, without more ado, seek the essence of good." He says strive for goodness, live in conformity with it, and you will find God. God is the vital force that creates all things and the cosmic intellegence that governs it from within. Augustine says: "Where I found truth, there i found my God, who is truth itself." He says strive for truth and understanding...In loving God, we love truth. Persons can come to know truth though inner experience and conviction, he holds that you can't obtain true knowledge without faith. you must have faith in God, who is the essence of all truth. Both philosophers address man's powerlessness in the face of God. Epictetus asserted that humans are basically limited and irrational beings, but that the universe, ruled by God through pure reason, is perfect. Because human beings can neither know nor control their destiny, they must cease striving for the attainment of worldly ends and pleasures and instead calmly accept the fact of their own powerlessness before fate. The only thing in a person's power is their response to events or outlook, namely, their morality. Augustine believed faith preceded reason. He believed people are good, but not perfect. But in Augustinean theology, each person is predestined to either heaven, or to fry like bacon, and there's nothing you can do about it. Salvation is a "free gift" with purchase, but only to every 7,000th caller. This is where i would think morality means squat. If you know God decided when you were born whether or not you were going to heaven, nothing you do makes any difference. You can step all over everbody, and run with scissors and it doesn't matter. If you go to hell, you were going there anyway. If you're going to heaven, you've got a few good stories to tell when you get there. On top of all this, Augustine says that no human mind can penetrate the mystery of of God's wisdom.
Traditional Ways Or Not :: essays research papers
Traditional Ways Or Not From generation to generation plays have become a major part of our existence. For some families customs and traditions can either make or break a family. Some family traditions mean a lot. However breaking a family custom can start major uproars or even serious altercations between family members. For some families fights and altercations cam also bring them closer as a family. In the play " A Doll House " written by Henrik Isben, conflicts and customs play important roles for the survival of the Helmer family. For Nora Helmer growing up in the shadow of her husband Torvald and her father was Nora 's way of life. In the play " A Doll House " Nora is faced with a past mistake which leaves her in disbelief. Throughout the play Nora tries to hide the secret from her husband , but runs into a problem. Nils Krogstad who was fired from the bank by Torvald is going to blackmail Nora if she does not help him get his job at the bank back. " When your husband was ill, you came to me to borrow two hundred and fifty pounds." ( Isben, 22). Nora must tell her husband Torvald that she has taken money without his consent, which in those days was against the law. Nora is faced with a very serious matter which can end her marriage if Torvald finds out about the loan. At the end of the play Torvald finds out about the loan which ends the marriage and breaks up the family for good. This shows how important family customs and traditions mean to the Helmer family. To some people having a family means everything in the world. Nora on the other hand leaving her husband and children behind was easy to do. At the end of the play Nora Helmer leaves her family do to the fact that she does not love her Husband Torvald anymore. " No, I have never been happy. I thought I was, but it has never really been so. I must try to educate myself- you are not the man to help me in that. I must do that for myself. And that is why I am going to leave you now." ( Isben, 66). Nora feels that she has been treated unfairly and needs to move on. Torvald forgives Nora, but it is not enough to keep her around any longer.
Thursday, July 18, 2019
What does Scout learn about Maycomb and its inhabitants during the trial?
Through witnessing the trial, Scout learns a lot about Maycomb and its inhabitants, particularly Bob Ewell, Mayella Ewell, Tom Robinson, Dolphus Raymond and her own father, Atticus.Bob Ewell is the villain of the ‘To Kill A Mockingbird’ and, as a result of the trial, he attempts to get revenge on Atticus and his family. However, in the trial itself he is depicted as a very unpleasant person, not only by his appearance, â€Å"a little bantam cock of a man†but also by his conduct. Scout learns that he drinks and sometimes leaves his family for days, he is violent and he may even be committing incest with Mayella. Atticus establishes that he is left-handed and that Mayella was probably beaten up by a left-handed man – it seems that he, and not Tom Robinson, beat up Mayella after he saw Mayella trying to kiss Tom.Bob therefore lies during the trial and is prepared to sacrifice the life of an innocent man for the sake of his daughter's reputation. His abominabl e behaviour during the trial and his assumption that everybody will be on his side against a black man convince the reader that he is a thoroughly loathsome character. Mayella Ewell also lies in court but for different reasons to her father. She is the only responsible member of one of the poorest families in Maycomb.She looks after herself and her brothers and sisters and even tries to bring some beauty into their lives by growing geraniums. Her family is so poor that white people will have nothing to do with her and, at that time, it was not possible for her to be friendly with black people. Hence Scout coming to the conclusion that she is â€Å"the loneliest person in the world†. Tom Robinson passed her house every day on his way to work and, according to Scout; he was probably the only person who was ever nice to her.Tom's evidence at the trial implies that she had planned to make a pass at him for a long time. It took her nearly a year to save enough money to send all he r brothers and sisters into town to get ice creams. When she and Tom were alone together she tried to kiss him but she was interrupted by the arrival of her father. At that time in the 1930s there was a very strong prejudice against white women being involved with black men and if the fact that she had kissed Tom of her own accord emerged, she would have been shunned by everyone. She would rather let Tom die than let this happen.The trial also helps Scout gain a further insight into the character of Tom Robinson, who is the innocent victim of Mayella's loneliness and is often perceived to be the â€Å"mockingbird†of the novel. He assisted Mayella over a long period of time and always behaved courteously and respectfully around her. When Mayella tried to kiss him he didn't know what to do. He couldn't hit a white woman to keep her away from him nor could he allow her to kiss him – he ran away when Bob Ewell arrived knowing that whatever he did would get him into troubl e.In the trial Tom's innocence is proved by the fact that only his right arm is useable. It becomes evident that he couldn't have held Mayella and raped her in the way that she described, and her injuries were the result of a beating from a left-handed man. He is honest and labours strenuously but he offends the jury by saying that the reason why he did all the work for Mayella is because he â€Å"felt right sorry for her. †Tom oversteps some societal boundaries and his admission of sympathy of Mayella – a white woman – is considered impertinent due to the lower status of black people at the time.In spite of his obvious innocence and the persuasive arguments presented by Atticus, Tom is convicted of the crime as racial prejudice is still too strong and society is not yet able to deal with such a case fairly. Prior to the trial, Scout only knows Dolphus Raymond through the rumours that revolve around him: he always drinks whisky out of a sack which supposedly pr ovides an explanation for why he’s got a â€Å"coloured woman and all sorts of mixed chillum†; he â€Å"owns all one side of a river bank†¦and he’s from a real old family to boot.†But through meeting Dolphus with Dill, Scout is informed that he pretends to be an alcoholic because it was the only way the Maycomb would accept him. He says this was so because they could not grasp a sane white person ever living with coloured folks. This interlude with Dolphus Raymond at the beginning of chapter 20 foreshadows Atticus’s views, expressed later, that black people are people like everyone else. Scout and the readers learn that we shouldn’t judge people by appearances.Although she judges Dolphus by his reputation, her opinion changes after she has met him – something that sadly the white jury of the trial is incapable of doing regarding Tom Robinson. This scene underlines the prejudices of the white community, with hints that if a white person loves a black person they have to have an excuse for it and with Scout discovers more about the â€Å"simple hell people give other people. †The trial reveals a lot of hidden traits of Atticus, even the littlest things seeming abnormal to Scout and Jem.â€Å"†¦Atticus did something I never saw him do before or since, in public or in private: he unbuttoned his vest, unbuttoned his collar, loosened his tie, and took off his coat. He never loosened a scrap of clothing until he undressed at bedtime, and to Jem and me, this was the equivalent of him standing before us stark naked. We exchanged horrified glances. †This ‘first’ is symbolic that he’s done everything he’s could.It also suggests that the trial is taking a toll on Atticus and he is beginning to feel the strain of it. This may seem unusual, as Atticus has always remained quite relaxed and calm about the case, however by doing this he gives the impression that he’s ne rvous and is feeling tense. Furthermore, Mayella, who is not used to being treated decently, sees his politeness as offensive and it is clear that he takes no pleasure in revealing the true nature of Mayella's actions.Whilst making his concluding speech, Atticus tries to defend the idea that all men are equal before the law, but he is unable to overcome the basic prejudices of the jury. The only mark of his success is that they take an unusual length of time to come to their decision. Atticus was appointed to defend Tom and he upset people merely by doing his job. In spite of the verdict, the black people of the town appreciated his efforts and on the day after the trial they sent large amounts of food to his house in gratitude.
Wednesday, July 17, 2019
Most Children Are Sexually Assaulted By Strangers Essay
Societies ar impaired with the trauma of nipper shout where the devotion increases when the offender stands and laughs amongst the families of the tyke. It is said that barbarianren atomic number 18 not to be allowed to communicate with any strangers as these can be the steprs, this is just a myth. The following paper will feeling for to settle that most of the children are treat by the hoi polloi they already know. mental home It is a well-known particular that child come aliveual handle is a everyday recurrence and the numbers and statistics that are presented are not the true depicters of cosmos of child abuse as there are many personas that go unreported (Bolen, 2001, p. 78).many myths are associated with child abuse blurring the reality of child abuse. One of the most crucial myths that surround the issue of child abuse relates to strangers being held as frequent child abusers. Many authentic statistical figures prove otherwise. It has been in general h ighlighted that children should be watched for any chat and contacts with the strangers as most often the strangers are involved in abusing children sexually. Figures exhaust highlighted that more(prenominal) than 85% of the children are sexually ill-use by the people they know and these comm all include family members, fathers, family friends, and neighbors.These people being walk-to(prenominal) to the families and thus, the children, are more aware of the psychologies of the children that are exploited to approach the children in unethical ways (Cossins, 2000, p. 34). It is important to note that sex offenders look for a hap and an fortune to abuse children. Strangers do not have the chance to explore the psychologies of the children as it is generally seen that children generally do not wanton up too well with the strangers as compared to the affections that they share with people they know.These affections make it a lot easier for the offenders to control the children before and after abuse (Richardson, and Bacon, 2003, p. 49). A study was carried out in three American states and it was found that more than 96% of children ill-treat were infra the bestride of 12 and were abused by the people they knew. The study has divided the children in both main categories, boys and girls. In case of boys under the age of 12, the study highlighted the percentages of offenders.Only 4% of the offenders were strangers, 20% of the offenders were fathers, 17% were family members and relatives while the stay on of 50% offenders belonged to the category of friends. In the case of girls under the age of 12, 12% were abused by the family members, 33% were found to be abused by the strangers and 55% were pique by acquaintances (Itzin, 2000, p, 67). Another important fact that has been highlighted by the studies indicates the spring upment of a family relationship between the victim and abuser, and these relationships continue for an comely of four years.Moreo ver, offenders and electric potential child abusers develop a relationship with the children and in slightly cases with the families of the children, in order to be acquaintances with the shoot for children (Bolen, 2001, p. 40). Boston Globe published a report in 2000 that highlighted the findings of a chemical group of psychologists treating sex offenders. It was mentioned that the case of child abuse by the strangers is very rare hushed parents more often focus on strangers as the potential danger for their child while the threat comes from the families and even spouses.A report has been published by issue Society for the Prevention of Cruelty to Children in 2005 highlighting the dimensions and percentages of child abusers. The report indicated that 94% of abused children knew the abusers, 59% of the abusers were from the families, 35% of the abusers were acquaintances, only 3% were complete strangers, and on an middling 22% of the children, boys and girls were abused by th eir fathers (Cossins, 2000, p. 89). cobblers last There is a need to learn that people from within the families are lots more on a chance to be the offenders as compared to the strangers.Parents need to look inside their houses for offenders rather than looking on the roads and in parks for the potential dangers. References Bolen, M. R. (2001). Child sexual abuse its backdrop and our failure. Springer. Cossins, A. (2000). Masculinities, sexualities, and child sexual abuse. Martinus Nijhoff Publishers. Itzin, C. (2000). Home truths rough child sexual abuse a reader. Routledge. Richardson, S. , and Bacon, H. (2003). Creative Response to Child internal Abuse Challenges and Dilemmas. Edition 2. Jessica Kingsley Publishers.
Subscribe to:
Posts (Atom)