One set of Global Accounting Standards Good idea

One set of Global Accounting Standards Good idea The US GAAP has influenced accounting standards in many countries. A decade ago, some still expected that it would eventually become globally accepted but in recent times, this is not likely because there has been a distinctive global shift towards the use of International Financial Reporting Standards (IFRS) in the past few years. Many nations such as Japan, China and India have active programs designed to achieve convergence with IFRS for financial reporting purposes and more than 100 nations either require or permit the use of IFRS for financial reporting and is likely that it will soon become globally accepted (James, 2009). There has been a broad movement in the US towards the acceptance of IFRs, supported by the Financial Accounting Standard Board (FASB). The Security Exchange Commission (SEC) is also considering allowing US companies choose between US GAAP and IFRS when reporting to the SEC and may require that all US public companies utilize IFRS by the year 2016 and while no final decisions have been made, it is quite certain that the US will be moving away from the traditional GAAP and towards a convergence with IFRS(James, 2009). For several decades, global organisations such as the European Union (EU), International Organisation of Securities Commission (IOSCO) and the International Accounting Standards Commission (IASC) have supported international efforts to harmonize financial accounting standards and reporting(James, 2009). To some extent, the EU gave global convergence a kick-start when they made it compulsory for EU companies listed on an EU exchange prepare their consolidated accounts after Jan 2005, under IFRS (Gill and Rosen, 2007). In 2001, the IASC reorganized and the IASB was created. Harmonization efforts thereby shifted to globalization and in 2002, the FASB and IASB signed what is commonly referred to as the Norwalk Agreement, in which the two standard setting organisations agreed to work together to develop a high quality single set of accounting standard that would be used internationally for domestic and cross border financial reporting. It was agreed that to achieve this goal, they would e liminate existing differences between US GAAP and IFRS and coordinate their efforts on future standard setting projects. As a result of this, they are now compatible in many areas even though some significant differences still exist such as LIFO inventory cost valuation which is widely used in the US but is specifically prohibited under IFRS. Others like presentation, pre-operating and pre-opening costs, borrowing costs and fair value (Gill and Rosen, 2007) exist and have to be reconciled if a global set of standards are to emerge (FASB, 2002). POTENTIAL ADVANTAGES AND DISADVANTAGES ARISNG FROM ONE SET OF GLOBAL ACCOUNTING STANDARDS Having a single set of global accounting standards has its benefits. Firstly, a single set of high quality globally accepted financial accounting standard tends to serve the financial users better and would likely lead to the greatest comparability between companies (James, 2009). The SEC identifies comparability of financial information to investors as a key benefit. Firms choose to adopt IFRS in order to increase opportunities such as increasing the number of global customers and suppliers. US companies want to investigate the financial strength of these customers when establishing long term relationships and these can be facilitated through the use of one reporting standard Secondly, academic research suggests that investors prefer to invest in companies that use familiar standards. Firms that engage in international activities would benefit from convergence and are more likely to voluntarily adopt IFRS if they have more international interactions (Bradshaw et al., 2010). Furthermore, voluntary adoption of IAS reduces the tendency for investors to over invest in domestic stock and under invest in foreign stocks. This could suggest that foreign investment decisions are related to conformity of accounting methods with domestic accounting standards. US Companies will therefore benefit from convergence of US GAAP and IFRS given that IFRS has over 100 countries adopting to it , thereby increasing foreign investment (Bradshaw et al., 2010). One set of global accounting standards would lead firms to exhibit less earnings management, more timely, less recognition and more value relevant information. There would be improvement in accounting quality and also increased liquidity in markets because IFRS is considered a higher quality set of standards as evidenced by lower information asymmetry and greater liquidity (Bradshaw et al., 2010). Lastly, it allows US issuers greater opportunity to compete in global capital markets. Replacing the competing and often contradictory standards would improve investor confidence, allow investors draw better conclusions and simplify the process and cut costs for issuers (Gill and Rosen, 2007). However, having only one set of global accounting standards has its demerits. Adopting IFRS when material differences exist at both conceptual and magnitude level could pose great costs and can be detrimental to investors(Bradshaw et al., 2010). For smaller companies, challenges will arise when their clients are acquired by foreign owners wanting to file under IFRS and this will be due to the firms not being prepared for the change because they dont have the same resources as the big firms(Rahr et al., 2010). Secondly, transition is costly and time consuming especially for public accounting firms due to initial education and software modifications which will require time and money to compute when transition to IFRS takes place. Fees for advising companies by CPAs would be substantial (Rahr et al., 2010). Furthermore, it can lead to users of financial statements claiming that preparers claim that they used standards that are not reliable and that they dont have sufficient knowledge of IFRS, leading to litigation issues (Rahr et al., 2010). Lastly, US colleges and universities dont appear to be equipped to teach IFRS at a level necessary for near-term adoption of standards (Bradshaw et al., 2010). WOULD ONE SET OF GLOBAL STANDARDS BE APPROPRIATE FOR ALL COUNTRIES? Though having one set of accounting standards have their benefits, it may be naÃÆ'Â ¯ve to think that adopting one set of standards for all countries. Skills transferred from Anglo-American countries to developing countries may network because they are culturally irrelevant or dysfunctional in these developing countries (Perera 1989, Cited in Deegan 2001). Also, the IASC standards are strongly influenced by Anglo- American accounting models and thus tend to reflect the circumstances and patterns of thinking in a group of countries. They are likely to have problems of relevance in countries with different cultural environments from Anglo American countries (Craig Deegan, 2001). Lastly, efforts towards assisting countries, particularly the developing countries by providing them with a mechanism to use western style accounting systems may cause harm because UK professional bodies dont make concessions to overseas students and insist on a set of knowledge known to UK practice and are irrelevant and harmful if applied in the wrong way (Seminar note). ADVANTAGES AND DISADVANTAGES OF A PRINCIPLE BASED APPROACH AND RULES BASED APPROACH FOR REGULATION OF FINANCIAL REPORTING. IFRS are generally principle based standards while the US GAAP is more rules based. They differ on a number of points and can affect an entitys reported results(Gill and Rosen, 2007). The rules based approach has been under fire of late due largely to the Enron Corporation failure whereby Arthur Anderson was seen as designing client-originated financial instruments that met the technical requirements of GAAP while violating the intent (Benston et al., 2006). The Sarbanes-Oxley Act of 2002 (SOX) was then issued to improve financial reporting and protect investors and it requires that the SEC conduct a study on the adoption of a principles based set of accounting standards (James, 2009). Principle based approach encourage the use of professional judgement with a focus on what is right and not what is in the rules and thus discourages financial engineering. They have a better ability to cope with the speed of change of environment and they are also less voluminous and easier to understand as they provide latitude to financial statement preparers and are easier to conform with international standards(Moneywatch.com, 2002). However, the flexibility of principle-based approach leads to professional judgement calls when financial statements and audits are prepared and this could lead to financial restatements and increased litigation if the users disagree with the CPAs judgment. They can also be a significant loss of comparability among reporting entities because preparers and auditors are required to exercise judgement in accounting for transactions (Benston et al., 2006). The Rules based Approach are developed to meet demands of major constituents like management and auditors who want a clear answer to every perceivable accounting issue and this protects accountants from criticisms and lawsuits (Benston et al., 2006). There is also less need for explanation in financial statements and less room for interpretation which results in less complex and more transparent financial statements and it reduces problems in countries such as the US characterized by a litigious environment and dominated by a very legalistic framework as the rules are stated clearly (Benston et al., 2006). However, they are too voluminous as it comprises of over 2000 separate pronouncements which are several hundred pages long and issued in various forms and formats by numerous bodies (Gill and Rosen, 2007). Secondly, because of its detailed regulations, application of rules-based approach has led to a lack of transparency regarding matters like revenue recognition derivatives, off-balance sheet finance and the likes (Elliot and Elliot, 2006). Lastly, rules can become useless or dysfunctional when the economic environment changes or if managers create innovative transactions (Benston et al., 2006). CONCLUSION Convergence of IFRS and the US GAAP is in the best interest of US companies in the long run if it provides greater comparability and yields equal or higher quality standards. They both represent a high quality set of accounting standards in terms of mitigating information asymmetry and providing information important for valuation. However, its unclear whether IFRS provides equivalent financial reporting quality relative to US GAAP(Bradshaw et al., 2010).

Yum Brands

Porters 5 Forces Model is a valuable tool in evaluating the condition of the Yum! Brands China Division and the fast-food industry that Yum Brands is actively dominating. While there is much competition in China in the food industry, it is undeniable that with the CEO’s guidance, Sam Su, the growth that they have accomplished over the years is exponential. This growth is due to the fact that Su looks at the bigger picture, imaging what he wants the company to be like in five to ten years, and making that dream happen immediately.Porter shaped this strategy to give a thorough analysis of the condition of any given industry and determine the feasibility of entering, but also to determine the level of competition being dealt with by current established participants in the industry in order to reposition themselves for further growth and development. Thus, Porter gives the 5 Basic Competitive Forces and suggests analyzing each one in the scope of the industry. 1. Barriers to Entry In China’s fast-food industry, largely dominated by Yum! Brands, the barriers to entry are high due to several key factors. First, a company trying to break into the Yum!Brands market must compete with their restaurants, Kentucky Fried Chicken, Pizza Hut, Taco Bell, which have a combined total of over 3600 stores in their market. Economies of scale come into play because most fast-food companies have the capital and production abilities to produce their product and additional products for much cheaper than a beginning fast-food restaurant that is entering into the market. A major factor in the Yum! Brands China Division and the fast-food industry in China is now differentiation and the altering of the product is order to suit the Chinese people’s tastes rather than American’s tastes.The restaurants in the market are attempting to find new ways to appeal to consumers without drifting away from their key products who have brought them lots of success. For example , compared to Americans, Chinese people like spicier things and a more variety of things, so Yum! Brands decided to extend each menu and alter recipes to fit this requirement. The recent, rapid growth of the fast-food industry in China is a good area of focus for existing American fast-food companies wanting to expand their business, but the product must be easily altered to catch the Chinese people’s likes and to have resistance to competing restaurants.Another barrier to entry could potentially branch from the government to control health standards. Companies must invest in research and development to determine ways to address health concerns and tabulate a healthier product. Ultimately, Yum! Brands in China have dominated the market share and are making it difficult for new entrant to expect a profitable gain upon entry. However, in order for Yum! Brands to continue their success steady innovating and investing need to be accomplished in order to stay ahead in the industry . 2. RivalryIn this industry, the competition is rigorous and several large companies hold majority of the market. The barriers to entry are very easy, which in turn means many competitors. Yum! Brands main competitors are McDonald’s Corp, Burger King Holdings, Subway, Dairy Queen, Starbucks, and Papa John’s Intl (PIZZA). Though there may be many competitors, economies of scale can cause smaller competitors to get crowded out or bought out by a larger company. Yum! Brands have to continually be competitive and shift their strategy in response to other companies’ new ideas and business strategies.Yum! Brand’s restaurants had to develop more menu specific items and a wider variety to tap into the Chinese food market. This also allowed them to stay one step ahead of competitors such as McDonald’s. In 1987, Yum! Brands opened the first KFC in Beijing and since then, have built the largest restaurant company in mainland China due to the large population growth. It is a costly market to enter and once in it, a company needs to realize at least their fixed costs before exiting, making Yum! Brands’ restaurants even more dominate in the market. Yum Brands Porters 5 Forces Model is a valuable tool in evaluating the condition of the Yum! Brands China Division and the fast-food industry that Yum Brands is actively dominating. While there is much competition in China in the food industry, it is undeniable that with the CEO’s guidance, Sam Su, the growth that they have accomplished over the years is exponential. This growth is due to the fact that Su looks at the bigger picture, imaging what he wants the company to be like in five to ten years, and making that dream happen immediately.Porter shaped this strategy to give a thorough analysis of the condition of any given industry and determine the feasibility of entering, but also to determine the level of competition being dealt with by current established participants in the industry in order to reposition themselves for further growth and development. Thus, Porter gives the 5 Basic Competitive Forces and suggests analyzing each one in the scope of the industry. 1. Barriers to Entry In China’s fast-food industry, largely dominated by Yum! Brands, the barriers to entry are high due to several key factors. First, a company trying to break into the Yum!Brands market must compete with their restaurants, Kentucky Fried Chicken, Pizza Hut, Taco Bell, which have a combined total of over 3600 stores in their market. Economies of scale come into play because most fast-food companies have the capital and production abilities to produce their product and additional products for much cheaper than a beginning fast-food restaurant that is entering into the market. A major factor in the Yum! Brands China Division and the fast-food industry in China is now differentiation and the altering of the product is order to suit the Chinese people’s tastes rather than American’s tastes.The restaurants in the market are attempting to find new ways to appeal to consumers without drifting away from their key products who have brought them lots of success. For example , compared to Americans, Chinese people like spicier things and a more variety of things, so Yum! Brands decided to extend each menu and alter recipes to fit this requirement. The recent, rapid growth of the fast-food industry in China is a good area of focus for existing American fast-food companies wanting to expand their business, but the product must be easily altered to catch the Chinese people’s likes and to have resistance to competing restaurants.Another barrier to entry could potentially branch from the government to control health standards. Companies must invest in research and development to determine ways to address health concerns and tabulate a healthier product. Ultimately, Yum! Brands in China have dominated the market share and are making it difficult for new entrant to expect a profitable gain upon entry. However, in order for Yum! Brands to continue their success steady innovating and investing need to be accomplished in order to stay ahead in the industry . 2. RivalryIn this industry, the competition is rigorous and several large companies hold majority of the market. The barriers to entry are very easy, which in turn means many competitors. Yum! Brands main competitors are McDonald’s Corp, Burger King Holdings, Subway, Dairy Queen, Starbucks, and Papa John’s Intl (PIZZA). Though there may be many competitors, economies of scale can cause smaller competitors to get crowded out or bought out by a larger company. Yum! Brands have to continually be competitive and shift their strategy in response to other companies’ new ideas and business strategies.Yum! Brand’s restaurants had to develop more menu specific items and a wider variety to tap into the Chinese food market. This also allowed them to stay one step ahead of competitors such as McDonald’s. In 1987, Yum! Brands opened the first KFC in Beijing and since then, have built the largest restaurant company in mainland China due to the large population growth. It is a costly market to enter and once in it, a company needs to realize at least their fixed costs before exiting, making Yum! Brands’ restaurants even more dominate in the market.

Being a global grocery store Essay

Being a global grocery store and merchandising retail store, Tesco continues to consolidate its position as the world’s number three retailer after Wal-mart and Carrefour of the US and France, respectively. The Tesco company emerged in 1924, with its first store being opened in London, five years later. The same company has continued to grow, after that it opened up in 1956, its first supermarket. From then, the company has continued to realize growth and expansion, growing organically during the second phase of the 20th century. The growth during this epoch reached its apogee when in 1977, the Tesco company decided to reduce the prices of its commodities in lieu of Cohen’s rather antithetical policies. This resulted in Tesco company realising a 4% growth in its market share after every two months. Strategic directions and development methods that have been adopted by Tesco. Up to the moment, the Tesco company has been focusing on making innovations and facilitating conditions that can encourage the same. This is geared towards making the employees free enough to engage in efforts to come up with innovative ideas. The rationale behind this notion is that the rank and file of an entire organization has the ability to generate productive ideas. To this effect, the Tesco company as organization ensures that there is an open line through which the opinions and views of the employees can be solicited (Humby and Hunt 2007, 75). The effect that this approach has on the returns of the Tesco company is that it has realized a stable base of employees who are loyal. This is because the employees, courtesy of the practice, are left with the feeling of being totally integral to the company and being appreciated by the management board. This has bolstered the cause of Tesco company’s growth and expansion, due to low employees turnover. The low employees turnover becomes inevitable for Tesco company since employees take to remain loyal to the company, and thus saving it from needing to recruit new employees. At the same time, the Tesco company takes to target the desired goal by making regular consultations with the clients on the quality of goods produced by the Tesco company. This exercise has been very instrumental in helping the Tesco company channel its synergies towards efficiency and customer satisfaction. Forces that are promoting the food retail industry’s globalisation. According to Harris and Dennis (2002, 177) there are several forces that ensure the global adoption of the Tesco company food retail. In the first case, the company makes it its responsibility to ensure that its operations are attune to the indigenous tastes and preference of the local market. To this effect, Tesco company takes it upon itself to tamper its operations with the indigenous culture, regulations and delivery chains. This feat has been instrumental in placing the Tesco company in the map. At the same time, Tesco company builds brands that enable it as a company to forge longterm relationships with its clients. In the same vein, the company maintains its ability to fix its focus on the targeted countries, even in the face of going global. This, the company takes to achieve by establishing brands that are unique and of high standard. In the same wavelength, Tesco company has ensured these prospects by establishing brands that are nation or state- specific. In order to thoroughly entrench itself into the global market, Tesco company ensures that it carries out designs that are multi formatted. According to Baker (2002, 90), this has been important to Tesco company, given the fact that it has been established that there is no single format that has been able to consolidate its position in the global market. How Tesco strategy in the US may help it realize competitive advantage. In the US Context, Tesco company has tried to achieve an edge over its peers by taking to mitigate the extent of the shopping costs. Another feather in Tesco company’s cap exists, courtesy of the fact that the deficit does not fall on the shoulders of the suppliers. Rather, the Tesco company sorts out the situation through the enhancement of the efficiency and the adoption of simpler processes in the course of the company’s operations. Hooley, Saunders and Piercy (2004, 67) maintain that this means that clients are able to realize relatively less costly shopping expeditions, from the Tesco company. Unlike Tesco company, its peers even after reducing the shopping price, still leave financial weight to fall squarely on the suppliers. The suppliers on the other hand try to settle the deficit by exacting higher prices to the retailers who then impose extra costs on the consumers. This cycle becomes the epitome of the adage, borrowing from Peter to pay Paul. In about the same vein, Tesco company is trying to build a niche for itself in the American context by opening up many stores that support the issuance of hard discount (Tapp 2002, 122). To crown this effort, Tesco company has remained responsible for the invitation of British companies that can bolster the interests of the same. Some of these companies are the Big Kahuna Wine a label of Fresh and Easy. This company has been influential in dragging a huge clients’ base to Tesco company scores, owing to the quality wine and delicious poultry meat it serves. Conclusion. It is important for any company that seeks to emulate Tesco company to take to stock, the fact that the latter has, apart from the aforementioned practices, ensured that it dabbles its operations with the concept of capability. To this cause, the Tesco company ensures the employment of skills, and not scale. This, for the Tesco company portends ensuring that the skills are elicited from its rank and file and the systems processes. Therefore, even small scale companies are inexcusable when it comes to (under) performance. References. Baker, M. J. Tesco company and marketing mix, New York: Prentice Hall, 2002. Harris, L. and C. Dennis, Tesco company and e business, London, SAGE, 2002. Hooley, G. , J. A. Saunders and Piercy, N. , Tesco company marketing strategies, New York: McGraw Hill, 2004. Humby, C. and P. Hunt, Tesco company and customer loyalty, Harvard, Harvard University Press, 2007. Tapp, A. , The principles of database and direct marketing, Michigan, Michigan University Press, 2002.

20 Poetic Metaphors About Time

According to proverbs, time heals, steals, and flies. In that same vein, time is also something we all make and take, save and spend, keep, waste, kill, and lose. Habitually and almost without thinking, we explain our relationship to time through metaphors. In ​More Than Cool Reason: A Field Guide to Poetic Metaphor (University of Chicago Press, 1989), George Lakoff and Mark Turner remind us that Metaphor isnt just for poets; its in ordinary language and is the principal way we have of conceptualizing abstract concepts like life, death, and time. So whether were spending it or running out of it (or both), we deal with time metaphorically. 20 Metaphorical Quotes About the Definition of Time Time is a circus, always packing up and moving away. - Ben Hecht Time, you old gipsy man,Will you not stay,Put up your caravanJust for one day? - Ralph Hodgson, Time, You Old Gipsy Man Prince, I warn you, under the rose,Time is the thief you cannot banish.These are my daughters, I suppose.But where in the world did the children vanish? - Phyllis McGinley, Ballade of Lost Objects But thats where I am, theres no escaping it. Times a trap, Im caught in it. - Margaret Atwood, The Handmaids Tale Time is the reef upon which all our frail mystic ships are wrecked. - Noel Coward, Blithe Spirit She tried to discover what kind of woof Old Time, that greatest and longest established Spinner of all, would weave from the threads he had already spun into a woman. But his factory is a secret place, his work is noiseless, and his Hands are mutes. - Charles Dickens, Hard Times Time is a storm in which we are all lost. Only inside the convolutions of the storm itself shall we find our directions. - William Carlos Williams, Introduction to Selected Essays Time is but the stream I go a-fishing in. I drink at it; but while I drink I see the sandy bottom and detect how shallow it is. Its thin current slides away, but eternity remains. - Henry David Thoreau, Walden Time is a flowing river. Happy those who allow themselves to be carried, unresisting, with the current. They float through easy days. They live, unquestioning, in the moment. - Christopher Morley, Where the Blue Begins Time is an equal opportunity employer. Each human being has exactly the same number of hours and minutes every day. Rich people cant buy more hours; scientists cant invent new minutes. And you cant save time to spend it on another day. Even so, time is amazingly fair and forgiving. No matter how much time youve wasted in the past, you still have an entire tomorrow. - Denis Waitely,  The Joy of Working Old Time, in whose banks we deposit our notesIs a miser who always wants guineas for groats;He keeps all his customers still in arrearsBy lending them minutes and charging them years. - Oliver Wendell Holmes, Our Banker Time is the coin of your life. It is the only coin you have, and only you can determine how it will be spent. Be careful lest you let other people spend it for you. - Carl Sandburg Yesterday is a canceled check; tomorrow is a promissory note; today is the only cash you have, so spend it wisely. - Kay Lyons Time is a fixed income and, as with any income, the real problem facing most of us is how to live successfully within our daily allotment. - Margaret B. Johnstone What am I now that I was then?May memory restore again and againThe smallest color of the smallest day:Time is the school in which we learn,Time is the fire in which we burn. - Delmore Schwartz, Calmly We Walk Through This Aprils Day Time is a dressmaker specializing in alterations. - Faith Baldwin, Face Toward the Spring Initially, I was unaware that time, so boundless at first blush, was a prison. - Vladimir Nabokov, Speak, Memory Time is an irreversible arrow, and we can never return to the self that we sloughed off in childhood or adolescence. The man trying to wear youths carefree clothing, the woman costuming her emotions in dolls dresses — these are pathetic figures who want to reverse times arrow. - Joshua Loth Liebman, Renunciation of Immaturity,  Ã¢â‚¬â€¹from Peace of Mind Time is a great teacher, but unfortunately it kills all its pupils. - Hector Berlioz Time is a gift, given to you,given to give you the time you needthe time you need to have the time of your life. - Norton Juster, The Phantom Tollbooth