Marcus Cocceius Nerva, First of Romes Good Emperors

Marcus Cocceius Nerva, First of Rome's Good Emperors Marcus Cocceius Nerva (November 8, 30 CEâ€January 27, 98 CE) administered Rome as ruler from 96â€98 CE following the death of the much-abhorred Emperor Domitian. Nerva was the first of the five great rulers and was the first to embrace a beneficiary who wasnt part of his natural family. Nerva had been a companion of the Flavians without offspring of his own. He assembled water passages, chipped away at the vehicle framework, and fabricated silos to improve the food gracefully. Quick Facts: Marcus Cocceius Nerva Known For: Well-respected and regarded Roman emperorAlso Known As: Nerva, Nerva Caesar AugustusBorn: November 8, 30 CE in Narnia, Umbria part of the Roman EmpireParents: Marcus Cocceius Nerva and Sergia PlautillaDied: January 27, 98 CE at the Gardens of Sallust, RomePublished Works: Lyric poetryAwards and Honors: Ornamenta Triumphalia for military serviceSpouse: NoneChildren: Marcus Ulpius Traianus, Trajan, the legislative leader of Upper Germany (adopted)Notable Quote: â€Å"I have done nothing that would forestall me setting out the magnificent office and coming back to private life in safety.† Early Life Nerva was conceived November 8, 30 CE, in Narnia, Umbria, north of Rome. He originated from a long queue of Roman blue-bloods: his extraordinary granddad M. Cocceius Nerva was delegate in 36 CE, his granddad was a notable representative and companion of Emperor Tiberius, his moms auntie was the incredible granddaughter of Tiberius, and his distant uncle was a mediator for the head Octavian. While little is known about Nervas instruction or adolescence, he didn't turn into a military expert. He was, be that as it may, notable for his wonderful compositions. Early Career Nerva, following in his familys strides, sought after a political profession. He became praetor-choose in 65 CE and turned into a counsel to Emperor Nero. He found and uncovered a plot against Nero (the Pisonian intrigue); his work on this issue was noteworthy to the point that he got military triumphal distinctions (however not an individual from the military). Likewise, sculptures of his similarity were put in the castle. Neros self destruction in 68 prompted a time of tumult here and there called the Year of Four Emperors. In 69, because of obscure administrations rendered, Nerva turned into a representative under Emperor Vespasian. In spite of the fact that there are no records to help the suspicion, it appears to be likely that Nerva proceeded as delegate under Vespasians children Titus and Domitian until the year 89 CE. Nerva as Emperor Domitian, because of schemes against him, had become an unforgiving and wrathful pioneer. On September 18, 96, he was killed in a royal residence connivance. A few students of history theorize that Nerva may have been associated with the connivance. In any event, it appears to be likely that he knew about it. Around the same time, the Senate broadcasted Nerva head. At the point when designated, Nerva was at that point very much into his sixties and had medical problems, so it was far-fetched he would run for long. What's more, he had no kids, which brought up issues about his replacement; it might be that he was chosen explicitly in light of the fact that he would have the option to handpick the following Roman ruler. The underlying long stretches of Nervas initiative concentrated on changing Domitians wrongs. Sculptures of the previous ruler were wrecked, and Nerva conceded acquittal to numerous whom Domitian had banished. Following custom, he executed no congresspersons yet did, as indicated by Cassius Dio, â€Å"put to death all the slaves and freedmen who contrived against their masters.† While many were happy with Nervas approach, the military stayed faithful to Domitian, to some degree as a result of his liberal compensation. Individuals from the Praetorian Guard opposed Nerva, detaining him in the royal residence and requesting the arrival of Petronius and Parthenius, two of Domitians professional killers. Nerva really offered his own neck in return for those of the detainees, yet the military cannot. At last, the professional killers were caught and executed, while Nerva was discharged. While Nerva held force, his certainty was shaken. He spent a significant part of the rest of his 16-month rule endeavoring to settle the domain and guarantee his own progression. Among his accomplishments were the commitment of another gathering, fixing streets, water systems, and the Colosseum, dispensing area to poor people, decreasing assessments forced on Jews, founding new laws constraining open games, and practicing more prominent oversight over the spending plan. Progression There is no record that Nerva wedded, and he had no natural youngsters. His answer was to embrace a child, and he chose Marcus Ulpius Traianus, Trajan, the legislative head of Upper Germany. The appropriation, which occurred in October of 97, permitted Nerva to mollify the military by choosing a military officer as his beneficiary; simultaneously, it permitted him to combine his authority and assume responsibility for the regions in the north. Trajan was the first of many embraced beneficiaries, huge numbers of whom served Rome amazingly well. Actually, Trajans own administration is now and then portrayed as a brilliant age. Passing Nerva had a stroke in January 98, and after three weeks he kicked the bucket. Trajan, his replacement, had Nervas remains put in the tomb of Augustus and requested that the Senate exalt him. Heritage Nerva was the first of five heads who administered the greatest days of the Roman Empire, as his administration set up for this time of Roman brilliance. The other four great rulers were Trajan (98â€117), Hadrian (117â€138), Antoninus Pius (138â€161), and Marcus Aurelius (161â€180). Every one of these sovereigns hand-chose his replacement through selection. During this period, the Roman Empire extended to incorporate the north of Britain just as segments of Arabia and Mesopotamia. Roman development was at its tallness and a steady type of government and culture extended over the whole realm. Simultaneously, be that as it may, the legislature turned out to be progressively concentrated; while there were advantages to this methodology, it likewise made Rome increasingly defenseless over the long haul. Sources Dio, Cassius. Roman History by Cassius Dio distributed in Vol. VIII of the Loeb Classical Library version, 1925.The Editors of Encyclopedia Britannica. â€Å"Nerva.† Encyclopã ¦dia Britannica.ï » ¿Wend, David. Nerva. An Online Encyclopedia of Roman Emperors.

LINGUISTICS Essays - Articles, Academic Disciplines, Linguistics

Etymology The word Linguistics' has been gotten from the Latin lingua (tongue) and istics (information or science). Etymologically, along these lines, phonetics is the logical language. However, it is the examination not of one specific language yet of human language all in all. It examines language as an all inclusive and conspicuous piece of human conduct. It endeavors to portray and examine language. The field of phonetics includes under-remaining of the spot of language in human life, the manners by which it is sorted out to satisfy the necessities it serves, and the capacities it performs. So phonetics is that science which considers the birthplace, association, nature and improvement of language graphically, verifiably, nearly and expressly, and figures the general standards identified with language. Diachronic (authentic) phonetics considers the improvement of language through history, through time, for instance, the manner by which French and Italian have advanced from Latin. Phonetics, along these lines, is the science that depicts and groups dialects. The etymologist distinguishes and depicts the units and examples of the sound framework, the words and morphemes, and the expressions and sentences, which is the structure of language, as totally, precisely, and monetarily as could be expected under the circumstances. Etymological LEVELS Etymology levels' methods the degrees of language structure. There is an extensive contrast among the linguisticians about the number and wording of semantic levels. Robert Hall (1969: 32) suggests the levels-phonology (phonemics-phonetics), morphology and punctuation. R.H Robins (1971: 11) specifies phonology, punctuation and semantics. Hockett (1973: 137-138) advocates the accompanying five levels which he calls subsystems: The Grammatical System: a load of morphemes, and the courses of action wherein they happen; The Phonological System: a load of phonemes, and the assignments where they happen; The Morphophonemic System: the code which integrates the linguistic and the phonological framework; The Phonemic System: the manners by which successions of the phonemes are changed over into sound waves by enunciation of a speaker, and are decoded from the discourse signal by a listener; The Semantic System: This partners different morphemes, and game plans in which morphemes can be put, with things circumstances, or sorts of things and circumstances. Hockett calls the initial three of the above focal subsystem, and the last two fringe subsystems. Such a naming of names, be that as it may, ought not lead one to disarray. There are no essential contrasts about the structure of language. Such an order is finished by the language specialist for comfort in the investigation of the topic, for example language which is an intricate marvel. Every one of these levels are between related parts of his topic, frequently covering. Any division or grouping ought not be treated as inflexible or murky. An etymologist needs to depict human language, and individuals don't utilize only each degree of it in turn. There are three parts of language movement, or three kinds of example in language, the material, the auxiliary and the natural prompting three separate phonetic levels-SUBSTANCE, FORM AND CONTEXT. The substance is the crude material of language; sound-related (PHONIC substance) or visual (GRAPHIC substance). The structure is the association, the inner structure, it is language + lexis. The setting is the connection among structure and circumstance, which we call meaning (Semantics). The semantic science needs to clarify language at all these levels. These levels are clarified beneath: Phonics. Phonics is the investigation of discourse forms including the life structures, nervous system science and pathology of discourse, the verbalization, arrangement and impression of discourse sounds. Phonetics is an unadulterated science and need not be concentrated corresponding to a specific language, however it has numerous functional applications for example in phonetic translations, language showing language training, correspondences building. A few phoneticians believe phonetics to be outside the focal center of semantics legitimate, however most would incorporate it under the heading etymology science'. The semantic parts of phonetics, i.e., the investigation of sound frameworks of specific dialects are a piece of phonology. - 32385033655 The investigation of phonetics can be isolated into three primary branches, ARTICULATORY PHONETICS, the investigation of the development of the discourse organs in the verbalization of discourse, ACOUSTIC PHONETICS, the investigation of the physical properties of discourse sounds, for example, recurrence and abundancy in their transmission, and AUDITORY PHONETICS, the investigation of hearing and the discernment discourse sound. Research facility Phonetics.

A Chances Thread That Is Actually Worth Reading

A ‘Chances’ Thread That Is Actually Worth Reading Our beloved Mollie shares a birthday with another friend of mine, and I recently discovered that they also happen to be getting married on the same day. My comment to Mollie: Wow, you guys are going to share not only a birthday but an anniversary! What are the chances? Most people who use the expression what are the chances in casual conversation arent really looking for a precise answer; theyre just trying to express that something is rare or unlikely to happen. But I work at MIT, you see which means that on a daily basis Im not surrounded by most people, Im surrounded by MIT people. This is a good thing for many, many reasons, not the least of which is emails like this: From: Mollie Burgoon To: Ben Jones Date: Feb 5, 2007 8:02:55 PM EST Subject: You know youre an MIT grad when I was thinking about your question and briefly started to consider the factors I would need to put numbers to, in order to figure out the chances. I am a sad, sad case. For the record: 1. I dont think theres too much of a bias toward births on different dates, so presumably the odds that I would have the same birthday as any random person is 1/365. (Update after way too much figuring: Actually, youre less likely to be born in February than in other months, so given that Im born in February, the odds are only about 0.002696 = 1/370.86 that someone will be born on my birthday, vs. an average of 0.00274 = 1/365 for the year as a whole.) 2. Theres definitely a bias toward September weddings, and a bias toward Saturday weddings, so given that were both getting married this year, its not horribly unlikely that wed be getting married on the same day (probably not too far from 1/12 i.e. every Saturday in June, July, and September). 3. BUT youd have to figure that its unlikely that wed be getting married in the same year Im significantly below the female median marriage age of 25.3. Im not sure how to figure that one in. So the answer is something close to 1/370.86 * 1/12ish * some factor accounting for the likelihood that wed be getting married in the same year. (And I suppose, given that many people dont even get married, some factor accounting for the likelihood of getting married at all.) 3 statistics. -Mollie I really love this place. In part I love it because of what is here, but mostly I love it because of who is here. Of course youll find cool people in other places too, but enough of them to build a whole culture around this stuff? Lets just say the chances are slim. ;-)

The Slave Ship And Impression Sunrise Two Masterpieces Of...

The Slave Ship and Impression Sunrise two masterpieces of Art History Olen Henderson C100 December 1,2016 Course Mentor Group Turner s The Slave Ship, in addition to Monet’s Impression Sunrise, each collectively are a couple of masterpieces of the nineteenth century that examine the interpretation of colors in addition to motion. They may be intricate works that can be both identified as the face of artistic techniques; The Slave Ship is widely seen as a Romantic portrait becoming an outstanding illustration for the Sublime revolution, while on the other hand, Impression Sunrise is the earliest portrait recognized in the Impressionist age. Both styles are revolutionary artworks with approaches that a majority of individuals had never examined before. Although the artworks comprise of numerous things in common, both are specifically different from each other. Turner is identified as being a Romantic who desired to depict fictional in addition to nonfictional artwork. The Slave Ship was not a straightforward portrait to create a ship at sea, but nevertheless, the approach as well as the time that immortalized a perception in the historical past that encapsulates man s commitment of inhumanity. The Slave Ship signifies a spot in time in our past where a captain made the decision to hurl overboard slaves which had been dead in addition to dying to claim that the shipmates were lost while at sea. Turner established a portrait that is not basically spectacular but inShow MoreRelatedDeveloping Management Skills404131 Words   |  1617 PagesLeale Senior Production Project Manager: Kelly Warsak Senior Operations Supervisor: Arnold Vila Operations Specialist: Ilene Kahn Senior Art Director: Janet Slowik Interior Design: Suzanne Duda and Michael Fruhbeis Permissions Project Manager: Shannon Barbe Manager, Cover Visual Research Permissions: Karen Sanatar Manager Central Design: Jayne Conte Cover Art: Getty Images, Inc. Cover Design: Suzanne Duda Lead Media Project Manager: Denise Vaughn Full-Service Project Management: Sharon Anderson/BookMasters

Global Warming And Climate Change - 1136 Words

While the authorities, organizations and governments are working to control global warming and climate changes, human activities that create changes is increasing day by day. A change or rise is the average temperature on the surface of the earth is called climate change or global warming. Agriculture has always been extremely depended on climate variations; reason, the crop growth is fair temperature, solar radiations, and precipitation. Typically the period after the industrial revolution, humans has been changing the worldwide climate. The burning of the fossil fuel, increasing greenhouse gases is the main reason for the global climate change and warming. Deforestation and unusual agriculture are another kind of the human activities†¦show more content†¦The agricultural production pattern has been changed because of the rising temperature, the productivity has been boosted after the increasing carbon dioxide in the atmosphere. Nevertheless, 25 per cent of the climate chan ge is by the agriculture itself. All-included, global warming and climate change can consequence in the variety of impacts in agricultures. And, the potential power of microscopic organism does get affected by the ultra violet radiations. Within two decades, the estimated temperature will rise by 2 degree Celsius. Climate change is the main contributing factor for the sea level rising. Polar ice caps are helping to rise the sea level, by the rising temperature the caps are melting every second. The continuous raising of sea level would overwhelm some of the precious agricultural lands around the coast, landslides, erosions and many more. Bangladesh is one of the south Asian country where sea level rise will affect badly after the rise of temperature. With, intense hot temperature and raising sea level, Bangladesh will face extreme cyclones menacing food productions, as well as incomes, and lives and will be forced to live in poverty. An scientific report cited Bangladesh, one of the â€Å"potential impact hotspots† and menacing by â€Å"extreme river floods, more intense tropical cyclones, rising sea levels and very high temperatures† (the world bank). Reports warns, rainfall will leave many agricultural

Statement of Goals and Choices Free Essays

This project clearly shows mages that have a positive view on math and science but a negative view of English. The reason being is because I wanted to show what most people In the united States think about English. The use of black and white pictures was to show that the matter at hand is serious and that it is black and white, meaning that there is two sides you can choose. We will write a custom essay sample on Statement of Goals and Choices or any similar topic only for you Order Now This effectively forces the audience to automatically start thinking about which side they will choose. Making this exactly what I wanted to achieve, to make people think deeply about education. Pictures having people who hate reading represent the stress that comes along with the subject of English. Other pictures give a real feel to the audience because the pictures show actual facts, people, or things that represent emotions and connotations In the realm of education. No matter how far fetched the pictures were I was able to connect them to the goal of getting English to be a more sought after subject. My audience for this project was very broad. I chose to target the entire united States. This seemed necessary because children aren’t able to choose things for themselves their whole lives but when they get older propaganda they have seen will still have an affect on them. So, If parents were to see the posters the hope would be that they would be able to help the process of their child being more Involved with English. Other audience members would include everyone from the President down. The broad audience to me was a way of having some type of call to action to citizens and officials alike. This medium was chosen because I felt that the more original and authentic the project was people would make personal connections. I think that personal connection Is the most effective way to Influence and educate someone. If they feel that they are a part of the argument it may lead to them doing their own research. Other projects such as; videos, blobs, and digital posters did not appeal to me. The reason being is because I am talking about English needing to be the more important subject in schools. Sing technology seemed a little hypocritical and the affect that he plain black and white photos have on people Is perfect. Mediums other than mine did not feel’ right. This lead me to Just doing something simple because that Is naturally to most people. The ability to be literate is a rarity in the world, why do most people take it for granted. This project shows exactly what message I was trying to get across and its simplicity makes people over look the depth of each photo. Which in turn makes them wonder and think, which is all that is needed when trying to influence people. How to cite Statement of Goals and Choices, Papers

Strategic Analysis Of Estia Health Aged Care †MyAssignmenthelp.com

Question: Discuss about the Strategic Analysis Of Estia Health Aged Care. Answer: Introduction: The report is prepared to conduct strategic analysis of an Australian public listed company that is Estia Health aged care by focusing on business of residential aged care. Discussion incorporates the background information of organization in terms of its size, history, ownership business scope, major markets and major products and services of selected organization. Macro environmental analysis of industry in which Estia Health aged care operates is demonstrated in the report and this will assist in drawing implications for organization in terms of opportunities and threats. Competitive analysis of industry is undertaken using the model of Porters five forces. Resources providing sustainable competitive advantage to business are identified by the application of VRIO that helps in determining strategic capabilities of organization. Background information on Estia Aged Health care: History: Estia Health Aged care (EHC) is one of the largest aged care providers to resident of Australia that was established in year 2005 (estiahealth.com.au 2018). Organization is historically present in four states of Australia that is Victoria, New South Wales, Queensland and South Australia and the group is well positioned to pursue and identify opportunities for acquisition in each of these states. 88% of residential aged care is placed in these four states of Australia. Prior to merger of company in year 2014, the company has a history of expanding into number of facilities and places where it operated (estiahealth.com.au 2018). Business components and aggregate number of places of Estia increased to 3203 in year 2014 compared to 1264 in year 2008. In year 2015, Estia entered into contracts for acquiring further five facilities and the expansion have been achieved via the expansion of existing facilities, acquisitions and new facilities development. Increased revenue per bed and increa sed occupancy rates have been achieved by acquisition of nine facilities and development of further three facilities over the period of 2012 to 2014 (Gioia, 2014). Major products and services: Focus of organization is to provide resonate choices to families and residents, helping in organizing program for families, straightforward services by creation of family codes. The family code is incorporate some elements such as always approachable, creating happiness, pushing limits, generating daily best and saying something by seeing something. Dedicated services and increased bed proportion are the focus of organization in terms of their services and products (E. Dobbs, 2014). Well being and health- Entertainers and concerts Active games, bus trips and air and crafts Guided and physic exercise Religious services Clinical care- Personal care 24 hour nursing care Occupational and physiotherapy Arranging on site visits for external medical practitioners Administrative pharmaceutical and woundmanagement Dining and nutrition- Dining and family meals Nutritional requirement and dietary needs Major markets: Estia aged health carries out its operation in fragmented and growing industry and the expanding existing facilities of business intends to provide beneficial opportunities to company. Organization has market capitalization of $ 931.51 million. In the current scenario, organization operates in four states of Australia with the target of reaching 10000 beds through targeted acquisitions and development of strong organic pipeline by year 2020 (estiahealth.com.au 2018). Care requirement in the country will be driven by increased age of residents and with increase in industry growth, Estia is required to grow at double rate. Size and Business scope: The organization has 5910 operating place, have more than 700 employees and 68 facilities across New South Wales, Victoria, Queensland and South Australia. Story of its rapid and recent growth is based upon three residential aged business consolidations and each of it having modern facilities, strong reputation and experiencedmanagement (estiahealth.com.au 2018). Objectives of Estia are to provide their customers with aged care services with highest standards in a supporting, innovative and caring environment. Supporting regional networks of home across Australia, using corporate centres for delivering their results, state of art clinical care utilization, people and financial system are the operational efficiency of organization. These would help in ensuring that the group serves complex and higher quality services with increase in demand. Some of the fundamental concepts for fulfilling the purpose of organization are providing quality care using specialized healthcare terms, innova tion, access to helpful advice and providing caring and inclusive experience that aged care in meeting the needs of aged family. Estia health has many homes in several states of Australia, they are well placed for meeting the demand of increasing healthcare, and they have a well-defined and clear strategy for enhancing the existing home and increasing bed capacity. Company for driving future earnings undertook a material capital-spending program and this would help in business enhancement (Dess et al., 2016). In order to focus on high quality assets, the organization recognized the needs for stabilizing business and strategy refinement. Macro environmental analysis: Macro environmental factors influencing the operations of Estia Aged Healthcare are evaluated using the PESTEL analysis. Political factors- Health care in Australia is a joint responsibility of state and federal government and the political framework of the healthcare sector is in state of unrest. The potential for future cooperative arrangement between healthcare organizations and federal government is undermined by the budget outcome that is representing massive shift in cost to states. The state of political environment is impacted by change in Commonwealth arrangement and ending their traditional form as they are exposed to sovereign risk (Bettis et al., 2016). Operations oh healthcare companies such as Estia is impacted by the political conditions prevailing in Australia. Increased cost for government might reduce the access of health care organizations to government funding. Economic factors- The highest performing sector economically is the healthcare sector of Australia. Growth of healthcare sector is double the pace of growth of gross domestic product of country. In terms of public private partnership and ability of healthcare sector to attract overseas talent, Australia is ranked top three. In order to serve Australian public and to become strong contributor to economic development, healthcare companies are required to consider their roles by boosting their research and development potential and reducing unnecessary expenditures (Jenkins et al., 2017). Socio-cultural factors- The practice and operations of healthcare companies is impacted by two main changes in social environment. Ageing of the population is the first factor followed by a big sociological shift influencing residents to move to individualized care. Current healthcare system requires drastic change due to prevailing unsustainability. Mandating co payment for medical care is likely to increase medical cost for families. However, funds generated from mandating of co payment will help in expanding medical research by assigning capital fund (Barney Hesterly, 2015). Leadership of Estia is also affected by culture and educational level of Australian residents. Therefore, it is essential for Estia to revise the strategies in increasing medical cost for acquiring strong customer base. Technological factors- The advancement in modern technology has considerable impact on healthcare industry of Australia. There is an increased scope for expanding use of technologies that will bring variations in cost effectiveness of companies. Accelerating ageing population, income growth, and expectation of communities, subsidised consumer price will place increased pressure on public and private health system resulting from interaction of technological advances with increasing health services demand that are driven and bet available treatment will make a potential mix (Certo et al., 2016). In recent years, medical technology advancement have been a major driver of increased health spending and this has contributed to increased spending on part of health organization on technologies and thereby reflect a significant increase un number of people being treated and improved treatment. Environmental factors- The health system of Australia is great compared to other countries and the environmental factors are now aligned and present due to shifting to patient centric and coordinated care. The income of traditional healthcare providers is threatened by shift in preference for localised care. Complying of organization with environmental laws will help in reducing carbon emissions and comes with several health benefits for population. Organizations operating in healthcare industry should comply with the environmental laws and standards (Frynas Mellahi, 2015). Legal factors- Operations and business of healthcare industry is influenced by legal factors of region where the organization is operating. Some of the laws impacting the operations of organization such as Estia healthcare in Australia are antitrust law, copyright, health and safety law, data protection law, discrimination law and consumer protection. Healthcare practitioner is required to comply with privacy policies. Privacy act of Australia set out the principles that are applicable to public and private healthcare service providers. Any overseas hiring of healthcare talent should have proper disclosure and practitioners are obliged to make confidentiality of patients (Henderson et al., 2017). Industry analysis: The analysis of industry of residential health age care is done by the application of Porters five forces. It is a tool of strategicmanagement for understanding the level of competitive forces of industry and accordingly help in development of strategy. Suppliers bargaining power- For themanagement of business of health organization such as Estia heath care, this particular variable is utmost critical. Most of companies in heath organization buy their equipments from numerous suppliers. Margins earned by organizations in industry can be reduced if the suppliers are in dominant position. Powerful suppliers in the industry can extract higher prices from the firms that help in lowering the profitability position of company (Trigeorgis Reuer, 2017). Buyers bargaining power- The bargaining power of buyers is quite limited in the field of healthcare. They seek best and quality care from the health organizations and due to existence of fewer good players in the health industry, buyer does not enjoy a high bargaining power. Customers bargaining power can be reduced by building large customer base that helps in streamlining production process and sales of organization. Bargaining power can also be limited by making rapid innovations of new products and providing offerings on existing products (Rothaermel, 2015). Threat of substitutes- The profits of company is greatly impacted by types of services offered by other health organizations prevailing in the industry. Depending upon the types of services offered by health organizations in the industry, the threats faced varies from low to medium. If the value proposition offered by company is considerably different from the present offering of health industry, then the substitute threat is substantially higher. Existence of rivalries- There is an increased demand for health services driven by ageing and growing population of Australia. Estia faces a very intense competition in the industry in which it operates because of increasing healthcare players. Increased player in the industry is attributable to economies of scope, access to funding provided by government and usage of effective methods of controlling cost. Overall profitability of company reduces due to prevalence of increased players in the industry. Threat of new entrants- In the health industry of Australia, there are moderately high barriers because of higher cost of capital and building of new hospitals in locations that are nearby viable locations. The strategy that could be viable for new entrants to enter into this particular industry is by way of acquisition. New entrant require substantial amount of funds for acquiring diversified geographical markets (Hubbard et al., 2017). It can be concluded that new entrants would find considerable amount of difficulties unless they enter by employing appropriate strategy and have adequate capital for investment. From the analysis of aged healthcare industry of Australia, it can be inferred that the main driving force in the competitive environment is increasing growing and ageing population. Estia aged healthcare enjoys a fewer threat of new entrants due to several difficulties faced and many prerequisites for entering into industry. However, the group experiences increased competition from their rivalries due to availability of various facilities such as government funding and economies of scope. Therefore, it is required by Estia to take measures for building substantial differentiation and rather than just competing for smaller share of market, they should prefer collaboration when it seems feasible for enhancing their market size and serving old age Australian residents. Internal strategic capabilities and analysis: Estia health aged care has grown to be one of the largest aged care providers in Australia and enhance their service offerings that range from boutique services to community like villages. Strategic capabilities of organization are diagnosed by determining the four criteria that provides the basis of achieving sustainable competitive advantage (Greenspan, 2015). Values- Value network and value chain can be used to perform the diagnosis of tool that is considered valuable to customers. Value chain helps in understanding the cost position of Estia health aged care and the value of each activities that are being delivered. The primary activities of this particular health organization are to provide residents and their families in an inclusive, safe and caring environment and providing support whenever they required. On other hand, supporting activities is to make diversification across homes that make home personal to residents and providing assistance that helps in finding the right place. Homes are designed in such a way that it provides support to changing personal requirements of residents in a dignified and seamless way. Residents are involved with the activities and people they love by maintain independent and well being of hard work. Rarity- For determining the rarity criteria, it is required to perform competitor analysis of Estia Health aged care. The unique criteria of Estia compared to other healthcare providers in the Australia are that each of homes has their distinct personality. Such distinct personality represents employees and residents within along with maintaining highest clinical care standards. It is well understood by organization that Australian residents need choices and each of services and programs are designed in a way that is easily adaptable by homes for supporting the preferences and needs of residents care and their family and friends (Peteraf et al., 2014). This uniqueness feature of homes of Estia supports the rarest criteria. Inimitability- Inimitability of strategic capabilities of an organization can be explained in terms of casual ambiguity, complexity, culture, history and change. Continuous improvement is pursued by organization in all aspects of personal and health care as an effort to keep themselves ahead of competitors. Estia always indulge themselves in innovative activities for enhancing residential care of Australian residents. In recent years, no competitors of Estia have provided diversified healthcare service to residents and this diversification is far from non-imitable. The current number of operational beds offered by Estia health aged care is 2705 and total number of current facilities at 34 (estiahealth.com.au 2018). Estia that has an extensive portfolio of facilities acquires business of quality aged care service models. This acquisition provided Estia an opportunity to expand their business into Qld and market of New South Wales. Service offering by Estia has always increased and this might place small operators at competitively disadvantageous state when an appropriate aged home care is to be chosen by residents. Factors that lead to higher valuations of health care companies involves potential of selling value added items, having multiple facilities, locating facilities in areas where demands are unmet, food standards and high care, quality refurbishments, good base of nurses and ability to deve lop and scale facilities (Wheelen et al., 2017). Organizational support- Various platforms will continue to be used by Estia for their growth enhancement such as Greenfield expansion, Brownfield expansion, acquisition of single facilities that will help in meeting the acquisition criteria of Estia. Some other measures incorporate making improvement in existing operations and acquisition of new facilities intended to increase occupancy rate and revenue. The dining facilities offered by Estia are nutritionally balanced for meeting the needs of residents. Chefs that incorporate seasonal and local produce reflecting residents personal preferences create interesting options (Varabyova Mller, 2016). The lifestyle of coordinators at Estia has close association with clinical teams for ensuring that programs are tailored for meeting the needs of residents. Employees are always encouraged for supporting the interest of residents including the management, kitchen, and maintenance, clinical and domestic teams (Brooks et al., 2015). Clinical c are at Estia is an ongoing process that includes regular medication, specialist dementia care, pain management programs, high level of personal care and medical services such as pharmacy, physiotherapy, optometry, dental and podiatry. The growth of Estia has been supported by its continuous expansion during the past three years that is acquisition of Padman Healthcare and Cook care group (Ginter et al., 2018). Estia is taking advantage of the capability of changing their service lines. With increased acquisition of other healthcare providers, organization is pushing themselves for reaching new patient populations and creation of new service lines (Foss Hallberg, 2014). VRIO analysis of Estia Health aged care: Value Rare Imitable Organizational support Competitive implication Yes No Yes Yes Competitive advantage over small health care providers. It can be exploited if the competitors imitate such diversification of services. Conclusion: The healthcare industry of Australia is becoming intensely competitive due to increased number of healthcare providers. In order for organization to sustain their competitive advantage, it is required to keep upgrading their service and enhancing products and service lines. Macro environmental analysis of healthcare industry depicts that the ageing population of Australia has been attributable to increased demand in healthcare services. In a continually changing environment of high demanding expectations of age care, organizations are required to focus on strategies and practical solutions for achieving best value in terms of procurement. Analysis of strategic capabilities depict that Estia provides valuable services to its customers and their strategy of diversification of their service line is somewhat imitable. Therefore, in this regard appropriate steps should be taken to maintain and build their speciality and uniqueness. Estia Health is involved in major acquisitions that have led to its significant growth and efforts should be taken for responding to challenges they face by providing greater choice to patients, curtailing cost through process of procurement and streamlining of operations. They should be able to find opportunities for strategically sourcing products and services of aged care. Growing demand of healthcare and increasing players in healthcare market might pose threats to the business of Estia. Therefore, it is recommended to respond appropriately for sustaining their position and further increasing their market size and number of residents being served and thereby contributing to economic situation of Australia. References: Barney, J. B., Hesterly, W. (2015). Strategic management and competitive advantage concepts and cases. Pearson. Bettis, R. A., Ethiraj, S., Gambardella, A., Helfat, C., Mitchell, W. (2016). Creating repeatable cumulative knowledge in strategic management. Strategic Management Journal, 37(2), 257-261. Brooks, P., El-Gayar, O., Sarnikar, S. (2015). A framework for developing a domain specific business intelligence maturity model: Application to healthcare.International Journal of Information Management,35(3), 337-345. Certo, S. T., Busenbark, J. R., Woo, H. S., Semadeni, M. (2016). Sample selection bias and Heckman models in strategic management research. Strategic Management Journal, 37(13), 2639-2657 Dess, G. G., McNamara, G., Eisner, A. B. (2016). Strategic Management: Creating Competitive Advantages, ch3 pp74-106. Dobbs, M. (2014). Guidelines for applying Porter's five forces framework: a set of industry analysis templates. Competitiveness Review, 24(1), 32-45. Estia Health Aged Care: Australian Aged Care | Aged Care Facilities | Residential Aged Care Facilities | Nursing Homes. (2018).Estia Health. Retrieved 20 February 2018, from https://www.estiahealth.com.au/ Foss, N. J., Hallberg, N. L. (2014). How symmetrical assumptions advance strategic management research. Strategic Management Journal, 35(6), 903-913. Frynas, J. G., Mellahi, K. (2015). Global strategic management. Oxford University Press, USA. Ginter, P. M., Duncan, J., Swayne, L. E. (2018).The Strategic Management of Healthcare Organizations. John Wiley Sons. Gioia, D. A. (2014). A 1st-Order/2nd-Order Qualitative Approach to Understanding Strategic Management. Primer: Qualitative Research in Strategic Management. Greenspan, R. (2015). Walmart: Five forces analysis (Porters model). Panamore Institute. Henderson, J., Willis, E., Xiao, L., Blackman, I. (2017). Missed care in residential aged care in Australia: An exploratory study. Collegian, 24(5), 411-416. Hill, C. W., Jones, G. R., Schilling, M. A. (2014). Strategic management: theory: an integrated approach. Cengage Learning. Hubbard, G., Rice, J., Galvin, P. (2014). Strategic management. Pearson Australia. Jenkins, M., Ambrosini, V., Collier, N. (Eds.). (2016). Advanced strategic management: A multi-perspective approach. Macmillan Education. Johnson, T. L., Rinehart, D. J., Durfee, J., Brewer, D., Batal, H., Blum, J., ... Gabow, P. (2015). For many patients who use large amounts of health care services, the need is intense yet temporary.Health Affairs,34(8), 1312-1319. McKiernan, P. (Ed.). (2017). Historical Evolution of Strategic Management, Volumes I and II (Vol. 1). Taylor Francis Morden, T. (2016). Principles of strategic management. Routledge. Morschett, D., Schramm-Klein, H., Zentes, J. (2015). Strategic international management (pp. 978-3658078836). Springer. Peteraf, M., Gamble, J., Thompson Jr, A. (2014). Essentials of strategic management: The quest for competitive advantage. McGraw-Hill Education. Rothaermel, F. T. (2015). Strategic management. McGraw-Hill Education. Trigeorgis, L., Reuer, J. J. (2017). Real options theory in strategic management. Strategic Management Journal, 38(1), 42-63. Varabyova, Y., Mller, J. M. (2016). The efficiency of health care production in OECD countries: A systematic review and meta-analysis of cross-country comparisons. Health Policy, 120(3), 252-263. Wheelen, T. L., Hunger, J. D., Hoffman, A. N., Bamford, C. E. (2017). Strategic management and business policy. pearson.

American History The New Deal Flashcard

American History The New Deal

How to Convert Fahrenheit to Celcius

How to Convert Fahrenheit to Celcius Here is how to convert  °F to  °C. This is actually Fahrenheit to Celsius and not Fahrenheit to Celcius, though the mis-spellings of the temperature scales are common. So are the temperature scales, which are used to measure room temperature, body temperature, set thermostats, and take scientific measurements.   Temperature Conversion Formula The temperature conversion is easy to do: Take the  °F temperature and subtract 32.Multiply this number by 5.Divide this number by 9 to obtain your answer in  °C. The formula to convert  Ã‚ °F to  °C is: T( °C)   (T( °F)  - 32) Ãâ€" 5/9 which is T( °C)   (T( °F)  - 32) / 1.8  °F to  °C  Example Problem For example, convert 68 degrees Fahrenheit into degrees Celsius: T( °C)   (68 °F - 32) Ãâ€" 5/9 T( °C)   20  °C Its also easy to do the conversion the other way, from  Ã‚ °C to  Ã‚ °F. Here, the formula is: T( °F)  Ã‚  T( °C)  Ãƒâ€" 9/5 32 T( °F)  Ã‚  T( °C)  Ãƒâ€" 1.8 32 For example, to convert 20 degrees Celsius to the Fahrenheit scale: T( °F)   20 °C Ãâ€" 9/5 32 T( °F)   68  °F When doing the temperature conversions, one quick way to make certain you did the conversion right is to remember Fahrenheit temperatures are higher than the corresponding Celsius scale until you get down to -40 °, which is where the Celsius and Fahrenheit scales meet. Below this temperature, degrees Fahrenheit are lower than degrees Celsius.

Journal Assignment Example | Topics and Well Written Essays - 500 words - 1

Journal - Assignment Example The advertisement is spread across one-third of the page, and though it is a black and white advertisement, catches the eye because of its dimensions. On the top of the advertisement three international students are present and in the background the names of the cities of Dubai, Singapore, Sydney, and Toronto can be seen. This visual covers nearly half the advertisement, with the other half detailing the highlights of the study program and the institution. The focus is on creating an international flavor to the advertisement, which is done through the visual, and is the feature of the advertisement that draws students to read the print part of the advertisement. The logo of the institution is displayed boldly at the left hand corner of the advertisement, below the print current and to add to its authenticity the logo of the Associations of MBA and the accreditation provided by the association is placed alongside the logo of the institution. The text of the advertisement essentially attempts to provide the quality of this education program with the subtle addition of the accreditation to the details of the study program and the quality of the academicians of the institution and the quality of the affiliated universities at Sydney and Toronto. A term is spent either at The Australian School of Business, University of New South Wales, Sydney, which is ranked first among the business schools in Australia and fifth in Asia, or at The York’s University’s Schulich School of Business, Toronto, which is ranked first among the business schools in Canada, and sixteenth worldwide. In all the print tries to establish that this MBA program is a combined venture of three renowned educational institutions in the world. The text also tries to highlight that this is a one-year study program that is equivalent to other similar two-year program, and justifies the short duration of the course and the advantages derived from i t. The

Labor Union History Essay Example | Topics and Well Written Essays - 1750 words

Labor Union History - Essay Example Labor unions became prominent in the aftermath of the Civil War. The National Labor Union was the first US union. Another famous labor union was the American Federation of Labor which was established in the late nineteenth century. It acted as a federation for skilled workers unions. In 1905 the Industrial Workers of the World was formed to represent unskilled workers. There are two umbrella organizations for unions. One of them is AFL-CIO and the Change to Win Federation. They have advocated policies that are beneficial for workers. They also have played an important role in increasing the working conditions of workers. This paper traces the history of American labor unions from World War II till the present era (Vittoz, 45). The Congress of Industrial Organizations was established by an autocratic person John Lewis. The CIO organized millions of workers in the 1930s. Lewis was a charismatic speaker and strategist whose speeches forced the closure of the coal industry to ensure that his demands were met. Lewis supported President Roosevelt at the onset of the New Deal. Roosevelt had tremendous appeal with workers. Lewis sent organizers to mobilize thousands of workers to support President Roosevelt. He was one of the main financial supporters of Roosevelt. It is estimated that he contributed over five hundred thousand dollars to Roosevelt's election campaign (Zieger, 65). Lewis organized trade unions in the... By organizing steelworkers, Lewis clashed with the AFL. The AFL represented workers from all industries rather than a particular trade (Zieger, 85). Lewis pushed for a change in the policy of the AFL with regards to industrial organizing. He did this by calling upon leaders of other unions within the AFL. William Green who was the president of AFL opposed Lewis and considered him as an enemy. The CIO was now known as the Congress of Industrial Organizations. Lewis firmly established the organization as a rival federation opposed to the AFL. Lewis's organization provided the financial muscle to the CIO as they organized drives to recruit workers and form trade unions. Phillip Murray was the protg of Lewis. He was made the head of the Steel Workers Organizing Committee. The UAW conducted the Flint and Chrysler sit-down strikes in the 1930s in which Lewis successfully used negotiations to approve worker demands. The CIO had a total strength of 2,850,000 workers in 1942. The economic depression of the 1930s caused a decline in the labor union membership. The union movement was also marked by failures to obtain concessions from the mass production industries and to organize the workers. However during the 1930s, the US congress passed legislation during the New Deal. Collective bargaining was allowed by the passing of the National Industrial Recovery Act in 1933. Businesses were also required to maintain good relations with trade unions under the 1935 Wagner Act. Prices and wages were stabilized by the National Recovery Administration. A number of regulations were imposed that set price and production standards for all kinds of goods. However this had an adverse impact on the labor unions since employers had to hire people at an expensive

Benefits of the International Reporting Standards

Benefits of the International Reporting Standards 2. 0 Literature review 2.1 Introduction Literature abounds in polarising this subject matter the benefits of the international reporting standards. Looking back at the last quarter of the 20th century it will no longer be seen as an evolutionary period global financial market in a bit to introduce a single set of standards that will be generally acceptable in financial reporting. International reporting standards have revolutionized the domestic accounting system to a more capital oriented system (Hope et al, d Archy 2001). Lantto (2007) states that the information provided by the IFRS is more reliable and relevant. Darke and Deske (2006) highlights that the disclosure quality has increased tremendously since the adoption of the IFRS. Furthermore, Ding et al (2006) states that the adoption of the IFRS has made a great impact in bridging the differences in the use of the domestic standards among the countries. In justifying the theories, there are opinions as well as oppositions on the advantages of the international reporting standards. What becomes evident although arguably is that the movement from the domestic standard of reporting to the international standard of reporting is of great benefit to financial reporting to the shareholders, firms ,organizations and also global economy as it will place the whole countries in the same reporting field. This chapter will review this report from the historical background of the international financial reporting standards, the Implementation and enforcement then to the benefits of the adoption of this standard. 2.2 Financial Reporting. In the beginning financial reporting can hardly be called external (Alexander, Britton and Jorissen, 2003: 22) rather it was a way by which the owners were informed on their income and capital. This is because the owners and managers of the company were not separated. Until in the 1800s when they started encountering the agency problems it becomes evident to separate ownership (management) from capital supply. Then external wreporting was introduced in order to provide information outside the borders of a specific country. Hence, financial reporting emanates from internal to external reporting. Financial reporting provides information to the users for making economic decisions (Iqbal 2002). Gilmore and Wilmot (1992) states that reporting has developed over time in a bid to stress the need for investment decision making and also to attract investors into the company. Hegarty (1997) opines that the range and varieties of this reporting regime is as a result of an evolution which shows the uniqueness in the economic, cultural and legal jurisdiction. As a part of the revolutionary process financial reporting has changed over time (Crowther 2000). The change is a result of a need for a good financial reporting system that will communicate real value an d risk to the users of the reports (Damant 2000) .Hence, the quality of a financial report is dependent on the reporting standards. 2.3 Why Standards? According to (Perks 1994,p.137),Accounting standards may be seen as the professions rules, which supplement companies Act requirements that are intended to restrict directors freedom of manovoevre and to ensure that the financial statements are presented on a more comparable, consistent and standard basis. Perks (1994) reporting standards is also important in order to prevent scandals, abuses, financial collapsing in the companies and creative accounting that may jeopardize the profession. Also, Elliot and Elliot (2008) highlight some reasons for standard this includes: Comparability: Financial statements should be able to allow users make predictions on future cash flows and also evaluate managements performance. Credibility: For financial information to disclose information that will give a true and fair view, uniformity is therefore essential. Influence: To be able to stimulate a development of the conceptual framework the process at which the standards are formulated should be able to give a constructive appraisal of the policies proposed for the individual financial reporting. Discipline: A mandatory standard is necessary as it structures a regulation that will be systematic and ongoing thereby enforcing a disciple in the financial markets for all organizations listed in the stock exchange. The usefulness of a reporting standard cannot be overemphasized although there are some arguments on this. Harvey and Keer (1983) argued that information produced using financial standards could be unreliable at times and the standards might be bureaucratic and inflexible. Also, there may be adverse allocative effects . Consequently, there might be consensus-seeking and standard overload . Lets take an illustration of a of two companies; Enron and Ahold to further explain why we need standards. Enron is the seventh largest US based company falling into bankruptcy as a result of an overstated profit of $500 million and the Ahold the third largest US grocer had their earnings overstated for the past two years by $500. 2.3 How National differences affects reporting. Given that the environment differ from country to country, the types of decisions to be taken and information needed in decision making differs from one country to another. Hence, accounting system is environment specific. (Iqbal 2002). Adhikari and Tondkar (1992) reported that financial accounting reporting and disclosure standards and practices do not develop in a vacuum but reflect the particular environment in which they are developed (p. 76). The culture of a country affects its method of accounting and financial reporting. For example, Gary (1988) in his books illustrated one of the ways by which cultural differences affects countries financial reporting; a country with a high uncertainty avoidance and low individualism will tend to be more conservative in their income measurement than in a country with low certainty avoidance and high individualism. Although the measures of cultural attributes may be indistinct and not direct in financial reporting compared with the other factors that affect financial reporting.Also, the nature of accounting regulations in a country is influenced by the general system of law applicable in that country. For example Jaggi and Low (2000), notes that companies in the common laws countries tends to have a high level of disclosures than countries in a codified Roman law system. La Porta et al. (1998) argues that common countries have investors with a strong legal protection than the Roman law countries do. Moreover, the differences in the types of business organization and ownership also affect financial reporting. Elliot and Elliot (2008) further explains this stating that in a country like the UK the business structure indicates a separation of the ownership and the management while in the French business the structure differentiates the ownership from the managers.. According to Nobes and Parker (1 998, p.21):The difference in the providers of finance (creditors/insiders) versus (equity/ outsiders) is the key cause of international differences in financial reporting. Although there is an increasing scale, companies firms had to find extra capital to finance growth. (Alexander, Britton and Jorrisen 2003). Roe (2003), further argues that political differences are the major cause of the differences in corporate structures in the developed western countries. Also the accountancy profession is another determinant of the differences in financial reporting. Nobes and Parker (2006:36) emphasizes that the strength, size, and competence of the accountancy profession in a country affect the type of financial reporting that will be obtained in that country. So with these differences the financial analyst cannot be able to make a headway there is therefore a need for a uniform reporting standards. 2.4 Why the call for international reporting standards Over the years it becomes apparent for an ever increasing worldwide competition. The globalization of the markets and companies increased as a result of the cross-border securities market listings and capital raising.. Thus, there was no cross-border investments, investors therefore prefer to invest in companies whereby there will are more comfortable with their system of accounting . 2.5 Background of the International Reporting Standards. Financial reporting standards for international applicability became prevalent in the 1970s. International Accounting Standards committee (IASC) was set up in the 1973 in order to standardize the reporting differences in international investment communities. The establishment of the International Accounting Standard committee is seen as a response to the call by the accounting profession for a greater co-ordination of accounting rules among the various nations of the world (Kraayenhof 1960).The need was expressed in the international congresses of Accountants held in September, 1972 in Sydney. Chetkovich (1979, p.13) emphasizes that at each of these congresses, there was a demand for a better communications and closer cooperation among accountants on a worldwide basis; and also for greater harmonization of accounting standards. This statement led to the establishment of the IASC on June 29, 1973. The objectives of IASC are: to formulate and publish in the public interest, international standards; also to promote their acceptance and observance world-wide, and to work generally for the improvement and harmonisation of regulations, accounting standards and procedures relating to the presentation of financial statements. (IASC, 1983, Preface to Statements of International Accounting Standards, p.1). This is the first step towards the achievement of a globally recognised standard .The members of the IASC accept that adopting of international accounting standards (IAS) will improve the quality of financial statements (IASC ,1995). How far did this go or were there criticisms to this standard? IASC helped in solving the problem of uniformity although the purpose of it enactment was far from being realised. One of the weaknesses is that the standard issued by IASC has many objectives thereby making it difficult to achieve the purpose of consistency in recognition, measurement and presentation of transactions (IASB section 4). The standard is also too broad and allowed the use of several alternative accounting treatments. Atiken and Wise (1984) emphasizes that the IASC gives more attention to the multinational companies and investors in the multinational businesses more than it emphasizes on the harmonization of all spheres of the organization globally. Therefore emphasizing that IAS C was set up for the harmonization of accounting on a worldwide basis in order to improve the financial reporting and decision-making capability of multinational businesses, and investors in multinational businesses.(p.176). The second criticism to the use of IASC is that of the mandate. The statement starts with the phrase to formulate and publish in the public interest international standards†¦. (IASC). Hence they act in the interest of the public by a way of enforcing the rules which may not be favourable to the public. This absence of democratic legitimacy has been the major reason by which the IASC standards have not been enforced. Besides , this the structure and the membership composition of the IASC lacked the requirements needed for a global standard setting organization which includes the independence of its members, technical expertise and the decision making bodies representatives. McKinnon and Janelle (1983, p.33) argued that IASC has only succeeded in codifying generally accepted practice, in serving as a neutral source of standards ,and in influencing groups with the enforcement powers. Consequently, the IASC was restructured from the year 1998 to 2000 to International Accounting Standards Board (IASB). IASB is an independent London-based standard accounting body privately funded. The first IFRS was issued in the year 2003 with a membership of 19 countries but it has tremendously grown to 70 countries now with the EU mandating that all listed companies should use the IFRS in their financial reporting effective from the year 2005 (EC,2002). IASB has two member bodies the standard setting board and the member board of trustees .The IASB establishment is allied to that of the international federation of Accountants worldwide (IFAC).. The International Accounting Standards Board is committed to developing, in the public interest, a single set of high quality, global accounting standards that require transparent and comparable information in general purpose financial statements in addition, the IASB co-operates with the national accounting standard-setters to achieve con vergence in accounting standards around the world. (IASB, 2002, p.1). IASB has taken corrective measures in removing the accounting alternatives thereby ensuring that firms give a report that will reflect a true position and economic performance of the firm. IASB also aims at promoting global consistency in application and enforcement. It has also met the requirement that the business which operates in multiple bodies have a uniform financial statement which will be understandable in the countries whereby they operate. 2.6 International Accounting Standard Board (IASB) versus FASB? Norwalk agreement in the year 2002 by the Financial accounting Standard Board (FASB) and the International Accounting Standards Board was signed by both bodies after the need for a high quality, consistent and a comparable information which will be applicable to both domestic and the cross border financial reporting was recognized. Jacob and Madu (2009, p.3) the cited that both FASB and the IASB has pledged to use their best efforts in making their existing financial reporting standards fully compatible as is practicable and to coordinate their future work programmes to ensure that once achieved compatibility is maintained. This was also confirmed in their meeting in October 2005 of the two bodies reaffirming their commitments to converge US GAAP to IFRS. In a Concept Release, the SEC(2000) notes, Establishing and maintaining high quality accounting standards are critical to the US approach to regulation of capital markets, which depends on providing high quality information to facilitate informed investment decisions. (Jacob and Madu 2009).SEC released a proposal on July 13 2007, which states that US should recognize financial statements prepared using the IFRS from the foreign private issuers without reconciling them back to GAAP [2].furthermore, SEC informs all the investors that IFRS is the only set of standards with a high quality accounting standards that is more informative, useful for preparing financial reports compared with the US GAAP. This recent move to IFRS suggest that ,IFRS is the only standard that is of high quality and globally recognized and also has a potential to improve comparability of the financial statements despite of the country whereby they are domiciled. Despite all these efforts to converge to IFRS some academic literature still opines this stating that there are still material differences between the IFRS and the US GAAP. More so, the information contained in reconciliation is evident in the investment decisions made by the US investors. for example ,Culter and Neidemeyer (2009) argues that the major challenge why US did not want to adopt the IFRS is that there are differences in regulation and the manner at which these rules are been interpreted. IFRS is principal based regulatory system; which means that the rules are already set. On the other hand US GAAP is ruled based, whereby a detailed guidelines and principles is already laid out. Delliot (2007) emphasized that the principle based rules focuses more on the objective not relying more on the detailed rules. Deming (2005,p.4) gives a conclusive report pointing out that IFRS has more of a common law approach, than the US GAAP which is more of a civil law approach Furthermore, in the number of standards, IFRS has forty nine sta ndards while and nineteen interpretations and this consist of an approximate of two hundred pages (Delliot 2009) while the US GAAP has twenty thousand page (Mitra 2009).Other notable differences are seen in the financial reporting using the US GAAP and the IFRS. This will be comprehensively reviewed in the subsequent chapter. 2.7 Implementation and Enforcement of Financial Reporting Standards The credibility of a standard relies on its smooth implementation by countries that adopts it. Enforcement is a difficult concept to quantify and measure (Nobes and Parker 2006). The enforcement process differs from one country to another. Even at the international level there is still no genuine enforcement process. Moreover, some accounting bodies set standards and leaves enforcement to other bodies while others do both. For example US Securities and Exchange Commission sets laws and enforces it while IASC, Accounting Standards board (ASB) sets and develops standards and do not have the power to enforce these standards For the set rule of IFRS to be achieved an enforcement body has to be set up with powers to enforce the standards (Lamfalussy, 2001; Committee of European Securities Regulators [CESR], 2003a). Nobes and Parker (2008) states that the most determining factor for a successful adoption of this standard as a global standard is in the approach taken by the financial regulating bodies in the countries that adopts it. Giner and Rees (2005), Brown and Tarca (2005 )and Ball(2006 ) affirms that the purpose of IFRS is to provide a high quality financial reporting which can only be achieved with vigorous enforcement by the regulatory bodies (Schipper 2005 and Ball et al. 2003.The enforcement has not been easy certain factor has affected the effective enforcement of the law. Some of them vary from the cost, regulators interest and whether the businesses or accountants really need them. Watts and Zimmerman (1986), opines that the value of regulation is an empirical question, more apprehensive of ho w the regulatory authorities can value the costs and benefits of regulation. For example in the EU countries the structure and the organization that is in charge of the oversight of the requirements in the financial reporting varies among the EU countries. Also some countries do not have institutional oversight of financial reporting (FEE, 2001a, p.10).The EU regulation therefore mandates that the member states are to take appropriate measures in order to ensure compliance with IFRS. (European Commission EC], 2002, n.16). As a result of this the need for a country to produce a multiple financial statements was eliminated. Lafferty (1981) noted that no enforcement mechanism ever existed in reality. Perks (1993), expressed in his opinion that, without a legal backing it is not easy for the reporting standards to be enforced. Enforcing of the accounting standards therefore may require statutory audit, an effective sanctions and monitoring by supervisory bodies and for it to be implemen ted. Thus, there will be continuous reformations and changes in these standards. IFRS AND EU The European Parliamentary on enacted a legislation 0n 14 March 2002 requiring all companies listed in the European stock exchange to publish their financial statements with in accordance with the International financial reporting standards. There is also an endorsement mechanism which ensures that IFRS meets the needs of the EU listed countries. 2.4 International Standardization, Harmonization and Uniformity. The move towards greater harmonization of professional accounting practices has been traced back 1904 and the first accounting congress in St Louis, Missouri (Samuels and Piper, 1985, p.59, Mueller, 1979, p.7). Samuels and Piper (1985 p.59) states that international issues were not important while Mueller (1979 p.7) states that there is a need to pay attention to International harmonization. Combarros (2000), also argues that there is a need for harmonization of the accounting. Harmonization and standardization are used synonymously by some authors (Tay and Parker, 1990). While other researchers has differentiated the two. Tay and Parker (1990, p.73) defined harmonization as a movement away from total diversity of practice and standardisation is seen as a process which involves a movement towards uniformity. Saudagaran (2001:32), futher emphasized that the rationale for harmonization is that it will enhance comparability of financial statements [therefore] making it easier to use acr oss countries While other proponents is of the school of thought that harmonization will is not be practicable or truly probable. Rudhede and Wahlberg (2003) emphasizes that the lack of accounting harmonization will give difficulties to the investors in understanding the accounting principles which varies among the countries. Walton. Moreover, harmonization is a way to put processes in place to be able to reduce the obstacles inherent in international comparability. Hulle (1993, p.73) stated that the objective of harmonization is the comparability of accounts. All the efforts of the EU towards harmonization of these accounting standards have been challenging and slow. 2.4.2 Merits of international harmonization. An argument in favour of international harmonization is, efficiency in trans-border transactions. (Walton, Haller, Raffournier, 1998, p.9). Although lack of uniformity in the reporting procedures and the comparability of the accounting information is another barrier to cross border investments. This comparability of the financial postions across national bodies is seen as one of the most important reason for harmonization (Cummins 1975). This will help to reduce lack of trust and non reliance on the financial statements. With this there will be a flow of international investment in the capital market. Turner (1983 p.58) in his studies affirms that the second advantage of harmonization is to consolidate divergent information when more than one set of report is required to comply with different national laws or practices; further stating that accounting diversity is the major cause why companies spend unnecessarily cost. According to Houston and Reinstein (2001), harmonization of the a ccounting standards will reduce the cost of business, more particularly across national borders, than it will contribute towards greater efficiency of the market regulations. Not only will that harmonization reduce the costs inherent in conducting financial statements analysis and investments in international context. Another advantage of international harmonization of the accounting standards is saving of resources (Muller 1961, Spacek 1971). Further arguments is that international harmonization of the accounting standards can advance capital market efficiency(Ramanna and Sletten 2009) while Ball et al., 2000; Ball Et al 2006 envisaged that if the international market does not go along with the associated capital market institutions can be expensive. Finally, harmonization of the international accounting standards will help in improving management decisions in the multinationals. (Hauworth 1973). 2.4.3 Demerits of international harmonization International harmonization if faced with some criticisms, Some of which are economic while others are political. One of the criticisms is that it cannot carter for a wide range of national circumstances, legal systems, stages of economic development, and cultural differences (Samuel and Piper, 1985, pp 100-109). Atiken and Islam refuted this stating that the nature of the economic transactions and the methods by which they are accounted for does not vary in essence. Walton, Haller, Raffournier, (1998) argued that harmonization distorts social balances that have not been tackled over a long period of time. In the readings of Blake and Hossain (1996) International harmonization of reporting standards especially IASC is less respectful of local particularities; in regards to this context options will be seen as to be bad ,methods are termed either good or bad and costly reconciliations is likely to be imposed. Kenny and Larson (1993) further argued that large professional organizations protect their selfish interest in the standard setting process. Also the absence of a strong professional accounting body is a major obstacle to harmonization of accounting standards. 2.10 Arguments for international reporting. The essence of international reporting standards is to give a universal reporting standard that will be comprehensive and transparent thereby improving investors confidence as well as also creating market integrity. (Hope et al., 2005; dArcy, 2001). In this section we looked at the benefits of international reporting standards to the investors, firms, and also to the global economy. Gordon (2008, p. 3) cited the speech of Levitt (1997) which stating that for international reporting standards to gain acceptance three key objectives must be in place: The standards should include a core set of accounting pronouncements that constitute a comprehensive, generally accepted basis of accounting. The standards must be of high quality – they must result in comparability and transparency and they must provide for full disclosure. The standards must be rigorously interpreted and applied. Financial Reporting quality and transparency under IFRS The question has been if the accounting figures reported under this standard will give of high quality compared to those under domestic standards?. Also will IFRS show transparency in disclosure for an informed decision for investment? Barth et al., (2007) states that this is an extremely intricate question to answer as the application of any given standard has exhibited the effects of the features of the financial reporting system, its standards, as well their interpretation, enforcement and litigation. As these affects the competence of the financial prepares and users. Tarca (2004) said that international accounting standards are one way of improving transparency in financial reporting. Ashbaugh and Pincus (2001) elaborate that since the adoption of IFRS there has been improvement in the forecast accuracy by the analyst. As a result of this analysts cost of information acquisition also reduces. Cuijpers and Buijink (2005) from his sample of firms domiciled in the European Union pr ovide evidence that the analyst following has increased. Also Barth et al (2003) and Barth et al (2007) reveal that higher value relevance for firms is higher since the adoption of the IFRS as compared with the pre adoption period. IFRS therefore reduces the estimation of risk in market returns. Hence we will say that the quality of the IFRS in financial reporting is therefore inestimable in countries that adopt IFRS than those that use the locally recognised standards. Although we have affirmed that IFRS is associated with a high accounting quality there may be oppositions to this. Firstly, where there is an intrinsic flexibility in the principles based standards; this may present opportunities for firms to manage their earning thereby reducing the accounting quality. Also, in a bit to limit the managerial discretion which relates to the accounting alternatives will also reduce the ability of the firm to report accounting measurements that will give a reflection of what the true po sition and economic performance of the company is. Thus, accounting regime affects the quality of the information thereby affecting the cost of capital. Cost of capital and IFRS Adoption There are various propositions on the whether the adoption of IFRS reduces liquidity and lower cost of capital. Before the adoption of IFRS investors have to spend some time and effort in translating the standards in a way they can to understand. This process wastes efforts time and incurs transaction cost. The cost of capital determines how risky an investment would be. The higher the cost of capital the more risky the investment will be. According to (Coffee 2002), findings on bonding theory there is a lowered cost of capital. Deske (2006) affirms that this associated reduction in information cost is the main benefits by which IFRS is being adopted. There will be a reduced cost since the same standard will be used by all countries not regarding where the countries are domiciled. Aras and Crowther (2008) argued that the reduction in the cost of information in the adoption of IFRS and an assured consequent reduction can only benefit the countries whose legal, cultural, and economic s ystem is the same with the nations which are involved in setting IFRS, hence other countries which are not beneficial to this may incur increased cost compliance. Although, Barth (2007); Marquez-Ramos (2008) emphasized that IFRS reduces information cost of an economy as capital flows and trade becomes globalised. Improved comparability of the accounting reports: The use of IFRS eliminates the lack of comparability of financial statements. Choi et al. 1999, p. 249 states that comparability eliminate the current misunderstandings of the investors on the reliability of foreign financial statements and this removes one of the most main impediments affecting the flow of international investment. It also makes it easier for companies to compare financial results of different reporting entities from different countries. Global recognition Globalization of the business activities has increased creating a need for comparability of financial information between firms of different countries .Most of the companies are going globalized therefore the use of national accounting rules is increasingly impairing effective communication both in internal and external reporting. In a recent study by the international federation of Accountants(IFAC) most accounting leaders all over the world has agreed that adopting IFRS will be vital for economic growth in their countries. It is also significant as it will make it easier to compare human capital needs of companys subsidiaries all over the world since professionals will be more mobile. IFRS improves profit figures: The movement from the domestically recognized standards to the internationally recognized standards has resulted to a tremendous increase in the net profit figures of top most countries financial reports although the balance sheets have deteriorated. It is noted already that IFRS requires a comprehensive reporting than the domestic standards. IFRS has determined the various accounting methods by which profit figures will be derived from and reported by the firms (Aras and Crowther 2008). Impact of IFRS on financial reporting Examining financial statement implications is important because, †¦ the only direct effects †¦ are changed financial statements †¦ (Hung and Subramanyan, 2004, p.4) Pijper (2009), further examines how IFRS has affected the reporting of financing on the balance sheet. In GAAP the put option were disclosed in a footnote as an off balance sheet figure, but with the IFRS the put options which is held by minorities are now treated as a financial liabilities. Prior to the adoption of IFRS most companies were very conservative in their depreciation rates and this was affecting the business profits in that some assets will still be in use and there is no report on the expense incurred against those assets in the income statements but now the IFRS has reduced the distortions b these excessive prudent nature of depreciation rates .From the studies of (Hung and Subramanyan 2004) IFRS emphasized that fair value should be used for balance sheet valuation. Barth et al (2005) from hi s studies discovered that companies that uses IFRS experienc Benefits of the International Reporting Standards Benefits of the International Reporting Standards 2. 0 Literature review 2.1 Introduction Literature abounds in polarising this subject matter the benefits of the international reporting standards. Looking back at the last quarter of the 20th century it will no longer be seen as an evolutionary period global financial market in a bit to introduce a single set of standards that will be generally acceptable in financial reporting. International reporting standards have revolutionized the domestic accounting system to a more capital oriented system (Hope et al, d Archy 2001). Lantto (2007) states that the information provided by the IFRS is more reliable and relevant. Darke and Deske (2006) highlights that the disclosure quality has increased tremendously since the adoption of the IFRS. Furthermore, Ding et al (2006) states that the adoption of the IFRS has made a great impact in bridging the differences in the use of the domestic standards among the countries. In justifying the theories, there are opinions as well as oppositions on the advantages of the international reporting standards. What becomes evident although arguably is that the movement from the domestic standard of reporting to the international standard of reporting is of great benefit to financial reporting to the shareholders, firms ,organizations and also global economy as it will place the whole countries in the same reporting field. This chapter will review this report from the historical background of the international financial reporting standards, the Implementation and enforcement then to the benefits of the adoption of this standard. 2.2 Financial Reporting. In the beginning financial reporting can hardly be called external (Alexander, Britton and Jorissen, 2003: 22) rather it was a way by which the owners were informed on their income and capital. This is because the owners and managers of the company were not separated. Until in the 1800s when they started encountering the agency problems it becomes evident to separate ownership (management) from capital supply. Then external wreporting was introduced in order to provide information outside the borders of a specific country. Hence, financial reporting emanates from internal to external reporting. Financial reporting provides information to the users for making economic decisions (Iqbal 2002). Gilmore and Wilmot (1992) states that reporting has developed over time in a bid to stress the need for investment decision making and also to attract investors into the company. Hegarty (1997) opines that the range and varieties of this reporting regime is as a result of an evolution which shows the uniqueness in the economic, cultural and legal jurisdiction. As a part of the revolutionary process financial reporting has changed over time (Crowther 2000). The change is a result of a need for a good financial reporting system that will communicate real value an d risk to the users of the reports (Damant 2000) .Hence, the quality of a financial report is dependent on the reporting standards. 2.3 Why Standards? According to (Perks 1994,p.137),Accounting standards may be seen as the professions rules, which supplement companies Act requirements that are intended to restrict directors freedom of manovoevre and to ensure that the financial statements are presented on a more comparable, consistent and standard basis. Perks (1994) reporting standards is also important in order to prevent scandals, abuses, financial collapsing in the companies and creative accounting that may jeopardize the profession. Also, Elliot and Elliot (2008) highlight some reasons for standard this includes: Comparability: Financial statements should be able to allow users make predictions on future cash flows and also evaluate managements performance. Credibility: For financial information to disclose information that will give a true and fair view, uniformity is therefore essential. Influence: To be able to stimulate a development of the conceptual framework the process at which the standards are formulated should be able to give a constructive appraisal of the policies proposed for the individual financial reporting. Discipline: A mandatory standard is necessary as it structures a regulation that will be systematic and ongoing thereby enforcing a disciple in the financial markets for all organizations listed in the stock exchange. The usefulness of a reporting standard cannot be overemphasized although there are some arguments on this. Harvey and Keer (1983) argued that information produced using financial standards could be unreliable at times and the standards might be bureaucratic and inflexible. Also, there may be adverse allocative effects . Consequently, there might be consensus-seeking and standard overload . Lets take an illustration of a of two companies; Enron and Ahold to further explain why we need standards. Enron is the seventh largest US based company falling into bankruptcy as a result of an overstated profit of $500 million and the Ahold the third largest US grocer had their earnings overstated for the past two years by $500. 2.3 How National differences affects reporting. Given that the environment differ from country to country, the types of decisions to be taken and information needed in decision making differs from one country to another. Hence, accounting system is environment specific. (Iqbal 2002). Adhikari and Tondkar (1992) reported that financial accounting reporting and disclosure standards and practices do not develop in a vacuum but reflect the particular environment in which they are developed (p. 76). The culture of a country affects its method of accounting and financial reporting. For example, Gary (1988) in his books illustrated one of the ways by which cultural differences affects countries financial reporting; a country with a high uncertainty avoidance and low individualism will tend to be more conservative in their income measurement than in a country with low certainty avoidance and high individualism. Although the measures of cultural attributes may be indistinct and not direct in financial reporting compared with the other factors that affect financial reporting.Also, the nature of accounting regulations in a country is influenced by the general system of law applicable in that country. For example Jaggi and Low (2000), notes that companies in the common laws countries tends to have a high level of disclosures than countries in a codified Roman law system. La Porta et al. (1998) argues that common countries have investors with a strong legal protection than the Roman law countries do. Moreover, the differences in the types of business organization and ownership also affect financial reporting. Elliot and Elliot (2008) further explains this stating that in a country like the UK the business structure indicates a separation of the ownership and the management while in the French business the structure differentiates the ownership from the managers.. According to Nobes and Parker (1 998, p.21):The difference in the providers of finance (creditors/insiders) versus (equity/ outsiders) is the key cause of international differences in financial reporting. Although there is an increasing scale, companies firms had to find extra capital to finance growth. (Alexander, Britton and Jorrisen 2003). Roe (2003), further argues that political differences are the major cause of the differences in corporate structures in the developed western countries. Also the accountancy profession is another determinant of the differences in financial reporting. Nobes and Parker (2006:36) emphasizes that the strength, size, and competence of the accountancy profession in a country affect the type of financial reporting that will be obtained in that country. So with these differences the financial analyst cannot be able to make a headway there is therefore a need for a uniform reporting standards. 2.4 Why the call for international reporting standards Over the years it becomes apparent for an ever increasing worldwide competition. The globalization of the markets and companies increased as a result of the cross-border securities market listings and capital raising.. Thus, there was no cross-border investments, investors therefore prefer to invest in companies whereby there will are more comfortable with their system of accounting . 2.5 Background of the International Reporting Standards. Financial reporting standards for international applicability became prevalent in the 1970s. International Accounting Standards committee (IASC) was set up in the 1973 in order to standardize the reporting differences in international investment communities. The establishment of the International Accounting Standard committee is seen as a response to the call by the accounting profession for a greater co-ordination of accounting rules among the various nations of the world (Kraayenhof 1960).The need was expressed in the international congresses of Accountants held in September, 1972 in Sydney. Chetkovich (1979, p.13) emphasizes that at each of these congresses, there was a demand for a better communications and closer cooperation among accountants on a worldwide basis; and also for greater harmonization of accounting standards. This statement led to the establishment of the IASC on June 29, 1973. The objectives of IASC are: to formulate and publish in the public interest, international standards; also to promote their acceptance and observance world-wide, and to work generally for the improvement and harmonisation of regulations, accounting standards and procedures relating to the presentation of financial statements. (IASC, 1983, Preface to Statements of International Accounting Standards, p.1). This is the first step towards the achievement of a globally recognised standard .The members of the IASC accept that adopting of international accounting standards (IAS) will improve the quality of financial statements (IASC ,1995). How far did this go or were there criticisms to this standard? IASC helped in solving the problem of uniformity although the purpose of it enactment was far from being realised. One of the weaknesses is that the standard issued by IASC has many objectives thereby making it difficult to achieve the purpose of consistency in recognition, measurement and presentation of transactions (IASB section 4). The standard is also too broad and allowed the use of several alternative accounting treatments. Atiken and Wise (1984) emphasizes that the IASC gives more attention to the multinational companies and investors in the multinational businesses more than it emphasizes on the harmonization of all spheres of the organization globally. Therefore emphasizing that IAS C was set up for the harmonization of accounting on a worldwide basis in order to improve the financial reporting and decision-making capability of multinational businesses, and investors in multinational businesses.(p.176). The second criticism to the use of IASC is that of the mandate. The statement starts with the phrase to formulate and publish in the public interest international standards†¦. (IASC). Hence they act in the interest of the public by a way of enforcing the rules which may not be favourable to the public. This absence of democratic legitimacy has been the major reason by which the IASC standards have not been enforced. Besides , this the structure and the membership composition of the IASC lacked the requirements needed for a global standard setting organization which includes the independence of its members, technical expertise and the decision making bodies representatives. McKinnon and Janelle (1983, p.33) argued that IASC has only succeeded in codifying generally accepted practice, in serving as a neutral source of standards ,and in influencing groups with the enforcement powers. Consequently, the IASC was restructured from the year 1998 to 2000 to International Accounting Standards Board (IASB). IASB is an independent London-based standard accounting body privately funded. The first IFRS was issued in the year 2003 with a membership of 19 countries but it has tremendously grown to 70 countries now with the EU mandating that all listed companies should use the IFRS in their financial reporting effective from the year 2005 (EC,2002). IASB has two member bodies the standard setting board and the member board of trustees .The IASB establishment is allied to that of the international federation of Accountants worldwide (IFAC).. The International Accounting Standards Board is committed to developing, in the public interest, a single set of high quality, global accounting standards that require transparent and comparable information in general purpose financial statements in addition, the IASB co-operates with the national accounting standard-setters to achieve con vergence in accounting standards around the world. (IASB, 2002, p.1). IASB has taken corrective measures in removing the accounting alternatives thereby ensuring that firms give a report that will reflect a true position and economic performance of the firm. IASB also aims at promoting global consistency in application and enforcement. It has also met the requirement that the business which operates in multiple bodies have a uniform financial statement which will be understandable in the countries whereby they operate. 2.6 International Accounting Standard Board (IASB) versus FASB? Norwalk agreement in the year 2002 by the Financial accounting Standard Board (FASB) and the International Accounting Standards Board was signed by both bodies after the need for a high quality, consistent and a comparable information which will be applicable to both domestic and the cross border financial reporting was recognized. Jacob and Madu (2009, p.3) the cited that both FASB and the IASB has pledged to use their best efforts in making their existing financial reporting standards fully compatible as is practicable and to coordinate their future work programmes to ensure that once achieved compatibility is maintained. This was also confirmed in their meeting in October 2005 of the two bodies reaffirming their commitments to converge US GAAP to IFRS. In a Concept Release, the SEC(2000) notes, Establishing and maintaining high quality accounting standards are critical to the US approach to regulation of capital markets, which depends on providing high quality information to facilitate informed investment decisions. (Jacob and Madu 2009).SEC released a proposal on July 13 2007, which states that US should recognize financial statements prepared using the IFRS from the foreign private issuers without reconciling them back to GAAP [2].furthermore, SEC informs all the investors that IFRS is the only set of standards with a high quality accounting standards that is more informative, useful for preparing financial reports compared with the US GAAP. This recent move to IFRS suggest that ,IFRS is the only standard that is of high quality and globally recognized and also has a potential to improve comparability of the financial statements despite of the country whereby they are domiciled. Despite all these efforts to converge to IFRS some academic literature still opines this stating that there are still material differences between the IFRS and the US GAAP. More so, the information contained in reconciliation is evident in the investment decisions made by the US investors. for example ,Culter and Neidemeyer (2009) argues that the major challenge why US did not want to adopt the IFRS is that there are differences in regulation and the manner at which these rules are been interpreted. IFRS is principal based regulatory system; which means that the rules are already set. On the other hand US GAAP is ruled based, whereby a detailed guidelines and principles is already laid out. Delliot (2007) emphasized that the principle based rules focuses more on the objective not relying more on the detailed rules. Deming (2005,p.4) gives a conclusive report pointing out that IFRS has more of a common law approach, than the US GAAP which is more of a civil law approach Furthermore, in the number of standards, IFRS has forty nine sta ndards while and nineteen interpretations and this consist of an approximate of two hundred pages (Delliot 2009) while the US GAAP has twenty thousand page (Mitra 2009).Other notable differences are seen in the financial reporting using the US GAAP and the IFRS. This will be comprehensively reviewed in the subsequent chapter. 2.7 Implementation and Enforcement of Financial Reporting Standards The credibility of a standard relies on its smooth implementation by countries that adopts it. Enforcement is a difficult concept to quantify and measure (Nobes and Parker 2006). The enforcement process differs from one country to another. Even at the international level there is still no genuine enforcement process. Moreover, some accounting bodies set standards and leaves enforcement to other bodies while others do both. For example US Securities and Exchange Commission sets laws and enforces it while IASC, Accounting Standards board (ASB) sets and develops standards and do not have the power to enforce these standards For the set rule of IFRS to be achieved an enforcement body has to be set up with powers to enforce the standards (Lamfalussy, 2001; Committee of European Securities Regulators [CESR], 2003a). Nobes and Parker (2008) states that the most determining factor for a successful adoption of this standard as a global standard is in the approach taken by the financial regulating bodies in the countries that adopts it. Giner and Rees (2005), Brown and Tarca (2005 )and Ball(2006 ) affirms that the purpose of IFRS is to provide a high quality financial reporting which can only be achieved with vigorous enforcement by the regulatory bodies (Schipper 2005 and Ball et al. 2003.The enforcement has not been easy certain factor has affected the effective enforcement of the law. Some of them vary from the cost, regulators interest and whether the businesses or accountants really need them. Watts and Zimmerman (1986), opines that the value of regulation is an empirical question, more apprehensive of ho w the regulatory authorities can value the costs and benefits of regulation. For example in the EU countries the structure and the organization that is in charge of the oversight of the requirements in the financial reporting varies among the EU countries. Also some countries do not have institutional oversight of financial reporting (FEE, 2001a, p.10).The EU regulation therefore mandates that the member states are to take appropriate measures in order to ensure compliance with IFRS. (European Commission EC], 2002, n.16). As a result of this the need for a country to produce a multiple financial statements was eliminated. Lafferty (1981) noted that no enforcement mechanism ever existed in reality. Perks (1993), expressed in his opinion that, without a legal backing it is not easy for the reporting standards to be enforced. Enforcing of the accounting standards therefore may require statutory audit, an effective sanctions and monitoring by supervisory bodies and for it to be implemen ted. Thus, there will be continuous reformations and changes in these standards. IFRS AND EU The European Parliamentary on enacted a legislation 0n 14 March 2002 requiring all companies listed in the European stock exchange to publish their financial statements with in accordance with the International financial reporting standards. There is also an endorsement mechanism which ensures that IFRS meets the needs of the EU listed countries. 2.4 International Standardization, Harmonization and Uniformity. The move towards greater harmonization of professional accounting practices has been traced back 1904 and the first accounting congress in St Louis, Missouri (Samuels and Piper, 1985, p.59, Mueller, 1979, p.7). Samuels and Piper (1985 p.59) states that international issues were not important while Mueller (1979 p.7) states that there is a need to pay attention to International harmonization. Combarros (2000), also argues that there is a need for harmonization of the accounting. Harmonization and standardization are used synonymously by some authors (Tay and Parker, 1990). While other researchers has differentiated the two. Tay and Parker (1990, p.73) defined harmonization as a movement away from total diversity of practice and standardisation is seen as a process which involves a movement towards uniformity. Saudagaran (2001:32), futher emphasized that the rationale for harmonization is that it will enhance comparability of financial statements [therefore] making it easier to use acr oss countries While other proponents is of the school of thought that harmonization will is not be practicable or truly probable. Rudhede and Wahlberg (2003) emphasizes that the lack of accounting harmonization will give difficulties to the investors in understanding the accounting principles which varies among the countries. Walton. Moreover, harmonization is a way to put processes in place to be able to reduce the obstacles inherent in international comparability. Hulle (1993, p.73) stated that the objective of harmonization is the comparability of accounts. All the efforts of the EU towards harmonization of these accounting standards have been challenging and slow. 2.4.2 Merits of international harmonization. An argument in favour of international harmonization is, efficiency in trans-border transactions. (Walton, Haller, Raffournier, 1998, p.9). Although lack of uniformity in the reporting procedures and the comparability of the accounting information is another barrier to cross border investments. This comparability of the financial postions across national bodies is seen as one of the most important reason for harmonization (Cummins 1975). This will help to reduce lack of trust and non reliance on the financial statements. With this there will be a flow of international investment in the capital market. Turner (1983 p.58) in his studies affirms that the second advantage of harmonization is to consolidate divergent information when more than one set of report is required to comply with different national laws or practices; further stating that accounting diversity is the major cause why companies spend unnecessarily cost. According to Houston and Reinstein (2001), harmonization of the a ccounting standards will reduce the cost of business, more particularly across national borders, than it will contribute towards greater efficiency of the market regulations. Not only will that harmonization reduce the costs inherent in conducting financial statements analysis and investments in international context. Another advantage of international harmonization of the accounting standards is saving of resources (Muller 1961, Spacek 1971). Further arguments is that international harmonization of the accounting standards can advance capital market efficiency(Ramanna and Sletten 2009) while Ball et al., 2000; Ball Et al 2006 envisaged that if the international market does not go along with the associated capital market institutions can be expensive. Finally, harmonization of the international accounting standards will help in improving management decisions in the multinationals. (Hauworth 1973). 2.4.3 Demerits of international harmonization International harmonization if faced with some criticisms, Some of which are economic while others are political. One of the criticisms is that it cannot carter for a wide range of national circumstances, legal systems, stages of economic development, and cultural differences (Samuel and Piper, 1985, pp 100-109). Atiken and Islam refuted this stating that the nature of the economic transactions and the methods by which they are accounted for does not vary in essence. Walton, Haller, Raffournier, (1998) argued that harmonization distorts social balances that have not been tackled over a long period of time. In the readings of Blake and Hossain (1996) International harmonization of reporting standards especially IASC is less respectful of local particularities; in regards to this context options will be seen as to be bad ,methods are termed either good or bad and costly reconciliations is likely to be imposed. Kenny and Larson (1993) further argued that large professional organizations protect their selfish interest in the standard setting process. Also the absence of a strong professional accounting body is a major obstacle to harmonization of accounting standards. 2.10 Arguments for international reporting. The essence of international reporting standards is to give a universal reporting standard that will be comprehensive and transparent thereby improving investors confidence as well as also creating market integrity. (Hope et al., 2005; dArcy, 2001). In this section we looked at the benefits of international reporting standards to the investors, firms, and also to the global economy. Gordon (2008, p. 3) cited the speech of Levitt (1997) which stating that for international reporting standards to gain acceptance three key objectives must be in place: The standards should include a core set of accounting pronouncements that constitute a comprehensive, generally accepted basis of accounting. The standards must be of high quality – they must result in comparability and transparency and they must provide for full disclosure. The standards must be rigorously interpreted and applied. Financial Reporting quality and transparency under IFRS The question has been if the accounting figures reported under this standard will give of high quality compared to those under domestic standards?. Also will IFRS show transparency in disclosure for an informed decision for investment? Barth et al., (2007) states that this is an extremely intricate question to answer as the application of any given standard has exhibited the effects of the features of the financial reporting system, its standards, as well their interpretation, enforcement and litigation. As these affects the competence of the financial prepares and users. Tarca (2004) said that international accounting standards are one way of improving transparency in financial reporting. Ashbaugh and Pincus (2001) elaborate that since the adoption of IFRS there has been improvement in the forecast accuracy by the analyst. As a result of this analysts cost of information acquisition also reduces. Cuijpers and Buijink (2005) from his sample of firms domiciled in the European Union pr ovide evidence that the analyst following has increased. Also Barth et al (2003) and Barth et al (2007) reveal that higher value relevance for firms is higher since the adoption of the IFRS as compared with the pre adoption period. IFRS therefore reduces the estimation of risk in market returns. Hence we will say that the quality of the IFRS in financial reporting is therefore inestimable in countries that adopt IFRS than those that use the locally recognised standards. Although we have affirmed that IFRS is associated with a high accounting quality there may be oppositions to this. Firstly, where there is an intrinsic flexibility in the principles based standards; this may present opportunities for firms to manage their earning thereby reducing the accounting quality. Also, in a bit to limit the managerial discretion which relates to the accounting alternatives will also reduce the ability of the firm to report accounting measurements that will give a reflection of what the true po sition and economic performance of the company is. Thus, accounting regime affects the quality of the information thereby affecting the cost of capital. Cost of capital and IFRS Adoption There are various propositions on the whether the adoption of IFRS reduces liquidity and lower cost of capital. Before the adoption of IFRS investors have to spend some time and effort in translating the standards in a way they can to understand. This process wastes efforts time and incurs transaction cost. The cost of capital determines how risky an investment would be. The higher the cost of capital the more risky the investment will be. According to (Coffee 2002), findings on bonding theory there is a lowered cost of capital. Deske (2006) affirms that this associated reduction in information cost is the main benefits by which IFRS is being adopted. There will be a reduced cost since the same standard will be used by all countries not regarding where the countries are domiciled. Aras and Crowther (2008) argued that the reduction in the cost of information in the adoption of IFRS and an assured consequent reduction can only benefit the countries whose legal, cultural, and economic s ystem is the same with the nations which are involved in setting IFRS, hence other countries which are not beneficial to this may incur increased cost compliance. Although, Barth (2007); Marquez-Ramos (2008) emphasized that IFRS reduces information cost of an economy as capital flows and trade becomes globalised. Improved comparability of the accounting reports: The use of IFRS eliminates the lack of comparability of financial statements. Choi et al. 1999, p. 249 states that comparability eliminate the current misunderstandings of the investors on the reliability of foreign financial statements and this removes one of the most main impediments affecting the flow of international investment. It also makes it easier for companies to compare financial results of different reporting entities from different countries. Global recognition Globalization of the business activities has increased creating a need for comparability of financial information between firms of different countries .Most of the companies are going globalized therefore the use of national accounting rules is increasingly impairing effective communication both in internal and external reporting. In a recent study by the international federation of Accountants(IFAC) most accounting leaders all over the world has agreed that adopting IFRS will be vital for economic growth in their countries. It is also significant as it will make it easier to compare human capital needs of companys subsidiaries all over the world since professionals will be more mobile. IFRS improves profit figures: The movement from the domestically recognized standards to the internationally recognized standards has resulted to a tremendous increase in the net profit figures of top most countries financial reports although the balance sheets have deteriorated. It is noted already that IFRS requires a comprehensive reporting than the domestic standards. IFRS has determined the various accounting methods by which profit figures will be derived from and reported by the firms (Aras and Crowther 2008). Impact of IFRS on financial reporting Examining financial statement implications is important because, †¦ the only direct effects †¦ are changed financial statements †¦ (Hung and Subramanyan, 2004, p.4) Pijper (2009), further examines how IFRS has affected the reporting of financing on the balance sheet. In GAAP the put option were disclosed in a footnote as an off balance sheet figure, but with the IFRS the put options which is held by minorities are now treated as a financial liabilities. Prior to the adoption of IFRS most companies were very conservative in their depreciation rates and this was affecting the business profits in that some assets will still be in use and there is no report on the expense incurred against those assets in the income statements but now the IFRS has reduced the distortions b these excessive prudent nature of depreciation rates .From the studies of (Hung and Subramanyan 2004) IFRS emphasized that fair value should be used for balance sheet valuation. Barth et al (2005) from hi s studies discovered that companies that uses IFRS experienc