Corus strip products UK’s change management

Corus strip products UK’s change management Corus was formed in 1999 when the former British steel plc merged with Dutch company, Hoogovens. Corus has three operating division, first is strip products, second is long products and third is distribution building system. Corus strip products UK (CSP UK) is based at port Talbot and Llanwern, Newport in south wales. CSP UK makes steel in strip form. This is used in markets such as vehicle manufacture, construction, electrical appliances, tubes and packaging. Corus aims to be a leader in the steel industry by providing better products, higher quality, customer services better value for money than its rivals. In the 2005 CSP UK introduced a cultural plan for change called The journey. The journey focused value and belief of its people. This case study is mainly focused on how Corus strip UK has overcome barriers to change in order to secure a more prosperous future for the business. Using example, explain what is meant by internal and external drivers for change? Introduction: Business, now-a-days is vitally affected by the  economic, social, legal, technological and political factors. These factors collectively form business environment. Business environment, as such, is the total of all external forces, which affect the organisation and operations of business. The environment of an organisation has got internal, operational and general lives managers must be aware of these three environmental levels and their relationship and importance. The term business environment implies those external forces, factors and institutions that are beyond the control of individual business organisations and their management and affect the  business enterprise. Above we describe the environmental factors that require managers to implement comprehensive change programme. Business must respond to these changes to remain competitive and continue to meet the needs of their customers. They need the commitment and support of key stake holders groups such as employees, in order to ensure changes are embedded to shape the organisation for the long term. Basic meaning of the drivers for change: Drivers are something like barriers which are affecting to the business and we must need to change in the organisation to continue running business is good situation in the market. If there is anything that is stead fast and unchanging, it is change itself. Change is inevitable, and those organizations who do not keep up with change will become unstable, with long-term survivability in question.   There are things, events, or situations that occur that affect the way a business operates, either in a positive or negative way. These things, situations, or events that occur that affect a business in either a positive or negative way are called  driving forces. In order for a business to succeed and gain the competitive edge, the business must know what changes are indeed occurring, and what changes might be coming up in the future. I guess you might call this forecasting. Thus, critical to the business is what we call  informational resources.  It is the collection and analysis of data. There are two types of organizational drivers for change one is internal driving forces and other is external driving forces. We are discussing both of the drivers in briefly. Drivers to change Internal drivers External drivers Organization of machinery and equipment Competition Technological capacity Customer behaviour and their requirement Organizational culture Industry outlook Management system Financial management Demographics Poor services Economy Competitiveness Technological changes Employee morale Internal drivers: Internal driving forces are those kinds of things, situations, or events that occur inside the business, and are generally under the control of the company. Examples like, organization of machinery and equipment, technological capacity, organizational culture, management systems, etc. There are many types of internal drivers in the business it resist to change. Organization of machinery and equipment: If in the organization does not used the good equipment and powerful machinery or otherwise this machinery fall in always breakdown so at that time industry loss their production and with using old equipment it cannot produce more. Workers mostly needed good equipment to an easily produced. Like, in steel industry has not good manufacturing plant so their employee cannot produce more. Thus these types of problem mainly arise in the production based industry so it can be solve their barriers to rearrangement of machinery and plant. Technological capacity: In the modern time we using the old technology and thats capacity is lower than new one so its a barriers to the organization to change. Like , A tyre manufacture industry produce a 1000 tyre per day and in the market B tyre industry have good technology and they produce 3500 tyre per day so as compare to the B industry have a more production capacity. Thus this is an internal barrier to change technology for company A. Organizational culture: Organization culture mostly depend on the workers and the high level management staff because in the industry needed more workers this all are not in one state and one area, thus they arise a problem of communication and cooperation so all the different cultures employees in the one place divisions in industry, thus all have a different skills and practices for work. People prefer to live in the company of other people with known habits and traits. This is the reason culture act as barrier to effective communication within an organization. E.g. based on distance, distance is major example of communication barrier that affect an organization. Because every industry offices located in different location give little to people to interact in person and major business communication barriers exists between employees located in different offices. Management systems: Most of the industries success depends on their management system, because they know How to they manage their problem, how they create their policy, what are motto, goal and etc. is affected to the industry. If company not have a good management team so how they create a good system and survive in the market. Thus this one is also an internal factor of the low management system in industry. Financial management: If companys financial position is not good or they have no enough money for the investment so how they survive and compete in the market. Like in India Satyam computer corporation have a big staff and a huge industry but their financial management low, because their chair men Raju ram linga fraud to the finance and give the wrong data in the annual report and then in 2009, that fraud is come out in the market and then after government taking a strong step and stop the handling. Poor services: If the organization doesnt give time to time good service than others thats an internal drivers for change. Like, if McDonalds service staff not delivered the food of the customer requirement and its time so its not good for the companys. Its a one types of barriers to McDonalds must to change their service and give the better service to customer. Thus its leading to loss of business. Competitiveness: If the inside business cannot control of price of the product as compare to competitors industry so they must to take some step and resist to change the price of their product and decrease their product cost. Like, CSP steel produced company in the UK could be more expensive than from some other country. Employee morale: Employee morale is also affected to the business. If in the organization have a low morale employee so they have no idea of how they work and cooperate to other in the industry. Generally many employee have no basic idea of work and their behaviour so they have very low standard and employee has not feeling good and they are not satisfied in the industry, thus company must change their employee morale. External drivers: External driving forces are those kinds of things, situation, or events that occur outside of the company and are by a large beyond the control of the company. Examples of external driving forces might be, the industry itself, the economy, demographics, competition, political interference, etc.  All are the external drivers arise in the outside of the organization. Competition: In the competitive corporate world every company find difficulties to survive and they must change to the compete in market. If Corus steel industry does not change the barriers and they not arrange the programme so they feel very difficult to survive in the competitive market. Todays every industry want to stay in stable market position. Industry should create the prediction of the market and they predict to future, shall they need to change or not, like McDonalds and Sugar n spice. Both are good industry but if one can change the quality so other also improve their quality and service. If McDonalds reduce the price and give a good service then sugar n spice also need to change otherwise its lose their position. Customer behaviour and their requirement: Customer is the king of the market so company has to remember their requirement, like what they want? , what change need? Are they requiring a new product and what they expect from company? This all the basic agenda of to make a potential customer. Corus in steel product it require a quality of steel and outlook of the products. I want to give example of Ashok Leyland vehicle industry, they want trolley of the truck but in the desire level like, maximum gage means thickness to steel plate because depend in thickness to their product life. Industry outlook: Industry outlook means company is good or bad in eye of society, group, local and global people. Every company have their own brand image like, coca-cola brand image, coca-cola is good company as per their behaviour towards the society. Because they provide the better environment to society. Demographics: This barrier is based on the area, Like in Gujarat, Reliance fresh open the store in city in one or two and then after two years later domestic area is increase means population is increase so Reliance also increase their fresh mart store in whole area. Economy: This is the major external factor to the industry. Because economy is includes income, salary, financial position, country growth and growth domestic product (GDP) rate. Like Government control the bike production because the increase the pollution on the environment. Technological changes: In modern time technology is ever change on time to time basis. And industry must walk with the time. In the industry to needed change related to efficiency of infrastructure including Roads, ports, airports, rolling stocks, education, health care, technological impact on the industry, etc. What barriers to change existed at Corus? Introduction: Change may challenge people abilities, experience, customs and practice. And also no one companies todays in a stable environment, every one want to change proceed in the business. Here Corus strip products as a company supported the principles of change and innovation. Thus its would like to change every time and innovate their company. First we discuss the whole factor that may resist changing in the organization. Mainly there are two types of source they are resisting to change. Source Individual sources Organizational sources Addiction or habit Structural inertia Security or safety Limited focus of change Economic factor Group inertia Fear of the unknown Threat to expertise Selective information processing Threat to established power relationship Threat to established resource allocation Others Individual sources : Addiction or often involuntary behaviour : Addiction means a one types of habit to repeat some and some habit, to cope with lifes complexities to responses. But when confronted with change, this tendency to respond in our accustomed ways becomes a source of resistance. For E.g.: In the company employees have a more habit related to a job post, like one who seated in the marketing managerial and this person transfer to the production manager post, so they fed this is wrong or right, its depend on his habit. Security or safety protection : In an every way and in place people want to first basic need and second security. Here people with a high need for security are likely to resist change because it threatens feeling of safety. For E.g.: In an IBM industry more people are doing job related to it. So if company in a difficult situation and difficult want to leave their employees and cut out the salary, this is the basic point of unsecure employee, who lost their job. Here in a Corus company also doing a job relation. So they do the deduct the employee who working in current situation and also deduct the new vacant in the market. Job deduction had been a major thane in the steel industry. Since the 1970s and some of Corus previous change initiations had let to job cut. Economic financial matters : There is many element or economic factor that affects business like income, inflation, recession interest rate, exchange rate and also major elements like economic growth, business cycle, unemployment etc. Business is a now a days is vitally affected by the economic, social, legal, technological and political factors. Corus business has also survived difficult based on employees satisfaction threat to their job. Thus one factor unemployment affect to the Corus because this complacency made change difficult for Corus. Fear of the unknown : Most of the people dont like change because they dont like being change. When comes in to view, fear and resistance to change follows often despite its obvious benefit. In the business people fight against change because they fear to loss something their value or misunderstand to change and its implication or dont think that the change makes sense. In the Corus strip based industrys employees had a fear of the unknown and saw new initiatives as a possible threat to their existing teams and position. More fear affect to the companys value and its reputation. If in the Corus employees has fear to their job so in the market Corus value is down in sight of employee. Selective information processing : Individual are guilty of selectively processing information in order to keep their perception fact. Like is not properly listen what they say, so how they persist and doing this thing. They hear what they want and they ignore information that challenges the world they have created. Organizational sources : Structural inertia : In the structural inertia means organizations have built in mechanism. In a simple word structural inertia means their selection processes and formalised regulations to produce stability. This all are basically depend on the organisation rules and regulation criteria. If in the Corus industry has strong rules and regulation so, no more barriers exist in the company. Here Corus Company is using the principles change and innovation. So its depend on the companies structure what they want and make change. Limited focus of change : Mainly in the company first make strategy and goal of the organization that depend on the process of the business management. If company want to some changes in the strategy so they can do, because its a flexible. If organization process and their strategy is not flexible so end time arise the problem like its barriers to change. So limited changes in system tend to nullified by the largest system. Group inertia : Group inertia in the organization most of people like in production department people want to changes in some norms and regulation based on his working system, so they arise one issue and based on this issue company compulsory make to some resist to change. Threat to expertise : Sometimes changes in organizational patterns may threaten the expertise of specialised group. Threat to established power relationship : In the organization give stable balance of power, authority and responsibility. If any department have more power, so they want anything, and go to in the wrong way. So any redistribution of decision making authority can threaten long established power relationship within the industry. Threat to established resource allocation : In the Corus company have limited resources like its employee and income. Corus company mostly show this resources like capital income and their employees skills and experience so they maximum use this resources. Others : Another issue facing Corus was its ageing workforce. In the UK fewer young people were attracted to the Corus industry because of reduced job opportunities and reduction in apprentice schemes. One more barriers in the Corus its reward system, In the Corus history of rewarding long service rather than distinguished service. Conclusion: I concluded that Corus Company may some changes in the CSP industry. They must change to their attitude towards the employees because most of the employees have fear of unknown. Also they must change their theme, its a job reduction is create a downsizing impression in the market. Corus make fair reward system based on the time based and unit based salary system. Analyse the approaches Corus used to overcome these barriers? Introduction: We cannot solve our problem by spending; we cannot solve our problems cutting back. Education and communication : Mainly depend on the employee s skills and education that they solve the overcome the communication barriers. In the organization a number of barriers can retard or distract effective communication. Like filtering, selective perception, information overload, emotions and language. Corus is overcome these barriers by using the some key technique, like they involve in direct and indirect communication for example provide weekly news letter and workshops. Communication can reduce resistance because it fights the effects of misinformation and poor communication. Participation : Corus has used to overcome resistance to change has been to work closely with employees and share good ideas to each other. This is the main advantage of company because any error in the strategy and in system easily find out and solve in the less time. Corus also participate their employee in decision making because more people easy to take decision. Corus also share with employee to what might happen in the business. Building emotional commitment : Research on the middle manager has shown that when manager or employee has a low emotional commitment to change they favour the status quo and resist it. This approach is based on the companys values and respects their employee. Implementing changes fairly : Corus needed to highlight how to people were behaving. Employee give best response when they think in positive view and mainly unfair action fitted in the mind of employees and they behave in negative way. Involve in decision making : Corus is overcome to these barriers to involve the employee in management decision making and their contribution experience are recognised. Most of the company involve in decision making because more thinkers easy to solve their problem and management also get the different ideas and apply it in the process. Selective people who accept change : Corus used this approach is based on the load of work, they create group on who accept the change and other who dont accept the change. Corus also highlighted that employee become accustomed to working with limited resources and were willing to accept low standards. Coercion : Coercion means the act of pressure or power to force or taking action or steps towards the employee. In the Corus company, workers misuse of alcohol or drug so at that time give first warning and then after they not improve their work so give the punishment and cut out the salary. Conclusion: Corus is using all the key technique and main of the approaches, like work closely with employee, involve in decision making, provide good working environment and become they achieve their targets new values like, honesty, fairness, transparency, integrity etc. and also they accept their high standards and making professionalism, and last one is making a team work to become achieve improvement, excellence and respect. 4. Evaluate the effectiveness of the change programme so far? Introduction : The Corus strip products UK make a cultural plan for change; its called The Journey in the 2005. Company wants wide range of business challenges but the common theme was the fundamental way that people at all level went about their work. They must change the programme because there had been a tragic accident on site and other safety and health is more important issue. There are many effectiveness of this programme to change so far: High production capacity : Corus making a changes in the work environment and give a suggestion to closely work with employee and also arrange the training programme and give direction to workers how the produce more. Employee also knows what might happen in the company. Steel production area is make a secure and employee work without fear in the Corus industry. So its concluded thats depending on the above situation to give the good result. Its show in significant progress. Production capacity is increased by 4.5% to a run rate of 5 million tonnes. Reduce the cost of producing steel : Corus is a steel producing industry so they must control on the steel liquid, gas, machinery power, and equipment. In the change programme Corus change the most of the thing to decrease the producing cost, like they do encourage their employee, provide proper environment. Thus CSP UK achieve the target of the plant is on track to reduce the 20% cost of producing steel. Increase the new comers employees to based on the values : Corus is making a good value to base on the change programme. They change their values professionalism, honesty, integrity, respect, improvement, excellence, fairness and transparency. Depend on this value change in the society and new employee believes on its values and their belief. So based on this change programme Corus values and belief in the business is increased in the market. Thus new 5000 employees signed up in the company. Low Absenteeism rate : All company want to decrease their absenteeism rate and this is shown on the annual report. Corus making some changes in their policy and create a better environment to the benefit of their employee. Corus has improving the redesigning of time schedule and work without stress of employee. Thus in this change programme Corus achieve in this roles and it had a reduction in absenteeism. Improve quality and service : Company must control the quality of products and it can avoid to the defective products or material. In last step is more important to attractive is their service desk area. Corus Company manufactured steel products. So they improve their steel quality and give the best service. Corus is achieving the level of good quality and improve the service to their customer. Increase the care of employee related to health and safety : In the Corus strip products manufacture the steel so in the steel producing industry must show the health safety for their employee. CSP UK based company has associated with the high standards of safety with Corus processes. Corus taking step related to health and safety issue. So they create a new safety teams contribute towards accident free protection. Exceeds government standards : CSP have showed the all significant area. It has that carbon dioxide emissions have reduced by 10%. Company is anything does for the government and for public also, so they must increase their credibility towards them. Now CSP UK exceeds the government standards. Impact on local community society : Every company want to good impression on the society and towards their community. CSP UK has also measurable improvements in the companys impact on this a well defined area or a town. Others : CSP Company also seeing the environment factor and the social factor. Corus provide a new improve entry experience for employees, contractors and suppliers demonstrated. That Corus strip products is now seen as an organization that is proud of itself. Conclusion: Corus company facing up to its internal weaknesses and efficiency, increased output, lower costs and reduce waste in an increasingly competitive market. Corus is not just surviving in the business but it has also grown in the market and expands to their company even during the recession time of 2008 to 2009. Its main aim is to behind this journey programme is a focused on the values and belief of its people and also they needed to change to the tragic accidents on site and other health and safety issues. Thus this case study focuses on how Corus strip products UK has overcome barriers to change in order to secure a more prosperous future for the business.

The impact of French imperialism on Indochina to 1945 Essay

Being an imperialist country, France pursed to increase its power, wealth and influence by gaining authority over other parts in the world. South America and Africa were among the countries the French Empire had owned in addition to Indochina who lost its independence after the war against China, which lasted from 1884-1885. Indochina was a main asset to France, especially in the field of economics and social power between other countries such as China and Japan. Despite the advantage Indochina gave to France, the control of the French was not considered beneficial to the Indochinese nation. Politically, France reduced the country’s sense of unity by separating Indochina into three administrative sections called Tonkin, Annam and Cochinchina. Political control varied, as it was direct control for the colony of Cochinchina, however indirect control for Annam and Tonkin. The difference between these areas was the fact that the Vietnamese who lived in Cochinchina were able to gain French citizenship and were enabled to hold seats in the National Assembly in Paris. This meant that authority held by the Vietnamese Emperor was strongly weakened, as his mandarins who gave him his authority worked for the French governor. Whereas, in Annam and Tonkin citizens weren’t allowed access to French citizenship and their territory were not counted as part of France. Their emperors continued authorities through the exercise of French govern. This essentially divided the united power of Indochina as power comes in the masses. In terms of social culture, it was French policy to encourage the educated to serve in the army or civil service and to assimilate into French society. Through assimilation of French ideals, the educated Vietnamese people adopted the illusion of French revolutionary concepts of liberty, fraternity and equality. This was contradicting as they were excluded from political, administrative and managerial positions. If an educated Vietnamese were to hold such a position, they’d receive a fraction of the wages earned by their French counterparts. This was due to the theory that Indochinese people were inferior and relied on French culture to overcome their state of disorder. As a result, the French officials who ruled the provinces undermined traditional control of village notables, which led to the conversion of several million Vietnamese people and condemned the traditional practice of ancestral worship. Due to the angered realisation of double standards of liberty and equality, open rebellion and hunger marches in 1930 led to the execution of leaders, the killing by troops of 10000 participants and the deportation of 50000 more. Protests to French authority resulted in serving a jail centre, which was more popular to find than hospital facilities. Indochina gave many opportunities to France to increase wealth and prestige internationally. Due to Indochina’s location a trading relationship with China was made convenient. Having by 1897, gained mineral concession in three provinces there, the French built to railways accessing to China. By 1910 the railway to Yunnan was built by 80000 Vietnamese workers, in which thirty per cent being the subject of mortality. The majority of Indochina’s 25 million people were used as cheap labour workers to work in mines, factories, rice fields and rubber plantations to produce large quantities of corn, rice, rubber, silk, tin and zinc. Exclusive possession of alcohol, opium and salt trade also significantly amplified France’s financial state. Land grants were given to French settlers and wealthy Vietnamese people who possessed eighty per cent of land. Peasants were living in poverty caused by high rent payment, high taxes and debt to moneylenders. The building of canals, roads, railway lines and port facilities as well as the administration of Indochina were funded by heavy labour of the Vietnamese resources and working-class peasants. The response to oppression caused resistance from the Indochinese nation. Guerrillas fought to prevent forceful takeover and loss of heritage. Further violence was the response of French authority. This worsened the involvement of violence due to the fact that it stimulated further resistance. Nationalism arose from the involvement in world war one, which caused further intense resistance. Education provided by the French was beneficial to the Vietnamese, as they provided and encouraged an understanding and commitment to nationalist ideas. This caused two radical revolutionary groups to emerge and challenge French authority. The more powerful group  called the Indochinese communist party (ICP) was founded by Ho Chi Minh who brought prominence in 1930. The French underestimated its motivation, resistance and ability, which resulted in their failure to destroy it. The pacific war ended in august 1945 and by the 20th of August Ho Chi Minh and the Viet Minh took control of the government buildings. This was due to the fact that there was a French absence in the colony. The ‘August revolution’ spread across Vietnam and Viet Minh groups’ accessed control of all government levels. On the 19th of August the provisional government of the Democratic Republic of Vietnam (DRV) was announced and on the 2nd of September Ho Chi Minh declared independence in front of his nation. His ten goals included overthrowing French imperialism to make Indochina independent, establish a worker-peasant and soldier government, distribute assets of belonging and plantations to the peasants, implement an 8 hour working day, abolish unfair taxes on peasants, bring freedom to the masses and implement equality between both sexes. French imperialism impacted Indochina Economically, Socially and Politically. In the long run, it provided the Vietnamese with advantages such as infrastructure, education and economic wealth. However, in order to achieve this the French imperialists caused destruction to the masses with burdens of unreasonable debt, high rates of death and forced cheap labour. In order to achieve independence, education on concepts of liberty, fraternity and equality ironically provided by the French gave Vietnamese communists the ability to fight French authority. Through the resistance and support of the majority of the Indochinese nation, the Viet Minh were successful to overcome oppression of their people and ultimately gained insight to political, economic and social welfare on an international scale. Despite his efforts to gain support of the United States, Ho Chi Minh’s letters went unanswered and instead the United States agreed to support France’s demand for support of reclamation of Vietnam.

Client Understanding Paper

University of Phoenix ACC/541 Client Understanding Paper As per your request of an analysis of the following topics: Adjusting lower of cost or market inventory on valuation, Capitalizing interest on building construction, Recording gain or loss on asset disposal, and Adjusting goodwill for impairment. The Financial Accounting Standards Board (FASB) established clear guidelines addressing the items mentioned above. I will outline that FASB generally accepted accounting standards (GAAP) affect each area, and how these improvements to the company will benefit the company’s financial health (FASB, 2010). The methods of inventory valuation are different according to companies, but at the end of the day the chosen method should be consistent each year according to the general accepted accounting principles. A manufacturing company will generate inventories for finished product, raw materials and work in progress, so lowering the cost of market inventory can be very intimidating and consuming. Inventories and prepaid expenses present some additional valuation issues. With the emphasis on net income reporting, the inventory valuation process has become secondary to the matching of expired inventory costs to sales. The use of any of the acceptable inventory flow assumption techniques prescribes the amount that remains on the balance sheet, and it is likely that each of these flow assumptions will result in different inventory valuations in fluctuating market conditions. In addition, the accounting convention of conservatism requires that a lower of cost or market valuation be used for inventories (Schroeder, Clark, & Cathey, 2005). Using the first-in-first out (FIFO) or the last-in-first-out (LIFO) method is the perfect way to identify the cost of each inventory item. â€Å"A valuation method (e. g. LIFO, FIFO, average cost and specific identification) is used to compute the cost of the inventory dollar amounts and then it is compared to the market dollar amount. † LIFO is not commonly used because the last goods purchased are the first to be sold. The inventory at the beginning of the year will have the earliest goods purchased acquiring a valuation of an early price. FIFO is better used for lowering cost especially during periods of increase prices. It is also important to identify a method for valuing the items in the inventory and calculating the cost of goods sold. This can be done through the cost method, the lower of cost or market and the retail method. â€Å"A valuation method is used to compute the cost of the inventory dollar amounts and then it is compared to the market dollar amount. The lower of the two amounts must be used when recording inventory. † The cost method involves all direct and indirect costs to acquire the inventory. The cost of the products purchased consists of the invoiced purchase price minus discounts or trade with and addition of transportation, shipping additional cost incurred for attaining the product. Lower of cost or market method â€Å"determine the market value of each item on hand as of the inventory date, compare the market value with the cost of each item, and use the lower of the two as the inventory value of that item† (Hagen, 2005). The American Institute of Certified Public Accountants (AIPCA) in conjunction with the Financial Standards Accounting Board (FASB) issued ARB No. 3 that lower of    cost or market rule apply to all inventories. Lower of cost or market aspect (LCM) is also supported and defined by SFAC No. two and SFAC No. 6. The LCM rule considers the market that purchases and sells the inventory. In general, the conservatism principle applies to LCM method of accounting. Conservatism principle directs a company to choose the more â€Å"conservative† dollar amount when considering two amounts that represent inventories. This helps a Company to report accurate losses on their income statement. To determine LCM, one must also consider net realizable value (NRV). This value represents the selling price of inventories minus the fees associated with completion of sales. The NVR is key to determining true LCM. Conclusion of market value also refers to an items current replacement cost. This cost falls between the NRV (ceiling value) and the floor value (NRV- normal profit). Inventory cost adjustments are required by accounting standards. Incorrectly reporting inventory values at higher levels is a fraudulent act (with harsher penalties under Sarbanes Ox). Inventory valued at $10 with a true value of $5 is a punishable event (FASB, 2010). When a building asset is developed, a vast amount of time is required between the start and completion of the project. Normally the cost of should include all cost to prepare the asset for its useful life of the asset or for sale. The capitalization of interest cost on a building give a guideline on the amount of interest to be capitalized and for the financial statement disclosure. The expenditures must be qualified ahead of time, activities must be in progress and the company must be paying interest. Capitalization ends when the building fully constructed and is in use. Interest is not capitalized on inventories manufactured on a repeated basis or if the building is acquired using gifts or grants under restriction by the donor or grantor. â€Å"When additional financing is incurred after construction expenditures have begun, a firm may capitalize interest on construction expenditures either using an end-of-period average interest rate that includes all financing outstanding at the end of the period (general or specific, as appropriate) or using only the finance outstanding when the construction expenditure was made. Scofield, 2004) The average capitalized rate can be computed using the weighted-average or the specific method. If you were to purchase a building after it was completed, the sales price would include all costs (plus a profit to the seller). Part of the costs in building something is the interim borrowing costs†¦ in this case, the construction loan. Adding the loan to the other costs (brick, mortar, labor) is called â€Å"capitali zing† the interest expense. This creates a higher cost basis for the building and can be â€Å"recovered† through the depreciation expense deduction (over the life of the building). The three main events in the life of an asset are the acquisition, useful life, and disposal or retirement. At the end of an asset’s life, gain or loss of its disposal is recorded. A gain or loss will take place at the disposal of any assets and should be logged as journal entry along with any related incidental cost. The unrealized gains and losses are noticed according to its earnings. All changes whether upward or downward that involves investment shares are shown as income or losses with a change in market value that requires an adjustment to its carry value. At the time disposal there can either be a gain or loss or no gain or loss. Schroeder, Clark and Cathey states that all unrealized gains and unrealized losses will be valued the same for asset valuation purposes. For trading securities, the gains and losses are noticed in those periods in which they occur; for these assets the method is consistent with other accrual accounting requirements. A consistency with the SFAC No. six definition of comprehensive income is determined because comprehensive income is determined by the changes in net assets and would include changes in the market values of assets. For trading securities, no further masking of gains against losses that occurred under the aggregate valuation approach of SFAS No. twelve is needed. Goodwill for impairment must be assessed by companies at least once per year. If an impairment of goodwill the carried amount will be lessened and there will be recognition of impairment loss. Goodwill for impairment test must be recorded as reporting units. These could be the company’s operating segments identified under SFAS 131, or a â€Å"component† of a reportable operating segment as defined in paragraph 30 of SFAS 142. (Huefner and Largay III, 2008). Goodwill is comparing each unit’s estimated fair value of the reporting unit with the unit’s fair values of its identifiable net assets. This process and the process of allocating purchase price differentials of asset acquired, goodwill and liabilities assumed is very similar. The total of the tentative assignments of goodwill to reporting units can surpass the total goodwill recorded by the total entity but when this occurs, the tentative unit assignments are reduced in some reasonable fashion to make the sum equal to the total recorded goodwill (Huefner and Largay III, 2008). Losses on impairment cannot be changed but according to Schroeder, Clark and Cathey, an impairment loss for goodwill should be reversed only if the specific external event that caused the recognition of the impairment loss reverses. A reversal of an impairment loss should be recognized as income in the income statement for assets carried at cost and treated as a revaluation increase for assets carried at revalued amount. At the end of the developing period, the annual impairment test is done on an aggregate basis, which means an increase in goodwill on some books annot offset impairments found in other units. Huefner and Largay III also states that given the potential significance of the change in the accounting treatment of a major asset, the authors expected to observe numerous large impairment write-offs due to implementing the new standard, and large increases in net income because of eliminating goodwill amortization as an expense. In conclusion assets involving current assets, long-term investments, fixed assets, and intangible assets at some point can be changed into cash. Intangible assets except goodwill can either be determinable or indeterminable useful lives. Schroeder, Clark and Cathey explain that those with determinable useful lives are written off over the period of benefit. The cost of acquiring goodwill as well as intangible assets with indeterminate useful lives, is not amortized. References Schroeder, Richard G. , Clark, Myrtle W. , and Cathey, Jack M. (2005). Financial Accounting Theory and Analysis, The Development of Accounting Theory. Financial Accounting Standards Board. 2010). Financial Accounting Standards Board home. Retrieved April 5, 2010 from, http://www. fasb. org/. Scofield, B. (1994) Full disclosure of interest capitalization decisions. The National Public Accountant. Retrieved on April 5, 2010 from http://www. allbusiness. com/accounting. Huefner, R. J. , Largay J. A. (2008). The CPA Journal. The Effect of the New Goodwill Accounting Rules on Financial Statements. Retrieved on April 5, 2010 from http://www. nysscpa. org/cpaj ournal/2004/1004/essentials/p30. htm Client Understanding Paper University of Phoenix ACC/541 Client Understanding Paper As per your request of an analysis of the following topics: Adjusting lower of cost or market inventory on valuation, Capitalizing interest on building construction, Recording gain or loss on asset disposal, and Adjusting goodwill for impairment. The Financial Accounting Standards Board (FASB) established clear guidelines addressing the items mentioned above. I will outline that FASB generally accepted accounting standards (GAAP) affect each area, and how these improvements to the company will benefit the company’s financial health (FASB, 2010). The methods of inventory valuation are different according to companies, but at the end of the day the chosen method should be consistent each year according to the general accepted accounting principles. A manufacturing company will generate inventories for finished product, raw materials and work in progress, so lowering the cost of market inventory can be very intimidating and consuming. Inventories and prepaid expenses present some additional valuation issues. With the emphasis on net income reporting, the inventory valuation process has become secondary to the matching of expired inventory costs to sales. The use of any of the acceptable inventory flow assumption techniques prescribes the amount that remains on the balance sheet, and it is likely that each of these flow assumptions will result in different inventory valuations in fluctuating market conditions. In addition, the accounting convention of conservatism requires that a lower of cost or market valuation be used for inventories (Schroeder, Clark, & Cathey, 2005). Using the first-in-first out (FIFO) or the last-in-first-out (LIFO) method is the perfect way to identify the cost of each inventory item. â€Å"A valuation method (e. g. LIFO, FIFO, average cost and specific identification) is used to compute the cost of the inventory dollar amounts and then it is compared to the market dollar amount. † LIFO is not commonly used because the last goods purchased are the first to be sold. The inventory at the beginning of the year will have the earliest goods purchased acquiring a valuation of an early price. FIFO is better used for lowering cost especially during periods of increase prices. It is also important to identify a method for valuing the items in the inventory and calculating the cost of goods sold. This can be done through the cost method, the lower of cost or market and the retail method. â€Å"A valuation method is used to compute the cost of the inventory dollar amounts and then it is compared to the market dollar amount. The lower of the two amounts must be used when recording inventory. † The cost method involves all direct and indirect costs to acquire the inventory. The cost of the products purchased consists of the invoiced purchase price minus discounts or trade with and addition of transportation, shipping additional cost incurred for attaining the product. Lower of cost or market method â€Å"determine the market value of each item on hand as of the inventory date, compare the market value with the cost of each item, and use the lower of the two as the inventory value of that item† (Hagen, 2005). The American Institute of Certified Public Accountants (AIPCA) in conjunction with the Financial Standards Accounting Board (FASB) issued ARB No. 3 that lower of    cost or market rule apply to all inventories. Lower of cost or market aspect (LCM) is also supported and defined by SFAC No. two and SFAC No. 6. The LCM rule considers the market that purchases and sells the inventory. In general, the conservatism principle applies to LCM method of accounting. Conservatism principle directs a company to choose the more â€Å"conservative† dollar amount when considering two amounts that represent inventories. This helps a Company to report accurate losses on their income statement. To determine LCM, one must also consider net realizable value (NRV). This value represents the selling price of inventories minus the fees associated with completion of sales. The NVR is key to determining true LCM. Conclusion of market value also refers to an items current replacement cost. This cost falls between the NRV (ceiling value) and the floor value (NRV- normal profit). Inventory cost adjustments are required by accounting standards. Incorrectly reporting inventory values at higher levels is a fraudulent act (with harsher penalties under Sarbanes Ox). Inventory valued at $10 with a true value of $5 is a punishable event (FASB, 2010). When a building asset is developed, a vast amount of time is required between the start and completion of the project. Normally the cost of should include all cost to prepare the asset for its useful life of the asset or for sale. The capitalization of interest cost on a building give a guideline on the amount of interest to be capitalized and for the financial statement disclosure. The expenditures must be qualified ahead of time, activities must be in progress and the company must be paying interest. Capitalization ends when the building fully constructed and is in use. Interest is not capitalized on inventories manufactured on a repeated basis or if the building is acquired using gifts or grants under restriction by the donor or grantor. â€Å"When additional financing is incurred after construction expenditures have begun, a firm may capitalize interest on construction expenditures either using an end-of-period average interest rate that includes all financing outstanding at the end of the period (general or specific, as appropriate) or using only the finance outstanding when the construction expenditure was made. Scofield, 2004) The average capitalized rate can be computed using the weighted-average or the specific method. If you were to purchase a building after it was completed, the sales price would include all costs (plus a profit to the seller). Part of the costs in building something is the interim borrowing costs†¦ in this case, the construction loan. Adding the loan to the other costs (brick, mortar, labor) is called â€Å"capitali zing† the interest expense. This creates a higher cost basis for the building and can be â€Å"recovered† through the depreciation expense deduction (over the life of the building). The three main events in the life of an asset are the acquisition, useful life, and disposal or retirement. At the end of an asset’s life, gain or loss of its disposal is recorded. A gain or loss will take place at the disposal of any assets and should be logged as journal entry along with any related incidental cost. The unrealized gains and losses are noticed according to its earnings. All changes whether upward or downward that involves investment shares are shown as income or losses with a change in market value that requires an adjustment to its carry value. At the time disposal there can either be a gain or loss or no gain or loss. Schroeder, Clark and Cathey states that all unrealized gains and unrealized losses will be valued the same for asset valuation purposes. For trading securities, the gains and losses are noticed in those periods in which they occur; for these assets the method is consistent with other accrual accounting requirements. A consistency with the SFAC No. six definition of comprehensive income is determined because comprehensive income is determined by the changes in net assets and would include changes in the market values of assets. For trading securities, no further masking of gains against losses that occurred under the aggregate valuation approach of SFAS No. twelve is needed. Goodwill for impairment must be assessed by companies at least once per year. If an impairment of goodwill the carried amount will be lessened and there will be recognition of impairment loss. Goodwill for impairment test must be recorded as reporting units. These could be the company’s operating segments identified under SFAS 131, or a â€Å"component† of a reportable operating segment as defined in paragraph 30 of SFAS 142. (Huefner and Largay III, 2008). Goodwill is comparing each unit’s estimated fair value of the reporting unit with the unit’s fair values of its identifiable net assets. This process and the process of allocating purchase price differentials of asset acquired, goodwill and liabilities assumed is very similar. The total of the tentative assignments of goodwill to reporting units can surpass the total goodwill recorded by the total entity but when this occurs, the tentative unit assignments are reduced in some reasonable fashion to make the sum equal to the total recorded goodwill (Huefner and Largay III, 2008). Losses on impairment cannot be changed but according to Schroeder, Clark and Cathey, an impairment loss for goodwill should be reversed only if the specific external event that caused the recognition of the impairment loss reverses. A reversal of an impairment loss should be recognized as income in the income statement for assets carried at cost and treated as a revaluation increase for assets carried at revalued amount. At the end of the developing period, the annual impairment test is done on an aggregate basis, which means an increase in goodwill on some books annot offset impairments found in other units. Huefner and Largay III also states that given the potential significance of the change in the accounting treatment of a major asset, the authors expected to observe numerous large impairment write-offs due to implementing the new standard, and large increases in net income because of eliminating goodwill amortization as an expense. In conclusion assets involving current assets, long-term investments, fixed assets, and intangible assets at some point can be changed into cash. Intangible assets except goodwill can either be determinable or indeterminable useful lives. Schroeder, Clark and Cathey explain that those with determinable useful lives are written off over the period of benefit. The cost of acquiring goodwill as well as intangible assets with indeterminate useful lives, is not amortized. References Schroeder, Richard G. , Clark, Myrtle W. , and Cathey, Jack M. (2005). Financial Accounting Theory and Analysis, The Development of Accounting Theory. Financial Accounting Standards Board. 2010). Financial Accounting Standards Board home. Retrieved April 5, 2010 from, http://www. fasb. org/. Scofield, B. (1994) Full disclosure of interest capitalization decisions. The National Public Accountant. Retrieved on April 5, 2010 from http://www. allbusiness. com/accounting. Huefner, R. J. , Largay J. A. (2008). The CPA Journal. The Effect of the New Goodwill Accounting Rules on Financial Statements. Retrieved on April 5, 2010 from http://www. nysscpa. org/cpaj ournal/2004/1004/essentials/p30. htm

Develop a Speech Impediment - Free Essay Example

Sample details Pages: 1 Words: 360 Downloads: 10 Date added: 2017/09/24 Category Advertising Essay Type Argumentative essay Tags: Childhood Essay Did you like this example? I am one of many people who are unfortunate enough to develop a speech impediment in childhood. This article describes why these impediments may occur and how I went about achieving fluency. For the purpose of this article, I concentrate on the speech impediment known as stuttering. There are many reasons why people may develop a stutter, it can be as a result of bullying from school, an over aggressive member of the family, a shock reaction to an event such as a car crash, or it could be passed down from another member of the family who has a stutter. I have met many people who stutter as I now help people to achieve fluency as a career. I always ask them to talk about how and why their stutter started. The reasons above are the type of answers I receive. Stuttering normally originates in childhood and nine out of ten people who stutter are men. Around 1% of the population has a stutter according to recent reports. I have now managed to beat my stutter which had basically ruined my life for eighteen years. When I had a stutter, I found it difficult to say certain words beginning with certain letters. I would always avoid these words or I would think of an alternative word to say. Aged twenty-two I decided it was time to try to overcome my communication problems. I started to observe what I called very good fluent talkers, I was watching and trying to work out how they were talking and breathing. I also tried to find differences between their speech and my own. I also started to read books about things like, positive thinking and mind over matter as I also realised I needed to change the way I was thinking. After nearly a year of working and practicing very hard, I managed to overcome my stutter, much to my relief. As a career I now help other people to achieve fluency by running one to one speech courses from my home in Birmingham. A also offer a self help ebook and seventy minute dvd for people who are unable to attend the courses. Don’t waste time! Our writers will create an original "Develop a Speech Impediment" essay for you Create order