Historical Cost and Fair Value - 1733 Words

Abstract This paper is written for the accounting theory course as a course project. This paper discusses the differences between the historical cost accounting approach and the fair value accounting approach. The discussion will focus on the debate on using which accounting approach. We begin by stating the definitions of both concepts and discussing them thoroughly, then we state the main advantages of the two approaches followed by comparison between them. The last section of this paper discusses the disadvantages of each approach, including the main criticism points against them. In the end, we draw a conclusion on the best approach to be used in the Accounting profession based on the previous discussion. Introduction†¦show more content†¦When fair values are estimated using unadjusted or adjusted market prices, they are referred to as mark-to-market values. If market prices for the same or similar positions are not available, then firms must estimate fair values using valuation models. FAS 157 generally requires these models to be applied using observable market inputs (such as interest rates and yield curves that are observable at commonly quoted intervals) when they are available and unobservable firm-supplied inputs (such as expected cash flows developed using the firm’s own data) otherwise. When fair values are estimated using valuation models, they are referred to as mark-to-model values. Advantages of Historical Cost Supporters of Historical Cost Accounting argue that this method has several advantages that make it popular. Some advantages are discussed below. * Historical cost is based on actual, not merely possible, transactions. It is the acquisition price of the assets. The managers only have to record all the assets and liabilities at their acquisition price. Hence they are measured and reported objectively. Historical cost is therefore basically verifiable. Thus, this minimizes the risk of manipulation of figures by the managers. * Historical cost has survived the test of time. Most users of accounting data believe that accounting income is useful and that it constitutes a determinant of the practices and thought patterns of decision makers. * Historical cost is an easierShow MoreRelatedHistorical Cost vs. Fair Value695 Words   |  3 Pagesuseful to investors, creditors and others in making rational economic decisions. One accounting issue that has been debated on a lot is the historical cost method versus the fair value measurement. The historical cost method has been the basis of GAAP accounting for the past decade but has slowly been disappearing. Today it is starting to be replaced by the fair value method of accounting. When choosing a valuation method, it seems that there is a tradeoff between the two fundamental qualities of accountingRead MoreFair Value And Historical Cost Controversy2400 Words   |  10 PagesFair Value versus Historical Cost Controversy Over the past several years, there has been a growing controversy over the accounting issues of fair values and historical cost. The basis of this controversy revolves around which one of these principles is the most accurate. There are many different viewpoints on this issue. Many accounting professionals believe that fair value is just as accurate as the historical cost principle, while others believe that the historical cost is more reliable. TheRead MoreFair Value vs. Historical Cost Accounting1188 Words   |  5 PagesDifference between historical cost and fair value accounting In order to make the most profitable and rational decisions entity’s stakeholders have to evaluate organisation’s financial statements. Today’s world of rapidly changing prices has made it difficult to estimate what something is actually worth. Thus leading to debates at what price – historical costing price or market value – assets and liabilities should be reported. Therefore, before making any evaluations about reported transactionsRead MoreComparative Analysis Of Fair Value And Historical Cost Accounting On Reported Profit1659 Words   |  7 PagesTitle: Comparative Analysis Of Fair Value And Historical Cost Accounting On Reported Profit: A Study Of Selected Manufacturing Companies In Nigeria. (BESSONG, 2012) Study the importance of historical value and fair value cost accounting on reported profit. The study discussed how fair value accounting and historical cost accounting will have effect on the reported profit. However it is said that key objective of any business is to earn profit and it is also equally important to report the profitRead MoreThe principle of historical cost is still used in accounting when there is a large measure of agreement that it is inappropriate. Discuss.1226 Words   |  5 PagesSynopsis. Historical Cost Accounting is a traditional valuation method as it reflects only on the past cost of the asset, however in the contemporary business environment companies must remain flexible and transparent. This belief has lead to the creation of several other valuation methods, due to word constraints I have focused primarily on Fair Value Accounting as an alternative to Historical Cost Accounting. Although Fair value accounting is a theoretically superior valuation methodology, thereRead MoreAdvance Issues In Accounting1743 Words   |  7 Pagesi.e. historical costs based on the measurement of assets and liabilities at purchase price /costs which is incurred at the moment of the purchase, and the fair value measurement method which is based on market prices. The basis of accounting measurement is considered to be undertaken in the following methods: †¢ Historical Cost †¢ Fair Value †¢ Realisable value †¢ Value in use †¢ Current Cost All the above measurement bases forms the part of accrual accounting. It is measured when the cost is incurredRead MoreThe Impact Of Fair Value Accounting On Real Estate Companies1497 Words   |  6 PagesTHE INFLUENCE OF FAIR VALUE ACCOUNTING ON REAL ESTATE COMPANIES : BASED ON HONG KONG LISTED COMPANIES (PROPOSAL) BY ZHANG MUDI DEBBIE 12250511 ACCOUNTING CONCENTRATION GAO JIAYI CINDY 12250295 ACCOUNTING CONCENTRATION An Honours Degree Project Submitted to the School of Business in Partial Fulfillment of the Graduation Requirement for the Degree of Bachelor of Business Administration (Honours) Hong Kong Baptist University Hong Kong January 2016 Table of Content Read MoreThe Impact Of Fair Value On Financial Reporting Essay1529 Words   |  7 Pagestoday’s time in the world of accounting is fair value. However, one common point of confusion is the scale of businesses affected by fair value, and when fair value came onto the scene. According to Robert Herz and Linda MacDonald â€Å"...the use of fair value in financial reporting is not new. In fact, it has been in place for decades, principally for financial assets. But even then, fair value is not required for all assets.† (2008) The idea of using fair value measurements goes back at least to the 1930’sRead MoreAccounting Theory 41063 Words   |  5 PagesFair value or false accounting 1. How are assets and liabilities measured under IAS 39? Answer: According to IAS 39, Financial Instruments: Recognition and Measurement, financial instrument are to be stated at their ‘fair value’- defined as ‘the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction’. ‘If the market for a financial instrument is not active, an entity establishes a fair valueRead MoreAccounting Treatment Adopted By The Elements Of The Financial Statement Influences Accounting Information Produced Essay1669 Words   |  7 Pagesfinancial report, particularly the use of mixed measurement methods that involving historical cost and fair value model. This report evaluates the choice to use single measurement type or mixed measurement method by discussing the strengths and drawbacks based on prior studies. Furthermore, this report gives highlights of the impacts of fair value in the financial institution. Keywords: Measurement, Fair Value, Historical Cost Introduction Purpose. The objective of this report is responding to a recently

Criminal Acts and Choice Theories Free Essays

Criminal Acts and Choice Theories CJA/204 December 13, 2011 Bob Bennett The choice theory has a substantial part to perform when contemplating the argumentation proceeding to criminal vivacity. The choice theory has its intrinsic significance while composing a plan of action for managing or decreasing crime. It is essential to recognize the theory and in what way or manner it influences the potential of an individual engaging in lawlessness and in what manner would an effort to manage crime appear supporting the choice theory. We will write a custom essay sample on Criminal Acts and Choice Theories or any similar topic only for you Order Now The choice theory has been brought to light from the compositions of antecedent theorists, Jeremy Bentham, and Cesare Beccaria. The affects of the choice theory determines how mankind discourages criminal activity (Schmallager, 2009). Within criminology the choice theory is also distinguished as the classical theory. The principle idea of the classical theory is that individuals cull behavior with the addition of criminal conduct. Individual powers of selection can be managed by multiple determinants such as the apprehension of castigation or the benefits achieved by committing a crime or illegal activities, which indicates that the more harsh, definite, and prompt the punishment, the better the chances to manage criminal conduct. The choice theory mentions that castigation should maintain four predominant ambitions. The first ambition is to use punishment to hamper criminal activity from occurring. A secondary principle maintains that when a crime cannot be hindered, the punishment should impel the offender to perpetrate a minor crime instead. The third ambition is to make certain that the offender applies no more violence than needed during a crime. The final objective is to counter crime as economically feasible. Rational choice is the judgment to perform a distinct kind of lawlessness or illegal activity established on the careful consideration of accessible information, combined with the element of personal judgment. The ational choice theory contains an outlook of crime that continues to be both offense and offender explicit. Offense-explicit lawlessness relates to crimes, where perpetrators will respond to selective attributes of specific offenses. Offender-explicit offenses relate to the reality that perpetrators are not easily provoked individuals who obligate him or her selves to antisocial behavior. Rather, he or she deliberate about whether they retain the prerequisi tes required for performing a lawless act that include their needs, ingenuity, talents, and apprehension level before determining to act out a crime. Choice theorists believe that criminal conduct is a personality characteristic and crime is a happening or event. Offenders recognize the freedom of mobility and privation of social restrictions. In contrast to other individuals, offender-explicit individuals have diminished self-control and seen unaffected by the intimidation of social controls. He or she is usually dealing with stress or is commonly confronted with severe personal complications or circumstances that drive them to adopt perilous behavior (Schmallager, 2009). Choice theorists have also examined the choice to perform a lawless act, regardless of its element, is contrived by the choice of location. The determination will rely upon the features of the mark and the methods available to execute the plan. It has been determined that offenders choose the location by the accessibility and ease of committing a crime with thoughts about the possibility of getting caught. Offenders pick their targets by pondering the character of the crime. A perfect example of this is how offenders will choose higher class households for burglaries or robberies, whereas he or she will select lower class households for the target of violent crimes such as in drug robberies from drug houses. Criminals learn the techniques of crimes to aid them in non-detection (Schmallager, 2009). Routine activities can be defined by the choice theory when discussing crime. Crimes rates correlate to the number of inspired criminals such as male teenagers, drug consumers, and unemployed individuals who partake in criminal activity. Most offenders commit crimes based on his or her narrow education, background, and lack of opportunities because of their education. If offenders were given the opportunities to improve themselves, he or she would not commit crimes. The rational choice theory includes the organization of crime and the molding of criminality (Schmallager, 2009). Society uses a couple of common models to decide which acts are determined to be criminal acts. The two models within the criminal justice system are consensus model and conflict model. Consensus model is defined as majority of individuals in a society who share the same values and beliefs. Criminal acts conflict with consensus values and beliefs, and here the term ‘conflict model’ comes into play. The consensus model explains that individuals within a society will agree on which activities should be considered against the law and will publish them as crimes. The consensus model assumes that a diverse group of individuals can have similar morals and beliefs. The consensus model presumes that when individuals stand together to form a society; the members will come to a fundamental agreement with the observance of shared norms, values, and beliefs. Individuals whose actions deviate from the standard norms and recognized values, and beliefs are considered to be a threat to the well-being of society, and must be punished. Societies pass laws to control and impede deviant behavior, which in return establishes boundaries for appropriate behavior within the society (Schmallager, 2009). The conflict model establishes those who reject consensus on the foundation that morals, norms, ideas, values, or behaviors are not absolute, meaning, multiple parts of society hold different ideas about value and norm systems. The conflict model carries diverse segments, which are separated into age, social class, race, and income. Those who engage in the idea of the conflict model are in a constantly struggling with one another for control of society. Those who successfully grasp control make the laws with his or her value system, and determine what is criminal and what is not (Schmallager, 2009). Resources; Schmallager, F. (2009). Criminal Justice Today, 10th ed. Upper Saddle River, N. J. Pearson/Prentice Hall How to cite Criminal Acts and Choice Theories, Papers

Luis Fernando Sobrino Chile Essays - Disability,

Luis Fernando Sobrino: Chile Are there any laws with provisions and inclusive education? law of social integration of people with disabilities- Law number 19.284, also the law 20,422 notes that the State has an obligation to promote the Inclusion of Persons with Disabilities. What is the estimation of children with a disability in your country? 300, 000 An estimation says that there are 330,000 children in Chile that have a disability, there are no public schools where they can assist to, of that estimation only 50,000 have a special education program. What could your country do to increase the number of children that doesn't go to school because of their disease? http://portales.mineduc.cl/usuarios/edu.especial/doc/201304151207310.doc_Inclusion_Unicef.pdf What is the rate of people with one or more disabilities in your country? 2.119.316 person s, an equivalent of 12,7 percent of the country Which are the regions with most cases of disabilities in your country? ysen (14.538 habitantes), Magallanes (18.710 habitantes) y Arica y Parinacota (27.415 habitantes). http://www.senadis.gob.cl/sala_prensa/d/noticias/2990/censo-2012-en-discapacidad-revela-que-las-personas-con-discapacidad-son-el-principal-grupo-vulnerable-en-chile Are there any helping programs in your country that gives children a proper education? Example : Yes, the PAED Programa de Apoyo a Estudiantes en Situacion de Discapacidad at the university of Chile Does your country count with specialized cars for people with disability? An if you have do you need a license? Yes they have laws 19.284, also the law 20,422 that approve that people with a disability (they have to pass an exam of consciousness first) can drive a car. They don't need license. http://www.paritarios.cl/actualidad_discapacitados_vehiculos.htm

buy custom Types of Treatment for Sex Offenders essay

buy custom Types of Treatment for Sex Offenders essay Wright (2009) defines a sex offender as an individual who has committed a crime of forcing sex acts on children or adults. The criminal justice system ensures incarceration of sex offenders as a way of eliminating them from the society until they undergo a positive behavior change. Sex offenders can undergo treatment while they are serving their prison terms, which can make them socially acceptable in the society upon completing their prison terms. The most common kinds of treatment include medical treatment, behavioral treatment, and cognitive therapy. Medical treatment of sex offenders reduces the level of testosterone in men with an aim of reducing an individuals sexual drive (Wright, 2009). Numerous medications including Depo-Provera can achieve medical treatment. Medical treatment is the most effective technique of reducing recidivism. However, medications cause harmful side effects upon their application. Behavioral treatment involves the application of punishment and rewards to influence the behavior of a sex offender in a positive manner. Penile plethysmograph is an instrument that shows the sexual behavior of an individual. This instrument can determine whether an individual possess pedophilic behaviors. Cognitive therapy involves the change of a sex offenders basic perceptions that surround relationships, sex, and incidents that resulted in the sex crimes. Intensive group and individual therapy achieve cognitive treatment of sex offenders. However, there are some obstacles to the treatment of sex offenders. Among the obstacles is the insufficiency of qualified rehabilitation personnel and funds for the rehabilitation of sex offenders within the Criminal Justice System. Politically, a government may be unwilling to appropriate finances for treatment programs. The current legislation may not be an effective method of treatment due to insufficient funds (Wright, 2009). In spite of the obstacles, medical treatment effectively reduces recidivism rates. Therefore, medical treatment, especially the use of Depo-Provera, is the solution to sex offenses. Buy custom Types of Treatment for Sex Offenders essay

These Part Time Jobs Can Earn You $75k a Year

These Part Time Jobs Can Earn You $75k a Year You want a high-paying gig, but without being tied down by a set schedule or a single job. Trouble is, you always thought part-time jobs paid little. Well, you thought wrong. The gig economy is out there, waiting for you. And the best news is: you don’t have to wait to have a college degree to get started raking in the dough. Here are several high-paying part-time jobs that could help you generate a fabulous annual salary when combined. 1. Social Media AssistantPut your Facebook skills to work helping companies manage their online profiles and marketing. You can get paid up to $30 an hour to work part time rocking a company’s social media presence.2. Online ResearchMake up to $37 per hour answering questions for business professionals and helping them solve customer service issues or other complicated matters. If you’re good with research and have a head for business, this is a great opportunity for you.3. Content EditingHave impeccable grammar? Get paid up to $4 0 an hour editing web content or printed materials for companies. If you’re good with turning deadlines around and have great spelling, you’re golden.4. Software EngineerIf you have killer experience in software, you don’t have to work full-time to be a software engineer. Get paid up to $73 an hour to work part time, as you prefer.5. Jazz TeacherSo you studied jazz, but you’re not sure you want to try and hack it as a professional musician. Teach instead! You can get paid anywhere from $50-80 per hour teaching jazz music to children and adults.6. TranslatorIf you’re fast and fluent in another language, you can work in print or in person translating for hospitals, courtrooms, law firms, manufacturing firms, you name it. And you can make from $20-50 per hour.7. Private TutorKids are more and more obsessed with test scores- or maybe their parents are? Either way, help a kid (or an adult!) learn whatever subject you’re most expert in. Depending on where you live, you can earn anywhere from  $40-$80 per hour and pull in a high  annual wage!8. Yoga InstructorSo you’ll have to shell out for the initial teacher training, but then you can make about $35k per year teaching yoga- and staying fit in the process.9. Adjunct TeachingIf you do have a degree and are inclined to teach, you might want to try adjuncting at universities- even community colleges or online schools. The pay varies wildly depending on what you teach and how good you are, but you won’t make less than $31k per year and you could make as much as six figures.10. Uber/LyftDrive for a ride share company. The amount you make will vary depending on the demand where you live and how many hours you’re willing to drive. But you can really hustle and rake it in. Plus, you only drive when you want to.

Compare Essay Example | Topics and Well Written Essays - 250 words - 5

Compare - Essay Example In the US, students are allowed to be active participants rather than passive ones. They are allowed to question the teacher and are more involved in group discussions. On the other hand, education in UAE revolves around the teacher and the educational institutes. In such universities students are expected to follow a conformist style of education where they are expected to belief that what they are being taught is accurate and enough for them. Furthermore, there is even a major difference in the teaching methods of both the educational arenas. In the United States students are involved more in application based learning, while in the UAE students are expected to focus on the books and application is given no or very less importance. Furthermore, the people studying in the educational institutes of US experience a diverse range of students who belong to both eastern and western cultures, while students of UAE educational institutes mostly belong to Eastern regions. Bahgat, Gawdat. "Education in the Gulf Monarchies: Retrospect and Prospect." International Review of Education/internationale Zeitschrift Fuer Erziehungswissenschaft/revue Internationale De Leducation. 45.2 (1999): 127-36.

Module 7 Essay Example | Topics and Well Written Essays - 750 words - 3

Module 7 - Essay Example The merger is an investment made by Alaska since it acquires another company, Estoya. Therefore, taking Estoya as an asset, the return on investment (ROI) based on the proposed purchase price (1 billion) and the annual cash flows (500million) would be (500,000,000/ 1,000,000,000) = 50% (Braff, 2013). The merger situation involves a required rate of return by the investors and a prospective growth in the future cash flows generated by the targeted company (Estoya Inc.). The information on cash flow, growth rate and the required rate of return is to be used to determine the market value of the targeted firm. Thereafter, it will be simple to decide whether the suggested purchase price of 1 billion new sols is higher or lower than the estimated market value of the targeted firm. The targeted company’s EBIT multiple is determined by dividing the purchase price by the annual cash inflows (1,000,000,000/500,000,000) = 2. The determined multiple (2), is interpreted to mean that Alaska Corporation should pay 2 new sol per 1 new sol of the Estoya’s cash flow. As a result, Alaska corporation should pay a total of (2*500,000,000) = 1,000,000,000 new sol. Since the targeted company’s rate of return is above Alaska’s required rate of return, the merger should be se ttled at 1 billion new sols. That is, Alaska Inc. should pay 1 billion new sols for Estoya Corporation. Based on the estimated value of the targeted company, the maximum price to be paid by Alaska Inc. should be 1 billion new sol (University of Virginia, n.d.). The cash flow generated from the investment is 7 million Yuan annually. The two mentioned country risks, influences the project as follows: the 30% chance that the Chinese government will require the cash flows earned by Kansas Company at the end of one year be reinvested in China for one year before it can be remitted influences the cash flow considered for the