Tension Between IFRS And Earning Management Assignment - 1100 Words

Tension Between IFRS And Earning Management Assignment (Essay Sample) Content: Name:Reg Number:Course Code:Date:Explain the tensions between IFRS Earning managementIntroductionInternational Financial Reporting Standards (IFRS) refers to the set of standards which states how certain transactions are supposed to be reported in financial statements. These standards are based upon principles rather than hard set rules, which is in contrast to the U.S, GAAP, and rules-based accounting standard. As a result of this difference, IFRS enables management to adopt the discretion and flexibility when compiling an organizations financials.On the other hand is the use is the application of accounting techniques for purposes of producing final reports that offer an overly positive view of an organizations and financial activities and financial position. Many accounting rules and principles require company management to make judgments. Earnings management often takes advantage of how accounting rules are adopted and creates financial statements that inflate ea rnings, total assets as well as revenue.Organizations adopt earning management to smooth out fluctuations in earning and present more consistent profits each month or annually. Massive fluctuations in expenses and income are a normal part of organization operations, but changes may signal the investors who prefer to get credibility and growth. American Accounting professor Howard Schlieter (2009) said Earnings Management to investors is very dangerous, because you create a man-made phenomenon. Figures should reflect the company's actual situation.While there are many benefits of incorporation, including protecting your assets and saving money, one of the most important reasons to incorporate is for the favorable tax results. However, there exist tensions of the application of IFRS designed to improve financial reporting quality and earnings management designed to avoid corporation tax liabilities, which arose tension as a result of their implementation.CSR is the positive steps a c ompany adopts in the way it operates, to give benefits to the community, and ways in which it can return to the community from which it has taken to get itself established. Mr. Doug Miller (1999) conducted an experimental survey on CSR. Results indicated that consumers wanted higher social and environmental goal. CSR is currently used globally as a tool to measure and compare the firm's performances economically, socially and environmentally. This enables an organization to build a sustainable business that benefits the market and communities. It does this by capitalizing on the benefits offered to the local people like giving them employment and caring for their health especially for those who live near the company. It cares for the community and the people.One of the tensions of IFRS is that it is prone to manipulation. An organization can only apply the methods that they like; this would lead to financial statements show only desired results, which then can result in profit manip ulation. While this new set of standards needs changes to how the rules should be applied to be justifiable, it is always possible for businesses to develop with reasons for making these changes. This implies that stricter rules should be implemented to ensure all organizations will value their statements in a similar fashion.The second tension associated with IFRS is that it is not accepted and applied internationally. The fact is that, the US has not yet fully adopted the IFRS, so as other countries that opt to continue holding out as well. This implies that accounting by foreign companies operating in these countries are experiencing challenges because they have to prepare financial statements using such a set of standards and another set of principles that is generally accepted in these countriesAnother tension is that it leads to changes of tax legislation. The use of IFRS leads to a taxation of unrealized income generated by companies hence affecting their liquidity. It will n ot be easy to control for tax purpose since the fair value accounting is very subjective. The standards also are difficult as a result of its complexity in implementation and the high number of judgments.Also IFRS results in uneven implementation. In situations where the local and economic factors exert pressure on the local financial reporting standards, the implementation will curtail the ability of the IFRS to information costs and risks since these ...

Noah and The Bible - Literature Essay Samples

The Bible builds its literary foundations upon the themes of Knowledge and Sin, two topoi that are reflected again and again in various parables, allegories, and tales found within this sacred text. Genesis 9:20-27 exemplifies the synthesis of these ideas, the relatively short tale of Noah ¹s drunkenness revealing a profound exploration of the underpinning Biblical themes. And yet while being a perfectly self-contained passage, the story of Noah incorporates other parts of Genesis within its ideological framework, creating a multi-leveled structure that is both autonomous of and indebted to its greater context.Both the structure of the passage and its concepts explore the Biblical theme of knowledge, making Noah ¹s story a literal meditation on the idea, within a humanistic setting. The distinction of Noah being a  ³man of the soil ² is important within this context, because Adam and Eve dealt with the theme of Knowledge as well, but within a more supernatural, Godly envir onment (9:20). Thus the story of Noah is meant not as an etiological tale, but more as a morally-based allegory meant to render the concept of Knowledge more intimately understandable to the average person of faith. Noah ¹s drunkenness from his wine leads to him laying  ³uncovered in his tent, ² a state of being that recalls Edenic associations with nakedness and Knowledge, reaffirming the connection between this passage and its place in Genesis (9:22). The climax of the scene comes when Ham  ³[sees] the nakedness of his father, and [tells] his two brothers outside ² (9:23). This moment, the second that Ham gains the knowledge of his father ¹s naked figure, is pivotal in understanding the meaning of this passage. It illustrates not only the greater concept of Knowledge, but also outlines societal rules and norms regarding the interaction between father and son. The word  ³saw ² in the passage alone carries many levels of meaning, its usage an intrinsic allusi on to when Adam and Eve ate from the tree of Knowledge and saw each other ¹s nakedness for the first time. Thus this word, and its application, reveal to us that nakedness is a shameful thing, and thus Ham ¹s knowledge of his father ¹s nakedness is, in fact, a horrible thing, for the relationship between father and son should be one of respect, not of shame.The actions of Shem and Japheth also tells us that this event is shameful‹to dress their father, they  ³[take] a garment, la[y] it on both their shoulders, and [walk] backward and [cover] the nakedness of their father; their faces [are] turned away, and they [do] not see their father ¹s nakedness ² (9:23). This blatant avoidance of the knowledge of nakedness illustrates to the reader how one should act in such a situation, for Noah ¹s ultimate reaction to his sons reveals the merit of Shem and Japheth ¹s actions‹Noah blesses them with good fortune, while Canaan, the son of Ham, is cursed to slavery. Thi s punishment of the son reflects the generational tendencies of The Bible, and reveals once again the relation to Adam and Eve, and the cursed nature of their offspring, namely humanity.Sin is also a hugely important aspect of this passage, incorporated into the theme of Knowledge yet independent from it, in that sin is a later addition to Genesis in terms of thematic vocabulary. The idea of sin is a Christian element of the Bible, yet one cannot read it as a piece of literature without understanding the echoes of its fundamental effect upon its literary interpretation. Such word usage as  ³cursed, ² enforces the mental association with sin, as our cultural lexicon has created an undeniable like between those two ideas (9:25). The passage as a whole illustrates in a relatively simple way the sin of indulgence, as Noah ¹s drunkenness creates terrible consequences, and Ham ¹s knowledge forever wrecks his offspring. This allegorical passage is meant to both instruct and war n the reader, as many levels of sin are exposed. The selection works around the juxtapositions of images and words, as the voyeurism of Ham is offset by the exaggerated unseeing actions of Shem and Japheth, and the curse laid on Canaan is juxtaposed by the blessings given to his uncles. These independent sections of the passage work together to create a powerful tale of human behavior, one that is linked together with the Creation story, but provides more moralization than explanation.Thus both knowledge and sin are invoked as thematic directives behind this seemingly simple passage of Genesis, resulting in a deeply probing allegory of human society and family. The tale of Adam and Eve is referenced many times within the selection, from the description of Noah as  ³a man of the soil, ² to the more obvious allusions with the issue of nakedness (9:20). Thus this small passage is extremely significant to the Bible as a whole, tackling social custom and repeating biblical motifs to reveal a depth of meaning that parallels that of any other  ³known ² passage of the Bible.