Biography of Karl Marx Essay -- biographies Biography Karl Marx Essays

Biography of Karl Marx Few names evoke as strong a response as Karl Marx. Some consider him a genius and a prophet, while others see only evil in his ideas. Everyone agrees that Marx stands among the social thinkers with the greatest impact on the world's people. There are many people who pass into and out of our lives. It is those great people that are remembered forever. One great person is Karl Marx. He is an extraordinary person that has changed and shaped the way of the future. Marx had many great experiences and achievements throughout his lifetime for which he is remembered. On May 5, 1818, Karl Marx was born to father, Heinrich Marx, and his wife, Henriette. Karl was born in Trier, Prussia, where he lived throughout his childhood. His father was a lawyer and his family lived among the â€Å"petty-bourgeoisie.† 1 The bourgeoisie at this point in time was considered the middle class in society. The Marx family was Jewish, but later converted to Protestantism in 1824. In October of 1830, Marx enrolled at the Trier Gymnasium. At Trier Gymnasium Marx obtained his high school education. Following graduation from Trier, he decided to continue his education and go on to attend Bonn University as a law student in October of 1835. Here, Marx studied for only several months, and then enrolled at Berlin University in October of 1836. At Berlin University he also studied law, but majored in history and philosophy. While attending Bonn University, Marx decides to propose to Jenny Von Westphalen in the summer of 1836. Jenny Von Westphalen was Marx's love of his life. The two of them had played and grown up together throughout their childhood. According to Eleanor Marx, â€Å"Karl wai... ...in Neue Zeit 1897 <http://www.marxists.org/archive/marx/bio/marx/eleanor.htm> (29 October 2001) 3. Marx 4. Lenin 5. Thomas, Paul, â€Å"Nature and Artifice in Marx,† History of Political Thought [Great Britain], 1998. 485-503 (29 October 2001) 6. Thomas 7. Thomas 8. Engels, Frederick, "Karl Marx," in Die Gartenlaube 1868 <http://www.marxists.org/archive/marx/bio/marx/eng-1869.htm> (29 October 2001) 9. Lenin 10. Lenin 11. Unknown, "Draft of a Speech at the Graveside of Karl Marx," in La Justice 1883 <http://www.marxists.org/archive/marx/works/1883deat/justice.htm> (29 October 2001) Links: www.philosophypages.com/ph/marx.htm http://www.maoism.org/marx/marx_idx.htm www.stud.unisg.ch/~ajaritz/marx/marxh.htm www.lucidcafe.com/library/96may/marx.htm www.xs4all.nl/~aboiten/marx.html

Aunt Jennifers Tigers by Adrienne Rich Essay -- Aunt Jennifers Tiger

Aunt Jennifer's Tigers by Adrienne Rich Who is Aunt Jennifer? Does she even exist? I had to ask myself these questions before even going further into the poem. The answers opened the door to a deeper meaning behind Aunt Jennifer's Tigers. Based on Adrienne Rich's background I believe Aunt Jennifer did exist. However, Aunt Jennifer was not Rich's aunt. Aunt Jennifer represented women all over the world, particularly women in American, who were caught under the oppressive hand of a patriarchal society. Adrienne Rich was perhaps one of those women. Rich, one of the most influential poets of her time, dealt with controversial issues such as sexuality, race, language, power, and women's culture. Her passion in this area forced her to look and challenge the standard and the norm. The popular clichà © that refers to marriage as that old "ball and chain" takes on a more serious meaning with Rich as she reveals, through the simple lines of Aunt Jennifer's Tigers, a woman's struggles with expression, rebellion, and a society where power is defined as masculine. Aunt Jennifer's Tigers by Adrienne Rich Aunt Jennifer's Tigers prance across a screen, Bright topaz denizens of a world of green. They do not fear the men beneath the tree; They pace in sleek chivalric certainty. Aunt Jennifer's fingers fluttering through her wool Find even the ivory needle hard to pull. The massive weight of Uncle's wedding band Sit's heavily upon Aunt Jennifer's hand. When Aunt Jennifer is dead, her terrified hands will lie Still ringed with ordeals she was mastered by. The tigers in the panel that she made Will go on prancing, proud and unafraid. Rich begins her poem with a beautiful picture, setting the scene for the dream wo... ...it through masculine images. Those images were all she had ever known. Aunt Jennifer never got to see women standing strong and proud because they were simply women. She missed out on watching women become astronauts, businesswomen, artists, and policemen. The reason her needlepoint went "on prancing and proud and unafraid" was because the needlepoint represented all things masculine and therefore, had nothing to fear. In the end, Adrienne Rich showed that Aunt Jennifer represented every woman of her time. Ironically enough, she rebels using the oppressor's own language to feel a sense of triumph. Overwhelmed by gender roles, unable to communicate firsthand how they really felt, and torn between rebellion, expression, and society, Aunt Jennifer represses her fears and desires into the exotic tigers which go on living even after the weight of her world buries her.

The Impact of Race, Geographic Location, and Time on the Prevalence of Diabetes :: Descriptive Epidemiology Project, Diabetes

1. What is the outcome of interest? The outcome of interest for my epidemiology project is the prevalence of diabetes in a national population (United States), and how factors such as race, geographic location, and time, have an impact on the outcome. 2. Briefly define and describe your outcome. You may want to do a bit of research on some of the characteristics of your outcome. For example, what is diabetes? Or, how do we define cases of HIV, and what are some of the health implications? Diabetes is a disease in which blood sugar (or glucose) levels are above what they should be in a normal person. Through various biological processes, our body turns carbohydrates into glucose, or sugar, for our body to then use as energy. The pancreas, an organ that lies near the stomach, makes a hormone called insulin to help glucose get into the cells of our bodies. With diabetes, your body either doesn’t make enough insulin or can’t use its own insulin as well as it should. This causes sugar to build up in your blood (Basics about Diabetes, 2012). While there are three different types of diabetes (diabetes type 1, diabetes type 2, and gestational diabetes) men and women can develop diabetes at any age. Type 1 diabetes, which used to be called juvenile diabetes, usually develops in young people; but, type 1 diabetes can also develop in adults. In type 1 diabetes, your body no longer makes insulin or enough insulin because the body’s immune system, and other harmful substances, attacked and destroyed the cells that make insulin (Basics about Diabetes, 2012). Type 2 diabetes, which used to be called â€Å"adult-onset diabetes†, can affect people at any age, even children. However, type 2 diabetes develops most often in middle-aged and older people. People who are overweight and inactive are also more likely to develop it. In type 2 diabetes, fat, muscle, and liver cells do not use insulin to carry glucose into the body’s cells to use for energy—a term denoted as insulin resistance. While the pancreas initially keeps up with the added demand by making more insulin, over time, the pancreas doesn’t make enough insulin when blood sugar levels increase (Diabetes Fact Sheet, 2011).Gestational diabetes can develop when a woman is pregnant. Pregnant women make hormones that can lead to insulin resistance. All women have insulin resistance late in their pregnancy. If the pancreas doesn’t make enough insulin during pregnancy, a woman develops gestational diabetes.

Financial Performance Analysis

ABSTRACT Financial Performance: A subjective measure of how well a firm can use assets from its primary mode of business and generate revenues. This term is also used as a general measure of a firm's overall financial health over a given period of time, and can be used to compare similar firms across the same industry or to compare  industries or sectors in aggregation. Methods of Financial perfomance Analysis: Ratio Analysis: This is the method in which the ratio between two or more variables related to the business is compared. There are many ratios used to analyze financial statements: Liquidity Analysis Ratio: For example, the net working capital ratio is calculated between net working capital and total assets. †¢ Profitability Analysis Ratio: For example, return on assets ratio is calculated between net income and average total assets. Profit margin ratio is calculated between net income and sales. Earning per share is calculated between net income and number of outstandi ng shares. †¢ Activity Analysis Ratio: For example, asset turnover ratio is calculated between sales and average total assets. Inventory turnover ratio is calculated between cost of goods sold and average inventories. Capital Structure Analysis Ratio: The most important ratio is debt to equity ratio, which is calculated between total liabilities and total stockholder's equity. †¢ Capital Market Analysis Ratio: For example, dividend ratio is calculated between annual dividends per common share and market price of common stock per share. All these ratios are collectively used to carry out the financial analysis of business to assess growth, profitability, and solvency of a business. Remember that ratio analysis is as important as horizontal and vertical analysis and must not be overlooked.

Globalization and Its Impact Essay

Globalization has a major impact on the management of human resources in developing countries like India. The roles and responsibilities of Human Resource Departments are transforming as the modern business faces pressures of globalization. With accelerating globalization, organizations have had to change and new trends have set in even in the management of human resources. Globalization has forced organizations and their human resources to redefine their strategies. It is necessary for the management to invest considerable time and amount, to learn the changing scenario of the Human Resource Department in the 21st century. Now organizations need to place greater emphasis on attracting human capital rather than financial capital. In order to survive the competition and be in the race, HR Department should continuously update itself with the transformation in HR. Suitable HR Policies that would lead to the achievement of the organization as well as the individual’s goals should be formulated. The prime objective of the paper is to identify issues related with Globalization and its impact on Human Resource Development. The paper focuses on a number of outcomes of globalization, which promotes human resource development. It also states about several factors that inhibit the human resource development. Finally, the paper provides few strategy recommendations to develop human resources of developing countries in a changed situation of political economy of trade liberalization. Several articles of the renowned thinkers and practitioners are consulted to get a clear concept of the topic in respect to objectives mentioned above. Besides, different other publications were also consulted to make the paper informative and objective oriented. Keywords: Globalization, Human Resource Development, Management of Human Resources, HR Challenges, HR Policies ; Strategies. INTRODUCTION: Globalization is the closer integration of the countries and peoples of the world brought about by the enormous reduction of costs of transportation and communication, and the braking down of artificial barriers to the flows of goods, services, capital, knowledge, and human resource across borders. Globalization as an effective instrument of international exchange of goods and services has to have a human face, based on ethical consideration rather than on cut throat competition. It should play a positive role in reducing economic and social disparities within and among, the nations. It should be also effective tool for improving sustainable development. In the era of globalization, with the increasing competition, locally or globally, organizations must become more adaptable, resilient, agile, and customer-focused to succeed. And within this change in environment, the HR professional has to evolve to become a strategic partner, an employee sponsor or advocate, and a change mentor within the organization. In order to succeed, HR must be a business driven function with a thorough understanding of the organization dig picture and be able to influence key decision and policies. In general, the focus of today’s HR mangers is on strategic personnel retention and talents development. In today’s aggressive global market it has become necessary for organization to expand internationally to gain competitive advantage. Globalization has forced organization and their human resources functions to redefine their strategies. It is necessary for the management to invest considerable time and amount, to learn the changing scenario of the Human Resource Department in the 21st century. In order to survive the competition and be in the race, HR Department should continuously update itself with the transformation in HR. Suitable HR Policies that would lead to the achievement of the organization as well as the individual’s goals should be formulated. HR Practitioners of every organization and also for those who have significant interest in the area of Human Resource Management should realize the growing importance of human resource and understand the need to build up effective HR strategies. Peoples are important assets. Placing this value on employees, requires the organization to emphasize on human resource practice, including reward for superior performance, measures of employee atisfaction, careful selection of employees, promotion from within, and investment in employee development. Just taking care of employees would not be enough; new HR initiatives should also focus on the quality needs, customer-orientation, productivity and stress, team work and leadership building. The researcher has thrown light on the emerging HR trends and discusses HR issues in various industries like Financial Services, IT, Power, Healthcare etc. It is valuable for practicing HR managers of every organization and also for those who have a significant interest in the area of Human Resource Management, to realize the growing importance of human resource and understand the need to build up effective HR strategies to combat HR issues arising in the 21st century. INCREASING IMPORTANCE OF HRM The human resources management approach which has been gaining the attention of management professionals during the last decade has become the need of the hour due to various reasons. Widespread industrial unrest, growing trade union influence on work force, strained worker management relationship, increasing gulf between management and their people, emergence of militancy in trade unionism, and the growing conflict in the industrial relations scene have resulted in the workers getting out of gear of the management in many organizations in India. This has made the managements to think in terms of carrying their workers with them. Convincing the workers of the management’s concern for them may, perhaps, go a long way in getting along with them and ensuring their better performance. This has naturally resulted in the present human resources movement. Humanization of work environment in countries like Japan, quality of work life movement in countries like United States, and the quality circles approach in India itself have initiated action to attain better organizational commitment among the work force. The human resources approach is in consistency with these movements. Changes in business environment have substantially affected the approach to manpower. Technological changes are prominent among them, computer revo1ution, introduction of microprocessor, CNC machines in manufacturing operations, mechanization and automation of office operations, quick communication systems like satellite communication and facsimile introduction or robots, electronic revolution, and such other new developments have revolutionized the vital areas of business. Operational efficiency or manpower must cope with such a revolutionary change in the technology which necessitated a new approach to manpower. Globalization of business is another important aspect of change which takes place in the business environment of today necessitating a human resources approach to manpower. It is not only those Indian firms operate and compete abroad, but they have to compete with multinationals and foreign firms in India itself. Business philosophy, skills, expertise, efficiency and particularly global corporate citizenship philosophy fostered by internationally successful firms necessitate Indian firms to deliberately update their perspective to suit the internationally emerging trends. In conformity with the human resources approach emerging globally, Indian managers must also foster a human resources philosophy to guide their management practices. A widespread feeling now influences at least some management practitioners that the technological development has gone to the extent of machines taking over the human jobs. For example: highly skilled milling, grinding and lathe machines are replaced by CNC machine tools which can take over, not only manual functions but even the intelligent human functions and Robots can lake up human functions in place of real human beings. Increasing influence of illusions tend to reduce the importance of human role. In fact no machine can replace man. The more the technological development, the greater would be the dependence on man. One simple error a computer makes can lead to havoc, where skill and intelligence of man are indispensable. Greater the technological development, greater skill and technical capability are required of people who operate. Obviously greater human approach to people would be required. Moreover installation, monitoring of machines, production, operation, maintenance and controlling the operations need large number of trained and skillful people. Technicians, repairers and service people are also necessary. The more the technical development and automation, the more would be the dependence on human beings. There would, therefore, be greater need for humane approach to manpower. Similarly use of more capital intensive methods would result in greater productivity of men necessitating greater motivating and greater human resources approach of management. Large scale production, increasing effects of recession, technical and technological developments and so on have opened up new training needs for the people at work. Human resources development programmes have therefore; become the need of the hour. Government policy of importing technology has also necessitated introducing new facilities and avenues for training and development. Fresh initiatives and emphasis on research and development in the realm of industry also led to a new policy of human resources development to cope with the increasing demand for technically capable people. Resultantly a need arose for a new approach to human resources.

Should Student Loan Debt Be Forgiven?

Most Americans would agree that higher education is important. Compared to years ago, when a high school education was acceptable in most jobs, a college degree is now required in the majority of positions. But what if you can’t afford to get a degree? What then?For many, student loans are the only way to finance one’s education. Paying out of pocket simply isn’t a reality for most, so they rely on state and national government to provide them the funds to attend school, buy textbooks, and even pay for room and board. Sign on the dotted line, and suddenly a subsidized or unsubsidized loan shows up as a credit on your student account.Any overage is paid to you by check to cover incidentals. This process gets repeated every semester, for as long as you attend school. It all seems very easy and acceptable – until you graduate (or don’t graduate, whichever the case may be).The day you leave school, a six-month clock starts ticking toward your first paym ent. Oh wait, you mean school costs money? Sadly, some aren’t able to secure a position right away that can allow them the economic capability to start making payment on their loans. It can take up to two years for some college graduates to find a job.In the meantime, those loans are still due and payable. There are all sorts of possibilities for repayment: income-sensitive plans, unemployment deferments, graduated payments, and even forgiveness programs for certain occupations like nurses, teachers, and public servants.But what about the rest of the debt holders? What happens to them if they can’t make their payments? Student loan debt today approaches $1 trillion dollars, according to the Consumer Financial Protection Bureau. Even more frightening, the Wall Street Journal reports about 40% of student loan holders are in default or have delayed their payments.Student loan debt has now actually surpassed total credit card debt in the US. There are numerous calls to act ion for possible solutions to this problem. The main issue I have with them is they don’t actually take into effect HOW we got into this position, or how to avoid it from happening again in the future. As part of his re-election bid, President Obama introduced his solution, referred to as the 10-10 plan. This plan allows graduates to only pay 10% of their total income as loan payments, and forgive whatever is left after 10 years.This plan requires a borrower to have a financial hardship, and the payment amount, based on 10% of income, is readjusted yearly. In many cases, this forgiveness will amount to somewhere around 80% of the original loan amount. That seems an awfully steep penalty for the US to pay, simply because they think they can.These borrowers are now, hopefully, out in the work world making a reasonable income so they are actually likely to be able to make payments. Forgiveness at that point is not really necessary. In an income-sensitive repayment plan, the rate of the payment goes up, based on the income of a borrower increasing as well.Rather than forgiving the remainder owed, cutting interest rates or lowering the payment amount seem like better solutions in that they provide assistance to struggling borrowers, but ultimately the debt is repaid.There are others calling for an all-out bailout, similar to the AIG or GE bailout, designed to boost the economy. The hope is those with forgiven loans will put that money back into the economy, at least in the short term. But who’s to say that’s where they’ll put their money? What happens to the next round of graduates? They’ll be graduating with a forgone conclusion that their loans will be forgiven as well.And why not? That’s what a plan like this would lead them to believe. Mitchell Weiss, adjunct professor at the University of Hartford's Barney School of Business in Connecticut, believes any kind of credit is ultimately issued on a sort of trust. â€Å"If I loan you some money, I trust that you're going to pay it back to me,† he says. â€Å"Wholesale forgiveness, amnesty – whatever you want to call it – will fundamentally undermine a process that is thoroughly integrated within our society. † Moreover, it doesn't really solve the problem, says Professor Weiss.A Facebook page started by an angry law school graduate without means to repay his loans has sparked a petition to support a one-time, across the board loan forgiveness. Started by Robert Applebaum, the group calls for an economic boost by forgiving all outstanding government loans.In the petition, Applebaum says, â€Å"Forgiving the student loan debt of all Americans will have an immediate stimulative effect on our economy†. â€Å"With the stroke of the president's pen, millions of Americans would suddenly have hundreds, or in some cases, thousands of extra dollars in their pockets each and every month to spend on ailing sectors of the economy .†Basically, the already strained government would be taking the hit for billions of dollars, based on the hope that this money would find its way back to our local and national economy. The main problem I see is you cannot guarantee this is what will happen. It sets the whole Federal Loan system up for collapse. HR1330 is another bill recently introduced, which could provide some much-needed relief for borrowers. Instead of a bailout, this kind of plan would allow interest-free deferments to borrowers who become unemployed or who are enrolled in the current 10-10 plan.Important to note is that it does limit the forgiveness afforded to new borrowers. But here again, it’s a very short term solution to a very long term issue. People on both sides, and somewhere in the middle, generally have strong opinions about the long-term benefits or non-benefits of a plan like this. CNBC reports the problem with a plan like this is three-fold: â€Å"The losses must be borne by someo ne, likely the taxpayer†. Basically, the money to bail out college graduates from repaying their loans has to come from somewhere. It can also be called a â€Å"moral hazard†, in that it rewards or implicitly encourages imprudent behavior.Also, a one-time bailout of the current loan-holders could strongly encourage future graduates to rely on the possibility of another bailout in the future. As a returning college student with a mountain of student loan debt of my own, I see the problem from the borrower’s perspective. As a Business Management student, though, I also see it through â€Å"Economic Eyes†. At the risk of sounding old and maternal, I think forgiveness only allows the problem to keep repeating for my generation, my children’s generation, and those to come.In the same mentality that I would never buy my child a car outright, for fear they’d have no ownership in it or respect for it, I simply don’t believe that bailing out bo rrowers is a good solution either.I fear we teach our children that so long as there are mountains of others in the same predicament, there is government relief available. The price is ultimately paid in the form of even more national debt. Yes, an economic boost might be favorable in the short term, but the long term effects of that boost will be felt for years afterwards.

Accounting and Tax

The world is increasingly adopting an extremely commercial approach to operations (Paulson 99). Every aspect in the economic environment and social systems is increasingly becoming more commercialized as the capitalistic mental has taken over a number of key areas in operations (Paulson 99). The role played by taxation and accounting systems is on the increase due to commercializations and liberalization of operations and markets. Different modes of operations and complexity in modern operations have led to the need for development of different modes of accounting and taxation (Paulson 99).Original definitions and systems are being replaced by new ones that are deemed to be more relevant to modern day operations. The policies supported by political leaders with regards to these economic factors are seen to be important to the perception that the voters have on them. The overall public, due to improvements in information systems and education levels, have become more aware of the impo rtance of good and relevant policies to not only the development of the economy but to individual development.It is no longer left for the professionals to understand the complexities and changes in accounting and information systems be it at the policy or implementation level for ordinary citizens are continuously seeking to know more on these concepts (Paulson 73). This paper looks at some of the current trends in accounting and taxation systems in the US. and the impact they have on the development of US. as a nation. The paper looks at a issues in Private and public Company Financial Reporting and their convergence with the international standards.The other areas that the paper addresses are Cost or Equity Method of Accounting, Sarbanes-Oxley Act of 2002, Importance of Segregation of Duties, Income tax accruals, Deferred Income taxes and McCain's Vs Obama's tax plan. Introduction Developed economies and especially America's are highly reliant on the development of the business s ector (Pratt & Niculita 22 ). The business sector in some of these developed economies contributes immensely to their large domestic income levels. Financial reporting is an aspect that is integrated into every business system be it profit or non-profit making.Financial reporting is a very important aspect in ensuring accountability and developing the confidence that is of high importance in a capitalistic economy that are characterized by high levels of competition. Financial reporting does not in itself guarantee success in business but helps in providing information that is critical in the development and implementation of economic decisions. Company Reporting The standard used in financial reporting in the US is the GAAP standard (Talbott 63).The main reason behind financial reporting for public entities is to meet the needs of external stake holders who due to their positions lack the ability to get the information. Even though the external users of company financial reporting may have access to information, most private companies still choose to prepare the general financial statement. Even though the GAAP financial accounting standards are aimed at providing the end user with the required information, the management of the company often finds such documents to be of great importance (Talbott 63).Many private companies implement a system where the financial statement include an independent accountant report which is drafted after the report has been audited, reviewed or compiled. The government is not directly responsible for the formulation of the accounting standards in most developed countries and it was until 2002 that the federal government intervened largely on accounting standards (Talbott 35). This non-interference is common system in most countries under common law where it is believed that the private sector is well informed and has a good resource backing.It should be noted that the GAAP is not a law that has to be followed though some key fin ancial authorities have made it compulsory for public companies to adhere to standard (Ricardo & Kolthammer 53). It should be noted that the GAAP standards for the private sectors are set by different bodies which operate under different assumptions, principles and constraints from those of the public sector. The basic objective in financial reporting is providing information; this is done by making a number of assumption, application of a series of principle and subjecting a number of constraints.Assumptions ? The business entities are assumed to be separate from its owners and other related businesses. In preparation of financial records personal expenses are kept separate from company revenues and expenses (Ricardo & Kolthammer 51). ? Another key assumption made is that the business will continue operating indefinitely. This assumption is made to justify the validation of asset capitalization, depreciation and even amortization. This going concern assumption is only overridden wh en it is certain that the company will be liquefied (Ricardo & Kolthammer 51).? Since one of the objectives in the preparation of financial records is to ensure ease of evaluation a measure must be used. In the US, a monetary unit that is assumed to be stable is used as the unit of record. It is accepted by the FASB that the nominal value of the dollar unadjusted to take care of the inflation should be used as the main unit of measure (Ricardo & Kolthammer 51). ? A major assumption in the preparation of financial records is that the economic and financial activities of a company can be divided into time units. This is the time period principle (Ricardo & Kolthammer 51).There are a number of principles that have been adopted by the FASB in preparing financial records. The principles govern how the actual preparation of the records will be handled. Some of these principles include: ? Companies are required to account and report on the basis of acquisition prices rather than current ma rket prices. This principle applies to all recordings be they assets or liabilities (Ricardo & Kolthammer 54). This principles ensures that the information provided is reliable by eliminating bias that would have otherwise been accrued by using the perceived value.However, there are changes in this system as a number of debts and securities are being reported on the basis of their fair price or market values. ? Principle number two is referred to as the revenue principle and it requires companies to record revenues either when they are realizable and earned or when they are realized. This accrual approach to accounting eliminates recording at receip (Ricardo & Kolthammer 54)t. ? The matching principle dictates that the expenses and the revenues have to be matched as long as there is sufficient ground for pairing.Expenses are only recognized when the product or service that they have help create earns some revenue (Ricardo & Kolthammer 54) The principle further states that if a situa tion should arise where no connection can be established between an expense and a revenue then the expenses can be charged on the existing period. This system is useful in ensuring accuracy and robustness in evaluating actual performance and profitability levels because the principle clearly shows how much was spent in earning a given revenue.? The disclosure principle is one that governs the amount of information that can be disclosed. According to this principle, the amount of information that can be disclosed should be based on a trade off analysis (Ricardo & Kolthammer 54). Disclosure of large information is often associated with increased cost in the preparation and use of the financial records. Therefore, the information disclosed should be enough for judgment while ensuring that the costs are kept low. Information in the financial records are either presented in the main body of the statement, notes or as supplementary material.A number of constraints have also been placed in coming up with financial records and reports. The constraints are aimed at reducing errors and ensuring reliability. They include: ? The objectivity principle which states that the financial records should be based on objective evidence (Ricardo & Kolthammer 54). ? The significance of an item is only considered when it has been reported. The materiality principles therefore considers information to be of significance if it can in one way or the other affect the decisions made by a reasonable human person (Ricardo & Kolthammer 55).? There is also need for consistency in the accounting principles used by a company. The companies should ensure that they use the same principles year in year out. ? When choosing between two alternatives the prudent principle states that the solution that is likely to understate the income and assets should be given first priority (Ricardo & Kolthammer 55). Comparison Even though the differences may not be clear a key differences arises in the aspect of stakeholders. The investors will always want to be informed on how their investments are fairing on.In a private company, systems may be developed where the investors who are often few and closely related can access financial records and the performance of their investments at particular times (Einhorn 23). Furthermore, the private nature of such businesses exempt them from mandatory disclosure and there are no restriction on the materials they can disclose. However, the story is quite different in public companies where disclosure is a must. Public companies are of national interest and therefore issues regarding their financial status affect a considerable proportion of the general public (Lewis & Pendrill 32).Development in financial systems are aimed at protecting the investors from the failure of such financial institutions. The law therefore dictates that such companies must disclose their financial records and in so doing the materials disclosed should be such that they provi de enough information as per the investors' requirements (United Nations Conference on Trade and Development 35). Therefore, while a private company financial records may only be a page the public companies often develop booklets and mountains of documents as their financial records.In general, preparation of financial records in public companies is more resource intensive relative to private company due to the time and financial resources that have to be channeled to the preparation of the rather comprehensive records. The similarities are countless. The principles employed, assumptions made and constraints are generally within the GAAP principles (Haber 24). The principles are within the stated framework and therefore bears a lot of similarities.Disclosure is stressed on by both private and public companies for the sake of their investors. In either case, the importance of financial reports to the management of the companies and to creditors who may require the company's financial information is of equal importance. Sarbanes-Oxley Act of 2002 The area of financial disclosure and development of financial reports is of key concern to the entire economy. The government and the legislative system is often concerned with the overall wellbeing of the people; at least that is what they have made people believe.Disclosure and financial reporting is an area that is of key importance to the overall development of not only the company whose records and transactions are being disclosed but also to other companies that may be related to the said company in one way or the other. The federal system broke its liberalization of the accounting systems when in 2002 it enacted the Sarbanes-Oxley Act (Hamilton & Trautmann 44 ). The act was aimed at protecting the investors and was enacted into federal law in 2002.Previously issues regarding financial disclosure and preparation of financial records were governed by standards rather than law. The move was aimed at dealing with the increase in the levels scandals that hit a number of major corporations namely Tyco and Worldcom among others (Shanley 21). These scandals were very costly on investors and had a major bearing in the capital markets as share prices dropped considerably. The effects of the scandals were felt by both participants and non-participants as the confidence in the stock markets suffered and irrecoverable blow.The reforms that were brought by this act are considered the most far reaching changes in the business environment in decades. These new legislations did not affect the private sector and were aimed at developing enhanced standards for the public sector players including public accounting firms (Shanley 49). Its adoption was a controversial step and led to major divisions on its perceived benefits. A number of people who were and still are for its implementation state that it has led to an increase in investor confidence on the stock market while ensuring better standards and controls for corporate accounting standards.The act led to the developments and enaction of PCAOB which is charged with regulating, inspecting and ensuring relevant disciplinary measures are taken against accounting firms that are ascertained to have flawed some of the principles and standards set by the Sarbanes-Oxley Act (Pratt & Niculita 85 ). Some of the key features of Sarbanes-Oxley Act of 2002 include: ? The first title establishes the PCAOB as a board that will provide the required oversight for accounting firms that provide audit services.This first title also creates a central board that is tasked with ensuring procedure compliance by the boards, registration of auditors, definition of processes and procedures for compliance, quality control and management and enforcing compliance as per its mandate that are provided for in the act (Einhorn 19). ? The second title establishes the standards that will ensure the independence of external auditors so as to minimize the risk of conflic t of interest. This title also puts up new auditors approval qualifications, partner rotation and reporting requirements.One of the notable features of this second title is that it bars audit firms from providing non-audit services for same clients (Einhorn 19). ? The responsibility for accuracy and completeness of financial records is placed on senior executives. This third title further defines how the external auditors will be expected to interact with the audit committees. A quarterly certification of the integrity of the financial reports by the corporate executives is required by this title (Einhorn 19). ? The fourth sections requires the inclusion of off balance sheet transactions and transactions of corporate officers.This is to ensure enhanced financial reporting and ensure accountability at the highest levels of corporate leadership. The fourth title further requires the placement of internal controls that will ensure the accuracy of the financial reports. Timely reporting in case of change in financial conditions which must also be accompanied by a review of SEC or its agents, is advocated for by this title. ? The fifth section includes measures that are aimed at restoring the confidence of the investors on the reports brought forward by securities analysts (Einhorn 77).The code of behavior for the security analysts are defined in this section and they are further required to disclose any conflict of interest that may be in their knowledge. ? The sixth section is closely related to the fifth as it defines practices that will help in the restoration of investor confidence. The SEC's authority is also defined in this chapter and their power to bar securities professionals from dealing is brought into proper perspectives by definition of cases where their power is applicable (Einhorn 22).? The seventh section places more emphasis on the manner in which research that is aimed at enforcing actions against violators will be conducted. The reports and reas ons that have been identified as being of importance in the research include the effects of consolidation on accounting firms, securities violation, role of credit rating agencies and enforcement actions. This chapter further suggested investigations on whether the investment banks played a role in obfuscating the financial positions of some of the corporations that failed.? The eighth title describes the specific penalties for fraud by either manipulating, destroying or altering financial records. This title further defines the penalties associated with interfering with the course of investigation while providing a considerable level of protection for whistle blowers. ? The ninth title increase the penalties associated with white collar crimes and conspiracies to commit financial crimes. One of the key recommendations of the title is that stronger punishments should be provided for financial crime offenders.A key addition is that failure to certify corporate records is declared a c riminal offense (Einhorn 19). ? The chief executive officer or the senior most corporate officer is required to certify and sign the company's tax returns in the tenth title. ? The definition of corporate fraud as a crime within the law is found in the eleventh title. Record tampering is also included as a criminal offense and the specific penalties are also defined in this section. Sentencing guidelines are revised in this chapter and the penalties are made harsher.SEC is also given the power to freeze large or suspect payments (Einhorn 18). There are a number of factors that led to the adoption of the rather controversial measures towards ensuring disclosure and accuracy of financial records. Prior to the implementation of the SOX the auditing firms were self regulated (McAlevey 45). There was considerable levels of conflict interest as they were involved with companies in more than one way. They were therefore not in a position to challenge the companies on financial matters for it may have led to poor work relations in other areas they were involved in.Audit committees were also blamed for the crisis that led to the development of the SOX as they did not perform their responsibility as investor representatives with maximum efficiency (McAlevey 56). A number of causes for failure and collapse of some of the corporations were in the line of negligence of duty and lack of the required expertise in handling business complexities. Management also had a considerable degree on audit committees and thus the integrity of their reports was questionable even before they were presented. The SEC was underfunded before the American public realized its importance to the overall development of the economy.The federal allocations to this programs have since doubled as a way of ensuring that they effectively deal with issues and threats to the financial stability of public corporations. Securities analysts had multiple roles that presented a conflict of interest (Niskanen 1 23). The security analysts could make recommendations on whether to sell or buy and at the same time provide financial assistance for companies who are in need of financial assistance. There is the possibility that the analysts could make decisions and recommendations that will ensure that he unfairly gains from the deals.Misleading bank practices may also lead to confusion by other investors. For instance, when a number of banks lend money to a corporation other investors may assume that the financial position of such a company is guaranteed (Griffin & Walton 10). When such companies collapse as it was the case in Enron, investors in the bank and those who had invested in the corporation suffer losses. Moreover, stock volatility coupled with the bonus and stock option practices increased the pressure on companies to manage their earnings. Segregation of DutiesOne of the major recommendation of the SOX was the need to segregate duties (Griffin & Walton 29). The need for segregation is often seen to be associated with increased accountability as the overlaps associated with non-segregation are eliminated. Furthermore, the risk of inappropriate action on individuals or groups is minimized since each and everyone has clearly defined roles and failure in their part can be traced to them. The first step in ensuring accountability is adopting a segregation approach. The segregation of jobs must be adopted by the entire organizations and documentation of its adoption ensured.Segregation of duties is not all about the physical implementation of tasks since the flow of finances has to be described fully, clarifications made and assurances that no one person has overall control over all aspects in any financial transaction made. The process of formulating such a diverse and rather complex system of operations requires time and expertise if the systems is to achieve any success. It is worth noting that though the implementation of the system may be near perfect, if the i nitial formulation is done ineffectively the whole systems will lack in aspects that may prove to be critical in ensuring its success.The organization has to be studied and analyzed before any changes are proposed. Since these are changes that are per the requirement of the law for public institutions there is little that organizations can do to avoid implementing this law (Griffin & Walton 92). The organizations must analyze their processes and their outcomes including their behavior. The qualifications of the available human resource has to be ascertained and the organization's ability in implementing a segregated approach ascertained.A thorough analysis of the collected information will ensure the development of teams and allocation of responsibilities for each and every member of the organization who will then be answerable on all issues relating to these responsibilities they have been assigned. The implementation of such a system is as important as the formulation phase. The a pplication of relevant controls and milestones to be met will ensure that the developments achieved as a result of the implementation of such systems is quantified and relevant corrections or improvements made to ensure continued success.The controls should ensure that whistle blowers and those that are unwilling in promoting illegal activities are protected from the wrath of ‘criminals ‘(Griffin & Walton 24). Therefore, the adoption of systems that will ensure whistle blowers are protected should go in line with the formulation and implementation of the segregation approach. Convergence to International Standards The implementation of the SOX led to improvement in laws and policies regarding financial disclosure that made them more similar to international standards.Furthermore, there is increased effort by the FASB, which develops accounting standards for local use to converge the standards to the IASB (Eisen 42). It should be noted that even though the IASB standards are increasingly being adopted by a number of countries the FASB has significant control on their standards. One notable difference in the standards is that the LIFO systems is not used in the international standards while they are allowed by the US. Standards, thus reporting of income statements takes on different format which may affect the analysis of financial statement by investors and stakeholders (Eisen 42).Moreover, the international systems is more principle based when compared to the US systems which can be considered to be rule based. The FASB bases their approach on the fact that the real accounting world has infinitely many exceptions and a principle based system will never be able to give a full description of actions that may be employed in all situations (Eisen 43). Equity Method of Accounting Accounting is a diverse area of study that is continuously changing as per operations requirements (Eisen 34).Financial irregularities and fraud has taken on a new dimension an d thus the accounting principles and procedures have also been forced to change in order to address the change in financial trends. Investment in common stock is one of the fastest growing areas, many investors are channeling their resources to acquiring common stock and IPOs have become national events while the capital markets is one of the most highly traded market there is. The equity method of accounting is used for investments in common stock if the investor possesses over one fifth of the outstanding voicing stock of another company in which he has significant influence.Generally accepted accounting principles require that reporting using the equity method when an investor corporation has significant control over the operations and finances of an investee corporation. Significant influence is determined by representation on the board of directors, active participation in formulation of policies, intercompany transactions, interchange of managerial personnel and dependence on technology. It is generally assumed that an investor has significant control if over 20% of the outstanding common stocks of the entity are in his possession.This holds true unless there is sufficient evidence to prove otherwise (Eisen 100). The equity approach to accounting reflect more on the economic aspects than the legal aspects involved in investing in legal stocks of other companies. When the equity approach to accounting is employed, the initial records of the stock investments is done at cost. The investments accounts will then have to be adjusted to ensure that the investor share of income and losses after the date of acquisition are up to date. This investor share is used in coming up with the net income of the investor in the period as reported by the investee (Eisen 51).The methods is in line with the accrual method of accounting for its implementation ensures the recognition of revenues when they are earned and losses when incurred. Dividends received by the investors are not reported as dividend income but are a reduction on the carrying amount associated with investment. Therefore, the application of equity methods of accounting ensures that investments accounts give a reflection of the investors equity relative to investee net assets. An exception to this rule of revenue recognition is the recognition of revenue without change in working capital (Eisen 34).In the investors statement of income, the proportion of the share of the net income of the investee is reported as a single line entry except inn situations where the investee possesses extraordinary materials that would affect the investor's net income statement. Such materials would be reflected as extraordinary materials in the investor's income statement. The method therefore eliminates intercompany profits and losses (Eisen 43). Any excess paid for shares over their book value of the purchased subsidiary must be identified and if need be amortized or depreciated (Eisen 90).In cases wher e the investor owns over half of the investee's outstanding stock a consolidated financial statement for the group is presented (Eisen 110). The relationship is considered an affiliation as the investee can exercise control over the operations of the investee (Eisen 111). The equity method is used in the presentation of financial reports for unconsolidated subsidiaries in a consolidated financial report. If the parent company is preparing unconsolidated reports then the investments in the subsidiaries are reported through the use of equity accounting.The application of equity accounting methods is continuously being adopted in accounting circles due to an increase in corporate ownership. Capitalism is characterized by increased investments in joint ventures and therefore it is becoming common place for major corporations and private investors to have stake in more than one company. Multinational companies may have considerable influence on local companies whose stock they posses and therefore the application of equity accounting finds relevance in such cases. Income tax accruals and Deferred Income taxesOne of the most important decisions that has to be made by businesses before they start operations regards the basis of their bookkeeping which can either be on an accrual or cash basis. The accrual system is where the income is recorded as when it is earned without considerations on whether it will be received or not. The expenses are also recorded as per when they were accrued without considerations on whether they will be paid. Taxpayers are not necessarily required to use a specific method by the Internal revenue service (IRS) (Eisen 32).However, the stock markets and other bodies may require public companies to strictly use the accrual basis in stating their incomes (Eisen 60). The IRS requires that the method used when a taxpayer first files his tax returns should be used consistently thereafter and any changes in the system must be approved by the IRS. I f an investor own more than one business the use of different methods of accounting is allowed, though they must be kept separate from each other as each business is treated as separate entity.Even though the use of any method is allowed there are restriction to the use of the cash method in that corporations with a gross receipt of over $5 million excluding the S corporations, partnerships that partners with such corporations and tax shelters are all excluded from the use of cash system of accounting (Eisen 22). When using the accrual method, incomes must be reported in the tax year they were earned and expense deducted in the same manner. The time of payment is disregarded in either case and has no bearing on the nature of the results.For taxation purposes, income is reported when earned, due or payment is received depending on which one comes first. Therefore, recording of income is done when events that lead to their reception have occurred and the amount associated with the rev enue or expense can be determined with pinpoint accuracy. Advance payments for services that will be received later are charged in the same years that they are received. This scheme changes if there is an agreement that the completion of the service will be in the next fiscal years thereby the recognition of the income is included in the next years records.The postponement of advance payments cannot go beyond one year. If any part of the service will go beyond the next year, all advance payments will have to be recorded in the year the receipt will be made and none of it would appear in the next year's records. Advance rent income can only be recorded in the years that they are received and can never be postponed. If a business provides a business agreement for a property that it owns, advance income associated with such property can be postponed.However, this is only applicable in cases where the business also earns income from properties that do no have service agreements in their course of operations. There are a few special rules that have been formulated with regards to handling advance payments regarding agreement for future sales. Under normal considerations the payments are recorded when they are received but this is not so in this alternative system. Under the alternate system the advance payments in earlier years and the recordings include payments in gross receipt according to the rules of the method used.Furthermore, it is advisable to record the advance payments in the years that any part of the advance payments has been included. Under the accrual system expense are reported when liability has been fixed, the amount involved has been determined clearly and economic performance has occurred. If expense is incurred in receiving a service, economic performance is considered to have been incurred when the service is provided. When property has been delivered, economic performance is said to have been incurred (Pratt & Niculita 102 ).For expenses that are related to interest, the passage of time marks economic performance. In areas of compensation of services, economic performance is said to have occurred when the contractors are rendering their services. Moreover, under the accrual system expenses are only deductible in the years they apply though they can still be charged on the years they are paid if the benefits they generate are applicable for a time of over one year. If business expenses or interest are owed to persons related as per the definition of related in income tax, and the related person handle