Fair Value Accounting Within Financial Crisis Essay

Abstract Historically ,it is seen that there are numerous number of disputes in the field of financial reporting among different professionals, regulators and theoretitions .most of these disputes are related to the valuation of financial reporting components.the current curve in the progress of valuation is the push for and against the fair value approach.the purpose of this research is to examine the arguments on the use of fair value accounting and to identify the issues related to implementation of fair value accounting standards. Further, the results of literature related to role of fair value accounting within financial crisis are also investigated. Part –a Financial world is at the pace when the accountants are moving their steps towards fair value accounting, moreover FASB and IASB is motivating accountants to increase the use of fair value accounting by establishing new rules. Most of the people concur that fair values are the most reliable measure for financial assets and liabilities that an entity strongly trades, on the other hand some believes if management wants to hold an asset or liability till their maturity then historical method is best for measuring financial assets. Arguments supporting fair value accounting According to the analysts fair value accounting of assets and liabilities is more relevant as the basic economic value of instrument is clearly reflected with the use of FVA and they strongly believe that fair value and relevant volatility reflectsShow MoreRelatedIs Fair Value Accounting Really Fair?1021 Words   |  5 Pages For our project, we wanted to pick the topic, â€Å"Is fair value accounting really fair?† The first part of our presentation was simply explaining what fair value accounting is. This is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transactions. According to the Financial Accounting Standards Board, the price that would be received to sell an asset or price to transfer a liability in an orderly transaction betweenRead MoreGlobal Financial Crisis : Its Causes And The Global Responses Essay1592 Words   |  7 PagesAssignment topic: Global financial crisis: its cause and the global responses Introduction The global financial crisis or economy crisis is commonly believed to have begun in July 2007 with credit crunch, when a loss of confidence by the US investors in the value of sub-prime mortgages caused a liquidity crisis. On the other hand, due to the big changes that took place over the last 20 to 30 years in the worldwide economy and the influence of 2007 financial crisis, it has re-emerged as one of theRead MoreFinancial Analysis1614 Words   |  7 PagesConsequences of Accounting During the 2008 Financial Crisis Group 3 October 4th, 2011 Actors in the 2008 Financial Crisis ï‚ §Ã¢â‚¬Ë† U.S. Government ï‚ §Ã¢â‚¬Ë† European Union o  Commission o  Political figureheads ï‚ §Ã¢â‚¬Ë† Banks o  U.S. o  E.U. ï‚ §Ã¢â‚¬Ë† International Accounting Standards Board (IASB) ï‚ §Ã¢â‚¬Ë† Investors and External Regulators 10/3/11 2 Actors in the 2008 Financial Crisis (US Government) o  Generally mentioned indirectly in the news articles o  Not in the forefront of the case, as banks were drivingRead MoreIas 39 Regulate About The Recognition And Measurement Financial Asset And Liabilities1356 Words   |  6 PagesIAS 39 regulate about the recognition and measurement financial asset and liabilities. Under this standard, financial asset classified under four types which are: financial asset valued under fair value, Loan and Receivable (LR), Available for Sale (AFS), and Hold to Maturity (HTM). Each classification has different treatment of measurement which are under FVA and amortisation. Amortisation of financial asset should applied Effective Interest Method (EIM) which followed the application of discountedRead MoreThe Standards Of Accounting Standards830 Words   |  4 PagesAccounting standard set has become debatable topics in regards its function in real business. The standards of accounting have been developed throughout years and many countries has applied different accounting standard. However, as business world has become interconnected, there is an urged in need to have one stand-alone of accounting standards that could use worldwide. Therefore, many countries developed convergence of their accounting standard into International Financial reporting standard (IFRS)Read MoreThe Subprime Loan Crisis : An Analysis Of The Ethical Shortcomings1495 Words   |  6 PagesThe Subprime Loan Crisis An Analysis of the Ethical Shortcomings Ten years ago the US housing market was booming and with a constant rise in prices there didn’t seem to be an end in sight. It is, however, difficult to know when a peak is reached and for participants to take the appropriate actions in time. Nevertheless, as several studies have shown, measurements which were or were not taken made the bubble worse. Despite warnings from experts, investors and senators, the participants actions onRead MoreHistorical Development Of Fair Value Measurement1400 Words   |  6 PagesFair value measurement is one of the models which provide guidance on how entities should determine the fair value of financial instruments for reporting purposes. This paper discusses the Financial Accounting Standards Board (FASB) Exposure Draft issued on December 3, 2015 which proposed amendments to Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements. The paper analyzes some of the key points of the exposure draf t, among other things, the history andRead MoreHistorical Development of Gaap1322 Words   |  6 PagesA Historical Look at U.S. GAAP Lauren Hollis Accounting Theory Texas Woman’s University School of Management Dr. Pamela Baker January 26, 2013 ABSTRACT This paper discusses the historical development of generally accepted accounting principles through its contributing sources from 1930 to the present. U.S. Businesses had been using double entry accounting since the 1800s yet no uniform accounting practices had been introduced until the American Institute of Accountants (AIA) recommendedRead MoreHistorical Development Of Financial Accounting Theory1526 Words   |  7 Pagesthe fair value accounting concept, an understanding of the foundation of accounting is where it is today is needed. This information provides a guideline of how the first conceptual ideas of accounting first began and changed overtime to accommodate the ever increasing changes with investment options along with lobbying efforts of individuals. The FASB’s Statement of Financial Accounting Concepts (SFAC) No. 8 indicates that the primary purpose of financial reporting is to provide financial informationRead MoreThe Accounting Principles Of Accounting1754 Words   |  8 PagesMeasurement of accounting elements is the most significant factors that entail the process of preparing financial statements. Accounting measurements presents the vital economic objectives for various accounting entities (Horngren, 2009). Fair value refers to a financial reporting approach operating under the accepted accounting principles (GAAP). This accounting method is also referred to as Mark-market accounting practice. In united Sates majority of the public and private companies uses fair value accounting

Drowned Out Free Essays

Ivana Aleksich November 1, 2012 Film Review: â€Å"Drowned Out† The way this documentary was filmed shows the people who contributed to the film to living and working alongside the villagers and I found this helped capture the candid interviews and the honest and realistic impact of the way villagers of living in India due to the government dam project. Not only do people have to make a choice of whether they Move to the slums in the city, accept a place at a resettlement site or stay at home and drown. This place is not just a piece of land where they live but it is their home, their identity. We will write a custom essay sample on Drowned Out or any similar topic only for you Order Now This reminds me personally of my connection with Serbia. My family has to leave their homeland because of war and invasion. My family did not see this as moving to a better place, but saw it as their homeland being destroyed. Who they are as people dead in a place that no longer exists like it once had. This is how I see the people in the villagers, they are being forced to say goodbye to a certain part of them, their family, and ancestors forever. In the student presentation relating to the world bank and dams refers to something very important to villagers. Non-material things are what are important to the villagers. After the dam is built, I will drown out the cultural traditions of the villagers, create development of affected communities in isolation, and cultural shift, new lifestyles and attitudes. The documentary follows the villagers of Jalsindhi. This village is in Madhya Pradesh on the banks of the Narmada River about ten miles upstream from the Sardar Sarovar project. The 76 villages struggle through a battle against the dam. The lead character is Luharia Sonkaria, who is the village’s medicine man, a role that was his father’s and grandfather’s before him. The government provides them no viable alternatives. The government offers unusable land a hundred miles away or a small sum of money in compensation for their river-side land. The film documents hunger strikes, rallies, and a six year Supreme Court case, and finally follows the villagers as the dam fills and the river starts to rise. The documentary features Arundhati Roy, who has been an outspoken activist bringing international attention to the controversy. Government aims to provide electricity, irrigation and drinking water to tens of millions of people. Government is confident in this claim. The government has a completely difference views of the impact of the dam. They believe the dam will help the people and make them happy. But the government has nothing to lose from this dam project because the people in government do not live in the area that the dam is supposed to floor. The villagers have everything to lose and millions of them did. This brings up the struggle between the rich and the poor/the powerful and the less powerful. The big question that is stated in this documentary is, â€Å"For whom is this development for? † The government tries to convince the villagers that this is for them and their benefit, but in reality the villagers are not being taken into account for this dam project. This dam development is solely for the purpose the one thing that is universally valued: money and the power of government. Villagers and poor people are not at level in society where they can rely on money and power. They believe in things that the government and money could never find important. Villagers value their traditions and their old lifestyle. The government and the world bank is working to become more modern and to gain more money. For this reason alone, the government is aware of what will happen to the villagers but the government could not understand how hard this project will hurt the villagers and their lives. How to cite Drowned Out, Papers

Impact of ISO Regulations on Stakeholders

Question: Discuss about theImpact of ISO Regulations on Stakeholders. Answer: Introduction The major aim of this report is to analyze the organizational impact of the ISO 14001 and AA1000 regulations. Thus, this study focuses on analyzing how the AA1000 and ISO14001 regulations can easily protect the stakeholders. On the other hand, this report also sheds light on the impact of the regulations how the investors can see the viability of a company in the long-term basis in that they can make the investment plans. Most importantly, this report focuses on the context of the Kingdom of Saudi Arabia in order to conduct the entire analysis on the two regulations. Moreover, this study highlights the impacts of the regulations over the organizational sustainability, local stakeholders and investors of the companies. ISO 14001 and AA1000 Regulations ISO 14001 Environmental Management Standard The ISO 14001 Environment Management System (EMS) standardis the globally identified standard for environmental management what was published first in 1996. It is the systematic framework which is helpful for managing the long term as well as immediate environmental influences of the products, processes as well as the services of a particular enterprise (Heras?Saizarbitoria, Boiral, 2013). The ISO 14001 standard has been implemented based on the typical ISO Plan-Do-Check-Act cycle. Therefore, a company has to comply with several clauses of the ISO Standard for gaining the certification for their environmental management system. An organization should have to implement their procedures, protocols as well as the policies in terms of ensuring the fact that its influences on the environment are kept to a minimum range. It has also been designed for helping the businesses commercially remain successful without overlooking the impacts and responsibilities of the environmental aspects. Figure 1: ISO 14001 Environmental Management Standard (Source: Zhu, Cordeiro Sarkis, 2013, pp.232) AA1000 Assurance Standard The AA1000 Assurance Standard is the standard in order to strengthen as well as assess properly the quality and the creditability of the environmental, economic and the social reporting of an organization as well. The prime aim of this standard is for being utilized by the external auditing bodies that can ensure the reports of an organization on the social accounts (Junior, Best Cotter, 2014). However, it can also be utilized for guiding any company while establishing its abilities, systems as well as the processes of accountability. The stakeholder engagement is the central concern behind the implementation of the AA1000 Assurance Standard. AA1000 Assurance Standard gives a holistic standard to assess that the social reports or accounts of a company systematically resolve the proper range of economic, environmental and social impacts as well as performance. It also seeks to reflect the concerns of the stakeholders as well as highlight whether these have or have not been resolved b y a company. Figure 2: AA1000 Assurance Standard (Source: Bhaduri Selarka, 2016, pp.33) Impact of ISO 14001 and AA1000 Regulations on Protecting Stakeholders In the context of Corporate Social Responsibility, the stakeholder engagement is the major concern and it is the key component of achieving the triple bottom line. The organizations mainly intend to engage their stakeholders in dialogue for finding out what environmental as well as social issues matter most to them regarding their performance in terms of improving the accountability and decision-making (Mayamurugan, 2016). Therefore, in regards to this point, protecting the stakeholders is the most essential concern for all the organization. Thus, both of the two regulations, ISO 14001 and AA1000 play significant roles in protecting the stakeholders of the organizations. ISO 14001 Environmental Management Standard is incorporated by the organizations in Kingdom of Saudi Arabia due to the reason of introducing an environmental management system. Most importantly, while it becomes very crucial for retaining as well as securing business either with the international or the local clients, the organizations incorporate this standard. The environmental sustainability and environment management are the serious concerns for the organizations in the Kingdom of Saudi Arabia as this country is the petroleum based nation (Testa et al., 2014). Majority of the industries in this country is comprised of oil industry. Therefore, the ISO 14001 Environmental Management Standard can possess huge implications over the protection of the stakeholders who are engaged with the huge oil industry of the organization. This standard identifies the cost savings with the greater emphasis on energy, waste and resource management. It also develops the credibility and corporate imag e and can also protect the shareholders, assets and directors. AA1000 Assurance Standard has direct implication over the protection of the stakeholders. In the Kingdom Saudi Arabia, this regulation is utilized within the organizations as the means of driving the entire performance through the learning as well as innovation. With the help of the incorporation of this standard within the organizations in the country, the good quality processes of stakeholder management can inform potentially the internal decision making as well as enable innovation and learning (Perego Kolk, 2012). In this way, this standard can enhance and improve the organizational performance. Therefore, it must be stated that, all the principles of AA1000 Assurance Standard must be applied by the organizations wishing for using the standard. Impact of ISO 14001 and AA1000 Regulations on Investors The investors play a crucial role in the organizations in order to allocate capital with the expectation of a future return in the financial context. The investors have the responsibility for committing the capital with the expectation of the financial returns. They use investments in terms of growing their money (Mayamurugan, 2016). Investors have to face several challenges such as timeframes, preferences, and capital and risk tolerances. Thus, both the regulations ISO 14001 and AA1000 can influence on the process through which the investors see the long-term viability of a company in that they plan for investing. ISO 14001 Environmental Management Standard can help the investors for seeing the long-term viability of the organizations in the Kingdom of Saudi Arabia in that the companies can make their investment plans. This is simply because; ISO 14001 Environmental Management Standard can easily recognize the cost savings with the greater emphasis on energy, waste as well as resource management while investing in the business (Arimura et al., 2016). On the other hand, it can also decrease potentially the public liability insurance costs for the organizations during implementing the investment plan for ensuring the long term viability of the organizations in the nation. The materiality principle, completeness principle and responsiveness principle of the AA1000 Assurance Standard can help the investors for seeing the long-term viability of the organizations especially the oil industry in the Kingdom of Saudi Arabia in that the companies can make their investment plans (Manetti Toccafondi, 2012). This standard is flexible enough to be utilized by the several companies in the Kingdom of Saudi Arabia from the diverse backgrounds as well as over timeframes. It can resolve the proper range of economic impacts and performance with the help of which a suitable investment plan can be built by the organizations in the country to assure the organizational viability in long-term basis. Impact of ISO 14001 and AA1000 regulations on the Sustainability of an Organization ISO 14001 and AA1000 regulations are playing significant roles in maintaining the sustainability of the organizations over the world (Horner Wilmshurst, 2016). For the organizations in the Kingdom of Saudi Arabia, ISO 14001 and AA1000 regulations can effectively influence sustainability factor of the organizations in the respective industries. As per the AA1000 Assurance Standard, this regulation maintains the organizational sustainability by assessing the social accounts of the organizations and seeking to echo the concerns of the stakeholders of the company. Stakeholders and investors are the important success factors for the organizations (Castka Prajogo, 2013). On the other hand, AA1000 Assurance Standard also seeks for instilling a continuous development culture through the responsiveness of stakeholder. As per the ISO 14001 Environmental Management Standard, most important part of this regulation in terms of maintaining the organizational sustainability is that this standard can effectively improve the environmental performance of the supply chain of the organizations. The Kingdom of Saudi Arabia is the oil based nation and majority of the organizations are belong to the oil industry (Mock, Rao Srivastava, 2013). Hence, in this country, the organizational sustainability is directly related with the environmental sustainability factor. Thus, this regulation can play a significant role in order to maintain organizational sustainability by maintaining as well as improving the environmental performance. Conclusion After conducting the entire analysis of the report, it can easily be stated that both the ISO 14001 and AA1000 regulations ultimately aims to protect stakeholders and implement the effective investment plans, which directly enhance the organizational sustainability. In this regard, this study has successfully depicted the feature of the ISO 14001 and AA1000 regulations over the protection of the stakeholders and on the effective process of implementing investment plan. On the other hand, this report has also analyzed broadly the functionality of the two regulations over the procedure of maintaining organizational sustainability. References Arimura, T. H., Darnall, N., Ganguli, R., Katayama, H. (2016). The effect of ISO 14001 on environmental performance: Resolving equivocal findings.Journal of environmental management,166, 556-566. Bhaduri, S. N., Selarka, E. (2016). Corporate Social ResponsibilityGuidelines and Best Practices. InCorporate Governance and Corporate Social Responsibility of Indian Companies(pp. 33-42). Springer Singapore. Castka, P. Prajogo, D., (2013). The effect of pressure from secondary stakeholders on the internalization of ISO 14001.Journal of Cleaner Production,47, pp.245-252. Heras?Saizarbitoria, I., Boiral, O. (2013). ISO 9001 and ISO 14001: towards a research agenda on management system standards.International Journal of Management Reviews,15(1), 47-65. Horner, C.A. Wilmshurst, T.D., (2016). Stakeholder Engagement and the Gri: Implications for Effective Risk Management.Corporate Ownership Control, p.209. Junior, R. M., Best, P. J., Cotter, J. (2014). Sustainability reporting and assurance: a historical analysis on a world-wide phenomenon.Journal of Business Ethics,120(1), 1-11. Manetti, G., Toccafondi, S. (2012). The role of stakeholders in sustainability reporting assurance.Journal of Business Ethics,107(3), 363-377. Mayamurugan, R. (2016). ISO 14001: Environmental Management System. InIntegrated Waste Management in India(pp. 117-121). Springer International Publishing. Mock, T. J., Rao, S. S., Srivastava, R. P. (2013). The development of worldwide sustainability reporting assurance.Australian Accounting Review,23(4), 280-294. Perego, P., Kolk, A. (2012). Multinationals accountability on sustainability: The evolution of third-party assurance of sustainability reports.Journal of Business Ethics,110(2), 173-190. Testa, F., Rizzi, F., Daddi, T., Gusmerotti, N. M., Frey, M., Iraldo, F. (2014). EMAS and ISO 14001: the differences in effectively improving environmental performance.Journal of Cleaner Production,68, 165-173. Zhu, Q., Cordeiro, J., Sarkis, J. (2013). Institutional pressures, dynamic capabilities and environmental management systems: Investigating the ISO 9000Environmental management system implementation linkage.Journal of environmental management,114, 232-242.