Corporate Financial Accounting Essay Example | Topics and Well Written Essays - 1250 words

Corporate Financial Accounting - Essay Example management would create a provision for restructuring without having any commitment. Besides this, management used to manipulate the auditors by combining in many little amounts of provisions, which, when gathered made up a huge amount. This helped them to skim their profits and gain tax advantages, etc. Except these two problems, provision accounting used methods where provision was created for one purpose and then used for another. All this led to poor disclosure and difficulty in assessing the effect of provisions on reported profits. Provisions were particularly created when profits were high and decreased or eliminated when profits were low in order to smooth the outcome. This was commonly done when an organisation acquired another business entity, the acquirer created increased number of provisions as a cost of merging the new business’s operations. When the provisions were released later, the profits reported would seem falsely inflated. Provision accounting was used to boost share price by disguising poor performance in a particular year by profit smoothing to create an impression that the profit are less volatile, this led to increased investing in a particular company. (Management Accountant Blog, 2007) To overcome such an issue, the International Accounting Standards Board (IASB) came up with International Accounting Standard (IAS 37). This standard’s main purpose was to prevent organisations from recognising excessive provisions by focusing on the Balance Sheet and applying proper definition and recognition criteria in the framework for the preparation and presentation of financial statements. According to IAS 37 can only be recognised if it meets the criteria of a liability and a liability according to IAS 37 is â€Å"a present obligation arising from past events, the settlement of which is expected to result in an outflow

Metropolis Essay Example | Topics and Well Written Essays - 1750 words

Metropolis - Essay Example These slaves are depicted against the backdrop of the miserable life they lead which include tenement like homes; they work for over ten back-breaking hours nonstop. The star of the film, Freder, who is the son of Joh Frederson, the leader of Metropolis, is glaringly oblivious to the predicament of the workers or any element of their lives. Not until when a beautiful subterranean inhabitant known as Maria visits the Eternal Gardens, where Freder spends most of his time frolicking with numerous ladies, does he learn of their abject predicament. The group of small children who arrive along Maria from the laborers city below carry themselves with an air of sadness and despondency; they are hungry and appear absolutely wretched. In reality, their needy eyes apparently haunt Freder because it is something he has never seen amid the elite of the city who no less lead better lives (Bendel 12-14). When Freder follows Maria back to the underground depths of the city and witnesses a grueling accident in the machine halls where the worker toil in abject misery, the groveling scene haunts him much more. This, as a result, compels him to confront his father, but eventually, it downs upon him that the man loves and firmly believes that is appropriately right for men to live the way they do. Freder thinks for a while about the plight of the workers and decides do something about it. However, he is faced with inevitable challenge. Freder must first and foremost gather more information and trace Maria as well. With the assistance of Josaphat—Fredersen’s presently fired officer manager—he goes down the depths of the city and assumes the job of one of the workers with a view to locating Maria. For the moment, Fredersen is suddenly worried about the reverberations of discontent amid the workers and his son’s abrupt interest in their predicament. Fredersen is o verly determined to eliminate Maria’s influence on his son as well as the workers (Mark