To My Mother Essay Example

To My Mother Paper To my mother a poem written by George Barker is about a boy encouraging his mother to come out of her sorrows. The persona of this poem is encouraging his mother to fight her sorrows and overcome them because he has a lot of faith in her and also loves her. The message George Barker conveys through this poem is that we should not let our loved one in pain or sorrow but help them conquer over the sadness by showing affection and love, and having faith in them. The poet successfully conveys his message through the use of a variety of poetic techniques such as; form, diction and imagery. The poem To My Mother is written in a specific from, which helps convey the message and the feelings of the mother across to the readers. This poem is a sonnet; it consists of fourteen lines which are pleasingly divided into an octave and a sestet, more like a Petrarchan or Italian sonnet. The octave describes to us the seismic laughter and how the mother was before all the sorrow taking control of her. It tells us that she was a comical yet caring; she was more of a role model to the other but she was following a brass band which could be referring to her beliefs. We will write a custom essay sample on To My Mother specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on To My Mother specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on To My Mother specifically for you FOR ONLY $16.38 $13.9/page Hire Writer The sestet also talks about the mother but it is after all the sorrow fills her heart and mind, she leans on the mahogany table people lean on object when they are tired upset. In this case the mother is both upset and tired of being upset. The last two lines in the sestet describe how the behaviour of the mother has affected the son, the only strength, which the son can provide for his mother to break the wall of sadness is love and faith. The octave has a rhyme scheme of abcd abcd, the sestet has a rhyme scheme of efg efg, and each line follows an iambic metre. The iambic metre gives us a rhythm to read the poem, which also relates to the message and the mothers feelings. Normally when we feel sad, everything we do tends to be slow and at a steady pace, the iambic metre provides that steadiness in the reading. The metre also relates to the message, helping someone overcome their sorrows, the metre states the slow and sorrowful mind of the mother and the rhyme at the end of each line suggests the love and faith the son has toward the mother. By using the form of a Petrarchan or Italian sonnet the poet effectively state the message. Through the uses of effective diction and simile, George Barker communicates the emotions of the mother. In the octave word choices like, most dear suggests that this poem might indeed be a letter to some one. When I think of words like most loved and most far, it seems to be a letter written to someone, who has died, and the boy is informing his mother status after their death. Huge suggests not only the mothers appearance but also the kindness; having a huge heart. Seismic implies her being jovial and light hearted; on the other hand in the sestet, where the tone changes, the thoughtful choice of words emphasise the sadness of the mother. She will not glance up at the bomber or condescend/ To drop her gin and scuttle to the cellar, this shows us that the boy has tried every means to get the mother out of her sorrows but what ever happens she would not recover or respond. People Lean when they are tired, stressed or miserable, this directly relates to the mothers state of mind. I think that the detailed description of the table; being mahogany is significant to how the mother feels as well. The word sounds like melancholy; meaning sad and depressed, which is what the mother is undergoing. The word cellar reminds me of prisons and bars; the mother is behind and trapped into the prison of mourning. Mourning into morning these words are homophones; sounding the same concludes the poem, and also states the message, by expressing that the mother sorrows will end when there is a new beginning. One very effective simile, is describing his mother like a mountain, this description not only describes the physical appearance but also the emotional capacity. A mountain is large and is a home to many living things, and the author to choose a mountain to describes is telling us that she is not only physically big but also is full of sorrow and sadness that, and the son needing the support of the mother, resembles the life in the mountains . George Barker uses metre, diction, rhyme, and simile; to illustrate the hidden message of his poem to his readers. The careful choice of word helps the readers successfully understand the emotions of the mother. The form of the poem helps the readers, feel the mothers sorrowfulness and the message from the poet; that we should help our loved one overcome pain and sorrow by loving them and having faith in them.

The Red Badge of Courage Book Summary

The Red Badge of Courage Book Summary The Red Badge of Courage was published by D. Appleton and Company in 1895, about thirty years after the Civil War ended. Author Born in 1871, Stephen Crane was in his early twenties when he moved to New York City to work for the New York Tribune. He was apparently fascinated and influenced by the people he observed living in the gritty art scene as well in the poverty-filled tenement housing. He is credited with being influential among the early American Naturalist writers. In his two major works, The Red Badge of Courage and Maggie: A Girl of the Streets, Cranes characters experience internal conflict and outside forces that overwhelm the individual. Setting The scenes take place in the fields and roads of the American South, as a Union regiment wanders through Confederate territory and encounters the enemy on the battlefield. In opening scenes, the soldiers wake slowly and seem to long for action. The author uses words like lazy, quaint, and retiring, to set the tranquil scene, and one soldier claims, Ive got ready to move eight times in the last two weeks, and we aint moved yet. This initial tranquility provides a sharp contrast to the harsh reality that the characters experience on the bloody battlefield in chapters to come. Main Characters Henry Fleming, the main character ( the protagonist). He undergoes the most change in the story, going from a cocky, romantic young man eager to experience the glory of war to a seasoned soldier who sees war as messy and tragic. Jim Conklin, a soldier who dies in an early battle. Jims death forces Henry to face his own lack of courage and reminds Jim of the stark reality of war. Wilson, a mouthy soldier who cares for Jim when he is wounded. Jim and Wilson seem to grow and learn together in battle. The wounded, tattered soldier, whose nagging presence forces Jim to face his own guilty conscience. Plot Henry Fleming begins as a naive young man, eager to experience the glory of war. He soon faces the truth about war and his own self-identity on the battlefield, however. As the first encounter with the enemy approaches, Henry wonders if he will be brave in the face of battle. In fact, Henry does panic and flee in an early encounter. This experience sets him on a journey of self-discovery, as he struggles with his conscience and re-examines his opinions about war, friendship, courage, and life. Although Henry fled during that early experience, he did return to the battle, and he escapes condemnation because of the confusion on the ground. He ultimately overcomes the fear and takes part in courageous acts.   Henry grows as a person by gaining a better understanding of the realities of war.   Questions to Ponder Think about these questions and points as you read the book. They will help you determine a theme and develop a strong thesis. Examine the theme of inner versus outer turmoil: What role does Henrys conscience play?What does Henry learn from each soldiers death? Examine male and female roles: What role does Henrys mother play?What does this novel suggest about our concepts of masculinity and courage? What does this novel suggest about our concepts of war? Possible First Sentences Sometimes, we have to come face to face with our fears to learn something about ourselves.Have you ever been really afraid?The Red Badge of Courage, by Stephen Crane, is a story about growing up.What is bravery? Sources: Caleb, C. (2014, Jun 30). The red and the scarlet.  The New Yorker,  90. Davis, Linda H. 1998.  Badge of Courage: The Life of Stephan Crane. New York: Mifflin.

Quiz How Smart Are You Really

Quiz How Smart Are You Really How smart are you? Have you ever thought that youre smarter than most people? According to difference tests   on  Wikipedia, the average persons IQ falls somewhere in the range of 90-109. What do you think? Put your intelligence to the test with this quick and fun quiz. How smart are you, really?

The Organizational Structure of the Business Research Paper

The Organizational Structure of the Business - Research Paper Example The involvement of operational staff in a budget setting will facilitate the budgetary control system and will eliminate variances. The operating staff well knows about the operating costs and thus should be involved in the budget setting. Involving staff in the budget set is not considered comfortable as it can cause a clash between departments but it can be quite helpful in smoother running operations. Budgets, which are kept secretive and made by the manager often, fail to implement. The staff often reacts severely against such budgets. It can lead to a feeling of mistrust and frustration. It can lead to misdirection and waste of resources. True integration is lacked in budgets in which staff is not involved. Ambiguous financial data should be converted into meaningful information. Operational staff must be educated about the budget and then involved in decision-making. The budget sets guidelines available for each segment. Controlling aspect of budget means to keep in check the c ontrollable costs with budgeted costs. The responsibility for cost control is assigned to the manager of the cost department who is responsible for controlling the cost under his control. For controlling the cost accountant must use standard values. This involves creating inventory values for costing and controlling physical quantities and choosing such alternatives, which might increase revenue and decrease costs. It involves executing such budgets for operating under expected competitive and economic conditions. The budget should be set within an overall organizational planning and control framework.

The First Persian Gulf War Essay Example | Topics and Well Written Essays - 1000 words

The First Persian Gulf War - Essay Example The main battles were aerial and ground combat within Iraq, Kuwait, and bordering areas of Saudi Arabia. The war did not expand outside the immediate Iraq/Kuwait/Saudi border region, although Iraq fired missiles on Israeli cities.The Iraqi seizure of Kuwait was of immediate interest to the western capitalist societies because Iraq and Kuwait together would control approximately 20 percent of the world's known oil reserves (Kellner 9). With the potential wealth generated from future oil sales and control over oil prices, Saddam Hussein could play a major role on the world's political and economic stage. Consequently, Iraq's invasion of Kuwait produced a crisis for the world capitalist system, for U.S. and European economic interests, and for the stability of the Middle East. Iraq was not able to get control of Kuwaiti investments because much of their money had been transferred out of the country. Yet, rather than encouraging a diplomatic solution to the crisis that would return Kuwai t's sovereignty and secure the region, George Bush responded with a military intervention, which inexorably led to the Gulf war itself. Interest in the crisis increased when the U.S. claimed that Iraq might also invade Saudi Arabia, which was said to control 20 percent of the world's known oil reserves and an investment portfolio even larger than Kuwait's. George Bush, who had initially attacked the invasion as "naked aggression," heated up his rhetoric and declared on August 5 that the invasion "would not stand." Two days later, he sent thousands of troops to Saudi Arabia. The Bush administration had thus set the stage for the Gulf war by failing to warn Iraq of the consequences of invading Kuwait and then by quickly sending troops to Saudi Arabia while undercutting diplomatic efforts to resolve the crisis (Frank 20). There was no single reason why the United States relentlessly pursued the military option in the crisis of the Gulf. Dissection of the underlying forces that led the Bush administration to pursue the war option reveals a complex web of political, economic, and military considerations. The Gulf war was not solely a war for oil, for the greater glory of George Bush and the Pentagon, or for the promotion of U.S. geopolitical supremacy in order to bolster a faltering U.S. economy, although all of these factors played a role in producing the war. Instead, the Gulf war was "overdetermined" and requires a multicausal analysis (Kellner 11-12). In 1990, Bush's presidency was facing severe domestic economic and political problems, including: a sky-rocketing deficit caused by Reagan's and Bush's astronomical defense-spending; a severe S&L, banking, and insurance crisis caused by Republican deregulation policies; and proliferating public squalor marked by growing homelessness, unemployment, economic deprivation, deteriorating cities with epidemics of crime and drugs, health problems such as AIDS, cancer, and the absence of a national health insurance program. These and many other problems were in part caused, or aggravated, by the policies of George Bush and his predecessor Ronald Reagan. Consequently, it was in George Bush's interest to divert attention from current crises and the potentially deteriorating economy with a scapegoat for the economic imbroglio produced by Republican economics. That is, Bush could claim that the economic problems were caused by Saddam Hussein's invasion of Kuwait and the ensuing crisis that drov e up

Thin-Layer Chromatography of Steroid Hormones Essay Example for Free

Thin-Layer Chromatography of Steroid Hormones Essay The purpose of this experiment was to test the solubility of various steroids in order to obtain more information about their structure. An unknown was also given to be included in the experiment. The test that was performed was thin-layer chromatography which required a glass plate. The known steroids used in this experiment were estradiol, hydrocortisone, cortisone, corticosterone and deoxycorticosterone. Introduction Steroid hormones are a subgroup of lipids. They are found in one of the primary endocrine glands in the body, the adrenal glands, which are located directly superior to the kidneys. The structures of the adrenal glands begin with the outer layer known as the cortex. This region is most commonly referred to as the adrenal cortex and provides the gland with approximately 80% of its total mass. Within the adrenal cortex there are three layers: the outermost layer is known as the zona glomerulosa, the middle layer is known as the zona fasciculata, and the innermost layer is known as the zona reticularis. Each of these layers is comprised of many cells that synthesize and secrete hormones appropriately named the adrenocorticoids. The second portion of the adrenal gland is known as the adrenal medulla. It is the inner region and account for the remaining 20% in each of the adrenal glands. The adrenal medulla is responsible for the release of epinephrine and norepinephrine into the bloodstream. Adrenocorticoids include three types of steroid hormones. Each class belongs to a specific layer in the adrenal cortex and each class secretes specific hormones. The first group of adrenocorticoids is referred to as mineralcorticoids. These hormones are secreted by the zona glomerulosa and are responsible for the regulation of both the reuptake of sodium and the secretion of potassium. The mineralcorticoid used in this experiment was the more potent, deoxycorticosterone. Abnormal levels of minercorticoids can be associated with hypertension and can be induced by various problems, such as, low blood sodium, high blood potassium, cardiac failure, kidney failure, or even cirrhosis of the liver. The second group of adrenocorticoids is referred to as the glucocorticoids. These are produced by the second layer in the adrenal cortex, the zona fasciculata. The functions of glucocorticoids include stimulating gluconeogenesis through the use of amino acids and breaking down of muscle proteins. In this experiment the glucocorticoids used were hydrocortisone and corticosterone. These hormones are used medically to suppress the immune system by inhibiting the inflammation process. However, too much secretion of these hormones can be indicative of Cushing’s syndrome, pregnancy, and stress that comes from disease or other sorts of bodily trauma. The third group of adrenocorticoids that will be discussed are sex hormones. Sex hormones are not only secreted by the adrenal cortex. They are largely secreted in the reproductive system of each respective gender. Sex hormones can be further categorized into androgenic hormones, estrogenic hormones, and progestational hormones. Androgenic hormones are found predominately in the testes of the male, and there is it secreted by the interstitial Leydig cells. The most common and most powerful androgenic hormone is testosterone. Estrogenic hormones are only slightly different from their counterparts. Estrogenic hormones are identified by their 18 carbon ring structure whereas androgens are identified by their 19 carbon ring structure. Estrogenic hormones are secreted by the female reproductive organs known as the ovaries. The most potent estrogenic hormone is called estradiol and its release fluctuates throughout a woman’s menstrual cycle, with its peak volumes being around the time of ovulation. The last subgroup of sex hormones is called progestational hormones, or progesterone. Progesterone is responsible for the final maturation of the endometrium. Located in the ovaries, it is released from the corpus luteum during the luteal phase of the menstrual cycle and also increases in volume during pregnancy as the fetus progresses. Progesterone is different from the other two classes of sex hormones in that it is a 21 carbon ring structure. The modality used in this experiment was a chromatogram. Thin-layer chromatography is the type of chromatography that uses a small glass sheet covered in a thin layer of an adsorbent material. Once solutes are obtained, they are carefully placed on the glass sheet on the origin line. Then the glass sheet is soaked in a solvent for a certain period of time that varies with each chromatography technique. After it is through soaking, the solutes can be observed and the distance that each solute has moved can be measured. This value is obtained by using the R? ormula which takes the distance a solute travels from the origin line divided by the distance that the solvent traveled (this measure is known as the solvent front). This R? value can help determine unknowns as well. The final result of this experiment is known as a chromatogram, and depending on which technique is used, the steroids can be seen through regular light, or via a UV lamp. A UV light lamp was required for this experiment. Chromatography is a very useful tool in identifying the solubility properties of steroid hormones and revealing variants in hormone structure.

Problems in the Workplace Essays -- Workplace Essays

Old Navy is a corporation that exhibits all of the characteristics of a business in an industry where good tactical management is the key to long-term success and survival. There can be little doubt that the backbone of every successful business or company is its staff of employees. Employees are the vital parts of the business machine that can aid in its success or contribute to its failure. It is, for this reason that it is imperative to possess the ability to acquire and maintain effective employees. The chief method by which a business or company can accomplish this task is through employee-centered motivational programs. While being an assistant manager at Old Navy I was able to look into how the business motivated its employees, what problems arose from the companies motivation policies and the techniques I chose to implement to create a better workplace.   Ã‚  Ã‚  Ã‚  Ã‚  The goals of the motivation programs are to encourage employees to maximize their performance by targeting three specific motivational stimuli. The three-targeted stimuli are morale, satisfaction, and rewards. While working at Old Navy I found that the Old Navy Corporation used Fredrick Taylor’s approach to motivating their employees. He believed that when highly productive people discover they are being compensated the same as less productive people, then the output of highly productive people would decrease. Consequently, the scientific management approach to motivation is based on the ...

Webster Clay Calhoun Comparison Essay

Henry Clay, John C. Calhoun, and Daniel Webster dominated national politics from the end of the War of 1812 until their deaths in the early 1850s. Although none were ever President, they had a huge impact in Congress. Their impact outweighed the impact of any of the presidents of that era, with the exception of Andrew Jackson. There was one issue effecting the nation throughout their time in power — slavery. They were all successful in keeping peace in America by forging a series of compromises. The next generation's leaders were not so successful.The Gold Rush led to the rapid settlement of California which resulted in it quickly becoming the 31st state. Southerners recognized that California would be the 16th free state, giving the non-slave holding states the Senate, and they were already holding the House of Representatives. At this time, Texas was claiming land in New Mexico. As a slave state, any expansion of the boundaries of Texas would be expanding slavery. Northerner s were opposed. The north was also appalled at the ongoing practice of slavery in the nation's capital. The lines were drawn as Clay, Calhoun and Webster took the stage. Henry Clay had brokered compromises before.When the Congress was divided in 1820 over the issue of slavery in the Louisiana Territory, Clay set forth the Missouri Compromise. When South Carolina nullified the tariff in 1832, Clay saved the day with the Compromise Tariff of 1833. With the new dispute in the nation he put forth a set of eight proposals that he hoped would work. John C. Calhoun took to the floor next. Although he was sick and dying he sat in the Senate chamber as his speech was read. The compromises would betray the south, he claimed. Northerners would have to agree to federal protection of slavery for the south to feel comfortable remaining in the Union.His words foreshadowed the trials the Union that would soon experience.. Daniel Webster spoke three days after Calhoun's speech. He asked northerners to accept southern demands for the sake of Union. Withdrawing his former support for the Wilmont Proviso, he hoped to persuade people to move closer to Clay's proposals. Although there was no immediate deal, his words impacted Congressmen as they debated into the summer. By 1852, Clay, Calhoun, and Webster had all died. They left behind a huge impact on the nation. They united their country in a way no learned to follow behind them could.

What Were Several Staple Crops in the Carolinas

What were several staple crops in the Carolinas, grown by the slaves? How did this crop affect their cuisine? When the slaves were being transported to the new world they brought with them native African foods to eat along the journey. They also brought with them many customs and cooking techniques that were not yet used in the Americas. The introduction of these crops proved to be a major influence in what we now called Southern cuisine or soul food. Rice is the major staple of slave cuisine. It is said that the rice originally came from seeds directly imported from Madagascar in 1685.Africans were familiar with the growing and cultivating of rice and taught their â€Å"owners† how to grow it as well. The rice fields were cultivated on tidal swamp lands along coastal rivers. Slaves cleared these low-lying land and build canals, dikes and small floodgates that allowed the flooding and drainage of the fields. Peanuts were originally from South America, but made their way to Afr ica via trade then eventually made their way to America on the slave ships. Slaves used peanuts in several different ways including making peanut pie and peanut soup.They also used to boil the peanuts in salt and spices and eaten soggy, this was a great source of nutrition. This dish is still widely consumed today. The use of the peanut was not limited to just the slaves; in fact George Washington Carver researched this product in depth. He discovered over 300 possible uses for the peanut including Jersey Milk, instant coffee, flour, synthetic rubber and linoleum. It was also discovered that rubbing peanut oil on aching muscles will help them rejuvenate more quickly.Okra was another staple crop grown and consumed mostly by slaves at first but then made it’s way, as many other foods, into the white man’s diet. Okra or gumbo as it’s called in Africa made its way to America via the transatlantic slave trade in the 1600s. The most popular dish that is made from Okra is Gumbo, a stew in which okra is the main ingredient and is thickened with powder from sassafras leaves. The seeds were also used to make a coffee substitute and for some medicinal purposes including softening ointments.African food traditions contributed greatly to the culinary cuisine of America. Southern cooking and soul food became a cultural and culinary experience in which both black and white Americans contributed to. Works Cited Opala, Joseph. â€Å"South Carolina Rice Plantations. † South Carolina Rice Plantations. N. p. , n. d. Web. 26 Oct. 2012. <http://www. yale. edu/glc/gullah/02. htm>. â€Å"- SlaveRebellion. org. † – SlaveRebellion. org. N. p. , n. d. Web. 27 Oct. 2012. <http://slaverebellion. org/index. php? page=african-contribution-to-american-culture>.

The Role of Technology in Facility Management A Case Study of the MacDonald Restaurants

The Role of Technology in Facility Management A Case Study of the MacDonald Restaurants Introduction Facility management comprises a broad continuum of services which require to build a suitable environment that can enhance performance of functions and activities for which the facility is intended for. The management activities of a facility entail the day to day activities which are critical in its operation and maintenance. For that matter, for the facility to operate to its peak efficiency and effectiveness, there must be measures put in place to promote its smooth operation.Advertising We will write a custom research paper sample on The Role of Technology in Facility Management: A Case Study of the MacDonald Restaurants specifically for you for only $16.05 $11/page Learn More As a result, technology becomes an important tool that should be used to ensure facility’s smooth operation and proper maintenance. In relation to this, the MacDonald Restaurants are a group of hotels that have branches widespread in all the continents all over the world. Their core services offer catering and hotel services. Nonetheless, this group of hotels has been called the best catering service provider in the world on several occasions. For that reason, facility management in this organization is regarded as one of the driving forces behind the accolade performance in this line of business. However, their effective facility management has been attributed to effective use of technology. Therefore, this paper presents a research that was conducted in the field of facility management which was intended to determine the role of technology. the MacDonald Restaurants group was used as a case study. Moreover, challenges that exhibit themselves in facility management were also explored. In addition, the field of the facility management presented some opportunities and, therefore, they were also considered in the study. Nonetheless, emerging trends in this field were covered. Importantly, it is worth noting that this research was conducted t o determine the relevance of technology in facility management particularly to the hospitality industry. For that matter, the results of the study were, therefore, generalized in the entire hospitality industry. Result of the research In relation to the research conducted, several issues relating to the role of technology in facility management were established. To begin with, it was evident that maintenance procedure in facility management can be computerized. This can be done in form of an automated maintenance system for the facility management. The automated information system can be used to manage the day to day activities by tracking and monitoring the status of the maintenance and related costs of those activities. On the other hand, the automated systems not only provide tools for managing activities metrics that are used to evaluate the effectiveness of the operations and maintenance activities. For that matter, it was established that for an organization that is able to us e automated systems in its operation and maintenance activities, key performance indicators are usually provided to be used as performance guidelines.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More This leads to increased productivity due to effectiveness and efficiency that are key determinants for business growth. This was evident in the MacDonald Restaurants as the automated management systems were largely used for maintenance of their facilities. This was noted as one of the major contributions to its business growth. Moreover, it was established by the study carried out that introduction of technology to management of the facility resulted in delivering of services in a shorter period compared to the catering with the traditional systems. In addition, some services that are currently being provided by technology based systems did not used the manual systems. Just li ke Atkin and Adrian (108) affirmed the automation facilitated faster service provision than the traditional manual systems. Challenges facing the role of technology in facility management Technologies have been regarded as a panacea to effective management of business activities. This is still the case in facility management since a lot of stakeholders regard technology as the best solution to management problems of these facilities. In relation to this, the study carried out established that application of technology in facility management had challenges that threatened their effective management. To begin with, it was evident from the research conducted that application of technology in this organization raised the issue of obsolescence. Users of the technological systems that are applied in management of facilities in MacDonald Restaurants were more concerned with technology becoming obsolete too fast. This was attributed to its high rate of advancement. Therefore, the advancemen t dictates that the systems should be changed from time to time. After a very short period, replacement of systems in the organization raises the operational expenses of the organization which at some point contribute to poor financial performance. Moreover, it was acknowledged by Piercy (56) that any technological system is likely to fail in the process of its operation. This is a challenge that technology experiences in the management of facilities. In the design of any system, its engineering is usually assumed to be in a remarkable state. Therefore, prediction of its failure is normally elusive at this point. However, the more complex the technology may appear, the more likely it is to fail. According to Tichy (89), any technology can fail because of different reasons which include mismatch of the modules, poor design and development among other reasons. As a result, it was established by the study that technology failure results in more adverse and costly consequences. For inst ance, critical failure of these systems leads to disruption of processes, especially if they are real time systems where irreversible effects are usually used.Advertising We will write a custom research paper sample on The Role of Technology in Facility Management: A Case Study of the MacDonald Restaurants specifically for you for only $16.05 $11/page Learn More Nonetheless, these unpredicted risks can result in the total failure of the entire system, hence paralyzing activities of the organization. In relation to this, the study established that most organizations usually try to put in place measures that are designed to minimize or prevent the failures. In most cases, this usually increases their total operating costs. In addition, it was acknowledged by Atkin and Adrian (23) that any technology always presents some side effects. Furthermore, it was established by the study conducted in the MacDonald Restaurants that despite having the technology with the desired benefits to the organization, it also presents some unwarranted effects which affect the organization negatively. For instance, it was stated by Tichy (103) that working conditions of a system might be safer when the substances are molded rather than when they are squashed. Moreover, in some cases, substances that are used in the production may affect the workers as well as harm the entire public in general. For instance, workers who constantly use computers in their work processes in facility management usually suffer eye related problems which in turn lead to isolation by others. In regard to this, it was acknowledged by Nutt and Peter (42) that these effects affect not only big technologies but also their small counterparts. For instance, it was found out due to the research conducted that ordinary technologies normally applied on a small scale in the hotel industry have collective side effects in their usage. For instance, though refrigerators which are used on an every day basis have constructively contributed to preservation of food, they have a gas outflow in their cooling system which has a negative impact on the surroundings. Still, it was postulated by David et al (34) that these negative effects are usually not expected because of lack of resources to foresee them. Moreover, most of them are not predictable because of their complexity. As a result, Tichy (54) postulated that some side effects have turned out to be economically unacceptable, unethical and in some cases resulting to conflicts in the organizations in which they are being used. Opportunities of technology in facility management Technology presents a broad range of opportunities in facility management. According to David et al (24), this fact is ascribed to the fact that organizations usually have the aim of keeping low operational costs. Therefore, integration of technology in the management activities becomes one of the aims that can be achieved. As a result, organizations, su ch as the MacDonald Restaurants, have opted to adoption of technology in their operations in order to keep their operational cost at a reasonably low levelThus, according to the research conducted, it was established that the need for innovation in organizations presents bountiful opportunities for the incorporation of technology in facility management.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More In respect to this, it was evident from the study conducted that there is a need for quantity and quality changes in support services. This is usually required in the facility management as it provides an opportunity for technology to be incorporated in their management. For instance, opportunity to use technology can come in through application of a central support desk in the organization. Bigger organizations may be comprised of numerous departments which may be dispersed from each other. In such environments, it was believed by Atkin and Adrian (145) that a centralized support desk should be put in place in order to handle queries. Therefore, this provides an opportunity to incorporate technology. The technological tools, such as information communication technologies, can provide such kind of services in a manual based environment effectively. Moreover, the need for sustainability has resulted in an increased need for innovation in organizations operations. This has in turn fur ther opportunities for technology incorporation. For that matter, using technology in facility management remains one of the ways through which organizations have stretched their resources for sustainability. For instance, from the study conducted, it was established that organizations are adopting enterprise resource planning systems which help attain higher level of sustainability. From the study, it was established that enterprise resource planning systems contribute immensely to achieving effective service delivery. As a result, the need for sustainability has brought forth technological innovation in the facility management operations in organizations. For instance, the need to save on space has given technology an opportunity to be applied in the facility management functions. This has, therefore, influence the space management functions that are used to attain sustainability. For instance, technology is applied in creation of space inventory that is desired to manage organiza tion’s space more economically and effectively. Moreover, technology is also put in use to manage equipment and furniture through tracking techniques which as a result, lead to facilities accountability. According to Georgoulis (89), accountability of equipment that is facilitated by automated systems has resulted in sustainability of these organizations. This was exhibited through the study carried out in the MacDonald Restaurants as the effective management of their facilities was attributed to application of automated systems. Moreover, due to the need for sustainability of business activities in terms of information management, there has been creation of opportunities for technology. For instance, space management issues have resulted in the need of using technology in management of organization’s databases. For example, from the study conducted, it was established that database management systems are largely applied in management of their information. This is take n as one of the best mechanisms of managing space in the organization. Additionally, application of database management systems also enhances sustainability of organizations through provision of effective and efficient services to stakeholders. This is made possible due to its capability of providing a bi-directional interface that is able to connect different departments of the organization remotely. Nevertheless, it was opined by Gerard (27) that challenges that present themselves to the organization are opportunities through which technology can be banked on its advancement. For instance, in the operation of these organizations, environmental factors, such as accelerated population growth and continued depletion of energy resources, present negative challenges to organizations. However, despite these factors having negative effects, they show an opportunity for technology application in trying to solve them. Therefore, this gives an opportunity to design sustainable technologies that can utilize the limited resources more effectively in order to make these organizations robust in their activities. This was evident from the research conducted in the MacDonald Restaurants which indicated that the company adopted new technologies in their facility management in order to save on resources that could deplete natural resources in the environment. Furthermore, facility management presents security issues that need to be addressed to assure long term sustainability. For that reason, they present a number of opportunities to technology since in the current times, security is provided by automated systems. This is so since security systems have advanced over time, hence they provide facility managers with the capability to expand the scope of their security measures. For instance, instead of using traditional guards, organizations are adopting new technologies by current developments, such as cameras and sensor systems, which are real time operational systems that ar e able to give signals to key operational situations. This was evident from the study conducted since it emerged that the group of restaurants had replaced all their physical security measures with automated systems that were able to secure their facility. This was done through application of tracking systems which were able to trace every facility within their premise. In relation to this, it is acknowledged by Barrett and David (235) that organizations began applying automated intelligence systems which are able to monitor any aspect of the facility being managed. This has, however, resulted in a value proposition for organizations since they became able to monitor all operations. For example, in retail business setting as that of the MacDonald Restaurants, the system is able to track movement in and out of the storage rooms and also check those of the products purchased and sold. As a result, the organization is able to gain some value in the facility management. Trends in the ro le of technology in facility management In facility management just like other disciplines, there are several expected trends. These trends are projected to shape the way the discipline will be managed in the future. For that matter, these trends of technology in facility management can be broadly categorized into three. These are externally motivated trends, internally motivated trends and organizationally motivated trends. To begin with, externally motivated trends are usually determined by the societal factors. For instance, according to Nutt and Peter (231), the need for sustainability by organizations in their business operations is a trend that will continue to be experienced. This is ascribed to the fact that competition in the environment is steadily growing hence the need to position an organization strategically to have some competitive edge. Therefore, for that to be possible, it is believed by Elaine (136) that sustainability in the present business operation is only mad e possible by adoption of technology which is robust in the business environment. Therefore, as the rate of competition in the operating environment increases, thus the adoption of technology will be necessary to maintain the sustainability required. As a result, the trend for sustainability in facility management will continuously increase. Moreover, the external motivated trends dictate that systems that result in complex building structures will continue to offer challenges and opportunities. These will increase integration of technology in the management of facilities in these organizations. This implies that the more the building technology continues to grow, the more technology will be required to be integrated into their management. However, it was acknowledged by Thomas and Christopher (94) that this trend will result in the need to train professionals in the field of facility management. This is so since development of complicated technology will surely arise the need of ad vanced skills and knowledge to manage these facilities. Contrary to the emergence of the complex structures in the future, it is also important to acknowledge that with the existing building structures, the future trends are also categorized by aging. This, therefore, brings forth the challenges of management since these structures and current systems are likely to exceed their desired operating lives hence bringing in the issue of replacing or repairing them. Consequently, this will mean spending an additional cost in the management of these facilities. In addition, the second trend in the role of technology in facility management relates to internally motivated trends. According to Tichy (78), these are trends that originate from within the discipline of facility management itself. For instance, Effy (34) alluded that the data was increasing in complexity and quantity which in some cases, overwhelmed effort of their management. However, despite the current increase in quantity and complexity, it still expected that this would continue to be the trend in facility management. This is likely to result to information overload that poses a risk to its effective management. For that matter, this trend is likely to present negative effects in management of these facilities. This was affirmed by the research conducted in the MacDonald Restaurants since automated systems that were used to manage their facilities were noted to collect and process a lot of information. This was feared that it could lead to information overload if necessary measures were not put in place. Lastly, the third trend relates to organizationally motivated trends which originate from the organization itself. For instance, in most organizations, there are trends of increasing and expanding expectations of management of these facilities to include both business and technical acumen. This requires to have a developed skill set for the individuals to manage these activities. Nonetheless, it is als o expected that the trends will change the working styles significantly in order to conform to the new technologies that will be in place. According to Piercy (23), due to the technological changes and advancement that are being experienced in facility management, working styles will also considerably change. Therefore, organizations should always be willing and ready to adapt to the new technology and working styles. This was affirmed by the research conducted in the MacDonald Restaurants which showed that automated systems keep on changing from time to time and as they do so, working styles are also forced to follow them. Conclusion To wind up, it is important to acknowledge that facility management presents a variety of opportunities to technology. This has made technology to be one of the key aspects of facility management discipline. However, it is also relatively important to note that application of technology in facility management is faced by several challenges. Nonetheless , it is important to establish a balance between the weaknesses and strengths of using technology in order to have an equilibrium that will guarantee the effectiveness and efficiency of facility management as required. Nevertheless, it is acknowledged by David et al (112) that challenges that face facility management in themselves present an opportunity through which technology can explore in order to provide better service delivery. For instance, it is believed that challenges relating to negative environmental effects that may be viewed as results of activities of facility management can be addressed smoothly through use of technology that is environmental friendly. On the other hand, it is important to acknowledge that there are several trends that are expected to exhibit themselves in the field of facility management. These trends are likely to create new opportunities in the integration of technology in the facility management. They are broadly classified into three categories of internally, externally and organizationally motivated issues. In all these trends, they provide opportunity for technology to be integrated in the management of facilities. Therefore, they should be capitalized on to improve service delivery. In conclusion, from the research conducted in the MacDonald Restaurants, it was established that technology has a major role in the facility management to hospitality industry in a wider spectrum. This ranges from provision of security to the facility and its accountability. Therefore, it is relatively important for facility managers to prioritize integrating technology in their management activities and functions. For that matter, as the hospitality industry evolves over time, it is important for this aspect to be prioritized in order to gain management effectiveness and efficiency. Therefore, it is recommended for the hotel managers to adopt technology in the management of their organizations. Moreover, they should keep on changing with te chnology to be able to remain relevant in the business environment. This will surely guarantee their competitive edge. Atkin, Brian and Adrian Brooks. Management. Hong Kong: Wiley-Blackwell, 2009. Print. Barrett, Peter and David Baldry. Facilities Management Towards Best Practices. London: Blackwell Publishing, 2009. Print. David, Cotts, Roper, Kathy and Richard Payant. The Facility management Handbook. New York: Broadway, 2010. Print. Effy, Owen. Management Information Systems. London: Cengage Learning, Inc, 2009. Print. Elaine, Brian. The 2011 Pfeiffer Anuall: Consulting. London: John Wiey Sons, Inc. 2011. Print. Georgoulis, Stephen. Facility Management: A Profession at Risk. Arizona: Arizona State University Press, 2010. Print. Gerard, Blokdijk. IT Management 100 Success Secrets. New York: Wiley-Blackwell, 2011. Print. Nutt, Bev and Peter McLennan. Facility Management Risks Opportunities. London: Blackwell Publishing, 2009. Print. Piercy, Newton. Management Information System: The Technology Challenge. London: Croom Helm Ltd, 2004. Print. Thomas, Christopher and Christopher Gregory. Organizational Development Change. U.S: South-Western Cengage Learning, 2009. Print. Tichy, Michael. Managing Strategic Change: Technical, Political and Cultural Dynamics. London: John Wiey Sons, Inc, 2009. Print.

Challenges of Harmonization of Accounting System

Accounting Standards in other words can be stated as rules which govern the preparation of financial statements. They are the generally accepted accounting principles (GAAP). Where by accounting practices are the actual used practices by accountants. They are influenced by Accounting Standards, which govern the preparation of financial reports. Harmonization of accounting standards† can be defined as the continuous process of ensuring that the Generally Accepted Accounting Principles (GAAP) are formulated, aligned and updated to international best practices (GAAPs in other countries) with suitable modifications and fine tuning considering the domestic conditions. Harmonization is the process of increasing compatibility of accounting practices by setting bounds on their degree of variation. Harmonization can be defined as â€Å"the process of bringing international Accounting Standards into some sort of agreement so that the financial statements from different countries are prepared according to a common set of principles of measurement and disclosure† (Haskins et al. 1996:29). According to Wolk et al. described harmonization of Accounting Standards as â€Å"the co-ordination or similarity among the various sets of national Accounting Standards and methods and formats of financial reporting†. (Kleekamper et al. , 2002) Kleekamperet al. xplain, that the aim of the international harmonization process of Accounting Standards is to reduce or overcome differences world-wide, in order to reach a better international Comparability of financial statements. International accounting harmonization can be defined as â€Å"the process of bringing international Accounting Standards into some sort of agreement so that the financial statements from different countries ar e prepared according to a common set of principles of measurement and disclosure† (Haskins et al. 1996:29). This harmonization is needed due to the globalization of businesses and services and increase in cross-border investments and borrowings and academicians, regulators and governments have been constantly striving to harmonize the local/domestic Accounting Standards(AS), also referred to as Generally Accepted Accounting Principles (GAAP), with the International Accounting Standards (IAS) issued by the UK based International Accounting Standards Board (IASB) (formerly the International Accounting Standards Committee-IASC). The IASB has been trying to harmonize international accounting principles since 1973. Further, the IASB and the International Organization of Securities Commissions (IOSCO) have been jointly working on harmonization since July 1995, and in May 2000 the IOSCO finished its review of the IAS and recommended usage of certain IAS, supplemented with reconciliation, disclosure and interpretations. Some benefits of harmonization of accounting practices is as follows * It ensures reliable and high quality financial reporting and disclosures. In certain cases, it can prove to be crucial to the economic and financial development of a country * It enables a systematic review and evaluation of the performance of a multinational company having subsidiaries and associates in various countries wherein each country has its own set of GAAP * It makes the comparison of the performance of a company against its domestic and international peers easier and more meaningful * It is a precursor for accessing international capital markets which can, in turn, reduce the capital cost and consequently, improve the performance of a company * Multinational companies, the multinational companies benefit from closer harmonization for the following reasons a) Access to international finance is easier, the international financial markets understand the financial information presented to them more easily. If the information is provided on a consistent basis between companies irrespective of their country of origin. b) Improved management control, in a business operating in several countries management control is improved. Internal financial information is more easily prepared on consistent basis if externally required financial information is required on a uniform basis. c) Consolidation of financial statement is easier ) A reduction of auditing cost due to harmonized accounting practices and standards. e) A transfer of accounting staff across national borders would be easier f) It would be easier to comply with reporting requirements of overseas stock exchanges. g) Appraisals of foreign entities for take over and mergers would be more straightforward. * International economic groupings, international groupings like EU (European Union) could work more effectively if there were international harmonization of accounting policies. Part of the function of international groupings is go make cross-border trade easier. Similar to accounting regulation would help this process. Government of developing countries would save time and money if they would adopt international standards and, if these were used internally, governments of developing countries could attempt to control the activities of foreign multinational companies in their own country. These companies could not hide behind foreign accounting practices which are difficult to understand. * Tax authorities, it will be easier to calculate the tax liability of investors, including multinationals who receive income from overseas sources. * Large accounting and auditing firms would benefit as accounting and auditing would be much easier if similar accounting practices existed throughout the world. Despite the importance of harmonizing accounting standards, there still challenges facing harmonization of accounting standards between the member countries using IFRS (international financial reporting standard) and also between United States using US GAAP. These challenges are brought about different tax laws, different culture, different legal requirement, nationalism and different needs of financial statements. Speaking of harmonization we should put in consideration of International accounting standard board (IASB) based in UK and Financial accounting standard board (FASB) based in US. The  International Accounting Standards Board  (IASB) is the independent,  accounting standard-setting body of the  IFRS Foundation. The IASB was founded on April 1, 2001 as the successor to the  International Accounting Standards Committee  (IASC). It is responsible for developing  International Financial Reporting Standards  (the new name for  International Accounting Standards  issued after 2001), and promoting the use and application of these standards. The  Financial Accounting Standards Board  (FASB) is a private,  not-for-profit organization  whose primary purpose is to develop generally accepted accounting principles  (GAAP) within the  United States  in the public’s interest. The  Securities and Exchange Commission  (SEC) designated the FASB as the organization responsible for setting accounting standards for public companies in the U. S. It was created in 1973, replacing the  Committee on Accounting Procedure  (CAP) and the  Accounting Principles Board  (APB) of the  American Institute of Certified Public Accountants  (AICPA). The FASB’s mission is â€Å"to establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information. † To achieve this, FASB has five goals. * Improve the usefulness of financial reporting by focusing on the primary characteristics of relevance and reliability, and on the qualities of comparability and consistency. * Keep standards current to reflect changes in methods of doing business and in the economy. Consider promptly any significant areas of deficiency in financial reporting that might be improved through standard setting. * Promote  international convergence of accounting standards  concurrent with improving the quality of financial reporting. * Im prove common understanding of the nature and purposes of information in financial reports. The two boards have been making efforts to harmonize the accounting principles, as of September 2011, there was a push to harmonize, or integrate, the accounting standards of the United States, which operates under Generally Accepted Accounting Principles (GAAP), with International Accounting Standards (IAS). The rationale is that it would level the playing field for global businesses by providing regulators, auditors and decision-makers (investors) uniform information based on the same accounting methodologies. Supporters believe that this would improve accountability, reduce international transactional and exchange rate risks and improve information transfer to enhance economic policy decision-making. The difference between IAS and US GAAP is that the former is more principle based and the later is rule based. The following are Challenges to harmonization of accounting systems. Licensing and Enforcement, Individual accountants, CPAs and tax lawyers worldwide would need to comply with and obtain licensing through an internationally accepted rules-making body. If he international body lacks enforcement authority, there is no prosecutorial authority for breaking international laws. However, if the international body does have prosecutorial authority over a U. S. citizen, there would arise jurisdictional and constitutional issues regarding the rights of an international body’s rights to prosecute an American under international law. Finally, issues arise from the perspective of U. S. -only based businesses regarding forced compliance IASB standards are principles-based. Thus the countries that have rules-based standards are expected to experience considerable difficulty in harmonization of their standards with IFRS. There are challenges that IASB and nations adopting IFRS need to address in the coming days. One big challenge for countries adopting IFRS is the shortage of manpower and more particularly, IFRS-trained manpower. For case in point, with just six months to go before China’s listed companies adopt IFRS, demand for accountants is rising and could run into millions in the coming years, if the new standards are rolled out for all of the country’s companies and not just the listed ones. Accountants say that the challenge for China, as it scrambles to meet the accounting shift deadline, will lie in getting its over-1,100 listed companies to establish the appropriate financial reporting systems and in training enough qualified accountants by January. The risk is that some of these companies may fail to make the transition on time. Estimates reveal that China has a shortfall of 300,000 qualified accountants and is likely to require a further three million over the coming years to keep pace with its current rate of economic growth Difference purpose of financial reporting, in some countries the purpose is solely for tax assessment, while others it is for investor decision making, Different legal systems, these prevent the development of certain accounting practices and restrict options available. The Accounting world can be divided into â€Å"those countries which have a ‘legalistic’ orientation toward accounting and those with a ‘non legalistic’ orientation† (Nobes et al. , 1997:8). The non-legalistic approach can be found in countries, which use common law. In Common law countries, Accounting does not depend upon law. Accountants (professional organizations) arrange accounting rules. Hence, it is the private sector, which determines Accounting and not the law (Choi et al. , 200 2). The task of the legal system is to give an answer to a specific case rather than to formulate general rules for the future (Choi et al. 2002). The legalistic approach can be found in countries, which use the so called code (or codified) law. In contrary to the common law, the codified law system needs to develop rules in detail for the Accounting and financial reporting (Nobes, 1994). This means that â€Å"Accounting rules are incorporated into national law and tend to be highly prescriptive and procedural† (Choi et al. , 2002:43). In these countries the role of law is to describe behavior, which isconsidered to be acceptable in the society (Choi et al. , 2002). Different user groups, countries have different ideas about who the relevant user groups and their respective importance. In USA investor and credit groups are given prominence, while in Europe employees enjoy a higher profile. Provider of finance, there three main sources for external capital are shareholders, banks and government (Hill, 1999). It varies from country to country, which of these three provides most of the financial capital to companies. In countries like Germany and Italy banks provide companies with capital. In countries like England and the United States shareholders provide companies with capital. The government is the provider of capital in countries like France and Sweden. (Hill,1999) This diversity of capital providers means that Accounting Practices differ in order to satisfy needs of capital providers. In the case of shareholder ownership, (e. g. in the U. K. and the U. S. ), information disclosure will be more important than in countries, where capital is raised from banks or governments. This is explained by the fact that in the latter countries information will be transmitted more directly. (Radebaugh and Gray, 1997) It is impossible for a company to inform each shareholder with its specific information needs, because they are a big and unorganized group. Therefore financial statements in the US and UK are â€Å"oriented toward providing individual investors with the information they need to make decisions about purchasing or selling corporate stocks and bonds† (Hill, 1999:593). Tax laws, the key question here is to ask, how much taxation regulations determine Accounting measurements. In countries like the U. S. , U. K. and Netherlands there is no interplay between tax and Accounting law. When Accounting Standards are developed, the only focus is how to conduce the information function. Questions about taxation are not considered in those countries (Achleitner, 2000). In contrary, in nations as France and Germany, tax and Accounting Systems are ruled equal (Nobes and Parker, 2000). There is the principle of decisiveness in continental European countries. This means that the profit of the balance sheet is at the same time the foundation to snap income taxes (Achleitner, 2000). In Tanzania income tax act is in dis agreement with some accounting procedures like computation of depreciation, Bad debts and therefore disagree on how accountant compute organization profit and therefore in Tanzania should prepare to set of financial statement one for tax purposes and the other for other users of accounting information. Cultural differences result in objectives for accounting systems differing from country to country for example Islamic laws does not recognize the use of interest rate. The lack of strong accountancy bodies, many countries do not have strong independent accountancy or business bodies which would press for better standards and greater harmonization. Unique circumstances, some countries may be experiencing unusual circumstances which affect all aspects of everyday life an d impinge on the ability of companies to produce proper reports, for example hyperinflation, civil war, currency restriction. Nationalism is demonstrated in an unwillingness to accept another country’s standard. The Financial Accounting Standards Board (FASB) in the U. S. is responsible for setting accounting standards based primarily on â€Å"Federal securities laws and state CPA licensing laws. † All countries have specific securities laws, tax laws and banking and financial regulations that dictate accounting principles. Furthermore, in the United States, there are individual state laws that govern business, banking and insurance activities. Adopting international accounting standards would not only conflict with U. S. tatute law, but also constitutional law associated with â€Å"states’ rights. † Stable Platform, Beginning in 2005 , all 7,000 EU publicly traded companies are required to apply IFRS in the preparation of their consolidated financial statements. This represents yet another challenge as preparers of financial statements from Latvia to Portugal and from Poland to Sweden grapple with unfamiliar requirements. In preparation for this sweeping change, the IASB completed its â€Å"stable platform† of standards in March 2004. New and revised standards included five new IFRSs and 17 amended IASs, resulting from the IASB’s Improvements Project and Phase I of its Business Combinations Project. Some of the more significant revisions to IFRS that resulted from these projects include: * The LIFO method for costing inventories is no longer allowed; *   The concepts of â€Å"fundamental error† and â€Å"extraordinary items† are eliminated; *   Trading securities are now included in a larger defined category of financial instruments â€Å"at fair value through profit or loss† and entities may designate any financial asset or liability into this category (commonly referred to as â€Å"the fair value option†); *   Fair value hedge accounting may now be used more readily for a portfolio hedge of interest rate risk; *   Guidelines for share-based payments have been added;   The pooling-of-interests method for business combinations is no longer allowed; *   Goodwill is no longer amortized, and negative goodwill is not recorded in a business combination World wide acceptance, National accounting standards are highly politicized and there is ofte n a natural tendency to place the interests of the national economy ahead of those of the global economy. Private sector businesses and professional accounting bodies also have a vested interest in accounting practices and financial reporting. Pressure from these groups to change or reject certain standards can carry a lot of weight with political decision makers. Adopting international financial standards is met with additional challenges in developing countries. They often lack the resources and infrastructure to adapt national legal and legislative frameworks in which to house the standards, making proper implementation difficult. Training and Retraining, When a country decides to harmonize with the international standards, its companies, accountants and auditors need to be retrained in the new standards and reporting procedures for financial statements. College and university programs in this field also have to undergo significant changes in order to educate new people entering the profession. Before any of this can happen, trainers and professors will require training so they can instruct professionals and students. This will require the development of new learning materials and curricula, new examinations for professional licensing and new accounting software and reporting systems. To further complicate matters, the adoption of harmonized standards has to be phased in, so for a number of years, two different systems are in operation. Such a omplex transition requires a lot of safety mechanisms to ensure it achieves uniform results. To sum up with, Harmonization of financial statement is very crucial for acc ounting profession and also for the global business growth especially for multinational companies which will now find easily in preparation of parent and subsidiary financial statement since have to be prepared according to IFRS. IFRS IS very important to developing countries like Tanzania such as increasing confidence of investors, reduce cost of doing business, facilitate smooth operation of international groupings like EAC and the countries accountant become competitive worldwide. REFERENCES WORD LENGTH: 3517 words Arbnor, I. Bjerke, B. (1997): Methodology for Creating Business Knowledge, Sage Publications, Thousands Oaks, 2nd edition. Ghauri, P. ; Gronhaug, K. (2002): Research Methods in Business Studies, Prentice Hall, London. Choi, F. ; Frost C. ; Gary, K. (2002): International Accounting, Prentice Hall, New Jersey, 4th edition. Choi, F. ; Mueller, G. (1992): International Accounting, Prentice Hall, New Jersey, 2nd edition. Epstein, B. ; Mirza, A. (2001): IAS, Interpretation a nd Application, John Wiley ; Sons, New York. Ghauri P. ; Gronhaug, K. ; Kristianslund, I. (1995): Research Methods in Business Studies: A practical guide, Prentice Hall, Bodmin. Gummesson, E. 2000): Qualitative Methods in Management Research, Sage Publications, Inc, Thousand Oaks, 2nd edition. Helgesson, T. (1996): Culture in International Business: an Introduction, Academia Adacta, Lund. Hill, C. (1999): Competing in the Global Marketplace; Irwin McGraw Hill, Boston, 3rd edition. Hofstede, G. (1991): Cultures and Organizations: Software of the Mind, McGraw-Hill Book Company, New York. Howard, K. ; Sharp, J. (1983): The Management of a Student Research Project, Gower Publishing Company Ltd. , Aldershot. Johansson, L. (2000): Introduktion till Vetenskapsteorin, AIT Falun AB, Stockholm. Kam, V. (1990): Accounting Theory, John Willey and Sons, New York, 2nd edition. 70 Kleekamper, H. ; Kuhlewind, M. ; Alvarez, M. 2002): Grundlagen, Ziele, Organisation, Entwicklung und Bedeutung des IAS B, in: Rechnungslegung nach International Accounting Standards (IAS), editedy by Baetge, D. ; Kleekamper, H. ; Wollmert, P. ; Kirsch H. (2002), Schafer-Poeschel, Stuttgart, 2nd edition. Naciri, A. ; Hoarau C. (2001): A comparative analysis of american and french financial Reporting philosophies: the case for international Accounting Standards, in: Advances in International Accounting, edited by Sale, J; Salter, S; Sharp, D. (2001), Elsevier Sience Ltd, Oxford. Nobes, C. ; Parker, R. (2000): Comparative International Accounting, Financial Times – Prentice Hall, Hartlow. Nobes, C. 1999): Towards a General Model of the Reasons for International Differences in Financial Reporting, in: International Accounting and Comparative Financial Reporting, edited by Nobes, C. (1998), Edward Elgar Publishing Limited, Cheltenham. Nobes, C; Mueller, G; Gernon, H; Meek, G. (1997): Accounting an International Perspective, Richard D. Irwin, Inc; Chicago, 4th edition. Nobes, C. (1994): Accounting Harmonisation in Europe: Process, progress and prospects, FT Business Information Ltd, London. North, D. (1990): Institutions, Institutional Change and Economic Performance, Cambridge University Press: Cambridge. Miles, M. ; Huberman, A. (1994): Qualitative Data Analysis – An expanded source book, Sage Publications, Inc, Thousands Oaks, 2nd edition. Mueller, G. 1997): Harmonization Efforts in the European Union, in: International Accounting and Finance Handbook, edited by Choi, F. (1997), Wiley and Sons, New York, 7th edition. Mueller, G. ; Gernon, H. ; Meek, G. (1991): Accounting – an International Perspective; Richard D. Irwin, Inc; Homewood, 2nd edition. Radebaugh, L. ; Daniels, J. (2001): International Business, Environment and Operations, Prentice Hall, London, 9th edition. Radebaugh L. ; Gray S. (1997): International Accounting and multinational enterprises, John Wiley and Sons, New York, 4th edition. Remenyi, D. ; Williams, B. ;Money A. ; Swartz E. (1998): Doing Research in Business and Management: An Introduction to Process and Method, SAGE Publications, London. 71 Riahi-Belkaoui, A. 2000): Accounting Theory, Thomson Learning – Business Press, Padstow, Cornwall, 4th edition. Roberts, C. ; Weetman, P. ; Gordon P. (1998): International Financial Accounting – a comparative approach, Financial Times Pitman Publishing, London. Samuels, J. ; Piper, A. (1985): International Accounting: A survery, Croom Helm, London. Wolk, H. ; Tearney, M. ; Dodd, J. (2001): A Conceptual and intestinal Approach: Accounting Theory, South-Western College Publishing, 5th edition. Wollmert, P. ; Achleitner A. (2002): Konzeption der IAS: Rechnungslegung, in: Rechnungslegung nach International Accounting Standards (IAS), edited by Baetge, D. ; Kleekamper, H. ; Wollmert, P. ; Kirsch, H. (2002):, Schafer-Poeschel, , Stuttgart, 2nd edition. Challenges of Harmonization of Accounting System Accounting Standards in other words can be stated as rules which govern the preparation of financial statements. They are the generally accepted accounting principles (GAAP). Where by accounting practices are the actual used practices by accountants. They are influenced by Accounting Standards, which govern the preparation of financial reports. Harmonization of accounting standards† can be defined as the continuous process of ensuring that the Generally Accepted Accounting Principles (GAAP) are formulated, aligned and updated to international best practices (GAAPs in other countries) with suitable modifications and fine tuning considering the domestic conditions. Harmonization is the process of increasing compatibility of accounting practices by setting bounds on their degree of variation. Harmonization can be defined as â€Å"the process of bringing international Accounting Standards into some sort of agreement so that the financial statements from different countries are prepared according to a common set of principles of measurement and disclosure† (Haskins et al. 1996:29). According to Wolk et al. described harmonization of Accounting Standards as â€Å"the co-ordination or similarity among the various sets of national Accounting Standards and methods and formats of financial reporting†. (Kleekamper et al. , 2002) Kleekamperet al. xplain, that the aim of the international harmonization process of Accounting Standards is to reduce or overcome differences world-wide, in order to reach a better international Comparability of financial statements. International accounting harmonization can be defined as â€Å"the process of bringing international Accounting Standards into some sort of agreement so that the financial statements from different countries ar e prepared according to a common set of principles of measurement and disclosure† (Haskins et al. 1996:29). This harmonization is needed due to the globalization of businesses and services and increase in cross-border investments and borrowings and academicians, regulators and governments have been constantly striving to harmonize the local/domestic Accounting Standards(AS), also referred to as Generally Accepted Accounting Principles (GAAP), with the International Accounting Standards (IAS) issued by the UK based International Accounting Standards Board (IASB) (formerly the International Accounting Standards Committee-IASC). The IASB has been trying to harmonize international accounting principles since 1973. Further, the IASB and the International Organization of Securities Commissions (IOSCO) have been jointly working on harmonization since July 1995, and in May 2000 the IOSCO finished its review of the IAS and recommended usage of certain IAS, supplemented with reconciliation, disclosure and interpretations. Some benefits of harmonization of accounting practices is as follows * It ensures reliable and high quality financial reporting and disclosures. In certain cases, it can prove to be crucial to the economic and financial development of a country * It enables a systematic review and evaluation of the performance of a multinational company having subsidiaries and associates in various countries wherein each country has its own set of GAAP * It makes the comparison of the performance of a company against its domestic and international peers easier and more meaningful * It is a precursor for accessing international capital markets which can, in turn, reduce the capital cost and consequently, improve the performance of a company * Multinational companies, the multinational companies benefit from closer harmonization for the following reasons a) Access to international finance is easier, the international financial markets understand the financial information presented to them more easily. If the information is provided on a consistent basis between companies irrespective of their country of origin. b) Improved management control, in a business operating in several countries management control is improved. Internal financial information is more easily prepared on consistent basis if externally required financial information is required on a uniform basis. c) Consolidation of financial statement is easier ) A reduction of auditing cost due to harmonized accounting practices and standards. e) A transfer of accounting staff across national borders would be easier f) It would be easier to comply with reporting requirements of overseas stock exchanges. g) Appraisals of foreign entities for take over and mergers would be more straightforward. * International economic groupings, international groupings like EU (European Union) could work more effectively if there were international harmonization of accounting policies. Part of the function of international groupings is go make cross-border trade easier. Similar to accounting regulation would help this process. Government of developing countries would save time and money if they would adopt international standards and, if these were used internally, governments of developing countries could attempt to control the activities of foreign multinational companies in their own country. These companies could not hide behind foreign accounting practices which are difficult to understand. * Tax authorities, it will be easier to calculate the tax liability of investors, including multinationals who receive income from overseas sources. * Large accounting and auditing firms would benefit as accounting and auditing would be much easier if similar accounting practices existed throughout the world. Despite the importance of harmonizing accounting standards, there still challenges facing harmonization of accounting standards between the member countries using IFRS (international financial reporting standard) and also between United States using US GAAP. These challenges are brought about different tax laws, different culture, different legal requirement, nationalism and different needs of financial statements. Speaking of harmonization we should put in consideration of International accounting standard board (IASB) based in UK and Financial accounting standard board (FASB) based in US. The  International Accounting Standards Board  (IASB) is the independent,  accounting standard-setting body of the  IFRS Foundation. The IASB was founded on April 1, 2001 as the successor to the  International Accounting Standards Committee  (IASC). It is responsible for developing  International Financial Reporting Standards  (the new name for  International Accounting Standards  issued after 2001), and promoting the use and application of these standards. The  Financial Accounting Standards Board  (FASB) is a private,  not-for-profit organization  whose primary purpose is to develop generally accepted accounting principles  (GAAP) within the  United States  in the public’s interest. The  Securities and Exchange Commission  (SEC) designated the FASB as the organization responsible for setting accounting standards for public companies in the U. S. It was created in 1973, replacing the  Committee on Accounting Procedure  (CAP) and the  Accounting Principles Board  (APB) of the  American Institute of Certified Public Accountants  (AICPA). The FASB’s mission is â€Å"to establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information. † To achieve this, FASB has five goals. * Improve the usefulness of financial reporting by focusing on the primary characteristics of relevance and reliability, and on the qualities of comparability and consistency. * Keep standards current to reflect changes in methods of doing business and in the economy. Consider promptly any significant areas of deficiency in financial reporting that might be improved through standard setting. * Promote  international convergence of accounting standards  concurrent with improving the quality of financial reporting. * Im prove common understanding of the nature and purposes of information in financial reports. The two boards have been making efforts to harmonize the accounting principles, as of September 2011, there was a push to harmonize, or integrate, the accounting standards of the United States, which operates under Generally Accepted Accounting Principles (GAAP), with International Accounting Standards (IAS). The rationale is that it would level the playing field for global businesses by providing regulators, auditors and decision-makers (investors) uniform information based on the same accounting methodologies. Supporters believe that this would improve accountability, reduce international transactional and exchange rate risks and improve information transfer to enhance economic policy decision-making. The difference between IAS and US GAAP is that the former is more principle based and the later is rule based. The following are Challenges to harmonization of accounting systems. Licensing and Enforcement, Individual accountants, CPAs and tax lawyers worldwide would need to comply with and obtain licensing through an internationally accepted rules-making body. If he international body lacks enforcement authority, there is no prosecutorial authority for breaking international laws. However, if the international body does have prosecutorial authority over a U. S. citizen, there would arise jurisdictional and constitutional issues regarding the rights of an international body’s rights to prosecute an American under international law. Finally, issues arise from the perspective of U. S. -only based businesses regarding forced compliance IASB standards are principles-based. Thus the countries that have rules-based standards are expected to experience considerable difficulty in harmonization of their standards with IFRS. There are challenges that IASB and nations adopting IFRS need to address in the coming days. One big challenge for countries adopting IFRS is the shortage of manpower and more particularly, IFRS-trained manpower. For case in point, with just six months to go before China’s listed companies adopt IFRS, demand for accountants is rising and could run into millions in the coming years, if the new standards are rolled out for all of the country’s companies and not just the listed ones. Accountants say that the challenge for China, as it scrambles to meet the accounting shift deadline, will lie in getting its over-1,100 listed companies to establish the appropriate financial reporting systems and in training enough qualified accountants by January. The risk is that some of these companies may fail to make the transition on time. Estimates reveal that China has a shortfall of 300,000 qualified accountants and is likely to require a further three million over the coming years to keep pace with its current rate of economic growth Difference purpose of financial reporting, in some countries the purpose is solely for tax assessment, while others it is for investor decision making, Different legal systems, these prevent the development of certain accounting practices and restrict options available. The Accounting world can be divided into â€Å"those countries which have a ‘legalistic’ orientation toward accounting and those with a ‘non legalistic’ orientation† (Nobes et al. , 1997:8). The non-legalistic approach can be found in countries, which use common law. In Common law countries, Accounting does not depend upon law. Accountants (professional organizations) arrange accounting rules. Hence, it is the private sector, which determines Accounting and not the law (Choi et al. , 200 2). The task of the legal system is to give an answer to a specific case rather than to formulate general rules for the future (Choi et al. 2002). The legalistic approach can be found in countries, which use the so called code (or codified) law. In contrary to the common law, the codified law system needs to develop rules in detail for the Accounting and financial reporting (Nobes, 1994). This means that â€Å"Accounting rules are incorporated into national law and tend to be highly prescriptive and procedural† (Choi et al. , 2002:43). In these countries the role of law is to describe behavior, which isconsidered to be acceptable in the society (Choi et al. , 2002). Different user groups, countries have different ideas about who the relevant user groups and their respective importance. In USA investor and credit groups are given prominence, while in Europe employees enjoy a higher profile. Provider of finance, there three main sources for external capital are shareholders, banks and government (Hill, 1999). It varies from country to country, which of these three provides most of the financial capital to companies. In countries like Germany and Italy banks provide companies with capital. In countries like England and the United States shareholders provide companies with capital. The government is the provider of capital in countries like France and Sweden. (Hill,1999) This diversity of capital providers means that Accounting Practices differ in order to satisfy needs of capital providers. In the case of shareholder ownership, (e. g. in the U. K. and the U. S. ), information disclosure will be more important than in countries, where capital is raised from banks or governments. This is explained by the fact that in the latter countries information will be transmitted more directly. (Radebaugh and Gray, 1997) It is impossible for a company to inform each shareholder with its specific information needs, because they are a big and unorganized group. Therefore financial statements in the US and UK are â€Å"oriented toward providing individual investors with the information they need to make decisions about purchasing or selling corporate stocks and bonds† (Hill, 1999:593). Tax laws, the key question here is to ask, how much taxation regulations determine Accounting measurements. In countries like the U. S. , U. K. and Netherlands there is no interplay between tax and Accounting law. When Accounting Standards are developed, the only focus is how to conduce the information function. Questions about taxation are not considered in those countries (Achleitner, 2000). In contrary, in nations as France and Germany, tax and Accounting Systems are ruled equal (Nobes and Parker, 2000). There is the principle of decisiveness in continental European countries. This means that the profit of the balance sheet is at the same time the foundation to snap income taxes (Achleitner, 2000). In Tanzania income tax act is in dis agreement with some accounting procedures like computation of depreciation, Bad debts and therefore disagree on how accountant compute organization profit and therefore in Tanzania should prepare to set of financial statement one for tax purposes and the other for other users of accounting information. Cultural differences result in objectives for accounting systems differing from country to country for example Islamic laws does not recognize the use of interest rate. The lack of strong accountancy bodies, many countries do not have strong independent accountancy or business bodies which would press for better standards and greater harmonization. Unique circumstances, some countries may be experiencing unusual circumstances which affect all aspects of everyday life an d impinge on the ability of companies to produce proper reports, for example hyperinflation, civil war, currency restriction. Nationalism is demonstrated in an unwillingness to accept another country’s standard. The Financial Accounting Standards Board (FASB) in the U. S. is responsible for setting accounting standards based primarily on â€Å"Federal securities laws and state CPA licensing laws. † All countries have specific securities laws, tax laws and banking and financial regulations that dictate accounting principles. Furthermore, in the United States, there are individual state laws that govern business, banking and insurance activities. Adopting international accounting standards would not only conflict with U. S. tatute law, but also constitutional law associated with â€Å"states’ rights. † Stable Platform, Beginning in 2005 , all 7,000 EU publicly traded companies are required to apply IFRS in the preparation of their consolidated financial statements. This represents yet another challenge as preparers of financial statements from Latvia to Portugal and from Poland to Sweden grapple with unfamiliar requirements. In preparation for this sweeping change, the IASB completed its â€Å"stable platform† of standards in March 2004. New and revised standards included five new IFRSs and 17 amended IASs, resulting from the IASB’s Improvements Project and Phase I of its Business Combinations Project. Some of the more significant revisions to IFRS that resulted from these projects include: * The LIFO method for costing inventories is no longer allowed; *   The concepts of â€Å"fundamental error† and â€Å"extraordinary items† are eliminated; *   Trading securities are now included in a larger defined category of financial instruments â€Å"at fair value through profit or loss† and entities may designate any financial asset or liability into this category (commonly referred to as â€Å"the fair value option†); *   Fair value hedge accounting may now be used more readily for a portfolio hedge of interest rate risk; *   Guidelines for share-based payments have been added;   The pooling-of-interests method for business combinations is no longer allowed; *   Goodwill is no longer amortized, and negative goodwill is not recorded in a business combination World wide acceptance, National accounting standards are highly politicized and there is ofte n a natural tendency to place the interests of the national economy ahead of those of the global economy. Private sector businesses and professional accounting bodies also have a vested interest in accounting practices and financial reporting. Pressure from these groups to change or reject certain standards can carry a lot of weight with political decision makers. Adopting international financial standards is met with additional challenges in developing countries. They often lack the resources and infrastructure to adapt national legal and legislative frameworks in which to house the standards, making proper implementation difficult. Training and Retraining, When a country decides to harmonize with the international standards, its companies, accountants and auditors need to be retrained in the new standards and reporting procedures for financial statements. College and university programs in this field also have to undergo significant changes in order to educate new people entering the profession. Before any of this can happen, trainers and professors will require training so they can instruct professionals and students. This will require the development of new learning materials and curricula, new examinations for professional licensing and new accounting software and reporting systems. To further complicate matters, the adoption of harmonized standards has to be phased in, so for a number of years, two different systems are in operation. Such a omplex transition requires a lot of safety mechanisms to ensure it achieves uniform results. To sum up with, Harmonization of financial statement is very crucial for acc ounting profession and also for the global business growth especially for multinational companies which will now find easily in preparation of parent and subsidiary financial statement since have to be prepared according to IFRS. IFRS IS very important to developing countries like Tanzania such as increasing confidence of investors, reduce cost of doing business, facilitate smooth operation of international groupings like EAC and the countries accountant become competitive worldwide. REFERENCES WORD LENGTH: 3517 words Arbnor, I. Bjerke, B. (1997): Methodology for Creating Business Knowledge, Sage Publications, Thousands Oaks, 2nd edition. Ghauri, P. ; Gronhaug, K. (2002): Research Methods in Business Studies, Prentice Hall, London. Choi, F. ; Frost C. ; Gary, K. (2002): International Accounting, Prentice Hall, New Jersey, 4th edition. Choi, F. ; Mueller, G. (1992): International Accounting, Prentice Hall, New Jersey, 2nd edition. Epstein, B. ; Mirza, A. (2001): IAS, Interpretation a nd Application, John Wiley ; Sons, New York. Ghauri P. ; Gronhaug, K. ; Kristianslund, I. (1995): Research Methods in Business Studies: A practical guide, Prentice Hall, Bodmin. Gummesson, E. 2000): Qualitative Methods in Management Research, Sage Publications, Inc, Thousand Oaks, 2nd edition. Helgesson, T. (1996): Culture in International Business: an Introduction, Academia Adacta, Lund. Hill, C. (1999): Competing in the Global Marketplace; Irwin McGraw Hill, Boston, 3rd edition. Hofstede, G. (1991): Cultures and Organizations: Software of the Mind, McGraw-Hill Book Company, New York. Howard, K. ; Sharp, J. (1983): The Management of a Student Research Project, Gower Publishing Company Ltd. , Aldershot. Johansson, L. (2000): Introduktion till Vetenskapsteorin, AIT Falun AB, Stockholm. Kam, V. (1990): Accounting Theory, John Willey and Sons, New York, 2nd edition. 70 Kleekamper, H. ; Kuhlewind, M. ; Alvarez, M. 2002): Grundlagen, Ziele, Organisation, Entwicklung und Bedeutung des IAS B, in: Rechnungslegung nach International Accounting Standards (IAS), editedy by Baetge, D. ; Kleekamper, H. ; Wollmert, P. ; Kirsch H. (2002), Schafer-Poeschel, Stuttgart, 2nd edition. Naciri, A. ; Hoarau C. (2001): A comparative analysis of american and french financial Reporting philosophies: the case for international Accounting Standards, in: Advances in International Accounting, edited by Sale, J; Salter, S; Sharp, D. (2001), Elsevier Sience Ltd, Oxford. Nobes, C. ; Parker, R. (2000): Comparative International Accounting, Financial Times – Prentice Hall, Hartlow. Nobes, C. 1999): Towards a General Model of the Reasons for International Differences in Financial Reporting, in: International Accounting and Comparative Financial Reporting, edited by Nobes, C. (1998), Edward Elgar Publishing Limited, Cheltenham. Nobes, C; Mueller, G; Gernon, H; Meek, G. (1997): Accounting an International Perspective, Richard D. Irwin, Inc; Chicago, 4th edition. Nobes, C. (1994): Accounting Harmonisation in Europe: Process, progress and prospects, FT Business Information Ltd, London. North, D. (1990): Institutions, Institutional Change and Economic Performance, Cambridge University Press: Cambridge. Miles, M. ; Huberman, A. (1994): Qualitative Data Analysis – An expanded source book, Sage Publications, Inc, Thousands Oaks, 2nd edition. Mueller, G. 1997): Harmonization Efforts in the European Union, in: International Accounting and Finance Handbook, edited by Choi, F. (1997), Wiley and Sons, New York, 7th edition. Mueller, G. ; Gernon, H. ; Meek, G. (1991): Accounting – an International Perspective; Richard D. Irwin, Inc; Homewood, 2nd edition. Radebaugh, L. ; Daniels, J. (2001): International Business, Environment and Operations, Prentice Hall, London, 9th edition. Radebaugh L. ; Gray S. (1997): International Accounting and multinational enterprises, John Wiley and Sons, New York, 4th edition. Remenyi, D. ; Williams, B. ;Money A. ; Swartz E. (1998): Doing Research in Business and Management: An Introduction to Process and Method, SAGE Publications, London. 71 Riahi-Belkaoui, A. 2000): Accounting Theory, Thomson Learning – Business Press, Padstow, Cornwall, 4th edition. Roberts, C. ; Weetman, P. ; Gordon P. (1998): International Financial Accounting – a comparative approach, Financial Times Pitman Publishing, London. Samuels, J. ; Piper, A. (1985): International Accounting: A survery, Croom Helm, London. Wolk, H. ; Tearney, M. ; Dodd, J. (2001): A Conceptual and intestinal Approach: Accounting Theory, South-Western College Publishing, 5th edition. Wollmert, P. ; Achleitner A. (2002): Konzeption der IAS: Rechnungslegung, in: Rechnungslegung nach International Accounting Standards (IAS), edited by Baetge, D. ; Kleekamper, H. ; Wollmert, P. ; Kirsch, H. (2002):, Schafer-Poeschel, , Stuttgart, 2nd edition.

Financial Reporting and Analysis Week 7 'Downgrade Warning Assignment

Financial Reporting and Analysis Week 7 'Downgrade Warning - Assignment Example This is because the analyst has the obligation to portray the company that is paying him his salary in a positive limelight. The analyst has a lot of power in their hands. The meaning of this statement is that the analysis and the grading of the company actually guides the investors and helps them to decide whether to buy the stocks of the company. This is the reason that no company would want an analyst to portray them negatively because that would affect the behavior of their investors. Further a company who is paying an analyst to analyze their situation would never want the analyst gives them negative ratings. Thus, this is the pressure that the analysts face which reduces their independence. No, a â€Å"buy† recommendation on a stock after its price has fallen does not always mean that the independence of the analyst has been compromised. This is because the market may be under pricing the stock due to some other factors, which it did not understand. However, an expert an alyst might be able to forecast the correct price of the stock, may see it increasing in future, and may recommend buying. Well the current position of the technology stocks after its crash in the past is not so stable. However, from the crash the technology stocks and the broader stock market have evolved a lot. Therefore, it cannot be conclusively stated that the analysts who are currently recommending investing in tech stocks and broader stock market lack independence. Peter Houghton’s memo says that the analyst has the responsibility towards the company either to incorporate the changes requested by the company or to communicate to the company clearly, why the changes requested by the company cannot be incorporated. The memo does not clearly express the curb on analyst’s independence but it hints towards it because the responsibility either to