Report of the Interpretive Simulations

AllSmile Annual Report Years One – Three ————————————————- Bradyn Carson, Clarissa McMickle, Micheal Sullivan, Peiying Li â€Å"Perfect Smile Just a Brush Away† Mission Statement AllSmile’s mission is to provide quality toothpaste globally at a fair and honest price, providing customer service with a smile. Motto â€Å"Perfect Smile Just a Brush Away† ————————————————- Table of Contents To our ShareholdersPage 2 Potential Future Decisions Page 2 Challenges and Decisions in Year Three Page 3 Sales and Earnings Trends Page 4 Industry ComparisonPage 5 Income StatementPage 6 ———————————————— TO OUR SHAREHOLDERS Last year was a big year — we delivered strong results, launched fantastic new products and services, and positioned AllSmile for an incredible future. For fiscal year, we also maintained strong cost discipline resulting in cash flow from operations of $104. 7 million, an increase in manufacturer sales by 23 percent from the prior year. At the beginning of our first year we built a million dollar plant in Brazil. We look forward to all the opportunities this plant will provide for our company such as much lower cost of goods manufactured.We delivered these results by providing new products that help the families in the communities. We look forward to all the great opportunities in the future that our products will bring to Latin American individuals. Potential Future Decisions AllSmile has made an impact in the industry over the past three periods due to our ability to compete in terms of pricing, advertising, production, and distribution. We plan on increasing our competitiveness in the Latin American market by expanding our brand’s products to better serve our product demand and also by looking into new markets to enter.When deciding what new products to implement (if any), we will extensively research demographics, both social and economic, and potential demand for these products. It is very important for us to choose products that produce high margins. We will accomplish this by analyzing our costs associated with producing the products and determining the demand for the product. As far as pricing, AllSmile was able to compete with the large brands during the first three periods. We intend on continuing this, as well as focusing on competing better against local and regional brands in order to increase our total market share in Brazil.As the market matures in Brazil, we may need to enter a new market in order to increase revenues and maintain our strong growth. Some important characteristics we will analyze are: Population, GDP and GDP per capita, inflation, po verty, labor costs, shipping costs, tariffs, as well as other political, social, and economic factors. Since completion of our production plant after period one, our costs of goods manufactured has declined each year. This cost reduction will allow us to allocate more funds to areas that grow our revenue such as: advertising, promotion, and a larger sales force. Challenges and Decisions in Year ThreeOur group chose Brazil as the market to enter. We considered the national population, GPD, per capita income and other factors. Toothpaste is an ordinary and special commodity. It is ordinary, because you can easily find toothpaste everywhere, every household can afford it. It is special, because no matter a men, women, old people or children; both the workers and peasants, or drivers, or white-collar workers, and even national leaders; no matter the richest, the poor, all of them need to use it, it is a necessity product. Brazil's population is the largest in the choice of six countries , and their GDP is the highest, GDP / Capita is low.However, due to the universality of the toothpaste, toothpaste has low prices. It will not be a burden on the economy of the Brazilian family. Therefore, we have chosen Brazil as enter the market. Before the first sales year, we established in Brazil a native plant, which has a capacity of 100 million units. According to Brazil basic social characteristics, and several other major competitors’ product, we decided our product types covered by the child toothpaste for the kids, healthy toothpaste for the elder, white toothpaste for young people, economic toothpaste for family.Our team pricing standards are to ensure that company earnings, guaranteed price competitive enough in the market, and guaranteed consumers can afford the price. The end of the first year, we had 30% of the products left, in view of the traditional market accounted for 40. 5% of the overall toothpaste market, we decided to increase three sales people into traditional sales channels in the next year. Due to the selling of whole market Economy toothpaste are great, we add advertising investment. At the same time, the poor sell of children's toothpaste prompted us to reduce 5 million budgets on its advertising fee.According to the results of marketing, and sales of other companies, appropriate to improve the economy, white, healthy toothpaste price and their allowance, try to stimulate the sales. The end of the second year, we left 16% of the products, the market response is good, so we only slightly increased the economy toothpaste prices, reduce the allowance of white, healthy toothpaste. Given the improved performance, the other company has a large number of sales people, we added two sales people to Traditional channel, ten to the hypermarket channel, five to the wholesale channel, trying to expand the market.On the other hand, due to the increase of 17 sales people, the input is too high, so we decided to reduce the overall invest ment in advertising in the next year. Sales and Earnings Trends AllSmile has started off strong in period one and has maintained that momentum throughout the third period, with expectations of continuing the sales growth. At the end of period one AllSmile unit sales totaled 71. 8 million with a 6. 5% share. Our manufacturer sales totaled 72. 4 million with a 6. 2% share. Gross margins for the first period were 9. 5 million with a -24. 4 million net contribution.Even with negative contributions AllSmile momentum was able to carry us to a positive net contribution by the end of the third period. In the second period, AllSmile gained 12. 1 million in unit sales totaling 83. 9 million with a 7. 5 share. Manufacturer sales gained 17. 8 million totaling 90. 2 million with a 7. 3 share. Gross margins also gained 26. 4 million ending with 35. 9 million, which was a growth of 279. 5%. Net contribution also improved with only -3. 0 million compared to first periods -24. 4 million. Sales growt h continued in the third period as well with even higher numbers.The third period, AllSmile unit sales had a 13. 0% growth totaling 94. 7 million. Manufacturer sales had a 16. 1% growth totaling at 104. 7 million. Gross margins growth was 28. 9% ending at 46. 3 million. Finally net contribution finally ended positive with 10. 0 million. Unit Sales Manufacturer Sales Gross Margins Net Contributions By the end of period three, AllSmile earning trends showed that the Hypermarket channel we entered totaled 85. 2% of sales compared to the Traditional and Wholesale channels. Traditional channels totaled 8. % and Wholesales totaled 6. 0%. Industry Comparison AllSmile has six main competitors in Brazil: Britesmile, Clean+White, Dentacare, Eversmile, Local 1 and Regional 1. At the end of period one AllSmile ranked higher than Clean+White and Eversmile in market shares sales in Brazil. By the third period, AllSmile was competing head to head with Regionals, and Local competitors in market sha res. Period 3 Period 3 Throughout the industry overall, AllSmile is competing with Regional completion in all countries. AllSmile has gross margins of 44. 2%, compared to Regional completion that had 46. 6%.Even though Regional gross margins are slightly greater than ours, it is a great accomplishment for our company to surpass the other completion in our industry. AllSmile is well on our way to being the most competitive industry in the near future. Income Statement| For Periods ended 1, 2 and 3| (Values in Millions of Dollars)| Revenue| Period 3| Period 2| Period 1| Total Revenue|   | $104. 70|   | $90. 20|   | $72. 40 | Mfr. Allowance| 9. 6|   | 9. 1|   | 6. 5|   | Cost of Goods Sold| 47. 8|   | 44. 3|   | 42. 3|   | Shipping and Tariffs| 0. 9|   | 0. 8|   | 14. 1|   | Total COGS|   | 58. 4|   | 54. 2|   | 62. | Gross Margin|   | $46. 3 |   | $35. 9 |   | $9. 50 | |   |   |   |   |   |   | Expenses|   |   |   |   |   |   | Promotion Expense| 7. 6|   | 7. 5|   | 5|   | Advertising Expense| 10. 3|   | 14. 4|   | 13. 1|   | Sales Expense| 1. 7|   | 0. 7|   | 0. 5|   | Administrative Expense| 4|   | 3. 7|   | 2. 7|   | Total Expense|   | 23. 6|   | 26. 3|   | 21. 3| Contribution after Marketing|   | $22. 7 |   | $9. 60|   | ($11. 80)| |   | |   | |   | | Fixed Costs| 2. 4|   | 2. 3|   | 2. 2|   | Plant Deprecation| 10. 3|   | 10. 3|   | 10. 3|   | Total Fixed Costs|   | 12. 7|   | 12. 6|   | 12. 5| Net Income|   | $10. 00 |   | ($3. 00)|   | ($24. 40)|

Sentence Length - Definition, Examples, Recommendations

Sentence Length s, Recommendations Definition In English grammar, sentence length refers to the number of words in a sentence. Most readability formulas use the number of words in a sentence to measure its difficulty. Yet in some cases, a short sentence can be harder to read than a long one. Comprehension can sometimes be facilitated by longer sentences, especially those that contain coordinate structures. Contemporary style guides generally recommend varying the length of sentences to avoid monotony and achieve appropriate emphasis.   See Examples and Observations below. Also, see: Sentence VarietyBasic Sentence Structures in EnglishE.B. Whites Exercise in Sentence Length and VarietyEuphonyParagraph LengthThe Rhythm of Prose, by Robert Ray LorantSentence Variety in Alice Walkers Am I Blue?Sentence Variety in Thurbers Life and Hard TimesStyleWhat Is a Sentence?What Is Sentence Combining and How Does It Work? Examples and Observations When the great orator William Jennings Bryan accepted the Democratic nomination for president in 1896, the average length of a sentence in his speech was 104 words. Today, the average length of a sentence in a political speech is less than 20 words. Were simply in an age of directness and making our point more quickly.  (Bob Elliot and Kevin Carroll, Make Your Point! AuthorHouse, 2005)Varying your sentence length is much more important than varying your sentence pattern if you want to produce clear, interesting, readable prose.  (Gary A. Olson et al., Style and Readability in Business Writing: A Sentence-Combining Approach. Random House, 1985) Examples of Varied Sentence Length: Updike, Bryson, and Wodehouse That laugh said a strange thing. It said, This is fun. Baseball is meant to be fun, and not all the solemn money men in fur-collared greatcoats, not all the scruffy media cameramen and sour-faced reporters that crowd around the dugouts can quite smother the exhilarating spaciousness and grace of this impudently relaxed sport, a game of innumerable potential redemptions and curious disappointments. This is fun.  (John Updike, The First Kiss. Hugging the Shore: Essays and Criticism. Knopf, 1983)One of the great myths of life is that childhood passes quickly. In fact, because time moves more slowly in Kid Worldfive times more slowly in a classroom on a hot afternoon, eight times more slowly on any car journey of more than five miles (rising to eighty-six times more slowly when driving across Nebraska or Pennsylvania lengthwise), and so slowly during the last week before birthdays, Christmases, and summer vacations as to be functionally immeasurableit goes on for decades when measured in adult terms. It is an adult life that is over in a twinkling. (Bill Bryson, The Life and Times of the Thunderbolt Kid. Broadway Books, 2006)The young mans judgment was one at which few people with an eye for beauty would have cavilled. When the great revolution against Londons ugliness really starts and yelling hordes of artists and architects, maddened beyond endurance, finally take the law into their own hands and rage through the city burning and destroying, Wallingford Street, West Kensington, will surely not escape the torch. Long since it must have been marked down for destruction. For, though it possesses certain merits of a low practical kind, being inexpensive in the matter of rents and handy for the buses and the Underground, it is a peculiarly beastly little street. Situated in the middle of one of those districts where London breaks out into a sort of eczema of red brick, it consists of two parallel rows of semi-detached villas all exactly alike, each guarded by a rag ged evergreen hedge, each with coloured glass of an extremely regrettable nature let into the panels of the front door; and sensitive young impressionists from the artists colony up Holland Park way may sometimes be seen stumbling through it with hands over their eyes, muttering between clenched teeth How long? How long?  (P.G. Wodehouse, Leave It to Psmith, 1923) Ursula Le Guin on Short and Long Sentences Teachers trying to get school kids to write clearly, and journalists with their weird rules of writing, have filled a lot of heads with the notion that the only good sentence is a short sentence.This is true for convicted criminals.Very short sentences, isolated or in a series, are terrifically effective in the right place. Prose consisting entirely of short, syntactically simple sentences is monotonous, choppy, a blunt instrument. If short-sentence prose goes on very long, whatever its content, the thump-thump beat gives it a false simplicity that soon just sounds dumb. See Spot. See Jane. See Spot bite Jane...As Strunk and White say, variety in sentence length is whats needed. All short will sound stupid. All long will sound stuffy.In revision, you can consciously check for variety, and if youve fallen into a thumping of all short sentences or a wambling of all long ones, change them to achieve a varied rhythm and pace.  (Ursula Le Guin, Steering the Craft: Exercises and Discussi ons on Story Writing for the Lone Navigator or the Mutinous Crew. Eighth Mountain Press, 1998) Dont Just Write Words. Write Music. This sentence has five words. Here are five more words. Five-word sentences are fine. But several together become monotonous. Listen to what is happening. The writing is getting boring. The sound of it drones. Its like a stuck record. The ear demands some variety. Now listen. I vary the sentence length, and I create music. Music. The writing sings. It has a pleasant rhythm, a lilt, a harmony. I use short sentences. And I use sentences of medium length. And sometimes, when I am certain the reader is rested, I will engage him with a sentence of considerable length, a sentence that burns with energy and builds with all the impetus of a crescendo, the roll of the drums, the crash of the cymbalssounds that say listen to this, it is important.So write with a combination of short, medium, and long sentences. Create a sound that pleases the readers ear. Dont just write words. Write music.  (Gary Provost, 100 Ways to Improve Your Writing. Mentor, 1985) Sentence Length in Technical Writing Sometimes sentence length affects the quality of the writing. In general, an average of 15 to 20 words is effective for most technical communication. A series of 10-word sentences would be choppy. A series of 35-word sentences would probably be too demanding. And a succession of sentences of approximately the same length would be monotonous.In revising a draft, use your software to compute the average sentence length of a representative passage. (Mike Markel, Technical Communication, 9th ed. Bedford/St Martins, 2010) Sentence Length in Legal Writing Keep your average sentence length to about 20 words. The length of your sentences will determine the readability of your writing as much as any other quality. Thats why readability formulas rely so heavily on sentence length.Not only do you want a short average; you also need variety. That is, you should have some 35-word sentences and some 3-word sentences, as well as many in between. But monitor your average, and work hard to keep it to about 20 words. (Bryan A. Garner, Legal Writing in Plain English. University of Chicago Press, 2001) Sentence Length and Polysyndeton To dwell in a city which, much as you grumble at it, is after all very fairly a modern city; with crowds and shops and theatres and cafes and balls and receptions and dinner parties, and all the modern confusion of social pleasures and pains; to have at your door the good and evil of it all; and yet to be able in half an hour to gallop away and leave it a hundred miles, a hundred years, behind, and to look at the tufted broom glowing on a lonely tower-top in the still blue air, and the pale pink asphodels trembling none the less for the stillness, and the shaggy-legged shepherds leaning on their sticks in motionless brotherhood with the heaps of ruin, and the scrambling goats and staggering little kids treading out wild desert smells from the top of hollow-sounding mounds; and then to come back through one of the great gates and a couple of hours later find yourself in the world, dressed, introduced, entertained, inquiring, talking about Middlemarch to a young English lady or listeni ng to Neapolitan songs from a gentleman in a very low-cut shirtall this is to lead in a manner a double life and to gather from the hurrying hours more impressions than a mind of modest capacity quite knows how to dispose of. (Henry James, Italian Hours, 1909) The Lighter Side of Sentence Length Writers who wish to impart to their productions power and pungency, who wish to keep the readers attention upon the tiptoe of activity, who desire to escape the imputation of pedantry and who seek to surcharge their sentiments with sparkle and spirit, will do well to bear in mind constantly that long, lingering sentences, unduly overburdened with an abundance of phrases, clauses, and parenthetical observations of a more or less digressive character, are apt to be tiresome to the reader, especially if the subject matter be at all profound or ponderous, to place an undue strain upon his powers of concentration and to leave him with a confused concept of the ideas which the writer apparently has been at great pains to concentrate, while short, snappy sentences, on the other hand, with the frequent recurrence of subject and predicate, thus recalling and emphasizing the idea to be expressed as the development of the thought proceeds, like numerous signposts upon an untraveled road, these frequent breaks having the effect of taking a new hold upon the readers attention, oases in the desert of words, as it were, will be found to be much more effective, much more conducive to clarity, and far better calculated to preserve the contact, the wireless connection, so to speak, between the writer and the reader, provided, however, and it is always very easy to err through a too strict and too literal application of a general rule, that the sentences are not so short as to give a jerky, choppy, and sketchy effect and to scatter the readers attention so often as to send him wool-gathering completely. (Ellis O. Jones, comic playwright, anti-war activist, and editor of the original Life magazine. Reprinted in The Writer, December 1913)

The Pyramid Of Life

The Pyramid Of Life When you look at a pyramid, youll notice that its broad base gradually narrows as it extends upward. The same holds true for the organization of life on Earth. At the base of this hierarchical structure is the most inclusive level of organization, the biosphere. As you climb the pyramid, the levels become less encompassing and more specific. Lets take a look at this hierarchical structure for the organization of life, starting with the biosphere at the base and culminating with the atom at the peak. Hierarchical Structure of Life Biosphere: The biosphere includes all of the Earths biomes and all living organisms within. This includes areas on the Earths surface, below the Earths surface, and in the atmosphere. Biome: Biomes encompass all of the Earths ecosystems. They can be divided into regions of similar climate, plant life, and animal life. Biomes consist of both land biomes and aquatic biomes. The organisms in each biome have acquired special adaptations for living in their specific environment. Ecosystem: Ecosystems involve interactions between living organisms and their environment. This includes both living and nonliving material in an environment. An ecosystem contains many different types of communities. Extremophiles, for example, are organisms that thrive in extreme ecosystems such as salt lakes, hydrothermal vents, and in the stomachs of other organisms. Community: Communities consist of different populations (groups of organisms of the same species) in a given geographic area. From people and plants to bacteria and fungi, communities include the living organisms in an environment. The different populations interact with and influence one another in a given community. Energy flow is guided by the food webs and food chains in a community. Population: Populations are groups of organisms of the same species living in a specific community. Populations may increase in size or shrink depending on a number of environmental factors. A population is limited to a specific species. A population could be a species of plant, species of animal, or a bacterial colony. Organism: A living organism is a single individual of a species that exhibits the basic characteristics of life. Living organisms are highly ordered and have the ability to grow, develop, and reproduce. Complex organisms, including humans, rely on the cooperation between organ systems to exist. Organ System: Organ systems are groups of organs within an organism. Some examples are the circulatory, digestive, nervous, skeletal, and reproductive systems, which work together to keep the body functioning normally. For instance, nutrients obtained by the digestive system are distributed throughout the body by the circulatory system. Likewise, the circulatory system distributes oxygen that is taken in by the respiratory system. Organ: An organ is an independent part of the body of an organism that carries out specific functions. Organs include the heart, lungs, kidneys, skin, and ears. Organs are composed of different types of tissue arranged together to perform specific tasks. For example, the brain is composed of several different types including nervous and connective tissues. Tissue: Tissues are groups of cells with both a shared structure and function. Animal tissue can be grouped into four subunits: epithelial tissue, connective tissues, muscle tissue, and nervous tissue. Tissues are grouped together to form organs. Cell: Cells are the simplest form of living units. Processes that occur within the body are carried out on a cellular level. For example, when you move your leg, it is the responsibility of nerve cells to transmit these signals from your brain to the muscle cells in your leg. There are a number of different types of cells within the body including blood cells, fat cells, and stem cells. Cells of different categories of organisms include plant cells, animal cells, and bacterial cells. Organelle: Cells contain tiny structures called organelles, which are responsible for everything from housing the cells DNA to producing energy. Unlike organelles in prokaryotic cells, organelles in eukaryotic cells are often enclosed by a membrane. Examples of organelles include the nucleus, mitochondria, ribosomes, and chloroplasts. Molecule: Molecules are composed of atoms and are the smallest units of a compound. Molecules can be arranged into large molecular structures such as chromosomes, proteins, and lipids. Some of these large biological molecules may be grouped together to become the organelles that compose your cells. Atom: Finally, there is the ever so tiny atom. It takes extremely powerful microscopes to view these units of matter (anything that has mass and takes up space). Elements such as carbon, oxygen, and hydrogen are composed of atoms. Atoms bonded together to make molecules. For example, a water molecule consists of two hydrogen atoms bonded to an oxygen atom. Atoms represent the smallest and most specific unit of this hierarchical structure.

Public Health Care challenges with budget costs Essay

Public Health Care challenges with budget costs - Essay Example Most of the objectives of public health are difficult to meet due to insufficient funding. It is worth noting that the health of a community is dependent on an association formed between the public health sector and the curative sector. Over emphasis on one sector at the expense of the other pauses a major challenge. Public health is a wide field that covers numerous types of diseases. Public health services and activities not only cover prevention of communicable diseases but also lifestyle diseases. Several methods are used to achieve these goals. These methods include education, prevention modes such as vaccination and dietary methods, control of existing cases to reduce infection and elimination of the causative agents. All these activities require a thorough undertaking that requires numerous financial resources. The majority of public health administrators and personnel are unable to achieve their goals and objectives due to insufficient funding of the public health sector. In the United States, only three percent of the national spending goes towards public health services. This situation prevails in most countries worldwide despite the numerous complaints by the public health sector. Some of the factors that make it hard for the sector to source fund from governments include issues such as over emphasis on curative medicine as this appears to have more physical or case evidence. Another challenge in the public health sector in the funding process is that many countries are experiencing challenges balancing their budgets. It is a major challenge in the third world countries that do not have sufficient resources to spend as much as they would want to in the public health sectors. This strain is not only a challenge in the third world and developing nations but also in developed countries. For instance, the US is struggling to cover the deficit that has now stretched over the recent

Lanchester Liners Hospitality Database, SQL Essay

Lanchester Liners Hospitality Database, SQL - Essay Example Lanchester Liners Hospitality Database This report presents a detailed overview of design and Implementation of Hospitality Database for Lanchester Liners for holding information about their ships, the ports visited where hospitality is offered, and any corporate team-building events organised on-board. In addition, the report also offers a detailed discussion on multi-user access to a database including concurrency, locking, security and access control. 1. ... 85,'10/01/1975','Sails') INTO SHIP(shipNo, shipName, Tonnage, buildDate, speed) Values(1893233,'Amsterdam',61000,'05/09/1977','22.5') INTO SHIP(shipNo, shipName, Tonnage, buildDate, speed) Values(1029833,'Aurora',76000,'16/07/1980','24') INTO SHIP(shipNo, shipName, Tonnage, buildDate, speed) Values(1938821,'Black Prince',11209,'25/06/1976','24.5') INTO SHIP(shipNo, shipName, Tonnage, buildDate, speed) Values(2832911,'Black Watch',28668,'31/12/1981','21') INTO SHIP(shipNo, shipName, Tonnage, buildDate, speed) Values(9283321,'Dawn Princess',77000,'30/03/1984','21') INTO SHIP(shipNo, shipName, Tonnage, buildDate, speed) Values(3903211,'Galaxy',77713,'21/09/1979','21.5') INTO SHIP(shipNo, shipName, Tonnage, buildDate, speed) Values(1120322,'Genesis',220000,'11/11/1978','22.3') INTO SHIP(shipNo, shipName, Tonnage, buildDate, speed) Values(3829111,'Horizon',46811,'17/03/1975','21.4') INTO SHIP(shipNo, shipName, Tonnage, buildDate, speed) Values(3822211,'Jewel of the Seas',90090,'20/08/1982 ','25') INTO SHIP(shipNo, shipName, Tonnage, buildDate, speed) Values (4833928,'Norwegian Crown',34242,'01/06/1981','22') INTO SHIP(shipNo, shipName, Tonnage, buildDate, speed) Values(3928111,'Norwegian Dawn',92250,'09/02/1978','25') INTO SHIP(shipNo, shipName, Tonnage, buildDate, speed) Values(3920000,'Oceana',77000,'28/07/1982','21') INTO SHIP(shipNo, shipName, Tonnage, buildDate, speed) Values(3029992,'Polynesia',430,'09/05/1972','Sails') INTO SHIP(shipNo, shipName, Tonnage, buildDate, speed) Values(3400049,'Rhapsody',78491,'23/02/1975','22') INTO SHIP(shipNo, shipName, Tonnage, buildDate, speed) Values(2939222,'Sensation',70367,'31/12/1975','21') INTO SHIP(shipNo, shipName, Tonnage, buildDate, speed) Values(3992019,'Serenata',133500,'07/11/1974','20.5') SELECT * FROM DUAL; Populating

Comunication in organization Essay Example | Topics and Well Written Essays - 1250 words

Comunication in organization - Essay Example On the other hand, the model that the organizations adapt for communication is defines its effectiveness. Communication in an organization can contribute to its failure or its success (Downs & Adrian, 2004). This paper is a recommendation report that addresses the problem of communication in a business organization. It identifies the problems and recommends how an organization should deal with such problems related to communication. Communication Problems in an Organization Poor communication is a major problem in most organizations. It leads to failure of many projects, dissatisfaction of employees and eventually high turnover of employees hence causing huge losses to the organization. Poor communication also leads to lack of team work within the organization. This might result to low or dismal performance by employees. One major problem associated with poor communication is the lack of employees being informed about whatever is happening in the organization (Carroll, 2010). This ca n be facilitated by lack personal contact between workers and management. In most organization, there is a wide gap that exists between top managers and employees at the lowest level in the organization. As a result, it becomes difficult for information to flow effectively and efficiently from the top to bottom. Employees at the lower level stay in the dark, and they do not know what is happening. It is assumed that the modes of communication used can deliver important information to all employees. However, there are employees who do not use the modes of communication. For instance, where the top management is not in personal contact with the other employees, they might decide to use email as a mode of communication. Not all employees working in the organization have access to computers. Therefore, they do not use emails. It becomes difficult for such employees to be up to date about what is happening. It is imperative to note that the large gap in the organization has continued to increase especially with the advancement of technology. There is no personal contact since people are mostly using computers and cell phones for communication. Not all employees have access to these facilities. Managers who have excellent communication skills would prefer personal contact when communicating to their employees. The other problem associated with poor communication is the lack of clarity in the information received by employees from management (Carroll, 2010). It is very important for managers to communicate to their employees clearly. This is essential for successful communication to be effected. People are different and different employees interpret things in a different way. As a result, the managers need to clarify the issues they wish to communicate. Lack of clarity in information delivered by top managers might lead to different supervisors communicating messages that are conflicting to lower level employees. This leads to inconsistency of communication. There re sult is that there will be confusion among employees. This might affect the overall organizational performance. Poor communication also leads to luck of timely deliverance of information to employees. Employees do not get information when they need it (Carroll, 2010). This causes delays in decision making. It also delays projects especially if vital information is not received on good time. This is one reason that is likely to cause project failures. On the other

IFRS and GAAP Accounting Principles Essay Example for Free

IFRS and GAAP Accounting Principles Essay IFRS is also referred to as International Financial Reporting Standards. They are set of standards of accounting developed by International Accounting Standards Board (IASA). They are becoming the standards in the globe to be used for preparation of financial statements for the public companies. IASB is independent body which sets accounting standards which is based in London (McLaughlin, 2009). This body consists of fifteen members who are from nine countries including United States. IASB started operating in 2001 since it succeeded International Accounting Standards Committee. With desperate laws, cultures, tax regulation and commerce, individual nations, overtime have come so as to develop accounting systems of their own. In United States, Financial Accounting Standard Board (FASB), formed in year 1973, was third group which developed the Generally Accepted Accounting Principles (GAAP) in U. S, since the formal setting of standards which started in 1939. FASB is the first group in US which employed independently funded full-time professionals to be independent in accounting profession. Sanctioned officially in 1973 December, by Securities and Exchange Commission (SEC), which was federal regulator, FASB up to now continues setting accounting standards for U. S (Subramani, 2009). IASC was formed shortly after FASB had been formed in the same year so as to develop accounting standards which will be internationally accepted. During the early 1970s, economy of the globe was at that time marked by expansion of the cross-border activities. This time seemed to be right in considering whether there was a need to set universal accounting standards to address world which was shrinking (McLaughlin, 2009). IASC in their effort of promoting acceptance of one set standards of accounting globally, tried to write certain inclusive standards. Committee members often had difficult in achieving a common consensus on proper accounting treatment to transactions which were similar or the same (AICPA, 2010). They identified preferred treatments, but accounting which was different with also different results was as well allowed. They considered this as necessary so as to promote the acceptance of complete set for the world accounting standards. If specific standard was much different from that which was accepted generally in an individual country, that nation may not accept all the set standards. It was better in allowing some alternatives in order to bring many nations into the mix. International Accounting Standards Board (IASB) replaced IASC after it had issued 41accounting standards to be used internationally in 2001. Since formation of IASB, it has issued around eight IFRS and also they have modified several international accounting standards (IASs). In 2000, European Commission provided the international standards large boost as it announced initiative which required every listed company in the European union to be using IFRS starting the year 2005. Before mandatory introduction for all companies to use IFRS, all countries in European Community regulated separately their standards of reporting (McLaughlin, 2009). The measure of using IFRS did not affect the non-listed companies in Europe. European ministers’ council approved IFRS in 2002. At the start of 2005; approximate of 7000 companies effected the change. Around 6500 of these companies had been prior reporting GAAP in their own country, with almost 3000 of them in UK alone (Ernst Young, 2009). EU however, never endorsed three paragraphs in IAS 39, and these were standards which deal with measurements and recognition of the financial instruments. Volatility potential of the earnings which was related to such paragraphs’ accounting macro hedge as well as option of fair value made the standard setters to go back in the drawing board several times, but there was no appearance of silver bullets. Up to now, EU has not fully endorsed set of the IFRS which was promulgated by IASB (Jermakowicz, Epstein, 2008). Failure of EU to fully endorse these set of international standards is significant issues to several reasons, not the few which is requirement in the IAS1, financial statement presentation that is explicitly stated by a company that their financial statements are complying with the IFRS (McLaughlin, 2009). Companies are further not allowed to state their financial statements as complying with IFRS if it does not fully comply with whole body of the IFRS. The accounting standards so as to gain world wide acceptance, there is a need for them to be universally applied. It is necessary to have comparability. Financial statement set prepared using GAAP of country A is not comparable suddenly to another which is prepared using GAAP of country B since both of them on the top states IFRS (AICPA, 2010). United States key regulator priority is the consistent application of these standards. If to be accordance with the IFRS means the similar and same transactions have to be accounted in same way in every nation, then preparing financial statements according to IFRS will have to add value. Investors will no longer waste their effort and time in reconciling financial information when comparing to companies which are similar but in different countries (Subramani, 2009). Capital will then flow efficiently and at a low cost to companies in many places. Another major boost for acceptance of the IFRS was seen in 2002as the Norwalk Agreement was being signed and was reaffirmed in the Memorandum of Understanding in 2006. IASB in the London together with FASB in the Norwalk agreed to remove the differences in their standard sets and converge it on high-quality standards (Ernst Young, 2009). The emphasis was on high-quality and this meant that if the FASB standards or IASB standard was deemed to be better, then the convergence was would be on the superior one. If neither of them had sufficient standards which would qualify to be used internationally, then the two boards would jointly work together to produce new standards. Work is on progress in developing a conceptual single framework which will guide in setting future standards. Convergence between U. S GAAP and IFRS do not mean accounting standards should become identical. It means that in the cases where the transactions are similar or the same, then the accounting should be just the same, or if not so, the disclosures should be transparent to enable reader understand about the differences (Subramani, 2009). Also the standard setters are putting more effort to reduce the difference which is in the two systems. Three significant differences between IFRS and GAAP. The difference between the two set of standards include the following: in the US GAAP in the income statement, extraordinary items is restricted to some items which are both infrequent and unusual (McLaughlin, 2009). Negative goodwill usually is treated as an extraordinary item. In the IFRS, income statement usually prohibits extraordinary items. In the US GAAP the significant items in the income statement are presented separately at the face of income statement just as component of operation going on, where as in the IFRS significant items in the income statement separate the disclosure of nature and also the amount required, but it can be included in income statement or notes (Ernst Young, 2009). Changes in the equity in U. S PAAF are present in all the changes in every caption of the stockholders’ equity either in separate statement or foot note. Equity changes in IRFS at least, presents components which are related to expense and income recognized as section of separate statement (AICPA, 2010). Other equity changes are disclosed either in notes or presented as a part of one, combined statement in all equity changes. Three similarities between IFRS and GAAP. In both accounting standards, exchange losses and gains on the settled items and also on the monetary items which are unsettled should be taken to loss or profit for that period. When loss or gain on non-monetary items is directly recognized in equity, then that loss or gain is further taken to the equity (Ernst Young, 2009). On the other hand if losses or gains on non-monetary item are taken in loss or profit, then related component of exchange would further be included in loss or profit. Functional currency should be currency of primary economy in environment the business is operating. The other currencies should be treated or termed as foreign currencies. Presentation of currencies should be currencies used in presenting financial statement and is usually matter of one’s choice (AICPA, 2010). Financial statements should be prepared by the functional currency of the entity but may be presented by any other form of currency. Individual transactions should be translated at rate on date of transaction, or at any average rate for period if the rates do not significantly fluctuate. Identify three potential risks of IFRS and GAAP convergence. There are several risks which may affect companies as a result of the convergence. They include that; the convergence may risk tax rate and thus making it not to be effective to some companies, it may also risk the long term financial agreements and contracts, and it may also risk timing of the revenue recognition (Ernst Young, 2009).