Biography of William Shakespeare Essay

It is known that he was born in April 1564 and that he died on 23rd April 1616 at the age 52. He was baptized on 26th April 1564. How fitting that the great English writer is so closely identified with the patron saint of England. Shakespeare had seven siblings. They were: Joan (1558); Margaret (1562); Gilbert (1566); Joan II (1569); Anne (1571); Richard (1574) and Edmund (1580). Shakespeare married Anne Hathaway when he was 18. She was 26 and she was pregnant when they got married. Their first child was born six months after the wedding. Shakespeare and Anne Hathaway had three children together – a son, Ham net, who died in 1596, and two daughters, Susanna and Judith. His only granddaughter Elizabeth – daughter of Susanna – died childless in 1670. Shakespeare therefore has no descendants. Shakespeare died a rich man. He made several gifts to various people but left his property to his daughter, Susanna. The only mention of his wife in Shakespeare’s own will is: â€Å"I give unto my wife my second best bed with the furniture†. The â€Å"furniture† was the bedclothes for the bed. Shakespeare was buried in the Holy Trinity Church, Stratford-upon-Avon. He put a curse on anyone daring to move his body from that final resting place. His epitaph was: â€Å"Good friend for Jesus’ sake forbear, To dig the dust enclosed here: Blest be the man that spares these stones, And curst be he that moves my bones. † Though it was customary to dig up the bones from previous graves to make room for others, Shakespeare’s remains are still undisturbed. During his life, Shakespeare wrote 37 plays and 154 sonnets! This means an average 1. 5 plays a year since he first started writing in 1589. His last play The Two Noble Kinsmen is reckoned to have been written in 1613 when he was 49 years old. While he was writing the plays at such a pace he was also conducting a family life, a social life and a full business life, running an acting company and a theatre. Few people realize that apart from writing his numerous plays and sonnets, Shakespeare was also an actor who performed many of his own plays as well as those of other playwrights. During his life Shakespeare performed before Queen Elizabeth I and, later, before James I who was an enthusiastic patron of his work. Shakespeare’s profession was acting. He is listed in documents of 1592, 1598 and 1603 as an actor. We know that he acted in a Ben Jonson play and also in his own plays but it’s thought that, as a very busy man, writing, managing the theatre and commuting between London and his home in Stratford where is family was, he didn’t undertake big parts. There is evidence that he played the ghost in Hamlet and Adam in As You Like It. In Elizabethan theatre circles it was common for writers to collaborate on writing plays. Towards the end of his career Shakespeare worked with other writers on plays that have been credited to those writers. Other writers also worked on plays that are credited to Shakespeare. We know for certain that Timmons of Athens was a collaboration with Thomas Middleton; Pericles with George Wilkins; and The Two Noble Kinsmen with John Fletcher. Some scholars have maintained that Shakespeare did not write the Shakespeare plays, with at least fifty writers having been suggested as the â€Å"real† author. However, the evidence for Shakespeare’s having written the plays is very strong. Shakespeare is the second most quoted writer in the English language – after the various writers of the Bible. Suicide occurs an unlucky thirteen times in Shakespeare’s plays. It occurs in Romeo and Juliet where both Romeo and Juliet commit suicide, in Julius Caesar where both Cassius and Brutus die by consensual stabbing, as well as Brutus’ wife Portia. Some of Shakespeare’s signatures have survived on original documents. In none of them does he spell his name in what has become the standard way. He spells it Shakespere and Shakespear. Shakespeare lived a double life. By the seventeenth century he had become a famous playwright in London but in his hometown of Stratford, where his wife and children were, and which he visited frequently, he was a well known and highly respected businessman and property owner. The American President Abraham Lincoln was a great lover of Shakespeare’s plays and frequently recited from them to his friends. His assassin, John Wilkes Booth was a famous Shakespearean actor. Although it was illegal to be a Catholic in Shakespeare’s lifetime, the Anglican Archdeacon, Richard Davies of Litchfield, who had known him wrote some time after Shakespeare’s death that he had been a Catholic. Candles were very expensive in Shakespeare’s time so they were used only for emergencies, for a short time. Most writers wrote in the daytime and socialized in the evenings. There is no reason to think that Shakespeare was any different to his contemporaries. It was illegal for women and girls to perform in the theatre in Shakespeare’s lifetime so all the female parts were written for boys. The text of some plays like Hamlet and Antony and Cleopatra refer to that. It was only much later, during the Restoration, that the first woman appeared on the English stage. There are only two Shakespeare plays written entirely in verse: they are Richard II and King John. Many of the plays have half of the text in prose. Shakespeare wrote many more plays than the ones we know about. It’s certain that he wrote a play titled Cardenas, which has been lost, but scholars think he wrote about twenty that have gone without a trace. Shakespeare’s shortest play, The Comedy of Errors is only a third of the length of his longest, Hamlet, which takes four hours to perform. Two of Shakespeare’s plays, Hamlet and Much Ado About Nothing, have been translated into Klingon. The Klingon Language Institute plans to translate more. All Uranus’ satellites are named after Shakespearean characters. William Shakespeare’ is an anagram of ‘I am a weakfish speller’. Shakespeare’s original grave marker showed him holding a bag of grain. Citizens of Stratford replaced the bag with a quill in 1747. â€Å"William Shakespeare was an English poet and playwright, widely regarded as the greatest writer in the English language and the world’s pre-eminent dramatist. He is often called England’s national poet and the â€Å"Bard of Avon†.

Dhaka Stock Exchange Collapse of 2010â€2011 Essay

Dhaka Stock Exchange (Generally known as DSE) is the main stock exchange of Bangladesh. It is located in Motijheel at the heart of the Dhaka city. It was incorporated in 1954. Dhaka stock exchange is the first stock exchange of the country. As of 18 August 2010, the Dhaka Stock Exchange had over 750 listed companies with a combined market capitalization of $50.28 billion. 1.1 History First incorporated as East Pakistan Stock Exchange Association Ltd in 28 April 1954 and started formal trading in 1956. It was renamed as East Pakistan Stock Exchange Ltd in 23 June 1962. Again renamed as Dacca Stock Exchange Ltd in 13 May 1964. After the liberation war in 1971 the trading was discontinued for five years. In 1976 trading restarted in Bangladesh, on 16 September 1986 DSE was started. The formula for calculating DSE all share price index was changed according to IFC on 1 November 1993. The automated trading was initiated in 10 August 1998 and started on 1 January 2001. Central Depository System was initiated in 24 January 2004. As of November 16, 2009, the benchmark index of the Dhaka Stock Exchange (DSE) crossed 4000 points for the first time, setting another new high at 4148 points. In 2010, the index crossed 8500 points and finally crashed in the first quarter of 2011. 1.2 Formation Dhaka Stock Exchange (DSE) is a public limited company. It is formed and managed under Company Act 1994, Security and Exchange Commission Act 1993, Security and Exchange Commission Regulation 1994, and Security Exchange (Inside Trading) regulation 1994. The issued capital of this company is Tk.  500,000 which is divided up to 250 shares each pricing Tk. 2000. No individual or firm can buy more than one share. According to stock market rule only members can participate in the floor and can buy shares for himself or his clients. At present it has 238 members. Market capitalization of the Dhaka Stock Exchange reached nearly $9 billion in September 2007 and $27.4 billion on Dec 9, 2009. 1.3 Management The management and operation of Dhaka Stock Exchange is entrusted on a 25 members Board of Director. Among them 12 are elected from DSE members, another 12 are selected from different trade bodies and relevant organizations. The CEO is the 25th ex-officio member of the board. The following organizations are currently holding positions in DSE Board: Bangladesh Bank ICB President of Institute of Chartered Accountants of Bangladesh President of Federation of Bangladesh Chambers of Commerce and Industries President of Metropolitan Chambers of Commerce and Industries Professor of Finance Department of Dhaka University President of DCCI (Dhaka Chamber of Commerce and Industry) 1.4 Trading time The Dhaka Stock Exchange is open for trading Sunday through Thursday between 10:30am – 2:30pm BST, with the exception of holidays declared by the Exchange in advance. In the month of Ramadan, the exchange is open for trading between 10:30am – 1:30pm BST. 2. Previous major crash – Stock market crash in 1996 The number of BO account holders in 1996 was only 300,000 and most of them were new in the market. At that time it was not easy for investors to detect the fake shares from the genuine ones. Because during the crash of 1996, paper shares used to be sold in front of DSE.There was no automated trading system, surveillance was not strong enough, and there were no circuit breakers as well as international protection. From 1991 to the end of 1995, DSE General Index price gained by 139.3 per cent and reached 834 point. But  in 1996, the market experienced a dramatic change and pushed the price index up by 337 percent. DSE General Index recorded a high growth from July and stood at 3648.7 points on 5th November 1996. Besides, Chittagong Stock Exchange experienced the same change and grew by 258 percent. Chittagong Stock Exchange index increased from 409 to 1157 points in 1996 within a one year’s time. But the steps taken by the government did not work. The index lost over 233 points on November 6, 1996. After the bubble burst, DGEN index dropped to its lowest point and stood at 957 in April 1997. It stood at around the same point, where it was 10 months before and DSE General Price Index lost almost 70 percent from its highest point in November 1996. Then the index continued to decrease for the next 7 years until April 2004. During this long period, DGEN Index seldom crossed 1000 point. In short this can be described by using a graphical presentation. Figure 1. Scenario of Share price index points of Dhaka Stock Exchange 3. Cause of market crush in 2010-2011 The stock market crashed again in 2010-2011. The major causes are as follows- 3.1 Margin Calls & Illiquidity crisis When investors pay a part of future market contracting by cash or selected instruments in an account with a broker which is called Margin. To make sure obligations of investor when contract expired, more Margins is necessary if value of the contract decreases. The process is called Margin call. On â€Å"Black Monday†, price movement of future contracts created record amount of Margin calls for firms which were about 10 times the average size. Collected payments are paid to investors whose position had gained. Some investors lost their ability to enter new positions due to Margin calls and some needing to extend credit to make the payment. As investors were unable to pay margins, brokers placed emergency margin calls with exposed options positions which were assumed to be liquidated due to failure of meeting margin calls. It occurred repeatedly which possibly made selling pressure in the market and markets were not able to handle these sell orders. 3.2 Program Trading Summit Financial Advisors has stated that many analysts accused program trading, especially portfolio insurance as a major reason for the crash. In this trading, computers automatically order large stocks trades when certain market trends prevailed. Analysts blamed that the program trading blindly sold stocks when prices declined on 19th October. 3.3 Derivative Securities Investors not only invested in actual stock market but also in index options and futures markets. Option and future market are called derivatives as the value derives due to change of stock prices. The Brady Commission which was commissioned to examine the reasons of the crash found that the failure of stock mar-kets and derivatives markets to operate in sync was an important factor that contributed to the severity of the crash. 3.4 Role of market regulators and their employees The role of SEC to control & monitor capital market, working in favor of manipulators, approving unethical proposal and issuing wrong directives which lead to unexpected market conditions deteriorated the image of SEC. Investigation report mentioned some names of corrupt employees of the market regulators who were directly or indirectly responsible in the market manipulation. There is a job overlapping between SEC and exchanges. Such as, DSE & SEC both organizations have surveillance department for the same job but there is no co-ordination. Listing committee of DSE & CSE examines listing application of company but SEC doesn’t do it properly and approve it. Placement of Mutual fund & IPO at a price lower than the market value has become a new method of bribery for powerful employees of regulators. There is another accusation that these senior level employees received placement by using other`s name which is very difficult to identify. The report admits that SEC doesn’t have enough employees for example; qualified accountant, financial analyst and researcher to control and monitor the market. Rahman & Moazzem (2011) identified in their study that Dhaka stock exchange is becoming more volatile but the regulators are unable to defend it. They also suggested increasing manpower and quality of professionals in SEC. 3.5 Demutualization of Exchanges There are both elected & nominated members in DSE and CSE. Basically, elected members run the administration due to less interest & relation of nominated members. As a result, the players of the capital market act as controllers. Meanwhile, controllers are inactive during unethical activities due to conflict of interest. In the investigation report it was said that different stake holders of capital market and civil society support & demand for demutualization of exchanges. The meaning of Demutualization is separating controlling functions from controller’s functions, empowering controller and taking decisions without being motivated by the market players. 3.6 Investment of bank in the capital market In 2009 & 10 banks and financial institutions invested huge amount of deposit money in the stock market. As a result share prices sky rocketed until December 2010. When Bangladesh Bank restricted more than 10 percent investment of deposited money, increased CRR and SLR ratio, created liquidity crisis and market crashed. 3.7 Pre-IPO & IPO process Investigation committee considered that due to Pre-IPO & IPO manipulation share prices sky rocketed and that is the main reason for the share market crash. Manipulators illegally & unethically created a Kerb market in Pre-IPO stage. Without recommendation by the listing committee application for IPO was accepted. SEC did not examine abnormal asset revaluation and indicative price. As a result in Pre-IPO or IPO stage placement process and placement trade Kerb market overvalued share prices. This eventually generated liquidity crisis in the capital market. 3.8 Uniform face value of share During the meeting between investigation committee and different stake holders of share market, a most important reason for abnormal climbing of index was indicated to uniform face value of share at Taka 10. Splitting share does not change revenue or asset of a company and should not affect the share price. But Small investors showed their utmost inter-est to buy split share with their small investment and consequently pushed the price up. Up to 62 listed companies split their shares in 2009 & 2010. So, it  abnormally increased liquidity of the market and brought notable change in market capitalization. Investigation report shows that MC increased 655% of companies those adopted share uniform and MC increased only 46% of those that did not adopt. From July 2009 to December 2010 the role of total MC were 81.5% of companies which adopted share uniform and only18.5% those that did not adopt. 3.9 Placement trade / Kerb market Before issuing IPO, Issue manager or Issuer Company sell shares to their nominated person and that is called Private placement or pre-IPO placement. Private placement is risky because it doesn’t have accounting discloser. In the developed countries there are some fixed rules but in Bangladesh SEC didn’t have proper rules for it. As a result some manipulators used it as a tool of price manipulation. Investigation committee found that in most of the cases placement was offered at less than the IPO price. Though aim of public offering is participation of public but placement doesn’t make sure it. Eight companies issued convertible preference share in 2009 & 10 in which average 69% went for placement. So, participation of the public was hindered and that created placement trade or Kerb market. Some companies distributed 50-90 percent of their paid up capital in private placement. However, when a company raises too much paid up capital through private placement, the number of free-floating shares decreased. That’s why the difference between demand & supply push share prices up. Moreover, non-listed companies created liquidity crisis as huge investment was stuck up with these companies. Placement created new process of trading outside of the share market and that is illegal. By taking chance of placement many small companies raised capital from illiterate and un-informed investors with their artificial financial reports. 3.10 Omnibus account Investigation report found Omnibus accounts of ICB and merchant banks as another major reason behind the stock market debacle. Every branch of merchant bank operates only one omnibus account. There could be 3-10 thousands BO Accounts under the omnibus account which are not under the surveillance of SEC. So, information of individual accounts and its transaction are kept only with merchant banks. As investigation reports  shows that this kind of account made a lot of illegal transactions. It publishes name of 30 big players including ICB for a lot of suspicious transactions and says most manipulators traded from the omnibus accounts. It was also reported at least Taka 2.5 billion has been traded from hidden or omnibus accounts. 3.11 Asset revaluation & Rumor By taking chance of weak asset revaluation method companies have overvalued their asset. In this process dishonest auditors generated artificial audit reports. So, calculating of NAV on overvalued asset indicates wrong signal. Some companies issued Bonus shares against unrealized gain of revalued asset price which is a faulty accounting practice. There is rule to maintain provision against â€Å"deferred tax† during asset revaluation to pay tax in future, but companies are not following it. Investigation reports pointed some companies which got NAV more than 100% to 3,472% after asset revaluation. 3.12 Book building method It’s a procedure of determining price of IPO at which it is offered. The fair price is determined by the demand of a security from institutional investors and their indicative price. The main aim of introducing this method in Bangladesh stock market was to attract more firms for enlisting in the stock exchanges through fair share pricing. However, it was found as an instrument of manipulating market prices. Investigation report reveals that during the price discovery/bidding stage investors manipulated share prices for placement with too high price. High price was maintained only for the lock-in period and then investors offloaded their shares. As a result they pulled out a lot of profit within a short period and after that the share price did not increase. In this process corrupted Issuer and issue manager manipulated the price. 3.13 Serial and artificial trading Some manipulators created artificial active trading environment among themselves through bulk transaction and increased share prices. Moreover serial trading and price manipulation by many buy-sell orders through different accounts and broker houses which overheated the market. 3.14 Issue of Right and preference share Right Share is issued at a discount price to existing shareholders. SEC took 4/5 months to take the decision of right issue proposal which is mysterious. Meanwhile companies inform the market about Right issuance and increased the share price. Moreover, issuance of Right share increase number of share which should decrease share price but it did not hap-pen. Investing in Preference share is safe to get a fixed percentage of profit. To make the share attractive companies keep an opportunity to convert it and in that case it is called Convertible Preference Share. Companies issued preference share for only 2-3 months even for 1 month which is not common in other countries. The faults with convertible preference share were its time period (short), convertible process and private placement. Investigation committee found that SEC did not have proper guidelines for Right and Preference Share issuance. 3.15 Suspicious transaction of top players Investigation report reveals some names of individual and institutional investors as top buyers and sellers during abnormal increase and decrease of index in different time periods. The transactions of these investors were suspicious and affected the market heavily and liable for abnormal rise and fall. 3.16 Block placement There was a lot of suspicious block trading of mutual funds. Some investors got enormous amount of placement time to time. 3.17 Direct listing With the approval of SEC few companies have been directly listed in the stock exchange. These companies come to the market with inflated share prices. Investigation report mentioned that indicative prices of these companies were determined even 58 times more than EPS and 9 times of NAV. Though share prices of these types of directly listed companies have been artificially determined, but SEC or exchanges did not investigate the reason of abnormal price. 4. Impact of the crash Bangladeshi stock market experienced through inefficient and irrational fluctuation of DGEN Index in the year 1996 and 2011 . During 2010, the bullish market turned bearish with the exchange losing 1,800 points between December 2010 and January 2011. DGEN Index climbed at point 8918.51 on December 05, 2010 which was overvalued in all aspect. Then the market crashed at point 4877 in November 2011. Figure 3: Daily DGEN index of January, 2011 Figure 4: Showing the Movement of DSE General Index from June- ’10 to May- ‘11 Impacts of the crash were: As a result of the market crash, millions of investors have been rendered bankrupt. Because of free fall of share prices, Investors came out in the street again and started protesting against free fall of share prices and chanted slogans against market regulators. Random objects like wood and papers were set on fire in front of the DSE office in Motijheel. Investors came out in the street with processions and demonstrated against free fall of Share index in both bourses as well as suspension of trading. Investors from different parts of the country such as, Chittagong, Comilla, Narsingdi, Narayanganj and Jessore brought out processions and clashed with law en-forces in some places as well. Investors blamed the speculators and regulators for the bubble that finally burst. Economy faced liquidity crisis. Authoritites and government took steps to handle the crisis. But stock market of Bangladesh had already got the adjective of â€Å"the worst stock market in the world†. And an o ngoing market turmoil is still going on. 5. Measures taken to stabilize the stock market Since the collapse of the market in December 2010, a number of initiatives were undertaken by Ministry of Finance (MoF), Security and Exchange Commission (SEC), Bangladesh Bank, Government and Dhaka Stock Exchange (DSE)/ Chittagong Stock Exchange (CSE) to stabilize the market. 5.1 Steps taken by government- The government took a number of measures to inject money in the market. This included Tk. 600 crore worth of funds distributed to the state-owned banks and Investment Corporation of Bangladesh (ICB), and formation of a mutual fund titled Bangladesh Fund with an initial resource of Tk. 1,500 crore. Under the national budget of FY2011-12, government announced a number of incentives to recover the capital market situation. Some of these were re-introduction of tax rebate facilities, tax-free facilities for mutual funds, time extension for non-bank financial institutions (NBFIs) to adjust their investment in stock market (revised timeline is December 2013), and adjustment of single borrower exposure limit by the commercial banks (revised timeline is December 2013). All these budgetary measures have direct and indirect implications for raising fund for the ailing capital market. A probe committee was created by the government to identify the reasons, people and solution regarding the prob lem of the stock market. The Probe Committee and the MOF came up with a list of 36-point measures which were to be implemented in three phases (i.e. immediate, short and medium-term). 5.2 Steps taken by SEC- Security & Exchange Commissions applied a lot of directives to keep the market under control in 2010. SEC changed directive of margin loan ratio by increasing it from 1:0.5 to 1:1 on 13th December and later it was again hiked to 1:1.5 & 1:2 because of free fall of share prices. Actions were taken against persons found guilty for their fraudulent activities, investigation of allegations against the SEC officials who indulged in market manipulation, examination of assets of some of the companies alleged to have been involved in illegal trading, and initiation to probe allegations against several companies was also done. Criminal investigation against a number of companies and persons which was supposed to be carried out by the Anti-Corruption Commission (ACC) was started but without much visible progress. SEC under its new management has also prepared a 29-point work plan. Of these, eight activities were identified as ‘top urgent’, three as ‘urgent’, 14 as ‘short term tasks’ and four as ‘medium term tasks’. The MoF along with SEC and other stakeholders prepared the much-hyped Market Rejuvenation Package. This 21-point package focuses on greater participation of banks and other financial institutions in the stock market, besides setting up a ‘special scheme’ to provide support to small investors who lost their capital. 5.3 Steps taken by Bangladesh Bank- Bangladesh Bank pushed money into the market as liquidity support. Banks have reportedly kept buying shares despite suffering from liquidity crises themselves, and not selling any shares. 6. Outlook for the future To protect the share market of Bangladesh, the regulatory body should take some effective measures. It should introduce some monitoring systems to protect the price manipulations of the share. Provisions should be made to provide all the financial data to the investors so that they can get a proper idea about the company. The market should be free from fake certificates. The government should offer income tax rebate on the income of share market and encourage the banks and non banking institutions to come to the market directly. Some incentives package for the investors like getting financing at a low cost has to be offered to bring back the investors in the market. Market stabilization fund must be introduced so that it can help to meet up with crisis situation. Since Bangladesh is heading toward the developing nation, capital market can be the engine of growth for its economy if market becomes structured and efficient. Around the world well reputed stock markets like – New York Stock Exchange, London Stock Exchange, Shanghai Stock Exchange, Tokyo Stock Exchange, Australian Securities Exchange, Dubai Stock Exchange and so on, are regulated and running efficiently that provides significant contribution to their individual economy. Because, stock market is knowledge based game rather than a place of gambling; there must be rational win-lose situation always. But Bangladeshi stock market experienced through inefficient and irrational fluctuation of DGEN Index in the year 1996 and 2011 which resembles the place of gambling. To sum up, from our study, we have found that, there are problems like – Big Gap between the Demand and Supply of stock, extraordinary over pricing of stock, market manipulation, lack of knowledge about the stoc k market mechanism among the general investors, price distortion, inefficient regulations, political unrest, etc. These caused the steepest downward fall of DGEN Index in the financial year 2011.  As a result, about millions of investors lost their capital which turned them empty within few months. Security and Exchange Commission (SEC) of Bangladesh and government should take the short term and long term initiatives to stabilize the market. They should encourage more public limited companies to offer more share to meet the current demands. Income tax rebate, Injection of Market Stabilization Fund, Mandatory holding certain percentage of share among the board of directors, short term incentives packages should be introduced to get back the confidence among the existing investors. Regulatory bodies of Bangladesh stock market must educate the current and potential investors about the market mechanism and provide them the accurate information so that investors trade their shares carefully. Unless, appropiate corrective measures are well formulated and implemented, Bangladeshi stock market will be facing this irrational downward again in the near future. 7. ARAMIT from 2010- 2013 From the graph we see that, before the crash market price was above tk 450. And in the time of market crash from December 2010- January’11, the price of aramit started to fall and reached tk 436 at the end of January 2011. After that the market fluctuated and hit its lowest of tk 192.6 on february 2012. The current market price as of 24th February,2013 is tk 216. Profit Status: Based on Annualized EPS of 2012 (Q3): Basic Current Price Earning Ratio (P/E) (Based on Continuing operation) 12.65 Based on audited EPS of 2011 Current Price Earning Ratio (P/E) (Based on Continuing Operation) 15.15 Reference : 1. http://www.cpd.org.bd/pub_attach/WP95.pdf 2. http://publications.theseus.fi/bitstream/handle/10024/47195/saha_sangit.pdf?sequence=1 3. http://www.dsebd.org/displayCompany.php?name=ARAMIT 4. http://en.wikipedia.org/wiki/2011_Bangladesh_share_market_scam 5. http://en.wikipedia.org/wiki/Dhaka_Stock_Exchange 6. http://www.similarsites.com/goto/bdstock.com?pos=2&s=10

Strategic management Essay Example | Topics and Well Written Essays - 250 words - 3

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Nutrition Statistics Project Example | Topics and Well Written Essays - 2500 words

Nutrition - Statistics Project Example Cycle 1 students indicated fruit juice as their favorite drink as compared to Cycle 2 students who indicated Fizzy drinks/Carbonated drinks with high sugar content as their favorite drink. More Cycle 1 students buy snacks/drinks from the cafeteria everyday as compared to Cycle 2 students. Over the last 30 years, the UAE has experienced rapid socio-cultural changes that have been brought about by the growing economy of the Arabian Gulf Region due to the discovery of oil (Bin Zaal, Musaiger and D’Souza 2009). UAE citizens have undergone significant lifestyle changes including a massive transition from deficiency diseases and under nutrition towards degenerative diseases that are associated with over-nutrition. There have been significant changes in food choices leading to a â€Å"nutritional transition† (Al-Haddad, Al-Nuaimi, Little and Thabit, 2000). According to the World Health Organization (2000), nutrition plays a crucial role in affecting the weight of a populace because the changes in economic and social environments have highly significant influences on calorific intake. Physical activity and recreational patterns of people in a given place also play a part in the influences that emanate from effects of nutritional intake. Improper nutrition often leads to a variety of health conditions such as obesity, nutrition deficiency diseases such as goiter, kwashiorkor among others. In the context of the UAE, nutritional challenges have heralded obesity which has resulted into several health concerns. Obesity is described as a medical condition in which body fat accumulates to the extent of causing risks to the health of the victim. It is measured as the Body Mass Index (BMI)- calculated by dividing the weight (Kg) of a person to the person’s square of height (M) (Seidell and Flegal, 1997). One is considered overweight when the BMI is between 25 and obese when the BMI is higher than 30 (Seidell and Flegal, 1997). Students in

Cultural aspects of multi chanel cutomer management Essay

Cultural aspects of multi chanel cutomer management - Essay Example Organizations should have a clear picture about the different customer behaviours in order to formulate different strategies to establish strong relationships with them. Some customers may like cheaper price whereas some others may give more importance to the quality of the product or after sales support. The awareness of customer behaviours will help the organizations to formulate different channels for the customer management. This paper is written based on the reflections of the article Cultural Aspects of Multi-Channel Customer Management: A UK Case Study. Channel management is influenced by customer behaviors, preferences, perceptions and expectations. Customers may contact with the different channels of the organization at different period of time throughout customer’s life cycle. Customer relationship management (CRM) depends of many factor like differences in business practices, competition, regulatory characteristics, country characteristics, and consumer characteristics. Organizations need to approach the CRM in two ways; macro – country level and micro- individual customer in order to cater the needs of the customers effectively. The macro factors involve differences that affect entire countries or regions whereas the micro factors involve individual consumers within those countries or regions. The success of CRM depends on three factors which arose from internal and external environments; differences in customer expectations, drivers of satisfaction, loyalty, profitability and customer value across countries or cultures; differences in the competitive environments, technological infrastructure, political systems, and regulatory variations between countries around the globe and the difference in the challenges faced by global firms in forming a cu stomer-oriented organization, which already encountered challenges in the form of culture and power issues. Multi-channel customer management will help us to analyze the influence of culture

Limitations of Drugs and Alcohol in the Workplace Essay

Limitations of Drugs and Alcohol in the Workplace - Essay Example Alcohol and drugs are substances that divert the normal functioning of a person’s body and mind. Many people do not have the slightest idea of the limitations of alcohol at the work place and they will continue to indulge in the vice. Many organisations have invested substantial resources in ensuring alcohol and drug use in the organisation has been reduced. However, most of the employees that have been using these drugs still stick to their behaviour of using drugs and alcohol. This is due to the end result of using alcohol and drugs for a long time. It is known that people that abstain in the work place will depict different types of behaviour as opposed to the people that use drugs in the organisation. In, many instances, there is often a drift between the people that use drugs and alcohol in an organisation. This is due to their difference in the socialising, communication and their frequent places where they spend their free time. Workers that use drugs and alcohol will t end to be on different sides from other workers that do not consume alcohol and drugs.... This is due to their difference in the socialising, communication and their frequent places where they spend their free time. Workers that use drugs and alcohol will tend to be on different sides from other workers that do not consume alcohol and drugs (Ghodse, 2005: 19). In such a situation, it is almost impossible to merge the two groups to work together. This causes a contemporary issue in management of employees as they are not likely to agree on some issues. Similarly, some of the employees that are on the opposing ends will not be at ease with some of the timetables and working shifts. This will adversely affect the organisation as most of the employees will not be in agreement to work together. In some cases, discrimination cases occur in an organisation due to cliques of people that have something in common. Discrimination is an attribute that has affected a large number of organisations as it reduces its performance (Brewster, 2008: 19). For instance, some people are given a promotion due to the indulgence in some activities that are not productive in the work place. For instance, friendship in drinking dens could be extended to the organisation. With such activities, it is easier to promote a person that does not qualify for the post. However, the person is qualified for the post due to the indulgence in drugs and alcohol with the managers (Aronson, 2004: 14). This is a setback to the organisation. First, the organisation is likely to be controlled by people that adore alcohol and drugs. This creates a scenario where the decisions that are made in the organisation depend on a clique of drunkards. Such decisions could stall the organisation, especially when they do not consider the whole issue. Secondly, most of the other

Interactive Training of Hospitality Operations Personnel Essay

Interactive Training of Hospitality Operations Personnel - Essay Example The rise in employee turnover costs and the increased use of technology in the industry further emphasizes the need for training (Sheldon and Gee, 1987). Internet based 'interactive training' programs (an umbrella term that includes both computer based and multi-media training) of hospitality operations staff provides access to on-demand training, tracking of each trainees' progress, as well as in-depth reporting of each trainee (hotelonline.com, 2000). The training is provided with an interactive format that includes text, animation and audio. A successful interactive training program in the hospitality sector ensures consistency in providing a quality environment for employees, guests and visitors. It is a cost effective way of upgrading skills of hospitality personnel, the benefit of which can be visible from consistent and quality delivery of essential guest services and avoidance of any litigious situation. In the present age of IT dominance, interactive training of hospitality personnel is an integral part of the industry without which introduction of technologies in the hospitality sector would not have the desired result. ... With new innovations in the IT sector, more and more hotels are equipping themselves with the tools of modern technology to ensure global connectivity to their customers, particularly corporate executives. Without upgrading, the knowledge and skills of hospitality personnel rapidly gets outdated. In the competitive atmosphere of modern day hotels it is crucial to satisfy and win the loyalty of each customer. A satisfied customer apart from becoming prospective customer for the future may also bring in more customers through positive multiplier effect (Duprey & Kearsley, 2005). In the new e-economy, the value of human capital, meaning mainly employees' skills, competencies, and knowledge is greater than any other form of business capital and can crucially drive competitive advantage (Cohen & Levinthal, 1990). Increase in skills leads to improved performance which enables the employer to meet the needs of the employees also helping in retention of the precious talent. "No hotels can have excellent operations without excellent employees and that requires excellent human resource practices" (Siguaw & Enz, 2000, p.48). Human resource skills have always been an important element in the hospitality industry. "Friendliness and a willingness to serve others are the tools of the hotel trade, and training is the sharpener that refines the tools into hospitality machines" (Higley, 2004). Proper attitude starts with management and ends with diffusing it to all the staff of the hotel. It is of utmost importance to make right impression at the front desk which is reflected through a positive, outgoing and friendly attitude and also through efficient service. Increasingly intense competition, high customer expectations and retaining

The impact of technology on the war in Afghanistan Research Paper

The impact of technology on the war in Afghanistan - Research Paper Example The Taliban has explicitly expressed their support of the Al-Qaeda, a global network of terrorists, and in September 9, 2011, Al-Qaeda operatives executed Ahmad Shah Massoud, a prominent commander of the Northern Alliances. Such killing assured Osama Bin Laden of the Taliban’s support and refuge after the 9/11 Attacks (Council on Foreign Relations). And so, the seed for the biggest and most wide-spread war on terrorism has been sown; the war on Afghanistan was bred, needing only the attacks on US soil to spark the powder keg. The problem about Afghan stability and counterterrorist efforts is not simple a problem; the Taliban is continually able to hold the Afghan citizens silent about their presence by the effective monopoly of fear, threatening the lives of Afghan should they provide any hint to the US troops concerning the Taliban or the Al-Qaeda operations (Ferguson). Poor governance, ethnic conflict, and administrative mismanagement have crippled the Afghan government syst em in trying to address the problem of terrorism in the post-Taliban democracy. Terrorists still plague the Afghan communities, storing ammunitions and high-powered rifles, and in some case, a Taliban flag, in places so close to Afghan homes. Security in the Afghan state and the elimination of terrorist cells is highly important to maintain global peace, and such is the goal of the United States for its involvement in places so far away from the New World. After the 1993 bombing on the World Trade Center and the more famous 9/11 attacks, global security has become US security as these attacks against the US sprang not from the American continents, but from places across the oceans. In order for the US government to ensure the safety of its people, it must secure the safety of the entire world from threats as eminent as the Al-Qaeda, the Taliban, and all other terrorist networks and militant insurgent groups. As part of the study on the war in Afghanistan, there is a need to define c ounterinsurgency from counterterrorism, and in order to fulfill such, there is still a need to define the root-words that comprises the two military labels. Counterinsurgency is a concatenation of two words: counter and insurgency. Counterinsurgency is any organized military activity designed to combat insurgencies (Merriam-Webster). These are military activities geared towards combating insurgent groups that are against the central authority not recognized as belligerents. The term counterinsurgency was first used in the 1960s to combat communist-led revolutionists and insurgents, which Nikita Khrushkev termed as the â€Å"war of national liberation†, occurring all around the world that are against U.S. interest (Answers Corporation). The term replaced counterrevolution for public propaganda, since a revolution has a good connotation to the American public. Counterterrorism, on the other hand, is a concatenation of the words counter and terrorism. Counterterrorism refers to the practices, not necessarily military in nature, that acts as a response to terrorist threats and/or acts, be it real or imputed (Zalman). Terrorism is a criminal act that influences and audience beyond the immediate victim (Research-Terrorism). It seeks to achieve goals that are political, religious, or ideological in nature by inflicting terror and anxiety through the use of military equipments, usually aimed at civilian targets.

Body Image Essay Example | Topics and Well Written Essays - 1500 words

Body Image - Essay Example During the year 1870s, anorexia nervosa first existed and was initially perceived as a nervous disorder associated with young women. But in the 19th century, anorexia is defined as: "(1) a refusal to maintain a normal body weight with body weight at least 15 percent below that expected; (2) an intense fear of gaining weight or becoming fat despite being underweight; (3) body image distortion, 'feeling fat' and overvaluation of thinness; and (4) a reduction of food intake, avoidance of fattening foods, often with extensive exercise, self-induced vomiting, laxative or diuretic abuse so as to achieve the weight loss and maintain a low body weight" (qtd. in Malson 3). Out of many studies from different researchers about the severity of eating disorder, it was Lacey's (1985) "false self" and "borderline" eating-disordered patients that corresponded to the most severe forms of the illness. Lacy's (1985) idea on "false self" was actually motivated from observations of Winnicott (1975) that discrepancies in the self came out either as an adaptation to a lack of emphatic encouragement and support from the primary caretaker, or as an unintentional consequence of miscuing between mother and child. Consequently, due to this disruption, it might cause problems in introspective/reflective awareness, or insufficient consolidation of self-regulatory skills. Since there is already a lack of inner awareness, an adolescent eating-disordered woman might present with an undemanding, compliant personality that is sensitive to outer, but not inner signs (Eliot 2004). Accordingly, the woman might tend to be a "people pleaser" whose pseudo-maturity and intuitive auto nomy are part of the false pretense. On the other hand, the so-called "borderline" patients encompassed the most seriously ill group even up to the present day. Particular characteristics portrayed by these patients are the perception of themselves as overwhelmed, always in danger, of no value, and unattractive. Correspondingly, they see other people as corrective, controlling, and insensitively critical. Their fragmented sense of self and fragile ego boundaries often result in poor impulse control and a anxious search for external tension regulation. Behaviors that are exhibited in order to lessen and alleviate a sense of internal emptiness and despair cause these patients to be poly-symptomatic and particularly difficult to help. Factors Affecting Anorexia Nervosa There are in point of fact numerous factors that can be enumerated that affect eating disorders in women. It may be due to socio-cultural factors, family problems, individual vulnerability as a result of trauma or things that might have gone wrong in the difficult early mother-child relationship, and the influence brought about by the mass media. In sticking with the scope of this paper, the socio-cultural factors and the mass media are the only factors that are further discussed aligning to this paper's purpose. Socio-cultural Factors As women reach adolescence, they undergo a lot of physical changes like their size and shape. It is also during this time when culture

Danshui Plant No.2 Essay Example for Free

Danshui Plant No.2 Essay Danshui assembling computer hard drives on a contract that was fulfilled at the end of May 2010, although the assembly hard drives was different with assembly of Iphone, Danshui was confident that its workers would adapt to the new assembly tasks and that it could hire and train the additional workers as needed. But in fact, Danshui didn’t manage employee property. The workers showed low efficiency in assembly Iphone with produced lower quantity than budgeted which is 180,000 units instead of 200,000 units. Other than that, Danshui couldn’t hire enough qualified labor to get production up to 200,000 units even though they raised wages by 30% because of Foxconn starting pay by 35% to the labors. In addition, Danshui operation department keep having flash memories damage problem, there were around 1,000 flash memories damage in August. It’s shown that Danshui’s labors are not enough skill to assembly Iphone. We suggest that Wentao Chen could organize more training program for labors to solve the problem of damage of flash memories because of labors might lack of skill in assembly Iphone since they are more familiar in assembly computer hard drive before on contract with Apple. In order to improve the skill of labor in assembly Iphone so that will be decrease the number of damage of flash memories, and the decreasing of number of damage will be decrease the cost of assembly and increase the revenue. In addition, for the problem of couldn’t hire enough qualified labors to get the production of 200,000 units per month even though Danshui had raised the wages up to 30%. In order to solve this problem, we would like to suggest Wentao Chen to apply the intrinsic need of labor. For example, Danshui can set up a Childcare centre for take care the children of labors or provide free meal for those having over time workers and their children who in Childcare Centre. For example, Maybank has undergone various business transformations in the last four years to enhance their service offerings to their customers, improve operational efficiency and to focus efforts on their most valuable asset – their people. Currently, Maybank has put in place a plan to build a childcare centre to be used by employees during emergency situations. Parents who are faced with challenges in securing childcare services are able to utilize the centre for a temporary period of time whilst they source for alternative childcare services and facilities. The centre will provide parents with a safe environment, high-quality care as well as provide fun activities for their children when their regular care provider is unavailable or during emergency situations. The childcare centre is cur rently under construction and targets to open its doors to employees by the last quarter of 2013. We believe it’s can fulfill the satisfaction of employees and increase the retention of employees, in the other hand Danshui also can attract labor to work in Danshui without raising wages. Other than that, Danshui can improve the productivity of labors to get the production of 200,000 units with their high satisfaction to Danshui. Wentao Chen could help Danshui to get the production of 200,000 units without improve skill of labor or improve the productivity by satisfied the labors, he could using â€Å"outsourcing† to get 200,000 units production to reach the deal with Apple. Danshui can outsource to other similar assembly manufacturer for 20,000 units to fulfill the Apple contract.

Rationale and legal significance case

Rationale and legal significance case Introduction Equity will not perfect an imperfect gift, this maxim from Milroy (1862) had been recognized as the strict rule that apply to the area of law related to the transfer of a gift. Judges and the legal profession had adopted this rule for many years. Nonetheless, this rigid requirement had been relaxed after the decision in Pennington (2002). In the followings, I will discuss the rationale and the legal significance of this case. Decision in Chancery Division Before the case went to the Court of Appeal, Judge Howarth (Judge of Chancery Division) held that Mr. Pennington was not the companys agent. He held that the gift of 400 shares became effective when Ada executed the share transfer form and there was no legal requirement for the form to be delivered to the donee /company. He also held that the breach of article 8(B) did not render the gift ineffective. Two of the beneficiaries appealed to the Court of Appeal on the points that: (1) Doctrine in Re Rose should be applied and the transfer form should be delivered to the donee/ company prior to the donors death. (2)And the transfer breached a pre-emption clause in article 8(B); (3) The donor could not be said to have done everything in her power to effect the transfer[1]. Decision of Court of Appeal The court unanimously dismissed the case, but for different reasons.[2] The summary of the judgment and reasoning will be discussed below. Arden LJs 1st Judgement The pre-emption provisions in the article 8(B) of the company did not prevent Adas share to be transferred to Harold. Reasoning Article 8(B) required a sale notice to be given. No sale notice was served on the company under article 8(B). Therefore, it appeared that Ada, Harold and Pennington were unaware of the pre- emption provisions in the article 8(B) of the company. 2nd Judgment It would be unconscionable for Ada or her personal representatives not to transfer the shares to Harold Reasoning There were 6 facts in this circumstances that give rise to the judgment : (1) Ada had made the gift of her own free will; (2) Ada had told Harold about the gift; (3) Ada had signed a form of transfer; (4) Ada had delivered the form of transfer to Mr. Pennington for him to secure registration; (5) Mr. Pennington had told Harold that there was no action that he need to take and Harold had not questioned this assurance[3]; (6) Harold agreed to become a director of the company without limit of time, which he could not do without shares being transferred to him.[4] The general rule was that Equity will not assist a volunteer [5], but AdrenLJ relied on the judgment in Choithram Although equity will not aid a volunteer, it will not strive officiously to defeat a gift,[6] and hence prefect the transfer of the shares in equity. She believed that in the above circumstances, where donors conscience was affected and it would be unconscionable and contrary to the principles of equity to allow Ada to resile. 3rd Judgment Delivery of the share transfer before her death was unnecessary so far as perfection of the gift was concerned. Reasoning Although Re Rose required the stock transfer form to be handed over to the donee, she did not think that the ratio always requires a delivery of the share transfer form to the donee,[7] and this requirement can be dispensed with in some circumstances. In this circumstance, there was a clear finding that Ada had a clear intention to make an immediate gift. The requirement of actual delivery could be dispensed with. Moreover, Adren LJ adopted the principle of benevolent construction to construct Mr Pennington as an agent for Harold for the purpose of submitting the share transfer to the company.[8] Therefore, traditional requirements of Re Rose were thus satisfied.[9] Clarke LJs The judgment of Clarke LJ seems to be different from that given by AdrenLJ. The main difference in the judgment will be explained below: Judgment Ada had executed a valid transfer of the equitable title with the result that Ada had retained the legal title as trustee.[10] The execution of a stock transfer form can have effect as an equitable assignment without the necessity of a transfer or delivery of the form Reasoning ClarkeLJ held that when Ada executed the stock transfer form, she had passed the beneficial interest to Harold. She would then hold the legal interest in the shares on trust for Harold until registration in Harolds name. Although the strict rule was that the donor must have done everything possible to effect the transfer of his equitable interest. But he believed the maxim cannot be absolutely true since there is always something more that the donor could have done. ClarkeLJ believed there was no need of a transfer/ delivery, since even Ada had delivered the transfer form to Harold, she could have done more by making a specific request to the company to register the shares in Harolds name. Moreover, there was nothing in the Stock Transfer Act 1963 s.1 which suggested that delivery was necessary to effect the transfer. Therefore ClarkeLJ believed that Ada had done everything possible thing possible to effect the transfer for the followings reasons: (1)Ada had executed the correct share transfer form; (2) Ada had given it to Pennington; (3) Ada had not thought it necessary to take any further steps to effect the transfer to Harold, and if she had been asked to do so, she would have done it; (4) Ada had not at any stage intended to reserve a right to withdraw the form; (5) The shares that she intended to give to Harold during her lifetime did not form any part of the subject matter of her will. Controversial This case is regarded as being controversial since ArdenLJ adopted two innovative ideas to perfect the transfer even without actual delivery of the share transfer form; they are (1) Unconscionability Test and (2) Benevolent Principles of Construction. The idea of unconscionability come from the decision of Choithram that if in the circumstances, the donors conscience is affected and it would be unconscionable and contrary to the principle of equity to allow the donor to resile from the gift. But in the judgment of ArdenLJ, she didnt give any concrete explanation of what will satisfy the requirement of unconscionability nor give any guideline. Arden LJ explained that the constitution of unconscionability is solely relied on the finding from the facts and depended on the interpretation of the court. Particularly, Harold did not show any evidence of detrimental reliance in order to fulfill the test. Therefore the requirement of what will satisfy the Unconscionability Test is blurred and depends on the discretion of the court. In Milroy, the court will not give a benevolent construction as to treat ineffective words of outright gift as taking effect as if the donor had declared himself a trustee for the donee.[11] But Arden LJ adopt the principle of benevolent construction on the meaning of words This requires no action on your part used by Pennington in writing to Harold and she constructed the words as meaning that Ada and, through her, Pennington became agent for Harold for the purpose of submitting the share transfer to the company. ArdenLJ did not give any guideline on the principle of benevolent construction, such as what will satisfy the requirement of benevolent construction; and when will the court adopts the usage of benevolent construction. Differences from the prevailing law The general rule in Milroy is that settlor must have done everything necessary to be done to transfer the property. If settler has not done everything necessary to effect transfer, the court/ equity will not construe a failed gift/transfer as a declaration of trust. The rule has been applied strictly in cases such as Richards (1874)[12] and Re Fry (1946). The strict application of the rule in Milroy had been relaxed in the cases of Re Rose (1952), Mascall (1984) and the recent case of Choithram (2001)[13]. In Re Rose, the court relaxed the strict rule and held that it was not necessary that the donor should have done all that it was necessary to be done to complete the gift. It was sufficient if the donor had done everything in his power to transfer title to the trustee, even there was short of registration of the transfer. Therefore in Re Rose, trust constituted if donor does everything in his power to divest himself of the trust property and transfer of legal title fails for another reason. The doctrine in Re Rose has been followed in Mascall (1984)[14]. But the execution of the document of assignment by the donor and the actual delivery of the form/ document of the assignment to the transferee were still the essential requirements. In Trustee of the Property of Pehrsson v von Greyerz (1999), the transfer is failed due to the lack of actual delivery of the transfer. In Choithram (2001), the court had further relaxed the strict rule in Milroy. The judge held that although equity will not assist a volunteer, it will not strive officiously to defeat a gift[15] This case introduced the idea of unconscionability as discussed above in para.5. In the decision in Pennington contravened the decision in Milroy that equity will not assist a volunteer. In this case, Harold did not give any consideration except he agreed to become a director. It also contravened the doctrine in Re Rose. Ada didnt deliver the transfer form to Harold, it contravened to the requirement of actual delivery in Re Rose. The adoption of the principle of benevolent principle contravened to the decision in Milroy, that court will not give a benevolent construction so as to treat ineffective words of outright gift as taking effect as if the donor had declared himself a trustee for the donee[16] The judgment of ClarkeLJ, that Ada had executed a valid transfer of the equitable title with the result that Ada had retained the legal title as trustee, it contravened the decision in Choithram. Since Choithram required the donor to declare himself to be one of the initial trustees and Ada didnt declared herself as trustee in this case. Whether the decision was correct I think that the decision in Pennington is not correct. Although if the court held that the transfer of share was ineffective, it would be unfair / unconscionable to both Harold and Ada since both parties did have the intention of completing the transfer. Certainty in law must be strictly respected and it should be the first priority. Judges should follow Milroy and Re Rose strictly. I think that the lack of actual delivery of the transfer form is fatal in this case. Since I agreed that the actual delivery is the strongest evidence in showing the intention of transferring the beneficial interest. And this evidence was absent in this case. It is also incorrect for ArdenLJ to construct that Pennington was the agent for Harold only by the words This requires no action on your part in the letter that Pennington had written to Harold. It was only an assumption by ArdenLJ. There was no evidence that neither Ada nor Harold intended to appoint him as an agent. Moreover, the unconscionability test set out by ArdenLJ should not be satisfied either. It is because detrimental reliance is always the central element in the idea of unconscionability. Harold didnt show detrimental reliance. Harold only signed the form and accepted to become a director. He had neither financial contribution nor any change in his position that could constitute to a detrimental reliance. The decision in Pennington do not left the law in a reasonable situation. Since after Pennington, unconscionability and the principle of benevolent construction were introduced. ArdenLJ did not give any guideline/ requirement of the unconscionabilty test. That means that the unconscionability test would give the court a wide discretion in allowing equity to perfect a transfer. It would cause flood gate in this area of law, since every parties will use the idea of unconscionability in arguing their cases. The amount of law suits in this area of law will definitely be increased. Moreover, it is unclear that when the court could adopt the principle of benevolent construction and also where the construction should applied. ArdenLJ did not give any direction /guideline in this area. The well established formula in this area of law that developed in cases such as Milroy and Re Rose have been totally broken by these two innovative ideas of unconscionability and principle of benevolent construction. Practical implication This case has a greater practical implication on individuals. Individuals usually do not have specific legal knowledge on the transfer of a gift. Therefore individuals would easily miss some critical requirement such as actual delivery. After Pennington, lack of delivery it is not fatal. Since individuals can argue that in the specific circumstances, it is unconscionable for the donor to resile. Then it is the courts interpretation on whether the unconscionability test is satisfied in the circumstances that the individual encountered. The practical implication in business is that it is more difficult to ascertain the real legal requirement in the constitution of a valid transfer. Before Pennington, businessman can rely on the rule set out in Milroy and Re Rose to ascertain legal certainty. After Pennington, it becomes difficult for a businessman to interpret the meaning of unconscionability. Certainty in law is essential to give confident to businessman in doing economic activities. Precaution should be made due to the uncertainty in law. The implication on legal advisers is that flood gate situation would likely to occur. Lawyers can rely on unconscionability to bring legal action for their clients, and the amount of law suits will increase dramatically. Application in later UK case In a later UK case, Jordan v Roberts (2009) in Chancery Division, the concept of unconscionablity/ inequity that used in Pennington have been adopted by the Judge George.Bompas.Q.C. The fact was that the donor(B) wished the first defendant (D1) to hold 51% of shares and therefore transferred his shares to D1. The legal issue was whether the donor(B) has successfully transferred his shares to D1[17] . In any event, the relevant shares could not simply have been transferred to D1. It required an instrument of transfer, but donor failed to do so. It was similar to that of Pennington. The Judge citied Pennington v Waine in perfecting the transfer and held that it would be inequitable for the donor (B) to resile. Conclusion The concept of the unconscionability and the benevolent Principles of construction might give the court a greater discretion to apply justice depending on the special circumstances on each particular case. Nevertheless, certainty in law is the most fundamental issue in common law legal system. In my opinion, the decision in Pennington disrupted the legal certainty and left the law in this area in a doubtful and non-predicable manner. Ian Hunter, Equity and Trust: The Constitution of a trust, Case Comment, Coventry Law Journal 2002 John Mc Ghee 2003 Ian Hunter, Equity and Trust: The Constitution of a trust, Case Comment, Coventry Law Journal 2002 Judith Morris, Question: When is an invalid gift a valid gift? When is an incompletely constituted trust a completely constituted trust? Answer: After the decisions in Choithram and Pennington, Private Client Business Article 2003 Para. 52 of the judgment in Pennington v Waine (No.1) [2002] EWCA Civ 227; [2002] 1 W.L.R. 2075 (CA (Civ Div)) Para. 60 of the judgment in Pennington v Waine (No.1) [2002] EWCA Civ 227; [2002] 1 W.L.R. 2075 (CA (Civ Div)) Ian Hunter, Equity and Trust: The Constitution of a trust, Case Comment, Coventry Law Journal 2002 Para. 67 of the judgment in Pennington v Waine (No.1) [2002] EWCA Civ 227; [2002] 1 W.L.R. 2075 (CA (Civ Div)) John Mc Ghee 2003 Ian Hunter, Equity and Trust: The Constitution of a trust, Case Comment, Coventry Law Journal 2002 Para. 60 of the judgment in Pennington v Waine (No.1) [2002] EWCA Civ 227; [2002] 1 W.L.R. 2075 (CA (Civ Div)) Richards v Delbridge (1874) LR 18 Eq II Mascall v Mascall (1984) CA Judith Morris, Question: When is an invalid gift a valid gift? When is an incompletely constituted trust a completely constituted trust? Answer: After the decisions in Choithram and Pennington, Private Client Business Article 2003 Para. 60 of the judgment in Pennington v Waine (No.1) [2002] EWCA Civ 227; [2002] 1 W.L.R. 2075 (CA (Civ Div)) Jordan v Roberts [2009], EWHC 2313

La Investigación de Mercados :: Los Ensayos

En el siguiente ensayo se va a analizar el impacto de la Investigacià ³n de Mercados en la toma de decisiones empresariales. La Investigacià ³n de Mercados siempre ha sido una tarea que ha favorecido a los encargados de las compaà ±Ãƒ ­as a examinar el entorno, controlar la actividad de su empresa pero sobre todo en la toma de decisiones. â€Å"El objetivo de la investigacià ³n de mercados consiste en satisfacer las necesidades de informacià ³n y proporcionar a la gerencia con informacià ³n actualizada, relevante, exacta fiable y và ¡lida† (Malhotra, 1997). Por lo tanto la investigacià ³n de mercados impulsa el crecimiento empresarial aportando informacià ³n significativa, ya que â€Å"las decisiones apropiadas no se basan en intuicià ³n, juicio de valor o sexto sentido† (Merino, 2010). En la actualidad la investigacià ³n de mercados es una necesidad fundamental en el à ¡mbito empresarial. Esto se debe a que independientemente de la actividad que la empresa realice, es esencial conocer las caracterà ­sticas que tiene el mercado donde se quiere entrar o en aquel que ya se esta operando. â€Å"Las estrategias de competencia, las motivaciones, los hà ¡bitos de compra y las tendencias del entorno, son algunos de los elementos que requieren de previo conocimiento para que la administracià ³n tome decisiones adecuadas para el diseà ±o y curso de su actividad† (Castillo, 1999). Los tres principales aspectos para que una empresa adopten una investigacià ³n de mercados, son los siguientes: En primer lugar por la extensià ³n de mercados, en la actualidad los mercados que se atienden son cada vez mà ¡s amplios por lo que es mà ¡s difà ­cil alcanzarlos. La segunda se concentra en el cambio de las necesidades, ya que las organizaciones no pueden concentrarse à ºnicamente en producir aquello que la gente necesita, sino tambià ©n en aquello que los clientes desean, tomando en cuenta sus gustos y preferencias. Y finalmente porque ahora, â€Å"el precio no es el à ºnico factor determinante para los consumidores, al momento de realizar una compra, hay otras factores que influyen como las marcas, estatutos y el prestigio de las mismas† (Castillo, 1999). Los tres objetivos primordiales por los cuales la investigacià ³n de mercados es necesaria para evitar errores en el proceso de toma de decisiones, se basa en tres distintos à ¡mbitos. En primer lugar en el à ¡mbito social, esta relacionado con conocer al consumidor, saber cuales son sus necesidades, costumbres, motivaciones y deseos. Para poder ajustar el plan de negocios a los consumidores es indispensable conocerlos y hacer un buen estudio de mercado.

International Parity Conditions Essay -- essays research papers fc

â€Å"Prices, Interest Rates, and Exchange Rates in Equilibrium† (International Parity Conditions) Table of Content Executive Summary†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦3 1.  Ã‚  Ã‚  Ã‚  Ã‚  Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.4 2.  Ã‚  Ã‚  Ã‚  Ã‚  Literature Review†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦6 3.  Ã‚  Ã‚  Ã‚  Ã‚  Findings and Analysis: †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦10 a.  Ã‚  Ã‚  Ã‚  Ã‚  PPP†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦10 b.  Ã‚  Ã‚  Ã‚  Ã‚  FE†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..12 c.  Ã‚  Ã‚  Ã‚  Ã‚  IFE†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.14 4.  Ã‚  Ã‚  Ã‚  Ã‚  Conclusion & Recommendations †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦16 Bibliography†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.17 Appendix A. Historical Data†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦18 Table of Figures Figure 1. International Parity Conditions Figure 2. Scatter Diagram for PPP Figure 3. Time-series data for inflation rates differential and exchange rate change Figure 4. Regression Plot for PPP Figure 5. Scatter Diagram for FE Figure 6. Time-series data for inflation and interest rates differentials Figure 7. Regression Plot for FE Figure 8. Scatter Diagram for IFE Figure 9. Time-series data for interest rates differentials and exchange rate change Figure 10. Regression Plot for IFE Executive Summary This assignment is aimed at examining the evidence for three of the relationships that underpin (explicitly or implicitly) much of international macroeconomics. The first is purchasing power parity (PPP), or the hypothesis that there exists a constant long-run equilibrium real exchange rate. The second is Fisher Effect, which tests the relationship between difference in inflation rates and difference in nominal interest rates. The third establishes a relationship between real exchange rates and real interest rate differentials or International Fisher Effect. The tests are conducted on a basis of two economies: United States and Kazakhstan. The results are obtained using graphs and regression models, which significantly increase the power of the tests. The empirical evidence is evaluated on the basis of historical data for the period of 1999-2003. The paper is divided into two main parts. The first part contains analysis of the historical data about interest rates, exchange rates, and 3-month T-bills (Kazakhstani name: MEKKAM) in two countries: Kazakhstan and USA. The second part gives implications based on the res... ...ptember  Ã‚  Ã‚  Ã‚  Ã‚  148  Ã‚  Ã‚  Ã‚  Ã‚  6.3  Ã‚  Ã‚  Ã‚  Ã‚  6  Ã‚  Ã‚  Ã‚  Ã‚  2.32  Ã‚  Ã‚  Ã‚  Ã‚  0.93  Ã‚  Ã‚  Ã‚  Ã‚  0.1218  Ã‚  Ã‚  Ã‚  Ã‚  -3.98  Ã‚  Ã‚  Ã‚  Ã‚  -5.07   Ã‚  Ã‚  Ã‚  Ã‚  October  Ã‚  Ã‚  Ã‚  Ã‚  147.82  Ã‚  Ã‚  Ã‚  Ã‚  6.3  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  2.04  Ã‚  Ã‚  Ã‚  Ã‚  0.94  Ã‚  Ã‚  Ã‚  Ã‚  0.5647  Ã‚  Ã‚  Ã‚  Ã‚  -4.26  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  November  Ã‚  Ã‚  Ã‚  Ã‚  146.99  Ã‚  Ã‚  Ã‚  Ã‚  6.4  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  1.77  Ã‚  Ã‚  Ã‚  Ã‚  0.91  Ã‚  Ã‚  Ã‚  Ã‚  1.5826  Ã‚  Ã‚  Ã‚  Ã‚  -4.63  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  December  Ã‚  Ã‚  Ã‚  Ã‚  144.7  Ã‚  Ã‚  Ã‚  Ã‚  6.4  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  1.88  Ã‚  Ã‚  Ã‚  Ã‚  0.93  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  -4.52  Ã‚  Ã‚  Ã‚  Ã‚  

Poems From Other Cultures and Traditions :: English Literature

Poems From Other Cultures and Traditions From 'Search For My Tongue' Tatamkhulu Afrika, Maqabane (1994) When you read this poem, bear in mind that language and the use of the mother tongue (our own language, the one we were brought up speaking) are very important to any individual. We all take it for granted that we can use our language if we live where we were born. We don't even have to think about it. But when you go to live in another country you have to learn another language, and it can be very confusing. The use of another language, one that is not your own, often functions on an emotional level. Also, after a while you start mixing the two languages. This is the problem faced by the speaker in this excerpt. Those of you who were not originally English speaking will recognise the dilemma expressed in this excerpt! Read the poem once or twice. Go through it slowly after that, in your mind relating the use of language (tongue) to the physical tongue. Some of you will, of course, recognise and understand the Gujerati in the centre of the extract. For some of you this will be your mother tongue! But most of you will be unable to decode it. So there will be many different reactions to reading this poem. I wish I were present to hear these reactions! Point of view Here we have a first-person speaker addressing 'you'. There appears to be a conversation going on, as the 'you' has just asked the question that prompts the rest of the poem. A conversation is appropriate for a poem on language and communication. Grasping the dilemma Imagine you had two physical tongues in your mouth. That's how Bhatt asks the listener to perceive the problem. We unconsciously relate language to the tongue. How often have we said to people, 'Have you lost your tongue?' when they fail to give us an answer or when they remain silent? That's because the tongue is one of the crucial organs we use when speaking. The speaker here has taken a new slant on the question and has said her tongue has indeed been lost, but she means her mother language has been lost, not her physical tongue. The extended metaphor Notice as you read and study the poem that the whole extract builds on an extended metaphor - the physical tongue as a metaphor for language. The idea of having two actual tongues (of course the speaker means languages) in your mouth provides a strong physical equivalent of the discomfort felt by someone operating in a foreign language environment. The nature of this discomfort if elaborated in lines 5-6.

Analysis of Ode on a Grecian Urn Essay

Keats’ ode could be approached from two perspectives – a literal and a figurative one. As long as the poem belongs to a style of writing known as ekphrasis (poetry that concerns itself with the visual arts), and the speaker describes several scenes he observes on the urn, we can just follow his eye. In doing so, we could say that the end of the first stanza introduces us to a number of young men and women involved in a scene of sexual passion: â€Å"What mad pursuit? What struggle to escape? † Stanza II and III offer a marked contrast to this atmosphere of intense desire. The speaker depicts here a scene of romantic courtship (a young man piping songs to his beloved). The temptations of the flesh are suppressed and the relationship has a platonic character: †Bold Lover, never, never canst thou kiss†¦Ã¢â‚¬  Importantly, the speaker devotes two stanzas to this scene, which could serve as evidence that it is of key importance to him. In stanza IV the ritualistic scene of a pagan sacrifice is depicted. Stanza V, most probably, takes us back to the first scene of passion. The speaker refers to â€Å"men and maidens† again and we could assume that â€Å"the trodden weed† is an image meant to remind us of the â€Å"mad pursuit†. So we could claim that the poem comes full circle and actually repeats the circular form of the urn. As far as the figurative perspective is concerned, it is first important to note that the urn bears two different identities: historical and aesthetic. In other words, it is both an object that can provide some knowledge about the past and a work of art which should be appreciated for its beauty only. If approached as a historical object, the urn will speak about particular moments in time; if approached as a work of art, it will speak about eternity. Throughout the poem, the speaker is divided between these two identities and only in the final stanza does he manage to achieve some kind of synthesis between them. In other words, the poem could be read as representing the dramatic conflict in the speaker’s mind between the desire to know the facts and the realization that beauty is more fundamental than factual knowledge. At the very beginning of the ode the reader is confronted with a paradox. The urn is referred to as a â€Å"historian† but at the same time its key attributes are said to be â€Å"quietness† and â€Å"silence†. A historian who refuses to speak seems to be a contradiction in terms. The paradox begins to be resolved with the awareness that that this â€Å"sylvan historian† has a â€Å"flowery tale†, a â€Å"leaf-fringed legend† (â€Å"leaf-fringed† also literally refers to the fringe of leaves depicted on the urn, see picture above) to tell. In other words, the realization that the urn speaks through its beauty the way Nature speaks to us begins to take shape in the speaker’s mind. However, he is not, as it were, ready for this revelation and the second part of the stanza presents his frantic obsession with factual knowledge. The series of syntactically identical questions, and the very repetition of the pronoun â€Å"what†, reveals an overwhelming desire to learn about the specific circumstances of a particular historical scene. What also reveals this ambition is the reference to geographical locations (â€Å"In Tempe or the dales of Arcady†) as well as the repetition of â€Å"or†, which tells us that the speaker wants to go beyond the uncertainty of alternative and acquire a reliable knowledge of what really happened. Importantly, the questions lack predicates, which lends them a staccato rhythm. This conveys both the intensity of the speaker’s uncertainty and the intense passion of the â€Å"mad pursuit† depicted on the urn. The opening line of the second stanza presents the reader with a philosophical insight. After the hectic series of questions concerning historical fact, the speaker seems to have found the right words to give shape to the conclusion that the urn has a more fundamental message to communicate to its modern observer. The message lies beyond the physical and that’s why it cannot be expressed in the form of words or sounds. It is not a message addressed to â€Å"the sensual ear†; the urn â€Å"pipe[s] to the spirit ditties of no tone. † The scene of platonic love seems to be in harmony with this realization. What matters for the young lover is not the consummation of his passion but his love’s eternity as well as the eternal beauty of his beloved (â€Å"For ever wilt thou love and she be fair! †). In other words, the transcendence of the physical in the young lovers’ relationship opens the speaker’s eyes to the more essential, aesthetic identity of the urn. Actually, in stanza III the speaker seems to be in a state of mind close to ecstasy. All questions are now gone and what remains is the readiness to experience a fundamental unity with a beautiful object. The speaker is, as it were, at a loss for words. The whole stanza centers around the obsessive repetition of a mantra: â€Å"More happy love! More happy, happy love! † This reveals the poet’s difficulty in speaking about the unspeakable beauty of the urn as well as about his empathy with it. However, at the end of the stanza he manages to shape a coherent statement about the value of the urn. It presents us with an eternal ideal world lying beyond our earthly passions, which leave us suffering: â€Å"A burning forehead and a parching tongue. † Somewhat surprisingly, in stanza IV the speaker lurches back to the historical pole. The ritualistic inscrutability of the sacrifice revives his desire to learn more about the particular circumstances surrounding the event. The rhetoric of the first stanza returns: the questions, the repetition of â€Å"or†, the reference to particular sites. The stanza ends in a rather pessimistic note. The fact that the link between past and present has been irrevocably lost fills the speaker’s heart with disappointment: And, little town, thy streets for evermore Will silent be; and not a soul to tell Why thou art desolate, can e’er return. In an abrupt transition, disappointment recedes and makes room for elation in the opening line of the final stanza. The solemn tone of the apostrophe (â€Å"O Attic shape! Fair attitude! †) prepares the synthesis that the speaker is now able to achieve. The urn is here referred to as a â€Å"cold pastoral†. In other words, it combines in a dialectical unity the coldness of a historian who refuses to speak and the warmth of the tale of beauty and love that it will carry through the ages. It seems, however, that one of these poles prevails in the speaker’s relationship with the urn. The aphoristic closing lines of the poem suggest that factual knowledge does not give humanity access to truth. The only truth that matters is beauty.

Malaysian Financial Reporting Standard 116 Essay

Malaysian Financial Reporting Standard 116 Property, Plant and Equipment This version includes amendments resulting from MFRSs with effective dates no later than 1 January 2012. Amendments with an effective date later than 1 January 2012 MFRS 116 has been amended by MFRS 13 Fair Value Measurement*. As those amendments have an effective date after 1 January 2012 they are not included in this edition. * effective date 1 January 2013 559 MFRS 116 CONTENTS paragraphs Preface INTRODUCTION IN1–IN15 MALAYSIAN FINANCIAL REPORTING STANDARD 116 PROPERTY, PLANT AND EQUIPMENT OBJECTIVE SCOPE DEFINITIONS RECOGNITION Initial costs Subsequent costs MEASUREMENT AT RECOGNITION Elements of cost Measurement of cost MEASUREMENT AFTER RECOGNITION Cost model Revaluation model Depreciation Depreciable amount and depreciation period Depreciation method Impairment Compensation for impairment DERECOGNITION DISCLOSURE TRANSITIONAL PROVISIONS EFFECTIVE DATE WITHDRAWAL OF OTHER PRONOUNCEMENTS 1 2–5 6 7–14 11 12–14 15–28 16–22 23–28 29–66 30 31–42 43–62 50–59 60–62 63 65–66 67–72 73–79 80 81–81E 82–83 560  © IFRS Foundation MFRS 116 Malaysian Financial Reporting Standard 116 Property, Plant and Equipment (MFRS 116) is set out in paragraphs 1–83. All the paragraphs have equal authority. MFRS 116 should be read in the context of its objective and the Basis for Conclusions, the Foreword to Financial Reporting Standards and the Conceptual Framework for Financial Reporting. MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies in the absence of explicit guidance.  © IFRS Foundation 561 MFRS 116 Preface The Malaysian Accounting Standards Board (MASB) is implementing its policy of convergence through adopting International Financial Reporting Standards (IFRSs) as issued by the International Accounting Standards Board (IASB) for application for annual periods beginning on or after 1 January 2012. The IASB defines IFRSs as comprising: (a) International Financial Reporting Standards; (b) International Accounting Standards; (c) IFRIC Interpretations; and (d) SIC Interpretations. Malaysian Financial Reporting Standards (MFRSs) equivalent to IFRSs that apply to any reporting period beginning on or after 1 January 2012 are: (a) Malaysian Financial Reporting Standards; and (b) IC Interpretations. First-time application of MFRSs equivalent to IFRSs Application of this Standard will begin in the first-time adopter’s * first annual reporting period beginning on or after 1 January 2012 in the context  of adopting MFRSs equivalent to IFRSs. In this case, the requirements of MFRS 1 First-time Adoption of Malaysian Financial Reporting Standards must be observed. Application of MFRS 1 is necessary as otherwise such financial statements will not be able to assert compliance with IFRS. MFRS 1, the Malaysian equivalent of IFRS 1 First-time Adoption of International Financial Reporting Standards, requires prior period information, presented as comparative information, to be restated as if the requirements of MFRSs effective for annual period beginning on or after 1 January 2012 have always been applied, except when it (1) prohibits retrospective application in some aspects or (2) allows the first-time adopter to use one or more of the exemptions or except ions contained therein. This means that, in preparing its first MFRS financial statements* for a financial period beginning on or after 1 January 2012, the first-time adopter shall refer to the provisions contained in MFRS 1 on matters relating to transition and effective dates instead of the transitional provision and effective date contained in the respective MFRSs. This differs from previous requirements where an entity accounted for changes of accounting policies in accordance with the specific transitional provisions contained in the respective Financial Reporting Standards (FRSs) or in accordance with FRS 108 Accounting Policies, Changes in Accounting Estimates and Errors when the FRS did not include specific transitional provisions. * Appendix A of MFRS 1 defines first-time adopter and first MFRS financial statements. 562 MFRS 116 In this regard the effective and issuance dates contained in this Standard are those of the IASB’s and are inapplicable in the new MFRS framework since MFRS 1 requirements will be applied on 1 January 2012. Comparison and compliance with IAS 16 MFRS 116 is equivalent to IAS 16 Property, Plant and Equipment as issued and amended by the IASB, including the effective and issuance dates. Entities that comply with MFRS 116 will  simultaneously be in compliance with IAS 16. 563 MFRS 116 Introduction IN1 International Accounting Standard 16 Property, Plant and Equipment (IAS 16) replaces IAS 16 Property, Plant and Equipment (revised in 1998), and should be applied for annual periods beginning on or after 1 January 2005. Earlier application is encouraged. The Standard also replaces the following Interpretations: ï‚ · ï‚ · ï‚ · SIC-6 Costs of Modifying Existing Software SIC-14 Property, Plant and Equipment—Compensation for the Impairment or Loss of Items SIC-23 Property, Plant and Equipment—Major Inspection or Overhaul Costs. IASB’s reasons for revising IAS 16 IN2 The International Accounting Standards Board developed this revised IAS 16 as part of its project on Improvements to International Accounting Standards. The project was undertaken in the light of queries and criticisms raised in relation to the Standards by securities regulators, professional accountants and other interested parties. The objectives of the project were to reduce or eliminate alternatives, redundancies and conflicts within the Standards, to deal with some convergence issues and to make other improvements. For IAS 16 the IASB’s main objective was a limited revision to provide additional guidance and clarification on selected matters. The IASB did not reconsider the fundamental approach to the accounting for property, plant and equipment contained in IAS 16. IN3 The main changes of IAS 16 IN4 The main changes from the previous version of IAS 16 are described below. Scope IN5 This Standard clarifies that an entity is required to apply the principles of this Standard to items of property, plant and equipment used to develop or maintain (a) biological assets and (b) mineral rights and mineral reserves such as oil, natural gas and similar non-regenerative resources. Recognition: subsequent costs  IN6 An entity evaluates under the general recognition principle all property, plant and equipment costs at the time they are incurred. Those costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred subsequently to add to, replace part of, or service an item. The previous version of IAS 16 contained two recognition principles. An entity applied the second recognition principle to subsequent costs.  © 564 IFRS Foundation MFRS 116 Measurement at recognition: asset dismantlement, removal and restoration costs IN7 The cost of an item of property, plant and equipment includes the costs of its dismantlement, removal or restoration, the obligation for which an entity incurs as a consequence of installing the item. Its cost also includes the costs of its dismantlement, removal or restoration, the obligation for which an entity incurs as a consequence of using the item during a particular period for purposes other than to produce inventories during that period. The previous version of IAS 16 included within its scope only the costs incurred as a consequence of installing the item. Measurement at recognition: asset exchange transactions IN8 An entity is required to measure an item of property, plant and equipment acquired in exchange for a non-monetary asset or assets, or a combination of monetary and non-monetary assets, at fair value unless the exchange  transaction lacks commercial substance. Under the previous version of IAS 16, an entity measured such an acquired asset at fair value unless the exchanged assets were similar. Measurement after recognition: revaluation model IN9 If fair value can be measured reliably, an entity may carry all items of property, plant and equipment of a class at a revalued amount, which is the fair value of the items at the date of the revaluation less any subsequent accumulated depreciation and accumulated impairment losses. Under the previous version of IAS 16, use of revalued amounts did not depend on whether fair values were reliably measurable. Depreciation: unit of measure IN10 An entity is required to determine the depreciation charge separately for each significant part of an item of property, plant and equipment. The previous version of IAS 16 did not as clearly set out this requirement. Depreciation: depreciable amount  IN11 An entity is required to measure the residual value of an item of property, plant and equipment as the amount it estimates it would receive currently for the asset if the asset were already of the age and in the condition expected at the end of its useful life. The previous version of IAS 16 did not specify whether the residual value was to be this amount or the amount, inclusive of the effects of inflation, that an entity expected to receive in the future on the asset’s actual retirement date. Depreciation: depreciation period IN12 An entity is required to begin depreciating an item of property, plant and equipment when it is available for use and to continue depreciating it until it  © IFRS Foundation 565 MFRS 116 is derecognised, even if during that period the item is idle. The previous version of IAS 16 did not specify when depreciation of an item began and specified that an entity should cease depreciating an item that it had retired from active use and was holding for disposal. Derecognition: derecognition date IN13 An entity is required to derecognise the carrying amount of an item of property, plant and equipment that it disposes of on the date the criteria for the sale of goods in IAS 18 Revenue would be met. The previous version of IAS 16 did not require an entity to use those criteria to determine the date on which it derecognised the carrying amount of a disposed-of item of property, plant and equipment. An entity is required to derecognise the carrying amount of a part of an item of property, plant and equipment if that part has been replaced and the entity has included the cost of the replacement in the carrying amount of the item. The previous version of IAS 16 did not extend its derecognition principle to such parts; rather, its recognition principle for subsequent expenditures effectively precluded the cost of a replacement from being included in the carrying amount of the item. IN14 Derecognition: gain classification IN15 An entity cannot classify as revenue a gain it realises on the disposal of an item of property, plant and equipment. The previous version of IAS 16 did not contain this provision. 566  © IFRS Foundation MFRS 116 Malaysian Financial Reporting Standard 116 Property, Plant and Equipment Objective 1 The objective of this Standard is to prescribe the accounting treatment for property, plant and equipment so that users of the financial statements can discern information about an entity’s investment in its property, plant and equipment and the changes in such investment. The principal issues in accounting for property, plant and equipment are the recognition of the assets, the determination of their carrying amounts and the depreciation charges and impairment losses to be recognised in relation to them. Scope 2 This Standard shall be applied in accounting for property, plant and equipment except when another Standard requires or permits a different accounting treatment. This Standard does not apply to: (a) property, plant and equipment classified as held for sale in accordance with MFRS 5 Non-current Assets Held for Sale and Discontinued Operations; 3 (b) biological assets related to agricultural activity (see MFRS 141 Agriculture); (c) the recognition and measurement of exploration and evaluation assets (see MFRS 6 Exploration for and Evaluation of Mineral Resources); or (d) mineral rights and mineral reserves such as oil, natural gas and similar non-regenerative resources. However, this Standard applies to property, plant and equipment used to develop or maintain the assets described in (b)–(d). 4 Other Standards may require recognition of an item of property, plant and equipment based on an approach different from that in this Standard. For example, MFRS 117 Leases requires an entity to evaluate its recognition of an item of leased property, plant and equipment on the basis of the transfer of risks and rewards. However, in such cases other aspects of the accounting treatment for these assets, including depreciation, are prescribed by this Standard. An entity using the cost model for investment property in accordance with MFRS 140 Investment Property shall use the cost model in this Standard. 5 Definitions 6 The following terms are used in this Standard with the meanings specified:  © IFRS Foundation 567 MFRS 116 Carrying amount is the amount at which an asset is recognised after deducting any accumulated depreciation and accumulated impairment losses. Cost is the amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire an asset at the time of its acquisition or construction or, where applicable, the amount attributed to that asset when initially recognised in accordance with the specific requirements of other MFRSs, eg MFRS 2 Share-based Payment. Depreciable amount is the cost of an asset, or other amount substituted for cost, less its residual value. Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life. Entity-specific value is the present value of the cash flows an entity expects to arise from the continuing use of an asset and from its disposal at the end of its useful life or expects to incur when settling a liability. Fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction. An impairment loss is the amount by which the carrying amount of an asset exceeds its recoverable amount. Property, plant and equipment are tangible items that: (a) are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and (b) are expected to be used during more than one period. Recoverable amount is the higher of an asset’s fair value less costs to sell and its value in use. The residual value of an asset is the estimated amount that an entity would currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life. Useful life is: (a) the period over which an asset is expected to be available for use by an entity;  or (b) the number of production or similar units expected to be obtained from the asset by an entity. Recognition 7 The cost of an item of property, plant and equipment shall be recognised as an asset if, and only if: (a) it is probable that future economic benefits associated with the item will flow to the entity; and (b) the cost of the item can be measured reliably.  © 568 IFRS Foundation MFRS 116 8 Spare parts and servicing equipment are usually carried as inventory and recognised in profit or loss as consumed. However, major spare parts and stand-by equipment qualify as property, plant and equipment when an entity expects to use them during more than one period. Similarly, if the spare parts and servicing equipment can be used only in connection with an item of property, plant and equipment, they are accounted for as property, plant and equipment. This Standard does not prescribe the unit of measure for recognition, ie what constitutes an item of property, plant and equipment. Thus, judgement is required in applying the recognition criteria to an entity’s specific circumstances. It may be appropriate to aggregate individually insignificant items, such as moulds, tools and dies, and to apply the criteria to the aggregate value. An entity evaluates under this recognition principle all its property, plant and equipment costs at the time they are incurred. These costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred subsequently to add to, replace part of, or service it. 9 10 Initial costs 11 Items of property, plant and equipment may be acquired for safety or environmental reasons. The acquisition of such property, plant and equipment, although not directly increasing the future economic benefits of any particular existing item of property, plant and equipment, may be necessary for an entity to obtain the future economic benefits from its other assets. Such items of property, plant and equipment qualify for recognition as assets because they enable an entity to derive future economic benefits from related assets in excess of what could be derived had those items not been acquired. For example, a chemical manufacturer may install new chemical handling processes to comply with environmental requirements for the production and storage of dangerous chemicals; related plant enhancements are recognised as an asset because without them the entity is unable to manufacture and sell chemicals. However, the resulting carrying amount of such an asset and related assets is reviewe d for impairment in accordance with MFRS 136 Impairment of Assets. Subsequent costs 12 Under the recognition principle in paragraph 7, an entity does not recognise in the carrying amount of an item of property, plant and equipment the costs of the day-to-day servicing of the item. Rather, these costs are recognised in profit or loss as incurred. Costs of day-to-day servicing are primarily the costs of labour and consumables, and may include the cost of small parts. The purpose of these expenditures is often described as for the ‘repairs and maintenance’ of the item of property, plant and equipment. Parts of some items of property, plant and equipment may require replacement at regular intervals. For example, a furnace may require relining  © 13 IFRS Foundation 569 MFRS 116 after a specified number of hours of use, or aircraft interiors such as seats and galleys may require replacement several times during the  life of the airframe. Items of property, plant and equipment may also be acquired to make a less frequently recurring replacement, such as replacing the interior walls of a building, or to make a nonrecurring replacement. Under the recognition principle in paragraph 7, an entity recognises in the carrying amount of an item of property, plant and equipment the cost of replacing part of such an item when that cost is incurred if the recognition criteria are met. The carrying amount of those parts that are replaced is derecognised in accordance with the derecognition provisions of this Standard (see paragraphs 67–72). 14 A condition of continuing to operate an item of property, plant and equipment (for example, an aircraft) may be performing regular major inspections for faults regardless of whether parts of the item are replaced. When each major inspection is performed, its cost is recognised in the carrying amount of the item of property, plant and equipment as a replacement if the recognition criteria are satisfied. Any remaining carrying amount of the cost of the previous inspection (as distinct from physical parts) is derecognised. This occurs regardless of whether the cost of the previous inspection was identified in the transaction in which the item was acquired or constructed. If necessary, the estimated cost of a future similar inspection may be used as an indication of what the cost of the existing inspection component was when the item was acquired or constructed. Measurement at recognition 15 An item of property, plant and equipment that qualifies for recognition as an asset shall be measured at its cost. Elements of cost 16 The cost of an item of property, plant and equipment comprises: (a) its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates. (b) any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. (c) the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located, the  obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period for purposes other than to produce inventories during that period. 17 Examples of directly attributable costs are: (a) costs of employee benefits (as defined in MFRS 119 Employee Benefits) arising directly from the construction or acquisition of the item of property, plant and equipment; 570  © IFRS Foundation MFRS 116 (b) costs of site preparation; (c) initial delivery and handling costs; (d) installation and assembly costs; (e) costs of testing whether the asset is functioning properly, after deducting the net proceeds from selling any items produced while bringing the asset to that location and condition (such as samples produced when testing equipment); and professional fees. (f) 18 An entity applies MFRS 102 Inventories to the costs of obligations for dismantling, removing and restoring the site on which an item is located that are incurred during a particular period as a consequence of having used the item to produce inventories during that period. The obligations for costs accounted for in accordance with MFRS 102 or MFRS 116 are recognised and measured in accordance with MFRS 137 Provisions, Contingent Liabilities and Contingent Assets. Examples of costs that are not costs of an item of property, plant and equipment are: (a) costs of opening a new facility; 19 (b) costs of introducing a new product or service (including costs of advertising and promotional activities); (c) costs of conducting business in a new location or with a new class of customer (including costs of staff training); and (d) administration and other general overhead costs. 20 Recognition of costs in the carrying amount of an item of property, plant and equipment ceases when the item is in the location and condition necessary for it to be capable of operating in the manner intended by management. Therefore, costs incurred in using or redeploying an item are not included in the carrying amount of that item. For example, the following costs are not included in the carrying amount of an item of property, plant and equipment: (a) costs incurred while an item capable of operating in the manner intended by management has yet to be brought into use or is operated at less than full capacity; (b) initial operating losses, such as those incurred while demand for the item’s output builds up; and (c) 21 costs of relocating or reorganising part or all of an entity’s operations. Some operations occur in connection with the construction or development of an item of property, plant and equipment, but are not necessary to bring the item to the location and condition necessary for it to be capable of operating in the manner intended by management. These incidental operations may occur before or during the construction or development activities. For example, income may be earned through using a building site as a car park until construction starts. Because incidental operations are not  © IFRS Foundation 571 MFRS 116 necessary to bring an item to the location and condition necessary  for it to be capable of operating in the manner intended by management, the income and related expenses of incidental operations are recognised in profit or loss and included in their respective classifications of income and expense. 22 The cost of a self-constructed asset is determined using the same principles as for an acquired asset. If an entity makes similar assets for sale in the normal course of business, the cost of the asset is usually the same as the cost of constructing an asset for sale (see MFRS 102). Therefore, any internal profits are eliminated in arriving at such costs. Similarly, the cost of abnormal amounts of wasted material, labour, or other resources incurred in self-constructing an asset is not included in the cost of the asset. MFRS 123 Borrowing Costs establishes criteria for the recognition of interest as a component of the carrying amount of a self-constructed item of property, plant and equipment. Measurement of cost 23 The cost of an item of property, plant and equipment is the cash price equivalent at the recognition date. If payment is deferred beyond normal credit terms, the difference between the cash price equivalent and the total payment is recognised as interest over the period of credit unless such interest is capitalised in accordance with MFRS 123. One or more items of property, plant and equipment may be acquired in exchange for a non-monetary asset or assets, or a combination of monetary and non-monetary assets. The following discussion refers simply to an exchange of one non-monetary asset for another, but it also applies to all exchanges described in the preceding sentence. The cost of such an item of property, plant and equipment is measured at fair value unless (a) the exchange transaction lacks commercial substance or (b) the fair value of neither the asset received nor the asset given up is reliably measurable. The acquired item is measured in this way even if an entity cannot immediately derecognise the asset given up. If the acquired item is not measured at fair value, its cost is measured at the carrying amount of the asset given up. An entity determines whether an exchange transaction has commercial substance by considering the extent to which its future cash flows are expected to change as a result of the transaction. An exchange transaction has commercial substance if: (a) the configuration (risk, timing and amount) of the cash flows of the asset  received differs from the configuration of the cash flows of the asset transferred; or 24 25 (b) the entity-specific value of the portion of the entity’s operations affected by the transaction changes as a result of the exchange; and (c) the difference in (a) or (b) is significant relative to the fair value of the assets exchanged. For the purpose of determining whether an exchange transaction has commercial substance, the entity-specific value of the portion of the entity’s 572  © IFRS Foundation MFRS 116 operations affected by the transaction shall reflect post-tax cash flows. The result of these analyses may be clear without an entity having to perform detailed calculations. 26 The fair value of an asset for which comparable market transactions do not exist is reliably measurable if (a) the variability in the range of reasonable fair value estimates is not significant for that asset or (b) the probabilities of the various estimates within the range can be reasonably assessed and used in estimating fair value. If an entity is able to determine reliably the fair value of either the asset received or the asset given up, then the fair value of the asset given up is used to measure the cost of the asset received unless the fair value of the asset received is more clearly evident. The cost of an item of property, plant and equipment held by a lessee under a finance lease is determined in accordance with MFRS 117. The carrying amount of an item of property, plant and equipment ma y be reduced by government grants in accordance with MFRS 120 Accounting for Government Grants and Disclosure of Government Assistance. 27 28 Measurement after recognition 29 An entity shall choose either the cost model in paragraph 30 or the revaluation model in paragraph 31 as its accounting policy and shall apply that policy to an entire class of property, plant and equipment. Cost model 30 After recognition as an asset, an item of property, plant and equipment shall be carried at its cost less any accumulated depreciation and any accumulated impairment losses. Revaluation model 31 After recognition as an asset, an item of property, plant and equipment whose fair value can be measured reliably shall be carried at a revalued amount, being its fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations shall be made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period. The fair value of land and buildings is usually determined from market-based evidence by appraisal that is normally undertaken by professionally qualified valuers. The fair value of items of plant and equipment is usually their market value determined by appraisal. If there is no market-based evidence of fair value because of the specialised nature of the item of property, plant and equipment and the item is rarely 32 33  © IFRS Foundation 573 MFRS 116 sold, except as part of a continuing business, an entity may need to estimate fair value using an income or a depreciated replacement cost approach. 34 The frequency of revaluations depends upon the changes in fair values of the items of property, plant and equipment being revalued. When the fair value of a revalued asset differs materially from its carrying amount, a further revaluation is required. Some items of property, plant and equipment experience significant and volatile changes in fair value, thus necessitating annual revaluation. Such frequent revaluations are unnecessary for items of property, plant and equipment with only insignificant changes in fair value. Instead, it may be necessary to revalue the item only every three or five years. When an item of property, plant and equipment is revalued, any accumulated depreciation at the date of the revaluation is treated in one of the following ways: (a) restated proportionately with the change in the gross carrying amount of the asset so that the carrying amount of the asset after revaluation equals its revalued amount. This method is often used when an asset is revalued by means of applying an index to determine its depreciated replacement cost. 35 (b) eliminated against the gross carrying amount of the asset and the net amount restated to the revalued amount of the asset. This method is often used for buildings. The amount of the adjustment arising on the restatement or elimination of accumulated depreciation forms part of the increase or decrease in carrying amount that is accounted for in accordance with paragraphs 39 and 40. 36 If an item of property, plant and equipment is revalued, the entire class of property, plant and equipment to which that asset belongs shall be revalued. A class of property, plant and equipment is a grouping of assets of a similar nature and use in an entity’s operations. The following are examples of separate classes: (a) land; 37 (b) land and buildings; (c) machinery; (d) ships; (e) (f) aircraft; motor vehicles; (g) furniture and fixtures; and (h) office equipment. 574  © IFRS Foundation MFRS 116 38 The items within a class of property, plant and equipment are revalued simultaneously to avoid selective revaluation of assets and the reporting of amounts in the financial statements that are a mixture of costs and values as at different dates. However, a class of assets may be revalued on a rolling basis provided revaluation of the class of assets is completed within a short period and provided the revaluations are kept up to date. If an asset’s carrying amount is increased as a result of a revaluation, the increase shall be recognised in other comprehensive income and accumulated in equity under the heading of revaluation surplus. However, the increase shall be recognised in profit or loss to the extent that it reverses a revaluation decrease of the same asset previously recognised in profit or loss. If an asset’s carrying amount is decreased as a result of a revaluation, the decrease shall be recognised in profit or loss. However, the decrease shall be recognised in other comprehensive income to the extent of any credit balance existing in the revaluation surplus in respect of that asset. The decrease recognised in other comprehensive income reduces the amount accumulated in equity under the heading of revaluation surplus. The revaluation surplus included in equity in respect of an item of property, plant and equipment may be transferred directly to retained earnings when the asset is derecognised. This may involve transferring the whole of the surplus when the asset is retired or disposed of. However, some of the surplus may be transferred as the asset is used by an entity. In such a case, the amount of the surplus transferred would be the difference between depreciation based on the revalued carrying amount of the asset and  depreciation based on the asset’s original cost. Transfers from revaluation surplus to retained earnings are not made through profit or loss. The effects of taxes on in come, if any, resulting from the revaluation of property, plant and equipment are recognised and disclosed in accordance with MFRS 112 Income Taxes. 39 40 41 42 Depreciation 43 Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item shall be depreciated separately. An entity allocates the amount initially recognised in respect of an item of property, plant and equipment to its significant parts and depreciates separately each such part. For example, it may be appropriate to depreciate separately the airframe and engines of an aircraft, whether owned or subject to a finance lease. Similarly, if an entity acquires property, plant and equipment subject to an operating lease in which it is the lessor, it may be appropriate to depreciate separately amounts reflected in the cost of that item that are attributable to favourable or unfavourable lease terms relative to market terms. 44  © IFRS Foundation 575 MFRS 116 45 A significant part of an item of property, plant and equipment may have a useful life and a depreciation method that are the same as the useful life and the depreciation method of another significant part of that same item. Such parts may be grouped in determining the depreciation charge. To the extent that an entity depreciates separately some parts of an item of property, plant and equipment, it also depreciates separately the remainder of the item. The remainder consists of the parts of the item that are individually not significant. If an entity has varying expectations for these parts, approximation techniques may be necessary to depreciate the remainder in a manner that faithfully represents the consumption pattern and/or useful life of its parts. An entity may choose to depreciate separately the parts of an item that do not have a cost that is significant in relation to the total cost of the item. The depreciation charge for each period shall be recognised in prof it or loss unless it is included in the carrying amount of another asset. The depreciation charge for a period is usually recognised in profit or loss. However, sometimes, the future economic benefits embodied in an asset are absorbed in producing other assets. In this case, the depreciation charge constitutes part of the cost of the other asset and is included in its carrying amount. For example, the depreciation of manufacturing plant and equipment is included in the costs of conversion of inventories (see MFRS 102). Similarly, depreciation of property, plant and equipment used for development activities may be included in the cost of an intangible asset recognised in accordance with MFRS 138 Intangible Assets. Depreciable amount and depreciation period 50 51 The depreciable amount of an asset shall be allocated on a systematic basis over its useful life. The residual value and the useful life of an asset shall be reviewed at least at each financial year-end and, if expectations differ from previous estimates, the change(s) shall be accounted for as a change in an accounting estimate in accordance with MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors. Depreciation is recognised even if the fair value of the asset exceeds its carrying amount, as long as the asset’s residual value does not exceed its carrying amount. Repair and maintenance of an asset do not negate the need to depreciate it. The depreciable amount of an asset is determined after deducting its residual value. In practice, the residual value of an asset is often  insignificant and therefore immaterial in the calculation of the depreciable amount. The residual value of an asset may increase to an amount equal to or greater than the asset’s carrying amount. If it does, the asset’s depreciation charge is 46 47 48 49 52 53 54 576  © IFRS Foundation MFRS 116 zero unless and until its residual value subsequently decreases to an amount below the asset’s carrying amount. 55 Depreciation of an asset begins when it is available for use, ie when it is in the location and condition necessary for it to be capable of operating in the manner intended by management. Depreciation of an asset ceases at the earlier of the date that the asset is classified as held for sale (or included in a disposal group that is classified as held for sale) in accordance with MFRS 5 and the date that the asset is derecognised. Therefore, depreciation does not cease when the asset becomes idle or is retired from active use unless the asset is fully depreciated. However, under usage methods of depreciation the depreciation charge can be zero while there is no production. The future economic benefits embodied in an asset are consumed by an entity principally through its use. However, other factors, such as technical or commercial obsolescence and wear and tear while an asset remains idle, often result in  the diminution of the economic benefits that might have been obtained from the asset. Consequently, all the following factors are considered in determining the useful life of an asset: (a) expected usage of the asset. Usage is assessed by reference to the asset’s expected capacity or physical output. 56 (b) expected physical wear and tear, which depends on operational factors such as the number of shifts for which the asset is to be used and the repair and maintenance programme, and the care and maintenance of the asset while idle. (c) technical or commercial obsolescence arising from changes or improvements in production, or from a change in the market demand for the product or service output of the asset. (d) legal or similar limits on the use of the asset, such as the expiry dates of related leases. 57 The useful life of an asset is defined in terms of the asset’s expected utility to the entity. The asset management policy of the entity may involve the disposal of assets after a specified time or after consumption of a specified proportion of the future economic benefits embodied in the asset. Therefore, the useful life of an asset may be shorter than its economic life. The estimation of the useful life of the asset is a matter of judgement based on the experience of the entity with similar assets. Land and buildings are separable assets and are accounted for separately, even when they are acquired together. With some exceptions, such as quarries and sites used for landfill, land has an unlimited useful life and therefore is not depreciated. Buildings have a limited useful life and therefore are depreciable assets. An increase in the value of the land on which a building stands does not affect the determination of the depreciable amount of the building. If the cost of land includes the costs of site dismantlement, removal and restoration, that portion of the land asset is depreciated over the period of benefits obtained by incurring those costs. In some cases, the land itself may 58 59  © IFRS Foundation 577 MFRS 116 have a limited useful life, in which case it is depreciated in a manner that reflects the benefits to be derived from it. Depreciation method 60 61 The depreciation method used shall reflect the pattern in which the asset’s future economic benefits are expected to be consumed by the entity. The depreciation method applied to an asset shall be reviewed at least at each financial year-end and, if there has been a significant change in the expected pattern of consumption of the future economic benefits embodied in the asset, the method shall be changed to reflect the changed pattern. Such a change shall be accounted for as a change in an accounting estimate in accordance with MFRS 108. A variety of depreciation methods can be used to allocate the depreciable amount of an asset on a systematic basis over its useful life. These methods include the straight-line method, the diminishing balance method and the units of production method. Straight-line depreciation results in a constant charge over the useful life if the asset’s residual value does not change. The diminishing balance method results in a decreasing charge over the useful life. The units of production method results in a charge based on the expected use or output. The entity selects the method that most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset. That method is applied consistently from period to period unless there is a change in the expected pattern of consumption of those future economic benefits. 62 Impairment 63 To determine whether an item of property, plant and equipment is impaired, an entity applies MFRS 136 Impairment of Assets. That Standard explains how an entity reviews the carrying amount of its assets, how it determines the recoverable amount of an asset, and when it recognises, or reverses the recognition of, an impairment loss. [Deleted by IASB] 64 Compensation for impairment 65 Compensation from third parties for items of property, plant and equipment that were impaired, lost or given up shall be included in profit or loss when the compensation becomes receivable. Impairments or losses of items of property, plant and equipment, related claims for or payments of compensation from third parties and any subsequent purchase or construction of replacement assets are separate economic events and are accounted for separately as follows: (a) impairments of items of property, plant and equipment are recognised in accordance with MFRS 136; 66 578  © IFRS Foundation MFRS 116 (b) derecognition of items of property, plant and equipment retired or disposed of is determined in accordance with this Standard; (c) compensation from third parties for items of property, plant and equipment that were impaired, lost or given up is included in determining profit or loss when it becomes receivable; and (d) the cost of items of property, plant and equipment restored, purchased or constructed as replacements is determined in accordance with this Standard. Derecognition 67 The carrying amount of an item of property, plant and equipment shall be derecognised: (a) on disposal; or (b) when no future economic benefits are expected from its use or disposal. 68 The gain or loss arising from the derecognition of an item of property, plant and equipment shall be included in profit or loss when the item is derecognised (unless MFRS 117 requires otherwise on a sale and leaseback). Gains shall not be classified as revenue. However, an entity that, in the course of its ordinary activities, routinely sells items of property, plant and equipment that it has held for rental to others shall transfer such assets to inventories at their carrying amount when they cease to be rented and become held for sale. The proceeds from the sale of such assets shall be recognised as revenue in accordance with MFRS 118 Revenue. MFRS 5 does not apply when assets that are held for sale in the ordinary course of business are transferred to inventories. The disposal of an item of property, plant and equipment may occur in a variety of ways (eg by sale, by entering into a finance lease or by donation). In determining the date of disposal of an item, an entity applies the criteria in MFRS 118 for recognising revenue from the sale of goods. MFRS 117 applies to disposal by a sale and leaseback. If, under the recognition principle in paragraph 7, an entity recognises in the carrying amount of an item of property, plant and equipment the cost of a replacement for part of the item, then it derecognises the carrying amount of the replaced part regardless of whether the replaced part had been depreciated separately. If it is not practicable for an entity to determine the carrying amount of the replaced part, it may use the cost of the replacement as an indication of what the cost of the replaced part was at the time it was acquired or constructed. The gain or loss arising from the derecognition of an item of property, plant and equipment sha ll be determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item. 68A 69 70 71  © IFRS Foundation 579 MFRS 116 72 The consideration receivable on disposal of an item of property, plant and equipment is recognised initially at its fair value. If payment for the item is deferred, the consideration received is recognised initially at the cash price equivalent. The difference between the nominal amount of the consideration and the cash price equivalent is recognised as interest revenue in accordance with MFRS 118 reflecting the effective yield on the receivable. Disclosure 73 The financial statements shall disclose, for each class of property, plant and equipment: (a) the measurement bases used for determining the gross carrying amount; (b) the depreciation methods used; (c) the useful lives or the depreciation rates used; (d) the gross carrying amount and the accumulated depreciation (aggregated with accumulated impairment losses) at the beginning and end of the period; and (e) a reconciliation of the carrying amount at the beginning and end of the period showing: (i) (ii) additions; assets classified as held for sale or included in a disposal group classified as held for sale in accordance with MFRS 5 and other disposals; acquisitions through business combinations; increases or decreases resulting from revaluations under paragraphs 31, 39 and 40 and from impairment losses recognised or reversed in other comprehensive income in accordance with MFRS 136; impairment losses recognised in profit or loss in accordance with MFRS 136; impairment losses reversed in profit or loss in accordance with MFRS 136; (iii) (iv) (v) (vi) (vii) depreciation; (viii) the net exchange differences arising on the translation of the financial statements from the functional currency into a different presentation currency, including the translation of a foreign operation into the presentation currency of the reporting entity; and (ix) other changes. 580  © IFRS Foundation MFRS 116 74 The financial statements shall also disclose: (a) the existence and amounts of restrictions on title, and property, plant and equipment pledged as security for liabilities; (b) the amount of expenditures recognised in the carrying amount of an item of property, plant and equipment in the course of its construction; (c) the amount of contractual commitments for the acquisition of property, plant and equipment; and (d) if it is not disclosed separately in the statement of comprehensive income, the amount of compensation from third parties for items of property, plant and equipment that were impaired, lost or given up that is included in profit or loss. 75 Selection of the depreciation method and estimation of the useful life of assets are matters of judgement. Therefore, disclosure of the methods adopted and the estimated useful lives or depreciation rates provides users of financial statements with information that allows them to review the policies selected by management and enables comparisons to be made with other entities. For similar reasons, it is necessary to disclose: (a) depreciation, whether recognised in profit or loss or as a part of the cost of other assets, during a period; and (b) accumulated depreciation at the end of the period. 76 In accordance with MFRS 108 an entity discloses the nature and effect of a change in an accounting estimate that has an effect in the current period or is expected to have an effect in subsequent periods. For property, plant and equipment, such disclosure may arise from changes in estimates with respect to: (a) residual values; (b) the estimated costs of dismantling, removing or restoring items of property, plant and equipment; (c) useful lives; and (d) depreciation methods. 77 If items of property, plant and equipment are stated at revalued amounts, the following shall be disclosed: (a) the effective date of the revaluation; (b) whether an independent valuer was involved; (c) the methods and significant assumptions applied in estimating the items’ fair values; (d) the extent to which the items’ fair values were determined directly by reference to observable prices in an active market or recent market transactions on arm’s length terms or were estimated using other valuation techniques;  © IFRS Foundation 581 MFRS 116 (e) for each revalued class of property, plant and equipment, the carrying amount that would have been recognised had the assets been carried under the cost model; and the revaluation surplus, indicating the change for the period and any restrictions on the distribution of the balance to shareholders. (f) 78 In accordance with MFRS 136 an entity discloses information on impaired property, plant and equipment in addition to the information required by  paragraph 73(e)(iv)–(vi). Users of financial statements may also find the following information relevant to their needs: (a) the carrying amount of temporarily idle property, plant and equipment; 79 (b) the gross carrying amount of any fully depreciated property, plant and equipment that is still in use; (c) the carrying amount of property, plant and equipment retired from active use and not classified as held for sale in accordance with MFRS 5; and  (d) when the cost model is used, the fair value of property, plant and equipment when this is materially different from the carrying amount. Therefore, entities are encouraged to disclose these amounts. Transitional provisions 80 The requirements of paragraphs 24–26 regarding the initial measurement of an item of property, plant and equipment acquired in an exchange of assets transaction shall be applied prospectively only to future transactions. Effective date 81 An entity shall apply this Standard for annual periods beginning on or after 1 January 2005. Earlier application is encouraged. If an entity applies this Standard for a period beginning before 1 January 2005, it shall disclose that fact. An entity shall apply the amendments in paragraph 3 for annual periods beginning on or after 1 January 2006. If an entity applies MFRS 6 for an earlier period, those amendments shall be applied for that earlier period. MFRS 101 Presentation of Financial Statements (IAS 1 Presentation of Financial Statements as revised by IASB in 2007) amended the terminology used throughout MFRSs. In addition it amended paragraphs 39, 40 and 73(e)(iv). An entity shall apply those amendments for annual periods beginning on or after 1 January 2009. If an entity applies MFRS 101 (IAS 1 revised by IASB in 2007) for an earlier period, the amendments shall be applied for that earlier period. 81A 81B 582  © IFRS Foundation MFRS 116 81C MFRS 3 Business Combinations (IFRS 3 Business Combinations as revised by IASB in 2008) amended paragraph 44. An entity shall apply that amendment for annual periods beginning on or after 1 July 2009. If an entity applies MFRS 3 (IFRS 3 revised by IASB in 2008) for an earlier period, the amendment shall also be applied for that earlier period. Paragraphs 6 and 69 were amended and paragraph 68A was added by Improvements to MFRSs (Improvements to IFRSs issued by IASB in May 2008). An entity shall apply those amendments for annual periods beginning on or after 1 January 2009. Earlier application is permitted. If an entity applies the amendments for an earlier period it shall disclose that fact and at the same time apply the related amendments to MFRS 107 Statement of Cash Flows. Paragraph 5 was amended by Improvements to MFRSs (Improvements to IFRSs issued by IASB in May 2008). An entity shall apply that amendment prospectively for annual periods beginning on or after 1 January 2009. Earlier application is permitted if an entity also applies the amendments to paragraphs 8, 9, 22, 48, 53, 53A, 53B, 54, 57 and 85B of MFRS 140 at the same time. If an entity applies the amendment for an earlier period it shall disclose that fact. 81D 81E Withdrawal of other pronouncements 82 83 [Deleted by MASB] [Deleted by MASB]  © IFRS Foundation 583 MFRS 116 Deleted IAS 16 text Deleted IAS 16 text is produced for information only and does not form part of MFRS 116. Paragraph 82 This Standard supersedes IAS 16 Property, Plant and Equipment (revised in 1998). Paragraph 83 This Standard supersedes the following Interpretations: (a) SIC-6 Costs of Modifying Existing Software; (b) SIC-14 Property, Plant and Equipment—Compensation for the Impairment or Loss of Items; and (c) SIC-23 Property, Plant and Equipment—Major Inspection or Overhaul Costs. 584  © IFRS Foundation