Different users of financial statements have different informational needs

Different users of financial statements have different informational needs Financial statements form the backbone of communicating the information about the company to the members within and outside the organization. According to International Accounting Standards (IAS 1.9) The objective of general purpose financial statements is to provide information about the financial position, financial performance, and cash flows of an entity that is useful to a wide range of users in making economic decisions. (Deloitte Global Services Limited, 2010).Owing to the wide variety of users of this information and that of the structure of business entities, there are different types of financial statements. Users refer to them from time to time in order to make correct economic decisions. Depending upon the type of information provided by them, financial statements are categorized in 4 types viz. balance sheets, income statement, statement of cash flow and the statement of equity. A Balance Sheet gives the financial position of the entity by considering its assets, liabilities and equity at a given time. It follows the accounting equation where assets equal capital plus liabilities. An Income Statement, also known as the Profit Loss account of an entity, reports the income, expenses and profits of the entity over a period of time. Statement of Cash flow reports the changes in cash position. It informs about the operating activities like money received from customers or paid to suppliers, investment activities that include acquiring or selling different long-term assets that are not considered to be cash, interests or dividends that are paid or received or financial activities which change the capital of an entity. (Deloitte Global Services Limited, 2010).The Statemen t of Equity gives information about the total comprehensive income of the entity over a period while separately stating the amount attributable to the owner (Wheetman P, 2006). For large organizations, such statements are quite complex and it may be necessary to provide notes that explain the items on the financial statement. They also provide information about the basis on which financial statements are prepared and any other information that may be relevant but cannot be stated in the financial statements directly. Such notes form an integral part of the statement. According to the International Financial Reporting Standards (IFRS) Financial reports are prepared for users who have a reasonable knowledge of business and economic activities and who review and analyse the information with diligence.(Deloitte Global Services Limited, 2010).Depending upon their role in the organization, different type of information is used by different users. The users of financial statements include a wide range of people including owners, investors, creditors, management, employees, vendors, public as well as institutions like banks, government organizations etc. They can be briefly classified into two categories namely the Internal Users and External Users. The employees along with the managers and the owners form the Internal User group. Owners use financial statements to access the performance, efficiency of the management, also to measure the performance of the business entity. Management, being directly related with the day to day working of the business ent ity, enjoys unrestricted access to the wide range of information (much of which is confidential in nature). It is then utilised by managers to make analysis, judgements and decisions pertaining to their responsibilities. It makes proper utilization of resources in order to meet the objectives of the entity. A separate form of accounting called Management Accounting has come into existence due to broad nature of this group of users and the high quality of information that is available to them. Employees form the other part of this group. They use the information from financial statements to determine their job security. It is also helpful in analysing the ability of their employers to provide remunerations, pay rise, pension funds and retirement benefits etc to the employees. This information is sometimes provided in form of special reports to employees as the annual reports are published late. However such information provided may be verified by the employees using the financial sta tements. The External Users of financial statements consist of investors, trade creditors, Government, financial institutions like Banks, customers etc. The financial statements are used by the existing investors to access the financial strength of the company, its economic stability, to make decisions whether to buy, sell or hold the stock depending upon the ability of the entity to pay dividends in future, to compare the performance of the entity over a period of time or with other entities in order to make investment decisions etc. It also helps investors to determine the risk factor and the investment returns over a particular period and compare the same with other entities. Institutional investors, for e.g. Insurance companies, pension funds or equity analysts that guide private investors make use of this information to ascertain the liquidity of the business and its ability to pay future dividends. Prospective investors may use the information to make valuable economic investment decisi ons. Financial institutions like Banks make use cash flow statements to determine whether to help them with working capital by issuing loans or if their loans would be paid along with the interest. Financial lenders use this information to determine the economic vulnerability of the business and its results. They may impose restrictions to limit overall borrowing limits called loan covenants. These are then verified through financial statements. Trade creditors provide services or goods on credit. They are called as unsecured creditors as they come last in the payments in case of failure of the business. They therefore make use of the information to ensure the repayment of services and calculate the non-payment risks. Government makes use of the financial statements to keep a tab on the taxes paid by the business entity and make sure that they are in accordance with the profits earned. They have a right to demand more information than that which appears in public statements. Other governm ent agencies also use accounting information to ascertain that the consumers are charged properly by organizations for their services.eg: OFGEM (the Office of Gas and Electricity Markets).Customers need information about the current and future supply of goods and services. Financial statements in form of fixed assets, working capital confirm the ability of the business to meet the current and future obligations like guarantees or warrantees. (Weetman P, 2006). Accounting statements provide financial information for the user which is to be used for decision making. International Financial Reporting Standards (IFRS) Framework identifies comparability, verifiability, timeliness and understandability as the qualitative characteristics that enhance the usefulness of information provided in the financial statements. (Deloitte Global Services Limited, 2010). According to this Framework general purpose financial statements are prepared which can help all users. However it is evident that different users require different kind of information to make decisions. Also the general financial statements and reports are prepared keeping in focus the interests of the owners or investors. Moreover management tends to modify the information keeping in mind the behaviour of the investors. This often results in the entity being over or under-priced and thus information loses its reliability and trustworthiness. To increase the decision useful financial information, the International Accounting Standards Board and the US Financial Accounting Standards Board (hereafter the Boards) are undertaking a joint project to develop a common conceptual framework with new and revised accounting standards that both the boards can use. The Boards have proposed to reconfigure the financial statements by partitioning each financial statement in five categories viz. business activities, financing activities, income taxes, discontinued operations, and equity. The allocations of these transactions would be done by management. They propose that the objective of financial reporting should be on decision useful information. The management approach would then subsume stewardship. The allocation of the transaction within the above stated partitions would be based on the assessment of the management. There is no doubt that objective of segregating the financial statement would help the investors and creditors in jud gements and decision making. (Bradshaw, M., Callahan, C. et al June 2010).However the objective of a financial statement should not be merely influencing the buying, selling and holding companys securities. The role of stewardship also has to be considered as it informs about the financial positions of the past and the current dates. It would not only keep the performance of management under vigil but the past records would also help in identifying the similar re-occurrences of such circumstances. Also importance is given to management approach whereas the very same managers are believed to report biased accruals. (Bradshaw, M., Callahan, C. et al June 2010). Hence financial reporting should not only be done with the management approach but also keeping in mind the importance of the objective of stewardship. Also guidance is to be specified about the level of details to be given in financial statements which would unlikely be provided by the managers. The framework and standards should be based to provide unbiased, faithful information to the users in order to make cost-effective economic decisions. REFERENCES Bradshaw, M., Callahan, C. et al (June 2010). The American Accounting Associations Financial Reporting Policy Committees Response to the Preliminary Views on Financial Statement Presentation. Accounting Horizons. 24 (2), pp 279-296. Business Source Premier. Available at http://search.ebscohost.com/login.aspx?direct=truedb=buhAN=51362791site=bsi-live (Accessed: 11 November 2010). Deloitte Global Services Limited. (2010). Summaries of International Financial Reporting Standards. CONCEPTUAL FRAMEWORK FOR FINANCIAL REPORTING Available: http://www.iasplus.com/standard/framewk.htm. (Accessed: 11 November 2010). Deloitte Global Services Limited. (2010). Summaries of International Financial Reporting Standards.IAS 7 STATEMENT OF CASH FLOWS. Available at http://www.iasplus.com/standard/ias07.htm. (Accessed: 14 November, 2010). Weetman, P (2006). Financial and Management Accounting-An Introduction. 4th ed. Harlow: Prentice Hall. 12-16.

Environmental Protection and Sustainability

Introduction In the past 25 years, international passenger aviation has experienced a threefold increase. It is expected that the aviation sector will continue to see similar growth over the next 25 years (Walker & Cook, 2009). Due to the rapid expansion of the aviation sector, there has been a growing concern for environmental issues in airline operations, especially in terms of energy and environmental sustainability (Agarwal, 2010). The focus on sustainability and environmental protection is due to the environmental consequences of contemporary aviation, especially the contribution of aviation to global climate change (Upham, 2003). With the recognition of the harmful effects of aviation on the environment, experts predict that â€Å"environmental factors will increasingly limit the expansion of air travel and the social benefit that it brings† (Green, 2003, p.281). Meridiana concurs that it is important to consider sustainability and environmental protection in aviation. It recognises the importance of green aviation and puts a lot of value on protecting the environment. In line with this, the company manages its activities in compliance with national and EU environmental regulations. As proof of its commitment, it has been awarded certification of its Quality System in compliance with UNI EN ISO 9001:2008 regulation for air quality. SGS Italia SpA has certified the compliance of the company’s activities involving the design and supply of services on board of domestic, international, and intercontinental flights (Meridiana, 2009). Recently, Meridiana joined the Association of European Airlines (AEA), which represents Europe’s major airlines. The AEA influences its members at the industry and institutional level in order to achieve goals that benefit the airline industry. One of the main thrusts of the AEA is to shape a more sustainable and competitive arena (AEA, 2013). Meridiana’s membership in the AEA shows that it is committed towards achi eving sustainability in the aviation sector. Marketing Mix Despite its success in some areas of the domestic market, the company has experienced heavy losses in recent years. With its ageing fleet, subscale international network, and its dependence in the domestic market, the company is facing very stiff competition from some of Europe’s leading low cost carriers (CAPA, 2013). Taking these into consideration, Meridiana has to improve its current marketing mix in order to increase sales and remain competitive. Effective marketing strategies can have a significant influence on society; thus, it is important for the company to apply the appropriate marketing mix to achieve their objectives.ProductMeridiana’s major strength is its competitively priced business class seats for long haul destinations, targeted at leisure travellers. As a medium service carrier, it offers elements of both full service and low cost carrier. For example, it provides food and drinks like full service carriers but its price range is comparable to low cost airlines. Meridiana should utilise this mix and use it as a competitive advantage. The airline needs to focus on its domestic flights and its short/medium haul destinations in Europe. The current marketing strategy fails to reach out to the business community. Their marketing strategy should emphasise services for both holiday/leisure and business purposes. The company should target SMEs and become the airline of choice for small and medium-sized companies. This can be done by offering discounts and incentives for companies who want to purchase multiple seats or flights.PriceMeridiana needs to use a competitive pricing scheme to attract customers. Its price point should be not too high from low cost carriers, but lower than traditional networked airlines. Although low cost carriers have lower prices, Meridiana should differentiate its slightly higher price point by offering better customer service. The aim is to have a mid-range price point, which can attract middle class consumers and SMEs.PlaceMeridiana has been highly successful in Sardinia and Sicily. The company should replicate its success by building stronger presence in other parts of Italy and in key international airline hubs such as London, Dubai, Beijing, Singapore, Narita, Paris, and New York. This can be achieved by improving airport check-in services and making their internet reservations website more attractive and easy to use.PromotionAs a hybrid airline, Meridiana operates both as a low cost carrier and a network airline (Sansonetti, 2010). It needs to be highly competitive by keeping it unit costs down. This can be achieved by enhancing its internet and social media channels. Meridiana should upgrade its website to make it more attractive and user-friendly. It should improve its tie-ups with hotels, resorts, car rentals, and other tourist services to attract more customers.PeopleMeridiana should improve its services to customers in order to attract more consumers and gain more customer loya lty. Excellent customer service can be a competitive edge, especially when low cost carriers offer cheaper rates. Meridiana should also highlight their people and the value of customer service in their marketing strategies.ProcessMeridiana should ensure that its online reservations are always efficient and that customers can easily access the airline through phone or email. The airline’s systems should be designed for the benefit of customers. Physical Evidence Meridiana should also ensure that its flights are always on time; its planes are spotless; and its service crew are highly efficient. Its check-in and guest lounges in airports should be clean and the services of both ground crew and in-flight staff should be excellent.Promotional MixMeridiana should focus on tapping customers from the mid-market socio-economic segment and business people, especially from SMEs. The elements of the promotional mix must integrate different strategies. It should use a combination of vario us promotional strategies, particularly, advertising, public relations, sales promotions, and internet/online promotions. The integration of different promotional tactics will aid in achieving a more successful result. Advertising should be enhanced in traditional channels such as television, print, and radio in order to target domestic consumers in areas where Meridiana is not the market leader (i.e. Milan, Turin, Naples, Marconi, Rome, and Verona). To increase presence in international markets, the airline should advertise in popular travel magazines and international cable channels (i.e. BBC, CNN, NHK, etc.). In terms of public relations, the airline should improve its relationship with Italian businesses and local government. It should also improve its public image by doing CSR activities and being more active in environmental protection. The company should emphasise their support for green aviation and sustainability in the airline industry. Meridiana should also launch sales p romotions on its ticket prices. It should conduct seat sales in which the flight fare is a fraction of its original price but customers can avail of the ticket only for a limited period. For example, the seat sale gives an 80% discount on ticket prices for 50 seats in the plane and the sale will be ongoing for 3-5 days only. Meridiana should also prioritise internet/online promotions and strengthen its social media presence. The airline should improve its advertisement and tie-ups with online travel sites such as Expedia, Kayak, and Orbitz. It should also effectively make use of social media sites such as Facebook and Twitter. Meridiana should advertise in these sites and encourage customer feedback through social media. The company can also utilise viral advertising by putting very creative and highly memorable adverts in YouTube or other video sharing sites. References Agarwal, R. (2010). Sustainable (Green) Aviation: Challenges and Opportunities. SAE International Journal of Aerospace. 2(1), p.1-20. Anna Aero. (2013). Meridiana fly and Air Italy complete merger, as Meridiana turns 50 under new CEO; combined fleet shrinks for S13. Available: http://www.anna.aero/2013/06/19/meridiana-fly-and-air-italy-complete-merger-as-meridiana-turns-50-under-new-ceo/. Last accessed 12th January 2014. Association of European Airlines (AEA). 2013). AEA welcomes Meridiana as new airline member. Available: http://files.aea.be/News/PR/Pr13-036.pdf. Last accessed 15th January 2014. CAPA Centre for Aviation. (2013). Meridiana: how to escape the impact of loss-making Italian airlinesAvailable: http://centreforaviation.com/analysis/meridiana-how-to-escape-the-impact-of-loss-making-italian-airlines-120241. Last accessed 12th January 2014. Chartered Institute of Marketing (CIM). (2013). Marketing and the 7Ps: A brief summary of marketing and how it works. Available: http:// www.cim.co.uk/files/7ps.pdf. Last accessed 12th January 2014. Cooper. C et al. (2013). Tourism: Principles & Practice 5th edition. London: FT Prentiss Hall Denton, N & Dennis, N. (2000). Airline franchising in Europe: benefits and disbenefits to airlines and consumers. Journal of Air Transport Management. 6(4), p.179-190. Green, JE. (2003). Civil aviation and the environmental challenge. The Aeronautical Journal. p.281-299 McCabe, S. (2009). Marketing Communications in Tourism and Hospitality: Concepts, Strategies and Cases. Amsterdam: Butterworth Heinemann Meridiana. (2009). Meridiana Group Ethical Code. Available: https://www.meridiana.it/cms/deploy/1/IGGJ_Documenti/IT/Codiceetico/MeridianaGroupEthicalCode.pdf. Last accessed 12th January 2014. Meridiana. (2014). About us. Available: https://www.meridiana.it/en/company_informations/Company_AirItaly_quality.aspx. Last accessed 12th January 2014. Middleton, V. (2009). Marketing in travel and tourism. Oxford: Butterworth Heinemann San sonetti, A. (2010). The European Airlines Transformation: Hypercompetitive and Long Tail Effects. MCIS Proceedings. Paper 76. http://aisel.aisnet.org/mcis2010/76 Upham, P. (2003). Towards Sustainable Aviation. London: Earthscan Publications Ltd Walker, S & Cook, M. (2009). The contested concept of sustainable aviation. Sustainable Development. 17(6), p.378-390

Victory Dance of the Lotha Nagas

VICTORY DANCE Rhanthungo Kikon INTRODUCTION: LOTHAS of TSUNGIKI village performed this dance in the days of old when young warriors from a CHUMPO (popularly known as MORUNG) visited other CHUMPOS in the different KHELS of the village. For the young warriors, this Victory Dance acted both as a fit reminder of the great victories their forefathers had over their enemies and also as an inspiration for them to replicate in the future. It was a time to take pride from their past achievements and to encourage and dare each other for the days to come. It prepared them for the future. Those were the days†¦ THE DANCE: Now, the present generation performs the Victory Dance on all occasions. But the spirit and zeal of the warriors performing this dance remain as spirited and as full of fervour since times immemorial. Behold! All the young warriors are out of the CHUMPOS bedecked in all their ornamental fineries. Among them include the round black head-wigs made of the long hair from the neck and shoulders of the Himalayan black bear, or of the fur of the arms of the male gibbon. On the head-wigs, as warriors of proven valours, are stuck in the feathers of the great bird, the Hornbill. On their arms, they have wristlets, bracelets and elbow armlets made of parts of sawn-off tubes of elephants’ tusks. Across their shoulders are thrown over colourful baldric-like woven strips of cloths. Joined to the end of the baldrics at the waist are the spikes’ holders – the spikes were used during raids over enemy camps. Kneecaps, the LENGTA and the colourfully decorated daos and spears complete their attire. Now the young warriors will go around dancing in two rows to finally make a circle. Singing along and shouting loud cries as they stamp their feet, twirl their daos and spears, they make the circle – an indication of having surrounded their enemies. When they have their enemies surrounded, they thrust up their spears and dare each other not to let any enemy warrior escape from their individual posts or positions. THE SHANTHA: An exciting, and perhaps the most important, part of the Victory dance is the SHANTHA. The name ‘Victory Dance’ rightly belongs to this part-dance within the dance. The SHANTHA is performed by four of the most-abled warriors. This group acts as the Escort of the warriors. It also is the rearguard and flanks protection of the warriors. The SHANTHA warriors are also wont to perform many skills and antics. Among them is the biting and holding of their daos on the blunt sides as they hop along – it is actually an oath-taking pledge not to die in enemies’ hands. They will also take a stance and hop forwards and backwards challenging their enemies making it clear what they will do to them with their daos and spears.

Implications of Capitalism on Objective News Content

While Capitalism might first be seen as a positive influence on free and open access to information, in fact, it can also have a detrimental impact. Inaccurate news stories, sensationalized material, and manipulation through the media are all repercussions of the effects of capitalism. Capitalism’s influence in the media skews content in favour of the market, preventing the public from access to democratic, objective news content. Too often, capitalist influence dominates the media market through conglomerate control, structured by the ever-growing desire to gain capital, treating the audience as a commodity regardless of the negative repercussions that ensue. As opposed to presenting balanced, unbiased issues that are relevant and†¦show more content†¦According to an article recently published called, The Effect of News Media on Public Opinion Toward Environmental Issues, â€Å"there is a heavy selective reliance by the media on information provided by governmen tal and corporate arenas rather than scientific sources in order to provide planned and more consistent information to audiences† (Ting Thao). In assessing the power media can have it notes that, â€Å"there arises the ethical issue of whether news media should provide information that is accurate and reliable or use less accurate information to incite greater change in public action† (Ting Thao). Clearly, one person’s good cause may be another person’s threat. The more powerful the corporation or person, the more possible it becomes to manipulate opinions through media. Interestingly, the current Federal Government’s is frequently criticized for its stronger ties to business, its lack of support for culture, and its habit of shutting down expression in favour of getting its agenda through. The Federal Conservative government has successively cut funding to the CBC, a non-profit and objective news source, and earlier this year announced a further 10 percent reduction. â€Å"Gradual cuts will begin with $27.8-million inShow MoreRelatedHistory Of Hong Kong And The Opium Trade884 Words   |  4 Pageshas an intricate history with Hong Kong society than any other congeneric narcotics. Whereas the study of opium in its social and cultural context has not incurred many notice in the field of Hong Kong studies, I wish to uncover this part and shed new light on the study of the historical course of Hong Kong. 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