Application of strategic planning in an organization Case Study

Application of strategic planning in an organization - Case Study Example Strategic planning is an organizational process of laying out strategies and making fine-grained decisions on resource allocation towards achieving the goals of the organization. A strategically managed organization defines its prospects in the future by looking at its current position and implementing changes through perfectly structured procedures. It requires an understanding of the current position of the business and the possible ways through which it can meets the organizational goals. Most organizations use their missions and visions to determine the strategies required to achieve that its objectives and build alignment to the vision and strategic plan. The ability of organization to execute its strategic plans is therefore directly affected by its ability to understand and make a clear presentation of the strategy to the employees, shareholders and managers of the organization. For most organizations, it is important to build a successful tool for implementing and managing th e overall business strategy. This calls for the development of a balanced scorecard and applying the concept of strategic mapping in the aligning the organization's units. A balanced scorecard is a business presentation model that allows the organization to relate its financial and non-financial aspects for strategic planning of the business goals and prospects. Present day organizations find it increasingly difficult to remain competitive because the strategies used and the business issues change constantly whereas the tools for measuring the effectiveness of these strategies record very minimal change. Many organizations use tools that measure success based on tangible assets whereas constant changes in technology dictate that all business units be linked together to meet the principals of strategic management. A balanced scorecard can be used to link the intangible and the tangible assets and help eliminate most of the challenges faced by modern day organizations. The scorecard c oncept is built upon good design guidelines for the business units to describe and implement their strategies by mapping strategic objectives into performance in different perspectives which include internal processes, customers, finance and learning and growth. These perspectives provide relevant feedback on the progress of the strategic plan of any given organization so that adjustments and efficient changes can be made where necessary. In addition to measuring the current performance of the organization towards meeting its goals, a Scorecard evaluates the firm's efforts for future improvement based on its progress in terms of profit creation and provision of satisfactory service to its customers. It signifies a quantitative and qualitative performance and multidimensional balance between the firm’s short-term and long-term objectives, financial and non-financial measures, lagging and leading indicators, and the internal and external performance. Strategy maps display the q ualitative measures such as employee satisfaction, consumer loyalty and corporate mission that transform a balanced scorecard from performance measurement to a performance management tool that is strategically driven. By using strategy maps of cause and effect, intangible assets can be manipulated combined with other assets for value addition to produce goods and services that meet the consumers’ needs and demands. Strategy maps illustrate the transformation of intangible assets into tangible consumer products and provide a strategic framework to look into a value creation strategy in the internal business process. The strategy map view of a Scorecard presents the organization’s strategy with a series of linked objectives that explain the important priorities for the organization. It also holds specific measures that represent expected level of success and strategic initiatives for the organization. The concept of strategy mapping can be explained and implemented in an organization by taking into

Lenins Russia Essay Example for Free

Lenins Russia Essay 1. The painting shows that Lenin is pleased to be back in Russia. He has his hand up waving at the crowd. Lenin looks happy and he looks pleased to be back. He also looks to be pleased by the way that the crowd are reacting to his return. The crowd are happy to have Lenin back. The peoples faces are all looking at him and they are all waving back at him. There are people playing musical instruments at what looks like a celebration to welcome him back. They are celebrating the return of Vladimir Ilich Ulyanov, who later changed his name to Lenin, from exile in Finland. The people are pleased to see Lenin and they would therefore be the people that agree with Lenin and his ideas and decisions. The crowd is not just townspeople that have gone to meet Lenin. There are men there with bullets over their shoulders. These people are soldiers that agreed with Lenins ideas. They had some force with their guns and this means that Lenin had some force. All of these townspeople see Lenin as a leader for Russia that is why they are there. This is not a true reflection over all of Russia. This source is very inaccurate as it is painting and could have been a forgery to make Lenin look popular and make it look like there are a lot of people there. 2. The painting does show that Lenin was popular in Finland station, which is in Russia like Waterloo station is in London, but this is not a true reflection over the whole of Russia. The people that were at Finland station are clearly pleased to have him back but in other parts of Russia this was not the case. Lenin was only popular with the people that supported communism and supported Bolshevik rule. These were known as the reds and the opposition was known as the whites due to the color of their uniforms that their armies wore. It is clear that this painting does not show the feeling over the rest of Russia because the civil war came. This tells us that Lenin was not popular all over Russia and he had opposition in the whites that he fought in the civil war. This was not only the case in Russia but also all over the world. When the civil war started Lenin and the reds didnt have any outside allies while the Americans, the French and the British supported the whites. These countries wanted to help the whites against Lenin because Lenin had pulled Russia out of the First World War before it had ended. They were bitter about it and so they helped fight against him. In conclusion Lenin was popular and respected in certain areas of Russia like Finland station but across the rest of Russia and the World he was not admired or acclaimed. Source B 3. Each photograph has Lenin on the left standing on a podium talking to the crowd that are surrounding him. On the first photograph Lenin has two men standing to his right on the stairs. These men are Trotsky and Kamenev who were the right hand men to Lenin. In the second photo Lenin is again standing on the podium but in this photo there is no Trotsky or Kamenev, photographic experts have removed Trotsky and Kamenev. 4. These pictures are so different because in the first one Lenin is accompanied by two men, Trotsky and Kamenev but in the second picture they have disappeared from the image. These pictures were used as propaganda pictures by Stalin after the death of Lenin to inform the people that Trotsky and Kamenev were not anymore involved with Stalin. It is as if they have disappeared. Trotsky was the man behind the red army. He was the man that gained a great victory in the civil war and saved the Revolution. Trotsky would have been the man to take over from Lenin after his death but due to the fact he was clever he was hated by the other Communist leaders and was never supported, so a man that was lower down in rank was given the job, Joseph Stalin. Stalin and the other communist leaders hated Trotsky. He was removed from any position of power in the country so that he couldnt cause any problem for Stalin. Stalin took power with Zinovliev and Kamenev after Lenins death. They accused Trotsky of trying to split the communist party and take power for himself. No one defended Trotsky. After Trotsky had all of his positions of power removed he was exiled internally and then in 1929 Leon Trotsky was forced out of Russia and was exiled to Mexico. Once Stalin had taken power away from Trotsky before he was exiled, Stalin turned on Kamenev and Zinoviev. They were becoming worried and in 1926 they joined Trotsky in a United Opposition to Stalins policies. Stalin got his supporters to help him and both were sacked from their party and government positions. They were both allowed back into the party in 1928 but into positions with no power. So Stalin had ended up the solitary leader of Soviet Union. This trouble had left him very apprehensive of his colleagues. Stalin used the two photographs to show that Trotsky and Kamenev had fallen from their days of power when Lenin was alive and in charge. Source C 5. (i) Lenin is sweeping the entire world of Royalty, Aristocratic and Religious people. Lenin was against rich and powerful people and so that is why he is sweeping them off the globe. The people he is targeting are all the rich people. The man standing on top of the globe is Lenin. The first two men to his right of Lenin, with crowns on, look to be some kind of royalty. The person in the bottom left of the picture looks like an Orthodox Russian Church member. The man in the bottom right of the cartoon looks like a rich aristocrat. Lenin is using a broom and sweeping because that is traditionally associated with workers and not the rich. It is signifying the fight back of the workers to show that Lenin is on the workers side and that they will fight against the rich. 5. (ii) The Revolution of March 1917 that overthrew the tsarist regime caught Lenin by surprise, but he managed to secure passage through Germany in a sealed train. His dramatic arrival in Petrograd occurred one month after rebellious workers and soldiers had toppled the tsar. The Bolsheviks, including Joseph Stalin, had agreed with the deference the Soviet of Workers and Soldiers Deputies showed to the provisional government. Lenin immediately refused this line of policy. In his April Theses he argued that only the Soviet could respond to the hopes and needs of Russias workers and peasants. Under the slogan All Power to the Soviets, the Bolshevik party conference accepted Lenins programme. After an unsuccessful workers uprising in July, Lenin spent August and September 1917 in Finland, hiding from the provisional government. There, he formulated his concepts of a socialist government. He also bombarded the partys Central Committee with demands for an armed uprising in the capital. His plan was finally accepted; it was put into effect on November 7th. A few days after the November Revolution, Lenin was elected head of government. He acted sensibly to consolidate the power of the new Soviet state. His main concern was the protection of the Revolution and Soviet power against enemies both abroad and at home. In line with these practical considerations Lenin accepted the heavy German terms for the Brest-Litovsk Peace Treaty. Lenin took power of Russia from the provisional government that didnt put up that much of a fight at all to stop him from taking over. Lenin took power after the Tsar had fallen and the country was in disarray after the First World War. Lenin took power after being in exile from Russia so he hadnt seen all of the effects that the war had on Russia. Source D 6. (i) Robert Lansing had a bad attitude towards the Russian revolution. He didnt think that Russia could survive after the takeover by the Bolsheviks in the civil war. Lansing believed that the revolution would end in brutality and destruction of life. Lansing compares the Russian revolution with the French revolution. He says that before the French revolution France had a legal system and a government, Russia possesses neither. This means that he didnt think that they would be capable of running the country. Lansing says that the country wouldnt end up further developed. Which indicates that there is no point in fighting. To stop the problem they should get a government and a legal system. To advance his speech he hammers home his point that there is no authority or control. He continues to say that the country is full of anarchy and violence. He gives a comparison to a cauldron as though it is waiting to overflow, it is boiling up nicely. Finally he thinks of the people of Russia and how they will be affected by the war. He gives the sense that he feels sorry for the things that will happen to them. Robert Lansings attitude was that Russia would be worse off if the Bolsheviks took control of all Russia. His view is not necessarily correct, as Robert Lansing has biased opinion due to the fact that he was the US Secretary of State for Foreign Affairs. He has a bad attitude towards Russia because they pulled out of the First World War. The Americans would be bitter and wouldnt support anything that the Russians do. 6. (ii) When Robert Lansing said the words Russian Terror he was referring to the pain that Russian people would feel. By terror he means that blood will be shed and life will be lost. He thinks that the death rate and property destruction will be higher than the French Revolution. He is saying that people have a hard time ahead of them if they live in Russia. Source E 7. This source comes from Winston Churchill at the time when he was the British Secretary of War and Air. Churchill has a very definite opinion of the Bolsheviks and there ideas, he doesnt support them at all. You can tell from the first sentence he said the Bolshevik Tyranny is the worst. This is a very hard statement to take in. This means that a Tyrant ran the Bolshevik party so Churchill is calling Lenin a Tyrant and Churchill was calling Lenin cruel. He was calling the Bolshevik party cruel. This is a statement that sets out from the start that he doesnt support the Bolsheviks. In the next sentence Churchill states that the things that had been done in Russia by Lenin and Trotsky are far worst than anything that the Kaiser of Germany did. To compare Trotsky and Lenin to the Kaiser is a very strong statement, as he was not at all liked by anyone in Germany. He was hurting everyone. Churchill doesnt say that they are equal to the Kaiser but that they are worst than him. Churchill view on Russia would be biased because he is British and he still wouldnt be too happy because Russia pulled out of the First World War. Churchill has more reason to be infuriated than most British people as he was in charge of Britains war effort. Source F 8. This source doesnt show that the Bolshevik government was successful. They didnt do the job that they set out to do which was to help the working class people. This source is bound to be accurate as it out of a history textbook it will be accurate because it is looking back on the incident and not looking forward like source D and E the book will also not have biased opinion. The first line says that Russian people suffered terribly in the civil war. This proves that Robert Lansing and Winston Churchill were correct with their prediction. Both said that the Russian people would suffer terribly and both were right. The Bolshevik government did not handle the civil war at all well. This source gives us some facts to back the suggestion that the government was not successful. The source tells us the economy collapsed. This meant that money was worthless. So the Bolsheviks didnt mange to keep the money useable. The fact that industrial production had gone down means that they are going backwards and not improving the country, so Lansing was right when he said that this wasnt the way to go. The civil war wasnt killing as much as the diseases were which meant that innocent people were dying not just soldiers. The Bolsheviks were not fighting for their idea of workers, they were killing them instead. The communist was now becoming a dictatorship. This means that Churchill was right in his analysis comparing the Bolsheviks to the Kaiser who was a dictator. The source says that the Bolsheviks were losing support as well. This means that they were not successful at all. They didnt have success at all from the civil war. Summary 9. Source A This source gives us a false sense of the popularity of Lenin in Russia. This painting is only of Finland station and does not give a good representation of the rest Russia. Lenin is proven not to liked all over Russia because there is the civil war and this means that one opposition party doesnt like Lenin so this source is only a good indication as to where Lenin is liked. You can tell that he is liked at Finland station and the surrounding area. We do not know about the rest of the country but he is certainly liked in is one area. This source does not give us an accurate sense of Lenins popularity. This source could also be a forgery if it were a photograph it would be true but a painting can easily be made up. You cannot be certain if this is the true event that happened. Source B This source was used as propaganda for Stalin after Lenins death. These sources real point is the fact that Trotsky and Kamenev have fallen from the limelight, but the source can also be used to look at the popularity of Lenin and the message he was giving out to the people of Russia. In both pictures you can see the crowd covering the whole of the area. There are no gaps anywhere. This shows that Lenin was popular at this time and that people did listen to him. As I have already said this sources main point that Trotsky and Kamenev have gone but the photo can give other information. You can only see behind Lenin at the number of people but I would imagine that in front of him there would be more people as his voice would be projected that way. So this means there would be about triple the amount of people in photograph listening to Lenin. That may seem like a lot but over the whole of Russia it is small amount considering the vast size that is Russia. We are not told where this is and so might in an area where Lenin is popular like Finland station. You can tell that this event actually happened as it a photograph not a painting like the source before. Source C Source C is a political cartoon that is aiming to put across the message that Lenin is working with the working class. Lenin has the broom and is sweeping because that is associated with the working class people. He is sweeping the upper class and privileged people off of the world and taking over. If this cartoon were a true reflection on the job that Lenin was doing, you would assume that he would be popular with working class but not so the upper class people whom he wants to get rid of. This is not the case. The upper classes, rich people, were not impressed with Lenin trying to get rid of them. So he didnt really become very popular with them. They didnt like him and because they owned massive pasts of Russia this was a problem. This cartoon would have won some votes with the lower and working class the fact that he was trying to make it an even playing field for all. Source D This cannot really tell us much about the situation in Russia but it does give us a global sense of the feelings towards Lenin and his government. The first couple of lines give us a feel for what the Russian people would be in for. If the things Robert Lansing predicted happen then Lenin and his government would not be popular in Russia. The mass deaths would not go down well with the people in Russia. This did come true and so Lenin government didnt look good. This source tells that the government didnt have a lot of friends outside of the country. Lansing was an American and they were a major power but Lenin didnt have their support as you can see from this statement. The statement written by Robert Lansing is a biased account though as the Americans were fighting the First World War with Russia until they pulled out and so there would be some bitterness between the two countries. Source E This source came from Winston Churchill. This again tells that Lenin was not popular outside of Russia. It gives a comparison to the Kaiser. If Lenin were thought of like the Kaiser then he would be hated like the Kaiser. Churchill gives a good comparison but his opinion is biased and should be not be used as fact it is only an opinion. Source F The final source gives reasons why Lenin was unpopular. This source is taken from a textbook and therefore will be correct. It gives facts why Lenin was not popular; economic collapse, Industrial production had dropped by 20 per cent of the level it was in 1913, harvest produced only 60 per cent of the normal amount and during the civil war famine and disease caused 8 million deaths. These facts give hard evidence why the Russian people have cause to not like Lenin. All of these sources tell us that Lenin and the Bolsheviks popularity changed over the time they were in power. If we can trust the early sources you would believe that he was popular. In 1917 Lenin would have been popular as the country was in disarray and would have supported any leader. However as his time went on the true view of Lenin came out. Towards 1924 he started to go down hill and wasnt as respected by the people. When source F gives the final facts of what was happening it is easy to say that Lenin was not as successful as first thought. Lenin early high popularity dropped towards the end of his time to be hated by the people of Russia.

Development of Accounting Systems in China

Development of Accounting Systems in China Abstract This report put the accounting development in China into perspective. Describe the history and changes in the accounting environment of China during the recent economic reforms by using the Greys (1988) accounting value to analyzing the culture impact on accounting systems development in China, and then, illustrate the institutional and environmental factors which driven Chinas accounting system made changes, the reasons of those changes and then describes the major problem in Chinas accounting development as well as to point out whether would be changes in the future. Introduction This report is aim to describe the development of accounting system in China, including the history of Chinas accounting except Hong Kong, the one country, two systems policy allowed Hong Kong remain its market-led capitalist system. Then, it would describe the traditional use of accounting and the factors that influenced Chinas accounting development as well as what the changes it has made what the major problems that China has face in developing the accounting system. Then, it would discuss whether China would have further changes of accounting system in the future in my opinion. There has a conclusion in the end. Country profile China had more than 1.34 billion population at the end of 2010. National Bureau of Statistics (NBS) announced Chinas GDP reaching 39.79 trillion yuan (approximately 6.04 trillion US dollars) over the course of 2010. (Du Xiaodan, 2011 Paul Pennay, 2011) Brief history of  accounting in China According to Zhang Guohua (2005), Chinas economy has undergone three periods of change since 1949: 1949- 1978: a socialist, centrally controlled, planned economy. 1979- 1992: socialist commodity economy. 1992- present: socialist market economy. Chinas accounting system has changed with the economy, almost like the period of the Chinas economy. Development of accounting systems can generally be divided into the four stages: (more detailed information of Chinas accounting history can be found in Appendix 1.) 1949-1978 was the first stage which the uniform accounting system and the 1978-1992, Chinas accounting system has during the transition and the construction. Then, from 1992 to 1997, the construction of a new accounting system has issued. The fourth period is from 1997 to present. The ASC was set up in October 1998 by the Ministry of Finance to oversee the development of a complete set of Chinese GAAP. In order to join in the WTO, Chinas accounting standards made some change to closer to IFRS/IASs. The new Chinese Accounting Standards were adopted by all listed companies from 1 January 2007. Chinese Accounting Standards will continue to be updated in line with IFRS developments. (Gray et al, 1995 Wang Baozhong et al, 2009 Zhang Guohua, 2005 The Institute of Chartered Accountants of Scotland, 2010) Traditional use in China The basic function of financial accounting is to accounting and monitoring. With the founding of the PRC in 1949, all resources of production in the country came under State ownership. Accounting was primarily used for establishing information and reporting system for the implementation of national economic policies and resource allocation in the planned economy. (InterChina, 2009) The objectives of financial reporting system have been stated to serves one user primarily, the government, and then it is stated very broadly to strengthen accounting work of share enterprise, to protect the legitimate interest of investors and creditorsà ¢Ã¢â€š ¬Ã‚ ¦ (Ministry of Finance, 1992).The change in industry and ownership specific accounting system is due to the need of macroeconomic planning require a uniform system. (Tang, Qingliang, 2000) During the developing of accounting system, there are a number of users makes use of accounting in different purpose. Such as Shareholders use accounts to examine the health of business, and the dividends that they can expect to make. The bank may use the account to see how much loan they would provide for the company, and government would see the how much tax the company needs to pay. The main use for accounting is to comply with legal and other requirements, to provide information for stakeholders about financial performance and viability, to provide managers with information for decision making and to provide a structure to business activity based on the careful processing of numerical data. (The Times 100, n.d) The cultural factor that influenced its development The development of accounting was influenced by both cultural and environmental factors. They shape the accounting system in China. As Merino (cited in Carnegie and Napier, 2002) mentioned, All source material must be viewed as a reflection of the culture. The transition from a communist economy to a capitalist market economy can summarize as contributed by the factors as politic, culture, as well as the reform of social and economic or regional and international integration. Before economic reform, Chinas communist culture (See appendix 2) has strongly influence all the means of accounting control, whether accounting plans, balance sheets, and income statements or, in a wider sense, audit techniques. (Cigdem Solas and Sinan Ayhan, 2008) all the surpluses were owned by the state. A table (See appendix 3) summarizes the information on the difference between capitalist and communist systems, and issues raised for examination regarding their reflection in accounting. The transitions of the culture and economy reform were both influence the accounting system in China. For example, the concept of profit is meaningless under communist culture due to the panned economy which the surplus goes to government. In capitalism culture, the economic entity would need to have a certain type of boundary; the profit is one of its results. Particular rules for payment of the various parties involved would also be required, and monetary assessments of economic flows registered would have to be at least partly based on market mechanisms. Its status as a measurement of a single entitys performance presumes that there is a capacity for free enterprise do not existing in communist economic structures. Greys (1988) model derived accounting values from studies of societal value dimensions by Hofstede (1984), and Greys model has been used to analyse the cultural impact on accounting development in China. Professionalism V Statutory Chinas accounting system is strongly controlled by state rather than professional. The state closely controlled all enterprises by centralized plans. The profession is also still relatively new, small and powerless and it is currently occupied with the problems involved in meeting the new audit requirements. And it is unlikely to give up this power to a professional body so far. (Roberts, Weetman and Gordon, 2008) This is mainly because the strong power distance in China. In China, power is unquestioned, no matter it is right or wrong, the accountants in China cannot rely on their professional view. Uniformity V Flexibility Due to the special circumstances, China has a dual approach which retained a uniform accounting system in the Accounting System for Business Enterprises (ASBE) while also developing accounting standards based on IFRS. Enterprises have no judgment at all on how to account for particular transactions or events according to the uniform system. (Roberts, Weetman and Gordon, 2008) It is just as the same as the statutory in China, the accountants has been regulated by the uniform accounting regulation, they have to do as the regulation told to. Conservatism V Optimism The accounting system in China is conservatism rather than optimism. The Accounting System illustrate that an enterprise should fulfill the requirements of the prudence concept. Including, an enterprise should not overstate assets or revenue, or understate liabilities or expenses. It should not provide for any hidden reserve. (Roberts, Weetman and Gordon, 2008) which means Chinas accounting system has high level of uncertainly avoidance. Chinese government likes to plan everything in advance just the five years plan, they do not want to see something happen unexpected due to the complex situation. Secrecy V Transparency Chinas accounting system has highly secrecy due to the large power distance and strong uncertain avoidance. The collectivist culture of China require the enterprise offer their information to the society but within a range of narrative disclosure which stated in ASBE 2001. (Roberts, Weetman and Gordon, 2008) only related people can see the accounting information such as the managers, shareholders and the government officers. This feature is due to Chinas prudent culture, it is different as the western country but it is totally consistent with Chinas situation. Problems for using the Greys model There have some problems by using either Hofsteade model or Greys model to analyzing Chinas situation. Those models has been stated many years ago, in addition, China is rapid development in every aspects those years, therefore, the model may not be 100% appropriate with the situation nowadays. Another problem is China is really big; there has huge gap between west area and east area no matter in economy or culture. Institutional and Environmental factors There are several environmental factors which influence accounting system in China. Economic and enterprise reforms have influence the financial reports by change of the contents, format and uses. Enterprises in China are no longer relying on fund appropriation instead of independence in their operational and financing activities. Banking and financing system has restructured, therefore, the role of the state as a source of funds has been reduced. (Tang, Qingliang, 2000) Furthermore, various forms of business combinations with joint ownership have emerged (Tang et al, 1992). The rigid, fund-orientated and industry/ownership specific financial reporting system and practices are no longer well-matched the changing business environment. As a result, a universal and user-oriented financial reporting system is necessary to meets the needs of the economic reform. Due to the economic factors, the Objectives of Financial Reporting has made some change as well as the Industry and Ownership Specific Accounting System. Furthermore, foreign investment started to influence Chinas accounting system since the open-doors policy. The increasing of foreign direct investment and international business transaction driven China change its accounting system close to international accounting and report standard. (Tang, Qingliang, 2000) The legal factors have been influenced by other factors. The government system is one of the legal factors. The new accounting regulation system (See Appendix 3) is being developed towards a legal one. The National Peoples Congress issued the first tier accounting law in 1985 and revised in 1993 and 1999. It is the basic law of accounting in China as well as the basis of Chinas accounting work and other related accounting regulations. The State Council and Ministry of Finance formulated second tier- the executive regulations which form conceptual framework and general principles of accounting. The third tier authorized by the PRC Accounting Law and formulated by the Ministry of Finance. (Zhang Guohua, 2005) The legal framework for Chinas accounting system and reporting standards have changed step by step to fulfill the need of economy development. Another driving force for the accounting change is the development of capital market. In 1990 and 1991, the Shanghai Stock Exchange and Shenzhen Stock Exchange were established. The development of capital market has influenced Chinese accounting change toward to a capital market-oriented system. Therefore, the structure, content, format, and disclosure of financial information have been significantly influenced by the needs of the capital market. (Tang, Qingliang, 2000) Problems occurred in development There also appeared some problem during the Chinas accounting systems development and transition into international accounting standard. First is that Chinese accounting system and IAS requiring different practices; for example, inventory must be valued at historical costs under Chinese GAAP, but at the lower of cost and market (LOCAM) under IAS. Another example is accounting for long-term investment. Chinese GAAP offers companies a free choice between cost and equity methods if their investments in shares do not exceed 50 percent. But in other words, differences between Chinas accounting system and IAS can be reduced by changing accounting standards. (Charles J. P Chen, Ferdinand A. Gui and Xijia Su, 1999) Second, to implementation of IAS requires professional judgment from management as well as auditors. Professional independence and implement of standards have been identified as the two critical issues in international auditing. (Stamp and Moonitz, 1982) The severe shortage of qua lified accountants and auditors in China delay the development of professional auditing (Winkle et al. 1994; Graham 1996) Further changes The development of Chinas accounting system needs to fit Chinas special circumstance. It is impossible to expect independent/professional auditing to be achievable in China in the future. This implies that the proposed accounting standards will have to operate without independent/professional auditing. It is likely that the flexibility in the detailed accounting standards will provide opportunities for managers to engage in aggressive earnings management, reducing, even eliminating the probability of showing a true and fair view. Therefore, the lack of independent/professional auditing can neutralize the objective of prudence and turn the flexibility into a land of opportunities for earnings exploitation. (Bing Xiang, 1998) In my opinion, there has a trend, which the Chinas accounting system would slightly change towards to the international accounting system in the future, but would never be exactly the same with the international accounting system because of Chinas special circumst ance like one-party policy, different situation in different area, huge power distance and not so easy to managing the big land of China. Conclusion In conclusion, China has undergone profound changes in recent years, not only the economic system but also the accounting standards. China has moved from a system of public ownership of all enterprises to a mixed system with increasing private ownership of both small and large companies. There have many factors such as cultural and institutional factors which led to those changes as well as some problem which hold the change back, but Chinas accounting system would still change towards to the IAS due to the requirement of economic development. References Bing, X., (1998) Institutional Factors Influencing Chinas Accounting Reforms and Standards. Accounting Horizons. 12(2) pp: 105-119. Carnegie, G.D. and Napier, C.J., (2002) Exploring Comparative International Accounting History, Accounting, Auditing Accountability Journal, 15(5). pp 689-718. Chen, J. P., Gui, A.F., and Su, X., (1999) A Comparison of Reported Earnings Under Chinese GAAP vs. IAS: Evidence from the Shanghai Stock Exchange. Accounting Horizons. 13(2) pp: 91-111. Chiapello, E., and Ding,Y., (2005) Searching for The Accounting Features of Capitalism: An Illustration with Economic Transition Process in China, SASE, Budapest. Chow, L.M., Chau, G.K. and Gray, S.J. (1995) Accounting reforms in China: cultural constraints on implementation and development, Accounting and Business Research, 26(1): 29-49. Du, X., (2011) China has 1.34 billion populations by 2010. [WWW] Xinhua NEWS. Available from: http://english.cntv.cn/20110228/109748.shtml [Assessed 1/3/2011] Graham, L., (1996). Setting a research agenda for auditing issues in the Peoples Republic of China. The International Journal of Accounting. 31(1). pp: 19-37. InterChina, (2009) Accounting in China. InterChina Consulting. The Institute of Chartered Accountants of Scotland, (2010) Chinese accounting reform: Towards a principles-based global regime. ISBN: 978-1-904574-62-0. Edinburgh: Technical Policy Board of the Institute of Chartered Accountants of Scotland (ICAS). Ministry of Finance, Chinese Government, (1992). Accounting system for foreign investment enterprises. Pennay, P., (2011) Chinas GDP Increased by 10.3% in 2010. [WWW] the Economic Observer online. Available from: http://www.eeo.com.cn/ens/homepage/briefs/2011/01/20/191877.shtml [Assessed 1/3/2011] Roberts, C., Weetman, P., and Gordon, P., (2008) International Corporate Reporting: A Comparative Approach. 4th ed. FT Prentice Hall. Stamp, E., and Moonitz, M., (1982). International Auditing Standards: Part I. CPA Journal. pp 24-32. Solas, S., and Ayhan, S., (2008) The Historical Evolution of Accounting in China (Novissima Sinica): Effects of Culture (2nd Part). Spanish Journal of Accounting History. No.8 pp: 138-163. Tang, Q.L., (2000) Accounting Reforms in China: A Transition from State Plan and Control-Oriented System to Capital Market-Oriented System. Managerial Finance. 26(5) pp: 80-99. Tang, Y., Chow, L., and Cooper, B., (1992). Accounting and Finance in China: A review of current practice. Hong Kong: Longman. The Times 100, (n.d.) Accounting Functions. [WWW] The Times 100. Available from: http://www.thetimes100.co.uk/theory/theoryaccounting-functions111.php [Assessed 2/3/2011] Wang, B.Z., Huang, J.Y., Wang, B.Q., (2009) Change of Accounting System Review. Communication of Finance and Accounting à ¢Ã¢â€š ¬Ã‚ ¢Ãƒ ¢Ã¢â€š ¬Ã‚ ¢ NG. Issue6. Winkle, G., Huss, H., and Chen, X., (1994). Accounting standards in the Peoples Republic of China: Responding to economic reforms. Accounting Horizons. Issue: 8. pp: 48-57. Zhang, G., (2005) Environmental factors in Chinas financial accounting since 1949. Netherland: Erasmus University Rotterdam. Appendix 1 History of accounting systems development in China Chinas accounting history can be traced back 2000 years ago. The word accounting first appeared in Western Zhou Dynasty à ¯Ã‚ ¼Ã‹â€ 11th century BC to 770 BCà ¯Ã‚ ¼Ã¢â‚¬ °. During the Tang Dynasty (AD 618-907), Account book appeared for recording the annual fiscal revenues. The basic traditional Chinese accounting theory such as the scientific bookkeeping method and the four pillars accounts was created in Song Dynasty (AD 960-1279). A new method called Long Men Zhang which is similar to the double-entry bookkeeping method has created in Ming Dynasty (AD1369-1644). Single-entry bookkeeping has been used in prior to 1911. (Zhang Guohua, 2005) Since 1949, Development of accounting systems can generally be divided into the four stages: First stage is from 1949 to 1978: 1949-1952 a unified accounting system of affiliated enterprises was developed by the central government. 1958-1959, the accounting system has been severely damaged by the scholasticism thinking, some people claimed to simplify the accounting system. 1960 to 1966, due to economic development, people realized the importance of accounting. Critical theorists illustrated the error approach of simplify the accounting system, then, the accounting system design work has received attention. Furthermore, the industry-specific regulation has been issued. (Gray et al, 1995 Wang Baozhong et al, 2009 Zhang Guohua, 2005) Second stage is from 1978 to 1992: Chinas accounting has undergone drastic changes due to the opening-up and beginning of reform. 1979-1922, Enterprises started to issue equity shares in 1984. The number of Sino-foreign joint venture has increased; Ministry of Finance has issued the Laws on Sino- foreign Joint Venture to solve the problem of difficult of foreign staff in accounting and use the accounting information. These included a joint venture income tax law and laws on contracts and foreign exchange. Accounting Regulations for Sino-Foreign Joint Ventures and Charts of Account and Accounting Statements for Industrial Sino-Foreign Joint Ventures has issued in 1985 which is the first accounting system reference to international conventions to satisfy the new accounting system in China. (Gray et al, 1995 Wang Baozhong et al, 2009 Zhang Guohua, 2005) Third stage is from 1992 to 1997: Ministry of Finance and the National Committee of Economic Structure Reform jointly promulgated Accounting Regulations for Share Enterprises in 1992. Furthermore, Accounting System for Business Enterprises (ASBE) issued in November 1992. The ASBE was a major attempt both to unify the accounting systems used by different industries and to move financial accounting towards international accounting practices. Because of the development of foreign exchange markets, these regulations which made in 1985 were replaced by Accounting Regulations for Enterprises with Foreign Investments and Charts of Accounts and Accounting Statements for Industrial Enterprises with Foreign Investments in 1993. (Gray et al, 1995 Wang Baozhong et al, 2009 Zhang Guohua, 2005) The fourth stage is start from 1997 to present: the Accounting Standard Committee issued to establishing a complete set of accounting standard. The Accounting Law of the PRC which revised in 2000 is the highest level of authority which replaced the pervious law of 1992. (Gray et al, 1995 Wang Baozhong et al, 2009 Zhang Guohua, 2005)

Siddhartha and The Razor’s Edge Essay -- Essays Papers

Siddhartha and The Razor’s Edge The book Siddhartha and the movie The Razor’s Edge are two similar yet different stories. Each these two works explore man’s search for truth, self, and life’s true meaning. The main characters of these stories are very different people, yet they are in search of similar goals. The main character of Siddhartha is Siddhartha. The main character of The Razor’s Edge is Larry Darryl. Larry and Siddhartha go through several stages of their lives, which range from rich to poor and back again. Siddhartha was a Brahmin’s son, of the upper class in India. He is loved throughout his community. He is revered by all that knows him. He spends his day in meditation and thought. He brings joy to all, but in his heart & soul he isn’t happy. He feels that he can learn any more from the wise men of his village because he has acquired all of their knowledge and they don’t know everything. Most importantly they do not know Atman. A group of Samanas enters his village and intrigues him. He decides to leave his village to become a Samana. He tells his best friend Govinda and he decides to come too, but first Siddhartha must tell his father. He goes one day to tell his father, but his father won’t allow it. Siddhartha stands in his father all night until his father lets him go. When Siddhartha and Govinda join they began to learn their â€Å"tricks.† Siddhartha lived without possessions or a home. He learned to fast, think, and wait. He began exiting his body through meditation and entering objects and animals. Soon he realizes that he must leave because they are only learning to escape pain (Self), and they can’t teach him any more. When he and Govinda leave Govinda tells Siddhartha of Gotama (the enlightened one) and they go to see him. When Govinda leaves he tells the leader of the Samanas and he becomes angered. Siddhartha hypnotizes (a trick that he learned from the Samanas) the leader and he allows them to leave. They find Gotama and all of his followers in Jetavana grove. They are taken by his enlightened aura. After hearing him speak Govinda swears allegiance to Gotama. Siddhartha takes everything that Gotama says to heart, but realizes that he must follow his own path. Siddhartha begins to look at the world differently. He isn’t concerned with the other realm he begins to focus on the world as it is. ... ... you live your life there is no earthly reward, he then goes back to America. Each story is it’s own yet the same. Larry wants to feel fulfilled in life and he is searching for a way to do so. Siddhartha wants to become enlightened. Each trekked through India searching for answers. Larry and Siddhartha were both of the upper class. Both men were loved by all who came into contact with them. They both forged special relationships with women living unholy lives. Each walked out on their respective lives in search of truth. Both men reduced their living standards by freewill at one point in their lives. Certain teachers/guides have helped them find enlightenment. Each man learned and practiced a form of meditation. The two men were very similar and were after similar goals, they just took different paths. The Razor’s Edge and Siddhartha are two works that take you on life journeys. I really didn’t see any similarities the first time I saw the movie, but the next time I watched it I really noticed the similarities. In the end they both found enlightenment in some way. Larry realized there were no rewards in life and Siddhartha became Buddha.

India on its way to become manufacturing hub

India as WorldS Manufacturing Hub For long, Taiwan and China have been at the outsourcing manufacturing boom in Asia. So much so, that 80% of toys sold in the US are made in China. But things are slowly working in favor of India. India is on its way to become a major contract manufacturing hub. There is a huge opportunity In manufacturing waiting to be tapped. A new India Is transiting from a third world country status to a league of developed nations. It Is the world's third-largest repository for foreign direct investment (FDA), after China and America. Goldman Sash's Report (Brazil, Russia,India, and China – BRICE major players), projects India as a potential winner ahead of China and would overtake U. S. A. And China by 2025 in terms of Real GAP. India- Past & Present The ass's, ass's and ear ass's: There was dominance of Public Sector across industry. The market was mainly governed by sellers with limited competition. There existed closed Economy with negligible presence of multinationals. GAP growth was below 4% (Hindu rate of growth) and primarily agriculture based. India post 1991 and counting: 100% FDA in most sectors has seen Pepsi, Coke, Shell, Ford, GM.Suzuki.. Toyota, Ames, Citibank, GE, Microsoft, Pfizer, Innovation, ASK, Merck operation in India (availability of world class products). A new India is transiting from a third world country status too league of developed nations. Current Scenario: Indian's manufacturing sector Is gaining momentum and has been ranked fourth In terms of textiles, tenth in leather and leather products etc. Government of India, to promote exports and make India a manufacturing hub, has taken various initiatives including the development of Special Economic Zones.Major global companies have already invested in India to name a few like Samsung, LAG, Suzuki, Soda Auto, Philips re among the some who have already invested and most of the global giants have stated the process to enter In India STRENGTH: The country has become a manufacturing outsourcing destination because of cheap labor, talented and knowledgeable workforce, supportive governmental policies, improved quality control measures, world-class technology and consistent economic growth. The most promising sectors for India are auto components, pharmaceuticals, electronic hardware, apparel, foot ware, toys and specially chemicals.Cost of employing engineers – essential to manufacturing services – is en-third to one-fifth lower in India than in industrialized nations such as the UK and the US There is adequate availability of manpower and skills. WEAKNESS: India is growing by leaps and bounds but there is a major problem of unemployment. There is an immediate need to generate 10 million Jobs per year. And above all, due to multi party rule, India need to accommodate political ideology with economic reality (reservation, labor law reforms). Growth has been urban centric.Rigidity in labor laws is also contributing to higher ca pital intensive. Population increase of about 100 million in last 5 years, which has seen about 50 lion new Jobs, is largely in the unrecognized sector. Transaction costs are high due to capacity constraints at ports resulting in delays. Opportunities: India has become a growth destination for several global companies. Organizations are becoming increasingly competitive on the efficiency and flexibility of their supply chains and not merely on their product features and quality.They have realized that being technology driven and updated is the key to compete in the global market. Fastest growing sectors: Automotive: The Indian automobile sector currently generates revenues of $34 billion a year; Auto sector could grow to $145 billion by 2016. India has gradually become a sourcing hub for auto companies worldwide. Among the companies outsourcing from India are General Motors, Ford, Daimler Chrysler, Handy, Fiat, Toyota, Delphi, Invariants, Visited, Cummins and Caterpillar.Healthcare & Pharmacy: Indian's Pharmacy market ranks 4th in the world in volume and 13th in domestic consumption value. Indian pharmacy market estimated at US$ 3. 8 billion ranks 12th in value terms and accounts for around 1% of the global market. Expected to grow at 12-14% p. A. , as against the global average of 6-8%. At the current pace of growth, IIS$ 2 billion industry by 2012. Construction: The Indian construction industry grew by 5. 5 % to reach a value of $35 billion in 2006. The sector will continue to grow at a CARR of 6. 5% to reach $38 billion by 20011 representing an increase of 35. % since 2004. India accounts for 4. 7% of the Asia- Pacific construction and engineering market. Retail: Indian retail industry ranked second most attractive retail destination by AT Carney. The total domestic retail market is currently estimated to be over IIS$ 330 billion and is growing at a rate of 4-6 % in real terms. Organized sector accounts for Just 2 % of he market (I. E. IIS$ 4 billion)- expe cted to grow four-fold to IIS$ 15 billion by 2012. There are 12 million retail outlets in India out of which 9 lack are in the organized sector.Computer hardware: The rapid growth of software exports has attracted thousands of people into the industry and has stimulated the demand for computers. Sales of personal computers rose by 20% in 2004-05, to MN. Import liberation's and the entry of foreign manufacturers has transformed this industry, which, until five years ago, was tiny and dominated by a few Indian manufacturers. The ease of importing components as nurtured hundreds of unbranded assemblers, which command 62% of the market. Biotechnology: Huge potential from large base of skilled technical personal and the lower costs.Number of biotechnology firms in India has increased exponentially over the years. Developing biotech based therapeutic products takes 10-15 years and costs $ 500 million to $1 billion. Similar product development cost in India is $ 250 million or even lower. Opportunity for new investments is estimated to be in the $ 1. 5 to $ 2 billion range. Food processing: India – One of the largest food producers of the world. Output of the organized segment – IIS$ 34,827 million. Marine and Spices together contribute more than 70% of export earnings. Investment requirement is around IIS$ 15 billion.The Indian scientific and research talent – a knowledge source that can be tapped for advantage. Steel: India produced 31. Mm tones of crude steel in 2004-05, making it one of the ten largest steel producers in the world. Landscapes demand from China as well as strong domestic demand, particularly by consumer -durables and automotive manufacturers and the construction sector are the key drivers of production growth. Around 40% of output is produced in integrated steel plants; the remaining comes from mint-plants, of which over 180 exist, almost all in the private sector.Light Engineering: The size of Indian Light Engineering industr y is estimated at US $ 7 billion. In India, the light engineering industry has a diverse industrial base with significant unrecognized market. The exports from the light engineering industry in India mainly consists of structured steel products; motorcycles, cycles and auto components; machine tools; fans, filters and pumps; and metal machine tool parts. The products veered under the engineering industry are largely used as input to the capital goods industry. Textiles: Textiles account for around one -fifth of total export earnings.Because the government discriminated for decades against integrated textile mills, with the aim of helping cottage handloom, most mills closed down. Production in the textile industry is based on a decentralized system with continuing small-scale reservation for many items. The industry has a natural competitive advantage in terms of a strong and large multi-fiber base, abundant cheap skilled labor and presence cross the entire value chain of the industr y ranging from spinning and weaving to the final manufacture of garments. Threat: India faces competition from other developing countries, especially China.Continuous Quality Improvement is need of the hour as there are different demand patterns all over the world. Presence of Quota system leads to rigidity in Export Demand. International labor and Environmental Laws do not strike trade-off between demand and supply. Power crises and the virtuous growth cycling manufacturing sector needs immediate attention. Large informal sector, poor irking condition and low wages pose equal threat to the growth of economy in India. Inclusion of social (Labor) issues in trade dialogues generally found in exports (e. G. Child labor). High corruption and inadequate environmental safety norms affect sustainability. INDIAN'S PROSPECTS: The nations who are competitive with India are facing some or the other predicaments. Brazil is uncomfortable with force inflows and so has given its manufacturing base . Its reluctance was evident in the imposition of a 2 per cent transaction tax on capital flows. Russia is a basket case and unless oil recovers to tuning heights, internal demand is unlikely to resurface any time soon; hence, it has very little potential to attract firms to set up shop.China is not a trusted partner; investors have learnt that China makes it easy to get in but difficult to operate. The lack of protection of hard-earned PR is a major issue in China. Restrictions on borrowing from local banks for working capital can also work as a disadvantage. Reason for optimism of the world towards Indian market: Large intellectual capital base Annual additions to the stock of science and engineering graduates Demand side – Expanding domestic market Total number of households to increase from 188. 2 million in 2001-02 to 221. Million by 2009-10 Benefits to Indian people due to the changing industrial scenario: Enterprises In Wealth Creation Government In Revenue And Employm ent Employees In Development And Increase In Standard Of Living Customers – Value For Money (Choice, Affordability And Speed) From an Indian industry perspective, the emerging situation may drive three trends. Within the next year or two, India should witness growth in demand and hence capacity in manufacturing. The driver will be higher internal demand and, in a short while, the needs of customers overseas.In three or five years, India will have to develop contract manufacturing skills. A supplier must be able to make the components he or she is good at, source components and parts, assemble and test to deliver directly to the manufacturer. This cannot happen in China as the reliability of many firms, except those that have moved with their partners form Singapore or Malaysia, is suspect. In the long term, Indian manufacturers will have to develop and build, design and development partnerships. Many entrepreneurs are considering investments in small power plants to beat the lack of electricity.

Clinton v. Jones essays

Clinton v. Jones essays The basic idea that is raised in this case is separation of powers. To be more specific we can ask ourselves one question: Is the president of the United States of America immune to civil cases involving the personal life of the president? The two parties in the case Clinton v. Jones are William Jefferson Clinton and Paula Corbin Jones. William Clinton at the time of the incident was the governor of Arkansas. Paula Jones was an employee of the state of Arkansas. Jones claimed that Governor Clinton had made sexual advances toward her which she rejected. Following the continued rejection of Governor Clinton, Jones was punished by her supervisors. The case first went to District Court. In District Court, Clinton wanted to suspend the case totally on the grounds of Presidential Immunity. The judge declared that the case shall be put on hold until after Clinton finished his term. The case was appealed. At the Eighth Circuit Court of Appeals, the court agreed with district court but reversed its decision to postpone the case because it would be an unlawful use of Presidential Immunity. The case proceeded to the Supreme Court of the United States of America with one question: Is the president allowed immunity from civil cases in events that occurred before he or she took office? The United States of America during this time was in a state of awe as the Pathfinder landed on Mars, the comet Hale-Bob is seen, the Heavens Gate Massacre occurs, sheep are cloned, Mother Theresa dies, Princess Dianna is killed in a horrible car wreck, Taiwan is returned to China, there is peace in Chechnya, and Pol Pot finally goes on trial. The case came as a surprise to the world as all of these things were happening. The funny thing is that Paula Jones filed the case just before the deadline for filing a civil case was over. Across America, this case led to the investigation of President Clintons personal life by Kennet ...