Business Law - 1579 Words

1. Identify the ethical, strategic, operational, and financial issues in this scenario and list them in priority order from most to least critical. As a global healthcare organization, our goal has always been to promote quality of care and optimal health to people around the world. We have a firm commitment to serve diverse communities with products and services that reflect the latest trends in innovation and the highest quality at reasonable prices to match consumer expectations and needs. We have established a culture founded on individual accountability that expects employees at all levels us to communicate openly and transparently; any strategic, operational, or financial challenges we face are viewed through a comprehensive moral†¦show more content†¦2. As the director of overseas operations, what options are available to you to resolve this situation? State the risks and consequences associated with each option you identify. To stay successful throughout the planning process and management of overseas operations, we have to work with leaders throughout the organization to identify events that may affect the achievement of our objectives and to determinate contingency plans or alternative solutions. We understand that the goal of operations management is to affect the entire cycle of a new product line in a positive manner (Chase, Jacobs amp; Aquilano, 2004), so we strive to take into consideration the addition of new resources, the rearrangement of existing resources, and the possible removal of resources to execute the strategic, intermediate, and short-term decisions made by overseas teams. To resolve the situation in Malaysia, we should consider at least two different options that both take into account a flat development expense and uniform unit cost wherever possible. We should first consider adding external resources, including external contractors and existing cross-functional teams. We reason that additional team members could optimize processes to help recover sales, marketing, and local supply chain functions that in turn could add potential value and competitiveShow MoreRelatedBusiness Law And Ethics : Backoffice Business Brief1862 Words   |  8 Pages Running head: BACKOFFICE BUSINESS BRIEF 1 Business Law and Ethics BackOffice Business Brief Patten University BACKOFFICE BUSINESS BRIEF 2 Constitutional Rights and Guarantees BackOffice is a new startup business that will provide potential clients with an application (app) that woul d automate certain business functions. BackOffice will be selling the app to certain business clients that will use it to facilitate their customers’ transactions. 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The Death Penalty Essay - 889 Words

Is the death penalty really a rational and effective way to respond to the crimes of certain prisoners? Thirty one percent of society believes we should not keep the death penalty, while others believe that the death penalty doesn’t really keep crime from happening. Of the thirty one percent, many believe that executing offenders of the law only runs away from the issue at hand. Also, if society thinks about it, ending the penalty would cost less both physically and mentally. Lastly, abolishment of the penalty would help rid any of the negative and humane issues at hand: this involves the biblical verse; thou shalt not kill, and the national human rights law; article 3, and 5 of the Declaration of Independence. Is the death penalty going†¦show more content†¦Since 1983, 60 mentally ill people have been executed. Also, it is estimated that around five to ten percent of the death row inmates are diagnosed with some form of mental illness. Second, ending the death penalty would cost less, when involving the physical and emotional costs of the punishment. Within the physical aspects of the death penalty, it costs around 90,000 a year per inmate to stay on death row. The average estimated amount for each inmate, in total, is two million dollars. Death row costs almost four times as much as life imprisonment without parole. Since the death penalty costs such a great amount of money, this leads tax payers to pay thousands of unnecessary money towards the cause. If society realized that they were spending a bunch of their money on killing inmates, they may rethink allowing the penalty in the first place. When involving the emotional costs of the punishment, ending the death penalty would also cost less. Not only do people have to give up some of their annual salary, they also have to give up their mercy, compassion, and the family of the inmate’s heartache. There is rarely any family who wants to see their loved one executed. The family is always trying to get the court to change their mind and allow the inmate to live. If a young child had a mother on death row, wouldn’t that be cruel to take the mother awayShow MoreRelatedThe Death Penalty Is Justified1143 Words   |  5 PagesAllison Shu 2/25/16 Period 2 Objective paper on the death penalty Capital punishment is legally authorized killing as punishment for a crime. The death penalty questions the morality of killing a person as justification for their crime. It also brings to question whether the death penalty actually serves as a deterrent for crime, and that some of the people executed are found innocent afterwards. The debates over the constitutionality of the death penalty and whether capital punishment should be usedRead MoreThe Death Penalty For Juveniles946 Words   |  4 Pages The death penalty for minors differs greatly from the death penalty for adult. 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In Texas, from December 1982 through August 2008, only 361 criminals of the millions of Texans in our good state were executedRead MoreThe Truth About The Death Penalty973 Words   |  4 Pages In her article â€Å"The Truth About The Death Penalty†, Carina Kolodny argues that the death penalty should be abolished in all fifty states due to the fact that it is ineffective and very expensive. Kolodny believes that capital punishment has too many complications and variables that cause it be more of an issue than a real solution for capital offenses. She proposes that the death penalty should be dropped and exchanged for better programs such as Proposition 34, which replaces capital punishmentRead MoreShould The Death Penalty Be Mandatory?925 Words   |  4 Pagesopinions on the subject. When we were discussing the death penalty although my opinion didn’t change, after hearing what some of my classmates had to say about the subject during our lab I was able to respectfully see why they had those thoughts and feelings about the subject. I believe that we should have the death penalty, and that it helps prevents more crime from happening. However, during our lab students that thought we should ban the death penalty had some pretty interesting reasons behind theirRead MoreThe Death Penalty Should Be Legal1805 Words   |  8 Pagesthat we all know is the death penalty. This penalty has been going around for years. To many people it might be the best way of punishing a person. On the other hand there are people who think that if you kill a person you should be sentenced to die as well. For me I would say it might not be the best way and it not working as many would like it. 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Aci Financial Statement Free Essays

string(119) " of changing financial position be presented as a basic financial statement and be covered by the auditor’s reports\." ASA University Review, Vol. 6 No. 2, July–December, 2012 Cash Flow Statement Disclosures in Pharmaceutical Companies: Bangladesh Perspective Mst. We will write a custom essay sample on Aci Financial Statement or any similar topic only for you Order Now Joynab Siddiqua* Mohd. Takdir Hossan* Abstract Cash flow statement is a vital part of the financial statements. Preparation of cash flow statement is required as per Companies Act 1994 and the public limited companies enlisted with stock exchange are to prepare this statement as per other statutory laws and regulations. The acceptance of International Accounting Standard- 7: Cash Flow Statement has added a new dimension to the preparation and presentation of financial statements in Bangladesh. The companies are now preparing this statement as an integral part of their financial statements. This paper examines empirically the current practices followed by sample companies in preparation of cash flow statement and concludes that the sample companies are in line (with few exceptions) with the requirements of International Accounting Standard (IAS)-7 or Bangladesh Accounting Standard (BAS)-7. It also proposes some suggestions for improving the presentation of the statement Key words: Cash flow statement, IAS/BAS, Listed Company, Disclosure. Introduction The purpose of a cash flow statement is to provide information on the cash flow from a company’s operating, investing and financing activities to enable the users of its financial statements to evaluate the ability of the company to generate cash and to use the historic cash flows to predict future cash flows. The cash flow information enhances the comparability of the operating performance by various companies, because it eliminates the effects that arise from the use of different accounting treatments for the same transactions and events. The use of cash flow information is gaining importance in the analysis of financial statements (Epstein 1991; Yap 1997; Jones and Widjaja 1998; Previts and Bricker 1994). Cashflow information is considered less open to manipulation than information on earnings, because it is based on the actual receipt and payment of cash only and not on the accrual and other accounting principles. Rees (1995:75) adds that the cash flow statement can be more informative than the other statements. However, he literature on the cash flow statement indicates that there are grey areas in cash flow reporting that are open to various interpretations (Everingham and Watson 2002). The perceived simplicity of the cash flow statement may therefore create synthetic confidence in the reliability of companies’ cash flow reporting and the comparability of various companies’ cash flow information. The acceptance of IAS-7: The Cash Flow Statement has added a new dimension to the preparation and present ation of financial statements in Bangladesh. This paper is an attempt to investigate into the state of cash flow reporting by the listed Bangladeshi * Lecturers, Department of Business Administration, ASA University Bangladesh 210 ASA University Review, Vol. 6 No. 2, July–December, 2012 Textiles and Clothing companies in general. The focus is not on the quality of the reporting of the companies but rather on what the reporting levels are in general. Objectives of the study The major objectives of the study are as follows: 1. to identify the current practice of cash flow statement of Pharmaceutical companies in Bangladesh. 2. o provide present cash flow statement format, structure and reporting on the basis of information provided in the annual reports of the selected listed Pharmaceutical companies in Bangladesh. Methodology of the study The study was conducted in accordance with secondary information obtained from various sources. The overview of standardization of financial reporting and the regulatory framework has be en based on laws, regulation, and guideline and also on various published sources of information taken from International Accounting Standard Board (IASB) and Bangladesh Accounting Standard 7 (BAS 7). A limited survey has also been made covering a total of 12 Pharmaceutical companies’ annual reports (2009) enlisted in Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE). These are selected on the basis of convenience sampling procedure. In order to make the study more revealing it also covers some research articles, textbooks, publications and web sites of various accounting bodies. Limitations of the study 1. Applied non profitability techniques have been used. 2. Due to limitation of the extensive materials, books and previous studies in Bangladesh literature review could not be extensive. 3. This study consists of only 12 listed Pharmaceutical companies due to time and resources constraints. Literature review Cash flow statement: A historical surroundings/background Cash flow Accounting (CFA) was the main system of accounting up to beginning of the 18th century (Watanabe, Izumi: The evolution of Income Accounting in Eighteenth and Nineteenth Century Britain, Osaka University of Economics, Vol. 57, No. 5, January 2007, p. 27-30). Till then, accounting allocation and profit measurement were relatively unimportant; the profit and loss account being used to close off ledger accounts at each period end. However, with the advent of concept and practices of business continuity, periodic measure and statement of financial position began to grow. Thus the basis of cash transaction becomes foundation for the allocation based systems of accounting today. Although there has been a reasonably sustained interest in fund flow statements (based on allocated accounting data) since the beginning of the twenty century, CFA appears to have received little or no support from accountants until the early 1960s. At that time there was little concern over the use of ‘cash flow’ data in the financial analysis- cash flow being interpreted as ‘profit plus depreciation (. Winjum, J. o, 1972). In 1961 AICPA recognized the importance of fund statement by publishing Accounting Research Study (ARS) Cash Flow Statement Disclosures in Pharmaceutical Companies 211 NO 2â€Å"Cash flow analysis and fund statements†. Before that, accountants had prepared funds statements primarily as management report. The Accounting Principles Board (APB) responded in October 1963 by issuing APB Opinion NO. : â€Å"the statements of and application of funds†, which recommended that a statement of sources and application of funds be presented on a supplementary basis. Because of the favorable response of the business community to this pronouncement, the APB issued Opinion No. 198: â€Å"Reporting changing in Financial Position† in March 1971. This opinion required that a statement of changing financial position be presented as a basic financial statement and be covered by the auditor’s reports. You read "Aci Financial Statement" in category "Essay examples" In 1981 the Financial Accounting Standard Board (FASB) reconsidered fund flow issues as part of the conceptual framework project taken in 1976. At this time the FASB decided that the cash flow reporting issues should be considered at the standard level. Subsequent deliberation resulted in Statement of Financial Accounting Standard (SFAS) No. 95: ‘Statement of cash flows’ in Nobember1987 (Weygandt, Kieso, Kimmel 1998: 1936). Fund flow statement Vs Cash flow statement Both fund flow statement and cash flow statement serve as a fundamental parts of the financial statements. In 1961, the AICPA issued ARS No. 2, â€Å"Cash Flow Analysis and the Fund Statements† which recommended that a fund statement covered by auditor’s opinion be included in companies financial reports. According to paragraph 5 of Preface to Statement of International Accounting Standard [approved by the IASC Board in November1982 for publication in January 1983 and supersedes the preface published in January 1975 (amended March 1978)], â€Å"the term ‘financial statements’ covers balance sheets, income statement or profit and loss accounts, statements of change in financial position, notes and other statements and explanatory materials which are identified as being part of financial statements† (IASC, 2000:32). As per paragraph 7 of framework for the Preparation and Presentation of Financial Statements (approved by IASC Board in April 1989 for publication in July 1989): â€Å"A complete set of financial statement normally includes a balance sheet, an income statements, a statements of change in financial position (which may be presented in a variety of ways, for example as a statement of cash flow or a statement of fund flows) and those notes and other statements and explanatory materials that are an integral part of the financial statements† (IASC : p. 3-44). As per paragraph 4 of the previous IAS 7 (October 1977), statements of change in financial position, the term ‘ funds’ referred to cash, cash and cash equivalents or working capital (IFAC, 1992: p. 813). Funds provided or used in operation of an enterprise should be presented in the statements of changes in financial statement separately from other sources and uses of fund. Unusual items, which are not part of ordinary activities of the enterprise, should be separately disclosed (IASC: Para 21). But many users of financial statements consider current practices of reporting fund flows as confusing because too much information is compressed in the statements of change in financial position, and because no single definition has been established (Mosich and Larsen, 1982; p. 935). In order to develop a conceptual framework for financial accounting and reporting, the FASB issued in December 1980 a discussion memorandum â€Å"reporting Fund flow, Liquidity and Financial Flexibility† which was issued for the following reasons: (1) for assessing future cash flow, and (2) current practices regarding the reporting of funds flow information are not entirely satisfactory. As a result of deliberation, FASB issued SFAS NO. 95 ‘Statements of Cash Flow’ in 1987. The statements require the inclusion of statements of Cash Flows rather than a statement of Change in Financial position when issuing a complete set of financial statements 212 ASA University Review, Vol. 6 No. 2, July–December, 2012 which was made effective for annual periods ending after July 15, 1988. The major requirements of the statements are of the following two areas: Basis of Presentation: The statement must focus on cash receipts and payments and must explain the change in cash plus cash equivalents. Classification of cash flows: Cash flows are to be classified according to operating, investing and financing activities. The basis of such classification is derived from the financial theory, which state that the enterprise derives the cash used for investing activities and settlement of outstanding financial obligation in an accounting period from internal and external sources. Internal cash sources emanate from the net cash generated from current operation and perhaps disinvesting and depletion of cash resources at the start of the period. External cash sources come from financing activities such as borrowing and receiving cash from the sale of equity shares to existing and new shareholders (Wallace et,al). Benefits of Cash Flow Information – The information in a cash flow statement helps investors, creditors, and others to assess the following aspects of the firm’s financial position. – Such statements serve as a mechanism for predicting the ability to generate future cash flows for the investors, creditors and others. – This enables managers or management to plan coordinate and control financial operation in an effective manner. It gives an indication of the relationship between profitability and cash generating ability thus of the quality of the profit earned. – It furnishes information to the management regarding the entities’ ability to pay dividend and meet obligations. – Analyst and other users of financial information often, formally or informally, develop models to assess and compare the present value of the future cash flow of entities. Historical cash flow statements could be useful to check the accuracy of past assessment (ACCA Text book part 2. P. 324). It is free from manipulation and is not affected by subjective judgments or by accounting policies. – Such a statement dictates situations when a business has made huge profit but has run out money or it has sustained loss but has enough cash availability. – The extent of cash generated from operational activity and external finance in order to meet capital, tax, and dividend requirements can be obtained from such statements (Lee, T. A: 1972:27-36). – It aids in the evaluation of risk, which includes both the expected variability of future return and probability of insolvency or bankruptcy ( Hendrickson, Eldom. S, 1982: 237). – Such statements reveal the capability of an enterprise to pay its short obligation as and when due to the lenders. – A cash flow statement in conjunction with a balance sheet provides information on liquidity, viability, and adaptability. The balance sheet is often used to obtain information on liquidity, but the information is rather incomplete for this purpose as the balance sheet is prepared at a particular point of time. Cash Flow Statement Disclosures in Pharmaceutical Companies 213 It may assists users of financial statements in making judgments on the amounts, timing and degree of certainty of future cash flows. – This statement provides information that is useful in checking the accuracy of past assessment of future cash flows and in examining the relationship between profitability and net cash flow and the impact of changing price (IAS 7: Para 3 4). – Information on cash flows classified by three groups of activities (Operating, investing and financing) that allow users to assess the impact of those activities on the financial position of the enterprise and the amount of its cash and cash equivalents. This information may also be to evaluate the relationship among those activities (IAS 7: Para 11). – This statement is of special importance in assessing future cash flows, quality of income operating capability, financial flexibly and liquidity, and information on financing and investing activities. Using cash flows from operating activities from the cash flow statements, different ratios such as liquidity, ratio, solvency ratio, and profitability ratios can also be calculated to evaluate an enterprise’s liquidity, solvency, and profitability. Aziz uddin and Bala, 2001: p. 14) Overview of Cash flow statement The cash flow statement explains the changes that have occurred in the company’s cash and cash equivalents during the year by classifying the cash flows in its operating, investing and financing activities. The statement must focus on cash receipts and payments and must explain the change in cash plus cash equivalents. The classification is done in a way tha t is most appropriate to the company’s business. The following are the definitions of the components of the cash flow statement: Cash: cash on hand and demand deposits Cash equivalents: short term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Operating activities: the principal revenue-producing activities of the enterprise and other activities that are not investing or financing activities Investing activities: the acquisition and disposal of long-term assets and other investments not included in cash equivalents. Financing activities: activities that result in changes in the size and composition of the equity capital and borrowings of the enterprise (Epstein, p. 93). Objective and Scope of IAS 7 Information about the cash flow of an enterprise is useful in providing users of financial statements with a basis to assess the ability of the enterprise to generate cash and cash equivalents and the needs of the enterprise to utilize those cash flows. The economic decision taken by users requires an evaluation of the ability of an enterprise to generate cash and cash equivalents and timing and certainty of their generation. The objective of IAS 7 is to require the provision of information about the historical change in cash and cash equivalents of an enterprise by means of a cash flow statement that classifies cash flows during the period from operating, investing and financing activities. An enterprise should prepare a cash flow statement in accordance with the requirements of IAS 7 and should present it as an integral part of its financial statements for each period for which financial statements are prepared. Users of an enterprise’s financial statements are interested in how the enterprise generates and uses cash and cash equivalents. This is the case regardless of the nature of the enterprise activities and irrespective of whether cash can be viewed 214 ASA University Review, Vol. 6 No. 2, July–December, 2012 as the product of the enterprise, as may be the case with a financial institution. Enterprises need cash for the same reason however different their principal revenue- producing activities might be. They need cash to conduct their operations, to pay their obligations and to provide return to the investors. Accordingly this standard requires all enterprises to present a cash flow (Para 1 3). Presentation of Cash flow statement under IAS 7 Cash and cash equivalent: The definition of cash and cash equivalent are central to the preparation and interpretation of cash flow statements. Cash consists of cash in hand and demand deposits, coins and notes of an organization, etc. In our country deposits in postal accounts may be termed as cash (Cooper and Ijiri, 1984: 88; Ghosh, 2001). Cash equivalents are short-term, highly liquid investments that are readily convertible into known amount of cash and which are subject to an insignificant risk of change in value. According to the definitions of paragraph 6 of IAS 7 cash comprises cash in hand and demand deposits; usually ‘cash on hand’ includes currency, notes, and coin in the cash box of the enterprise. It also includes prize bond, negotiable money orders, postal orders, and under posited checks, bank drafts or pay- order. Demand deposits refer to deposits in checking accounts in banks and other financial institutions that may be withdrawn without notice usually subject to deduction of outstanding check. Thus cash equivalents – 1. are short-term investments but the ‘term’ ‘short’ not clearly specified, although a period of three months and less is suggested to be taken as short term period. 2. are highly liquid investments. Here ‘liquid’ means having in a situation where cash equivalents are available in sufficient amount to meet obligation of payments. . are investments that are both: (a) readily convertible, to known amounts of cash and (b) subject to an insignificant risk of change in value. According to SFAC No. 95, the risk categorically refers to risk of change in interest rate. The short-term investments are so near their maturity that they represent insignificant risk of changes in interest rate. Examples include treasury bills, commercial papers, a nd money market funds purchased with cash that is in excess of immediate needs. However, although by definition, cash equivalents refer to short term highly liquid investments, they are usually held for the purpose of meeting short term cash commitments rather than for other purpose. For an investment to qualify as a cash equivalent it must be readily convertible to a known amount of cash and be subject to insignificant risk of change in value. Therefore an investment normally qualifies as a cash equivalent only when it has a short maturity of, say, three months and less from the date of acquisition. Equity nvestments are excluded from the cash equivalents unless they are, in substance, cash equivalents, for example in the case of preferred share acquired within a short period of their maturity and with a specified redemption date (Para 7). Cash Flow Statement Disclosures in Pharmaceutical Companies 215 Preparation of Cash flow statements IAS 7 requires cash flows to be classified into operating, investing, and financing activities. Example of cash flows by cate gory Operating Activities Inflows Receipts from customers Outflows Payments to suppliers Advance deposits from customers Wages and salaries to employees Income tax refunds Income tax payments Interest received on customers’ notes or Other tax payments accounts Dividends and interest received from Interest paid on bank debt or bonds outstanding and investments and included in determining net included in determining net income income Investing Activities Cash received from sale of capital assets Payments for purchase of capital assets Cash from sale of debt or equity investments Cash flows capitalized as intangible assets, such as:  · development costs  · start-up costs  · capitalized interest  · exploration Costs Collection of principal on loans to others Purchase of debt or equity securities of others Interest and dividends received on investments Loans extended to others and not included in determining net income Financing Activities Net proceed of issuing debt or equity securities Payment of principal on bonds or bank loans Cash proceeds received from ba nk loans Purchase of the entity’s own shares Interest paid on bank debt or bonds outstanding and not included in determining net income Dividends paid to shareholders Variations in Reporting activities for Cash flows A. Operating or Financing activities Transactions with different categories included in cash flows are classified in a different manner. According to IAS 7, Para 12, â€Å"A single transaction may include cash flows that are classified differently. For example, when the cash repayment of a loan includes both interest and capital the interest element may be classified as operating activities and the capital amount is classified as financing activities†. B. Operating or investing and financing activities Some cash flows may be classified as arising from any activities such as ‘interest’, ‘dividend’ ‘income tax’. The detailed provisions of these types are as follows. 216 ASA University Review, Vol. 6 No. 2, July–December, 2012 Interest: a. For a financial institution, interest paid and interest received are usually classified as operating cash flows (para 33). b. For other enterprise, interest paid and interest received may be classified as operating cash flows because they enter into the determination of net profit or loss. Alternatively, interest paid may be classified as financing cash flows, because they are costs of obtaining financial resources. Interest received may be classified as investing cash flows, because they are returns on investments (para 33). Dividend: a. For a financial institution, dividends received are usually classified as operating cash flow (Para 33). b. For other enterprise, dividends received may be classified as operating cash flows because they enter into the determination of net profit or loss. Alternatively dividend received may be classified as investing cash flows, because they are returns on investments (para 33). c. Dividend paid may be classified as financing cash flows, because they are costs of obtaining financial resources. Alternatively dividend paid may be classified as component of cash flows from operating activities in order to assist users to determine the ability of an enterprise to pay dividend out of operating cash flows (para 34). Income tax: a. Taxes on income arise on a transaction that gives to the cash flows that are classified as operating, investing, and financing activities in cash flow statement. While tax expense may be readily identifiable with investing or financing activities, the related tax cash flows are often impracticable to identify and may arise in a different period from the cash flows of the underlying transactions. Therefore taxes paid are usually classified as cash flows from operating activities. However, often it is practicable to identify the tax cash flow within individual transaction that gives rise to cash flows that are classified as investing or financing activity as appropriate. When tax cash flows are allocated over more than one class of activity, the total amount of taxes paid is disclosed (Para 36). In the light of SFAS 95, â€Å"Transaction that enter into the determination of net income† are defined as operating activities and hence, interest received or paid, dividend received and taxes on income are rigidly treated to arise from operating activities. Dividend to stakeholders are treated as cash outflows classified as financing activities (Keiso and Weygandt, 1998: 1275-76) Cash flow statement Practices in Bangladesh Regulatory Framework, in the eyes of the Companies Act 1994 (Act no. 18 of 1994): According to Section 183 of the Companies’ Act 1994 (which came into effect from 1 January 1995), a company is required to present balance sheet, profit and loss account (income and expenditure account, in case of non profit companies). Under section 185, the balance sheet and the income statement have to be prepared according to the forms set out in Part –1 and Part –2 of Schedule XI respectively under which information on consecutive two years (concerned year and Cash Flow Statement Disclosures in Pharmaceutical Companies 217 preceding year) are to be provided. However according to note (g) of the general instruction for preparation of balance sheet (given in part –1 of schedule XI after the horizontal format of the balance sheet), â€Å"a statement of change in financial position shall be included as an integral part of the financial statements, and shall be presented for each period for which the profit and loss account is prepared†. However no specific format of cash flow statement has been prescribed in Companies Act 1994. In the light of the Security and Exchange Rule 1987 (S. R. O No. 237-l/87 dated on 28 September 1987): Under the provision of rule 12 (1) of the Securities and Exchanges Rules (SER) 1987(amended by the section notification No. SEC/ Section 7/SER/03/132 dated 22 october1997 published in the official gazette on 29 December 1997), the annual report to be furnished by an issuer of listed security shall include â€Å"a balance sheet, profit and loss account, cash flow statement and notes to the accounts collectively hereinafter referred to as the financial statement’. In the part III of the Schedule of the SER 1987, issues relating to interest paid on short-term borrowing, interest and dividend received income taxes are clearly guidelined. For example, interest paid on short-term borrowing shall be a cash outflow under operating activities; ‘interest and dividend received’ shall be a cash inflow under investing activities. And ‘interest paid on long term borrowing’ and ‘dividend paid’ shall be a cash outflow under financing activities. Under paragraph 35-36, ‘taxes on income’ should be treated as operating cash outflow unless they can be identified in financing and investing activities. Findings of the study To know the extent of cash flows statement reporting practices by Pharmaceutical companies, a survey has been conducted covering twelve annual reports (2009) (For detailed the name of the companies see Appendix-1). The major findings of the study are given below in terms of general variations in reporting and voluntary disclosure. General findings It includes the current format and structure of cash flow statement and the extent of compliance of IAS-7, followed by sample Pharmaceutical Companies in Bangladesh. All the sample companies prepare cash flow statement as required by IAS-7/BAS 7 adopted by the Institute of Chartered Accountant of Bangladesh and present it as an integral part of the financial statements. Notes to cash flow statement have been presented as part of the financial statements i n case of all the sample companies.  · The sample companies prepare cash flow statement in vertical form and shows figure of cash flows of the current year and the previous year.  · All the sample companies’ cash flow statement contains a classification of operational, investing, and financing activities.  · The sample companies did not illustrate the policy dopted in determining the formulation of cash and cash equivalents although this is required by paragraph 36 of IAS 7. 218 ASA University Review, Vol. 6 No. 2, July–December, 2012 Variation in Reporting Another objective of the survey was to determine which alternatives, permitted by IAS-7, are used most in practice by Bangladeshi pharmaceutical companies. It is found that there are not many differences between companies in their reporting of cash flow information. This is expected because the preparation of cash flow statement does not allow for many choices, differences of interpretation or different accoun ting treatments. The results are set out in table 1. Table-1 Variations in reporting [Cash flow statement (CFS)] Factors 1 Notes to CFS Options Separately, following the CFS Part of the notes to the financial statements Incorporated in the CFS Total Direct method Indirect method Total Operating activities or no interest Financing Investing activities Total Financing activities or no dividends Operating activities Investing activities Total Part of accounting policy note Nothing disclosed Total Operating activities or no tax Financing activities Investing activities Total Number of companies 0 12 0 12 12 0 12 12 0 0 12 12 0 0 12 12 0 12 12 0 0 12 2 Operating activities 3 Interest received and Interest paid 4 Dividend received and Dividend paid 5 Definition of cash and cash equivalents 6 Income tax Notes to table 1  · Refer to point 2 of Table 1. According to IAS-7 and SEC Rule 1987, the enterprises are encouraged to report cash flows from operating activities using the direct method. The direct method provides information which may be useful in estimating future cash flows which is not available under the indirect method. All the sample companies followed the direct method in reporting operating cash flows. One company (Pharmaceutical Mithun Knitting Dyeing Ltd. ) discloses cash flows from operating activities under indirect method in notes of financial statements as additional information. Cash Flow Statement Disclosures in Pharmaceutical Companies  ·  · 219 Refer to points 3 4 of Table 1. All the companies studied have shown ‘interest received and paid’ under operating activities and ‘interest paid on long term borrowing’ and ‘dividend paid’ under financing activities. Refer to points 5 6 of Table 1. All the companies studied have shown â€Å"definition of cash and cash equivalents† in the notes of accounting policy and â€Å"income tax† under operating activities. Voluntary disclosure The survey also included an examination of any additional information that is disclosed regarding the company’s cash flow which is not required by IAS-7, but which may be helpful to the user. For example, separate disclosure of cash flows increases operating capacity and cash flows that maintain operating capacity, disclosure of segmental cash flows, cash flow per share etc. The survey found no company to disclose such additional voluntary information in its cash flow statement. Conclusion and Recommendation A materially misstated cash flow statement, whether it is in terms of incorrect classification in the categories or numerical accuracy, can be misleading to the user and can lead to wrong decisions taken by the users of the statement. The survey has revealed that although sample companies prepare cash flow statement according to International Accounting Standard-7 (BAS-7), there is also a degree of non-compliance. It is, however, found that there are not many differences between companies in their reporting of cash flow information. This is expected because the preparation of cash flow statement does not allow for many choices, differences of interpretation or different accounting treatments. To make cash flow statement more informative and useful for users, the companies should disclose additional voluntary information such as cash flow per share in their cash flow statements. Items consisting of cash flows from operating, investing and financing activities should also be clarified in the notes of the financial statements. Due to the limited scope of the present study, a large number of research issues have not been attempted but are identified in the course of the study. Disclosure practices of additional items other than operating, investing and financing activities, disclosure practices differences between listed and unlisted companies, disclosure practices differences between financial and other institutions are some such potential issues for future research. 220 ASA University Review, Vol. 6 No. 2, July–December, 2012 References Annual Reports of Sample Pharmaceutical Companies Listed in Dhaka Stock Exchange and Chittagong Stock Exchange 2009. Aziz Uddin, A. B. M and Bala. , S. K. ( 2001), â€Å"Cash Flow Reporting in Bangladesh†, The Cost Management, Nov- Dec. ICMAB, p. 13. FASB Discussion Memorandum (1980), Reporting Funds Flow, Liquidity and Financial Flexibility, FASB, Stanford. Thomas H. Beechy. Joan E. D. Conrod, Intermediate Accounting, second Edition, Chpter 5, Exhibit 5-1 pp. 91 Ghosh, Santi N. (2001),â€Å"Workshop Material on IAS # 7 : Cash Flow Statements† compiled under the Institute of Chartered Accountants of Bangladesh (ICAB)Project, Development of Accounting and Auditing Standards in Bangladesh, The World Bank. Government of Bangladesh (GOB) (1994), The Companies Act 1994 (Act No. 18 of 1994). Gup, B. E. Samson, W. D. 1993. An analysis of patterns from the statement of cash flows. Financial Practice Education, 3(2):73-79. Hendrickson, Eldom. S(1982), Accounting Theory, Richard D. Irwin, Inc. , Illinois, p. 236. Hertenstein, J. McKinnon, S. 1997. Solving the puzzle of the cash flow statement. Business Horizons, 40(1):69-76. International Accounting Standards Committee (IASC) (2000), International Accounting Standards 2000 International Accounting Standards Committee, London, â€Å"International Accounting Standard IAS 7 (revised 1992): Cash Flow Statements† in pp. 139165. International Federation of Accounting (IFAC) (1992), IFAC Handbook 1992: Technical Pronouncements (New York: IFAC). â€Å"IAS 7 (October 1977): Statement of Changes in Financial Position† in pp. 812- 816. Khan, M. H. Akter, M. S. Ghosh, S. K (2005), â€Å"Cash Flow Statement Disclosures: A Study of Banking Companies in Bangladesh†. Available at www. pcte. edu. in/site/OJMR/Finance/cashflow. pdf Keiso, Donald, E. and Jerry. J. Weygandt (1998), Intermediate Accounting, John Wiley Sons, Inc. New York, 9th Edition, pp. 1275-76. Lee, T. A. 1982. Cash flow accounting and the allocation problem. Journal of Business Finance Accounting, 9(3):341-352. Lee, T. A (1972), â€Å"A Case for Cash Flow Reporting†, Journal of Business Finance, Vol. 4, No. 2, pp. 27-36 as quoted in Studies of Accounting Theory, Steyn, B. W. Hamman, W. D. 2003. Cash flow reporting: are listed companies complying with AC 118? Meditari, 11:167-180. Weygandt, Kieso, Kimmel, Accounting Principles, 9th edition, John, Wilely and Sons, Inc, pp. 732-733 Wallace, R. S. O. and Choudhury, M. S. I. And Pendelbary, M. 1997), â€Å"Cash Flow Statements: An International Comparison of Regulatory Positions†, The International Journal of Accounting, Vol. 32, No, 1, pp. 1-22 Cash Flow Statement Disclosures in Pharmaceutical Companies 221 Appendix-1 List of the twelve Pharmaceutical companies studied. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Gla xcoSmithKline Bangladesh Limited (2009) The IBN SINA Pharmaceutical Industry Ltd. (2009) BEXIMCO PHARMACEUTICAL LTD. (2009) ORION INFUSION LTD. (2009) ACI Formulation Limited (2009) Ambee Pharmaceutical Limited (2009) Square Pharmaceutical Ltd. (2009) Libra Infusions Limited (2009) BEACOM Pharmaceuticals Limited (2009) Rahman Chemicals Limited (2009) Renata Limited (2009) Therapeutics (Bangladesh) Limited (2009) How to cite Aci Financial Statement, Essay examples

How Is the Child’s Exploration and Orientation free essay sample

How is the child’s exploration and orientation in his physical environment complimented by the Montessori materials and presentation? Dr. Maria Montessori’s goal of education is to develop a global vision within the children. Montessori calls the path to this perspective â€Å"Cosmic Education†, which develops in children a sense of gratitude for the universe and their lives within it. The concept of cosmic education presents a comprehensive whole picture of the world- a world in which the child sees himself as being a part. Montessori had much to say about world peace. She always says about the importance of developing an understanding of the human problem and restricting human society. She firmly believed that the way to do this was through the child, and that the work of education was to establish a lasting peace. Throughout history, humans have relied on their ingenuity and adaptability for survival. Regardless of race, country ,or culture, people follow similar patterns. After years of careful observation in children, Maria Montessori was able to identify 14 important tendencies that compel human beings to construct and refine the world around them, which she considered these as â€Å"Tendencies of man†, they are exploration, order, gregariousness, communication, abstraction, curiosity, calculation, repetition, concentration, self-control, perfection, creativity, independence and work. The Montessori prepared environment with its carefully chosen and beautifully arranged materials is build around these tendencies. Because of this, Montessori teachers do not need to force their students to; children are naturally drawn to the materials because they appeal to their instinctive drives. Today’s child unconsciously displays the same traits that early human did, and without realizing it,we often stand in the way of their exploration and manipulation because it is an inconvenience to us. When we are able to remove any hinderences to a child’s natural tendencies, the child will flourish and likely surprise us with their pursuit of knowledge, their innovative thinking, and their limitless curiosity. Children are naturally attracted to the nature. So a Montessori environment bust well prepared with natural things such as choice of plants and flowers with a small garden in the outdoor and with some pats such as rabbits, gold fish. These simple things attract the child to study about the plants and animals, to care for them and also to explore specimens found in our living world. The Montessori cultural materials were designed to allow the child to explore an abstract concept in the concrete form. Like the other areas of Montessori curriculum, the sequence of presentation begins with simple to complex and concrete to abstract. The next activity is identifying animals (more specially grouped). This activity also presented in the same way as loosely group, but each group is specifically grouped, for e. g. Birds that can fly and Bird that can’t fly. This activity leads the child further into classification by encouraging groups and also make the child aware of similarities and differences between spices. The next activity in zoology is Jigsaw puzzle of an animal. The materials for this activity are Animal puzzle and identical picture card as control card. The child is given a particular animal puzzle and she will be discussed about that animal. For e. g. Fish, at first the child will be asked â€Å"What is this animal? , What does it eat? , Where does it live? Then the teacher will point each part and asks the child, â€Å"Do you know what part is this? If the child doesn’t know she will teach the names of the parts. Then the teacher will show the child how to place the head in the picture card and she asks the child to place the rest. Then again putting back she reinforces the child by, â€Å"Would you like to put the fin first? In this manner the directress will present the activity. So while working with this material the child will get a sensorial awareness of the different parts of animals and also provide information and increase the child’s vocabulary as well. The next activity in zoology is Terminology cards (Identifying parts of the animals). The materials for this activities are a set of control cards which the parts of the body of a particular animal is highlighted in red and the names of the parts are written on them. The next setof cards are picture cards same as control cards but unnamed and the name tags. There are two cards non-highlighted pictures of a particular animal. This activity also has two presentation one for non-reading child and the other one for reading child. For the non-reading child the teacher will place the non-highlighted pictures of an animal, for e. g. Elephant the control card near the child and she will discuss about elephant. Then she will give any of the highlighted picture of an elephant say for e. g. the head and she will ask , â€Å"Do you know what part is this? If the child knows he will tell, if the child doesn’t know teacher will tell the name of the part, â€Å"Head†. Like wise the child will be discuss each part of an elephant. Then the teacher will gives the picture cards to match with the control cards. For reading child she does the same way as non-reading child, she gives the name tags and have the child read and place it under the correct card. When the child finishes she gives the control cards and ask the child to checks her work. After working with this materials the child will knows the parts of the animals, his vocabulary increase, it develop awareness of similarities and differences in animals, develop child observational and classification skills. The next activity will be Terminology cards; identifying plant parts. This activity presented in the same manner as Terminology cards; identifying animals’ body, but the pictures should be a plant picture and each part of plant is highlighted in red. This activity teach the names of the parts of the plants, it provide information about the plants, develop awareness of similarity and differences in the plants and also it develop the child’s observation and classification skills. The next activity is flower pressing. Children love flowers, so this activity provides them to work with flowers. They are encouraged to find different types of flowers and leaves and they are showed how to press them and make lovely greeting card, or a design for them to hang in their room wall. This activity prepares the child for art and also it appreciates the design in nature. The next activity in botany is first introduction to the leaf cabinet. This cabinet is same as geometrical cabinet in sensorial area, having three leaf shape drawers and the removable insets which are in green. In this activity children are encouraged to trace the shape of the leaves, there fore it create awareness of the variety of leaf shapes in the environment through visual and muscular knowledge of leaf shapes. So this activity increase the children observation skill, it help foster the child’s respect for the wide diversity of plant forms in the world and also it prepare the child for future works in botany and create interest in designs. The next activity which is an important activity which is presented to the children is the importance of the sun. Teacher talks about the children why sun is important? She tells the children it gives us heat, otherwise it will be cold, it would be difficult for us human , animals and plants to survive. She explains some other important facts about sun. Teacher shows the children how sun is important using chart, the food chain how the sun helps the plants to grow, when the plants grow only animal can eat plant and they can grow, if the animals grow only we can get food from animals, so all are dependent in the single element that is sun. The teacher must be creative and innovative to present this activity. So the children will understand how the sun is important for all living creatures. This activity prepares the child for future work in photosynthesis. The next activity which is presented to the children is growing plants. The children are shown how to grow a plant. They were asked to water the plant daily and also not to expose the pot to the sun too much which cause the plant to dry or die and also they were asked to observe the development daily. This activity teach the children to plant seeds and how to care for plants, it develop a sense of responsibility and ownership in the child and also children will have the concrete experience as to what a plant needs to grow. The last activity presented to the children is plants life stories. The pictures of life cycle of a plant are made as frieze. The picture shows the seed, sun, water and finally a plant. This will be present in the same manner as life stories of animals. By showing each picture the teacher will describe each stage, how water and sun important for the seed to grow and finally how the plant grown fully. This activity help the children to understand the life cycle of plants, to identify the sequence of growth, and also this leads the child to take care of the plants. The next subject which is presented to the children is Geography. Maria Montessori adds this subject in cultural subjects to launch the child’s exploration of the world’s physical environment. Montessori approach always introducing new ideas with concrete objects or pictures for the child to see, touch and manipulate. The first activity which is presented in Geography is Sandpaper globe. The globe which has the continents covered with sandpaper and the sea is painted in blue. The teacher brings the sandpaper globe to the table and shows the child how to feel it with her both hands and she ask the child to feel the same. Then she gives the name of land and water using three period lessons by feeling with her two fingers. So while working with the sandpaper globe initially the child learn things the shape of the world is sphere and that is made up of land and water. The next activity which is presented to the child is the coloured globe. In the coloured globe the continents painted in different colours- Europe is red, Asia is yellow, Africa is green, Australasia is brown, north America is orange, South America is pink and the Antartica is white. Teacher brings the colored globe and sandpaper lobe to the table and shows the child, the coloured globe is same as sandpaper globe. Then using the coloured globe she tells the child that the land on the colored globe is divided by colors and each colour represents masses of land and they are call as continents. While working with the colored globe, the child will become aware of the relative sizes, shapes and positions of the land masses and oceans. The next activity which is presented to the child is Jigsaw map of the world. The Montessori Jigsaw map of the world made up with 2 hemispheres, each with the continents removable as whole puzzle pieces. The colours are the same as the colored globe. It is easier for a young child to see how the world is represented on a flat map. There is a control map for the child to place the pieces on that. Directress will shows the child how to place the pieces on the control map and she invites the child to do the same. The child learns the names of the continents with the Jigsaw map of the world with the three period lessons. The next activity is continent cards. The child will further reinforce to learn the names of the continents with this activity. After learning the names of the continent the child learn about animals which live in each continent. This activity given to the child to relate animals to the continents on which they live. After learning about each continent the child will learn how they are divided into different countries which are areas of land with a name, flag and national anthem. Then the child learns various countries with the pictures from various continents. The child also has a great natural interest in others who are different from him self. The teacher will shows the child any picture of a country flag, the important places, their foods, their festivals and etc. he learns much more about the lives of others through this presentation. The next activity which is presented to the children is introduction of the three elements. The child will be discussed about the three elements and she tells the child theses three elements are very important and without any one of them, earth will not exist† so the child will be aware how important these three elements how to save them from pollution. So children have freedom to choose to their own inner needs. Repetition is necessary for them to master and perfect his skills and build his competency and knowledge. Through free choice and repletion children acquire their knowledge step by step depending on their own needs.