The American Life Style and fast food Essay Example for Free

The American Life Style and fast food Essay How much fast food do you guess you eat a month? The average American eats about 50lbs worth, that’s more than most children in 3rd world countries eat in total in 3 monthsWill you follow everyone else or will you stray from the beaten path, and dare to be different? Dare to be your own person? Or will you crumple from the influences and pressures of society? The truth is no matter how much you tell yourself that you are going to be independent and make your own choices and decisions regardless of what other people thing, every choice and decision you make are influenced by the people around you and the experiences you have faced. It is for this reason that accomplishing this task can be very challenging, however it is possible. And when you finally figure out who you are and what your values and morals it is believed you have finally â€Å"come of age†. A prime example of this would be in the fiction novel written by Mark Twain, the main character Huckleberry, also referred to as Huck runs away from home because the confines of society proved to be too overwhelming for Huck. On the run Huck meets a runaway slave named Jim and decides to help Jim escape with him despite the fact that he was raised and taught to be believe that slavery was a good thing and it is especially forbidden to help one to escape. It was for this reason that Huck struggles to see the blurred line between right and wrong. As Huck and Jim venture down the Mississippi River, Huck is introduced to many new experiences and is forced to make decisions that make him question his very own ideals, however it is those very own experiences and challenges that help him grow as a person and ultimately allows him to discover who he truly is as he himself comes of age. One of the many instances Huck is forced to make a difficult decision is when he encounters 3 murderers looting a shipwreck he and Jim came across while floating down the Mississippi. Huck overheard 2 of the murderers planning on stranding the other one on the wreck and taking his share of the loot, so he says â€Å"Quick, Jim, ain’t no time for fooling around and moaning;  there’s a gang of murderers in yonder, and if we don’t hunt up their boat and set her drifting down the river so these fellows can’t get away from the wreck, there’s one of’em going to be in a bad fix. But if we find their boat we can put all of’em in a bad fix† (pg.52) Huck originally plans to steal the murderer’s canoe so that none of them will be able to escape the wreck. However Huck starts to feel guilty as they start to float away from the wreck â€Å"Jim manned the oars, and we took out after our raft. Now was the first time that I begun to w orry about the men- I reckon I hadn’t had time to before. I begun to think how dreadful it was, even for murderers, to be in such a fix. I says to myself, there ain’t no telling but I might come to be a murderer myself, yet, and then how would I like it.†(pg.54) ,this is a crucial change in Huck because all his life he had wanted to be in a gang and kill people, but now that he felt he would be responsible for the murderer’s deaths he realized he was misguided and cannot handle the quilt if committing such an act. Finally Huck gives into his guilt and decides he could not live with himself if he left them there to die so he told Jim â€Å"At first light we will land and I’ll go fix up some kind of yarn and get somebody to go fetch that gang and get them out of their scrape.†(pg.55) Huck realizes that what they have done is wrong but if he had left them there he would be no better than they were. Huck learns something about himself on that wreck; he learns that the life he once wanted was not the life he was cut out for. Huck’s fight between his conscience and society greatens when he encounters a group of slave hunters. Huck feels guilty for helping Jim escape and starts to regret it, so Huck thinks things over in is head â€Å"Jim said it made him over trembly and feverish to be so close to freedom, well I can tell you it made me all trembly and feverish too, to hear that he was most free- and to blame for it? Why me! I couldn’t get that thought out of my conscience no how nor no way†(pg.66). It becomes obvious that Huck is torn between doing what is considered right and turning Jim in or what a part of him feels would be right and protect him. This conflict keeps eating away at Huck until he cannot take any more of it when he says â€Å"my conscience got to stirring me up hotter than ever†(pg.67) However the pressure of society finally get to Huck â€Å" until at last I say to it â€Å"let up on me- it ain’t too  late ill paddle ashore at first light, and te ll.† I felt easy, and happy and light as a feather; right off all my troubles was gone†. Huck convinces himself that turning in Jim is right thing to do. However as he approaches the slave hunters Huck realize he cannot do it. â€Å"What’s that yonder?† the slave hunters asked Huck. â€Å"Well there’s five niggers run off tonight, up yonder above the head of that bend. Is your man white or black?†(pg.68). Huck makes the conscious decision to lie to the slave hunters although it is not clear why â€Å"I didn’t answer up prompt I tried to, but the words wouldn’t come. I tried for a second or two, to brace up and out with it, but I warnt man- enough hadn’t the spunk of a rabbit. I see I was weakening; so I just give up trying, and up and says- â€Å"He’s white†(pg.68). Huck lies to protect Jim. Maybe he does this because he feels sympathetic for Jim and his family, or maybe Huck finally remembers that Jim has looked out for him and cared for him during their whole journey and realizes Jim is his only true friend, or it could be as simple as the fact that he made a promise to Jim not to betray him and Huck does not want to brake that promise. Whatever the reason this is a huge step for Huck when he decides not to turn Jim into the slave hunters and really allows him to slowly start to break loose from society and form his own morals. However despite Huck’s former breakthrough, Huck struggles to make peace with his conscience and the pressures of society get to him once again. To help ease himself Huck tries convince himself that it would just be for Jim if he was a slave. â€Å"Once I said to myself it would be better for Jim to be a slave at home where his family was as long as he got to be a slave and so I’d better write a letter to Tom Sawyer and tell him to tell Miss Watson where he was†(pg.160) Even though Huck is concerned that Jim might be punished for running away he still decides to write a letter hoping it will clear his conscience. Then Huck starts to think about what he’s done and what consequences he will face for his actions, â€Å"everybody naturally despises an ungrateful nigger and they’d make Jim feel it all the time and so he’d feel ornery and discouraged and then think of me! It would get all around that Huck Finn helped a nigger get his freedom and i f I was to ever see anybody from that town again id be ready to get down and lick his for shame†(pg.160), here starts to regret helping Jim escape and begins to worry  about what people will think of him when he returns home and hopes that he will be accepted into society again. With the hope that it will right the wrongs that he has done Huck decides to go on and write the letter here â€Å"I would do the right thing and the clean thing, and go and write to that niggers owner and tell where he was. I’ll go and write the letter then see if I can pray, why it was astonishing the way I felt as light as a feather right straight off and my troubles all gone, so I got a piece of paper and a pencil all glad and excited and set down and wrote. I felt all good and all washes clean of sin for the first time I had ever felt so in my life†(pg.161) This feeling of cleanliness helps assure Huck that he has done the right thing in the views of society. However Huck’s feeling of decency soon dissipates, â€Å"I happened to look around and see that paper, it was in a close place I took it in my hand, I was trembling because I got to forever betwixt two things, and I knowed it, I studied it a minute sort of holding my breath and then says to myself â₠¬Å"Alright then I’ll go to Hell† and tore it up†(pg.161) Huck finally decides he cannot bring himself to betray his only conscience and that he’d rather go to hell then do so. This is the point in Huck’s journey where he truly becomes his own person, where he breaks from the confines of society and decides to do what he in his heart feels is right not what other people think is right. This is an important decision for Huck and a crucial point in Huck’s life because growing up he was taught that slavery was a good thing and that African Americans were nothing but property as most boys were taught during that time period. However Huck discovers after meeting Jim that there is so much more to them, that they are a kind, and caring and sophisticated and loving people and that in turn helps Huck discover a little more about himself as well when he decides not to turn Jim in even though anyone else would have. Huck’s battles between his conscience and society force him to choose between being a part of society and becoming his own person, and while on his journey down the Mississippi with Jim he decides to be his own person and choose his own morals and values and by the end of his adventure he finally came of age with each experience along the way helping him grow as a person, whether it be near the beginning of the journey where he encounters a gang of murderers on a shipwreck and instead of leaving them there to die he decides to send help for them, or it be near half way through his journey where he comes  across a group of slave hunters and rather than turn Jim in, he lies to protect him even though the â€Å"right† thing to do would’ve been to turn him in. Or even near the end where he almost breaks his promise and betrays Jim when he writes a letter to Tom Sawyer telling him where Jim is, but instead of sending the letter he tears it up and decides to finish h elping Jim escape even if it means he’ll go to hell. All of these events are important in helping Huck create his own sense of right and wrong and in many ways, come of age.

My Favorite Author: Stephen King Essay -- Horror Stories Literature Au

My Favorite Author: Stephen King â€Å"It hit you like the flu or a summer cold, only it kept on getting worse, presumably until you choked to death on your own snot or until the fever burned you down. It was highly contagious.† (The Stand, 65) This quote shows what Stephen King as a writer means to me. His writing is infectious. Once I have read one of his novels, I want more. The desire to read his words gets worse the longer I wait. No, reading novels by Stephen King won’t kill a person, but â€Å"it [is] highly contagious.†As one can tell from the above excerpt, King has a way of creating an image in the reader’s mind. The image isn’t always pretty, but it is usually vivid. Although, King has never been ranked as high as Chaucer, or Shakespeare, or even C.S. Lewis, he has a way with words that makes the reader want to continue to read. King has a way to make the reader wonder, understand, and see the worlds he creates in his stories. King was the second child to bless his parents home in â€Å"Maine in 1947.†The fascination with his own childhood memories bursts through the lives of his characters as so many of his stories are set in Maine. This is not to say that he had a horrible childhood, I only mean that we all cherish our memories of our childhood and where we grew up. Perhaps this is King’s homage to his childhood home. King attended â€Å"the University of Maine at Orono† where â€Å"he wrote a weekly column for the school newspaper, The Maine Campus.†A writing career was begun. After graduating â€Å"with a Bachelor Degree of Science in English and [being] qualified to teach [at] the high school level,† he was unable to procure a teaching position and subsisted on his wife’s â€Å"student loan and savings, with an occasional... ...osition has not been easy even with the prompts provided for a theme. I am always anxious to see another King book on the shelf, but it wasn’t until now that I could appreciate the time and thought he put into each of his books. King doesn’t get the credit he deserves for being such a brilliant writer, but yet his books are always top sellers. There has to be something said in that. Write on, Stephen, write on. Bibliography King, Stephen. The Bachman Books: Four Early Novels by Stephen King. New York: NAL Books, 1977. King, Stephen. Dreamcatcher. New York: Scribner, 2001. King, Stephen. Everything’s Eventual: 14 Dark Tales. New York: Scribner, 2002. King, Stephen. The Stand: Complete and Uncut. New York, Doubleday, 1978/1990. The Man: The Official Stephen King Web Presence: Horror Books, Horror Films, Maine. http://www.stephenking.com/man.html

Ifrs 10 Application to Hyundai and Kia

————————————————- ACCT333 Advanced Financial Accounting ————————————————- Group Project Assignment (IFRS 10) Cheong Wang Shen Gordon Prepared for: Prof Bernardine Low Prepared by: Gordon Cheong Wang Shen Jason Tan Zhu En Twain Teo Wei Ren Wee Huixiang (G4) Table of Contents Question 1: IFRS 10 flowchart3 Question 25 (a) Identifying ambiguity of control5 Background5 Control issues5 Co-owning of subsidiaries5 Inter-company director relations6 Same platform manufacturing6 b) & (c) Application of IFRS 10 flowchart to determine existence of control by Hyundai7 Step 1: Determine the purpose and design of investee (Kia)7 Step 2: Determine relevant activities7 Step 3: Determination of ability to direct relevant activities8 Step 4: Determine if exposed to variable returns9 Step 5: Determine if Hyundai is a principal or an agent10 Question 310 Identification of four requirements in IFRS 10 that are challenging to interpret and apply10 Considering the purpose and design of the investee10 Determining the relative size of voting rights11Considering related parties12 Determining if investor is a principal or agent12 References14 Question 1: IFRS 10 flowchart Question 2 (a) Identifying ambiguity of control Background The Hyundai Motor Company (hereafter referred to as Hyundai) is a multinational automaker based in Seoul, South Korea. Hyundai is one of the two best-known divisions of the global conglomerate Hyundai, the other being Hyundai Heavy Industries, the largest shipbuilder globally. A famous Korean businessman, Chung Ju-yung, founded Hyundai in 1974.Following the Asian Financial Crisis in 1997, Hyundai bought over Kia Motors Corporation (hereafter referred to as Kia) in 1998, which resulted in the formation of the Hyundai Kia Automotive Group (HKAG) . It consists of multiple affiliated companies related through complex shareholding agreements, although Hyundai is taken to be the de facto representative in transactions done with HKAG. During the acquisition of Kia in 1998, Hyundai out-bidded Ford motors to acquire 51% of the company’s shareholding. After a series of divestments over the years, the total ownership of Hyundai in Kia has been reduced to only 33. 5%. Hyundai and Kia are both listed individually on the Korean Stock Exchange. In 2008, Hyundai was ranked the 8th largest automaker in the world. It was also the fastest growing automaker globally for 2 consecutive years (2010 and 2011). The chairman and CEO of Hyundai is Chung Mong-koo, one of the surviving sons of Chung Ju-yung. Control issues Hyundai currently has a 33. 75% direct shareholding in Kia, with the remaining shareholdings being presumably widely dispersed. As such, it evidently has significant influence over the operations and running of Kia’s business.However, establishing direct control between Hyundai and Kia is not as straightforward. There are a number of issues that we have to look at. Co-owning of subsidiaries Hyundai and Kia co-own a large number of subsidiaries. As evidenced by the 2010 consolidated financials of Hyundai, the global branches of the Kia Motors Group are 100% held by Hyundai through Kia themselves. Both companies also have percentage ownership in Hyundai’s various component manufacturing companies like Hyundai HYSCO Company Limited and Hyundai Powertech Company Limited.Aside from this, they also have holdings in Autoever Systems Corporation, where their main Research and Development unit is located. Inter-company director relations The current Chairman and CEO of HMC is Chung Mong-koo. He took over Hyundai in 1992 when the Hyundai Group split into its various divisions. The Hyundai group itself follows a South Korean Business form of conglomerate known as chaebol, where the unique characteri stic is that it is usually a huge family controlled corporate group.As such, it is not surprising to see that many of the third generation members of Chung Ju-yung’s family are heading many of the different divisions of the Hyundai Group. Chung Mong-koo’s only son, Chung Eui-sun was a key operating officer in various corporate planning divisions in Hyundai-Kia before eventually heading Kia as its president from 2005 to 2009. Currently, he is the vice chairman of Hyundai and is on the internal board of directors for Kia. Aside from this, Chung Mong-koo also has a 5% shareholding in Kia. Same platform manufacturingBoth Hyundai and Kia co-own manufacturing subsidiaries that produce component parts to both companies. As a result, their production facilities get the similar component parts from the same suppliers. The companies also use the same power trains (engines and transmissions) all manufactured largely from the Hyundai Powertech Company Limited. A majority of the au tomobile electronic components from both brands also come from Hyundai MOBIS Limited. Both these companies are co-owned subsidiaries of Hyundai and Kia. Both Hyundai and Kia also share design studios.In fact, the vice president of design based in HMC actually oversees the design management of both brands. The family controlled heading of both Hyundai and Kia allows us to consider the possibility of Hyundai having a controlling influence over Kia, especially with Chung Eui-sun’s dual positions on both companies’ board of directors. Furthermore, given the fact that both companies virtually sprout from the same supply chain, and control over their research and development and design of the vehicles are headed by staff based in Hyundai, we can see hat these revenue generating activities greatly affect the business operations of both companies. Even though Kia is clearly not a subsidiary at first glance, given the meagre 33. 75% ownership by Hyundai, it would appear that Hy undai may be exerting more than just significant influence over Kia through the various factors mentioned. (b) & (c) Application of IFRS 10 flowchart to determine existence of control by Hyundai Step 1: Determine the purpose and design of investee (Kia) Hyundai purchased shares in Kia for 1. 18 trillion won in November 1998.The purpose of this acquisition in Kia is for Hyundai to gain significant foothold and widen its market share in the auto industry. By taking over Kia Motor, the Hyundai-Kia group was able to forge a solid position having over 70% of domestic market share and become the 7th or 8th global automaker by combining its affiliates’ production capacity into the total volume of 2. 9 million units in 1999. Step 2: Determine relevant activities Activities| Does it significantly affect investees’ returns –> relevant activities? | Example of decisions about relevant activities| How decisions about relevant activities are made? Research and development| Y es| Reduce the number of platforms to 718 by the end of 2005, in order to save the costs of product development and manufacturing and produce a variety of car models having differing external styling and interior options for the brands of Hyundai and Kia| Decisions are made by a joint R&D Division led by the Chief Technology Officer (for Hyundai and Kia combined)| Auto-assembly| Yes| Which type of vehicle that each plant should produce? Whether Hyundai and Kia should share power-train parts (i. e. engine and transmission) to be supplied to assembly plantsWhether Hyundai and Kia should share production technology| Decisions are made by top management of the Hyundai-Kia group, where the de facto representative is Hyundai| Auto parts supply| Yes| Which vendor should supply auto parts to the companies? How many vendors should they engage? | Decisions are made by Joint Material Handling Division that Hyundai and Kia set up| Marketing and competition| Yes| Whether to focus on price or non price competition such as customer service and product quality| Decisions are made by top management of the Hyundai-Kia group|Step 3: Determination of ability to direct relevant activities Hyundai owns 33. 75% of the shares in Kia Motors. In addition, Chung Eui-sun, the son of the Hyundai Motor Group Chairman, owns another 1. 73% of the shares. This presumably gives Hyundai control of 35. 48% of Kia Motors, which is significantly less than the 50% shareholding that would give Hyundai the majority of the voting rights. However, we are unable to find any evidence that anyone has control of a large proportion of the remaining shares, and thus we feel that the assumption that the rest of the shares in Kia are highly dispersed is a reasonable one.If that is the case, then it is almost impossible that all these shareholders will collectively outvote Hyundai when a decision needs to be made, so Hyundai can be said to have power over the relevant activities. Another factor to consider is t hat Mr Chung is both the vice chairman of Hyundai and an internal director of Kia. As Mr Chung sits on Kia’s board, he should have a certain amount of influence over Kia’s decision-making process. This factor, coupled with Hyundai’s holding of voting rights, lend much weight to the claim that Hyundai can direct the relevant activities.Last but not least, we notice from the table above that the Hyundai and Kia managements jointly make most decisions regarding relevant activities. In fact, Hyundai and Kia share almost the same supply chain. Many companies in the supply chain are subsidiaries or associates co-owned by these two parents. However, because Hyundai owns a larger portion of shares, and hence voting rights, in most of these entities, Kia is understandably at risk if it goes all out to oppose Hyundai in some way or another.It can be seen that when decisions are made, Hyundai is better represented because of both the presence of its management and its voti ng rights, and Kia would tend to concede ground to Hyundai when there are disagreements. So, even though Hyundai owns less than 50% of the shareholding in Kia, they probably still have enough power to direct the relevant activities. Step 4: Determine if exposed to variable returns If Hyundai has actual control of Kia, they will be exposed to returns, which can be positive, negative or both.Also these returns must be variable rather than fixed. The returns that Hyundai is exposed to can be classified into two categories: 1) Returns not available to other interest holders. This refers to cost savings and synergies that arise from Hyundai owning Kia, which other shareholders in Kia would not be entitled to. In this case, they are mostly in the form of cost savings, due to the similar operations of the two companies. Consolidation of R&D centres of Hyundai and Kia, sharing of R&D centres allowed both companies to lower costs by reducing number of employees in the R&D centres * Products share similar core platforms leads to savings and economies of scale * Sharing of factories leads to further specialisation, for example, Kia’s Kwangju plant was designated as a specialised assembly plant for small-sized commercial vehicles for both Hyundai and Kia, leading to cost reduction * Sharing auto-part suppliers to apply greater pressure on suppliers for cost savings on supplies 2) Dividends Kia paid out 96 billion won in dividends in 2010 * Hyundai’s ownership of common stock entitles them to receive dividends from Kia. Thus, it can be seen that Hyundai meets all our requirements that would allow it to classify Kia as a subsidiary. Our last step would be to ensure that Hyundai is acting in the capacity of a principal, rather than that of an agent, which is holding delegated power. Step 5: Determine if Hyundai is a principal or an agentIn determining whether Hyundai is acting as a principal or an agent, we need to consider four factors: 1) Scope of decision ma king authority * Unable to find information proving that Hyundai has any limits to the decisions it can make for Kia * Presumably, Hyundai can make most decisions for Kia 2) Rights held by other parties * No evidence of rights held by other parties 3) Exposure to variability of returns from investees * High cost savings due to economies of scale Many of Hyundai’s subsidiaries depend on Kia for revenue * Affected by dividends paid out by Kia 4) Remuneration * Almost solely dependent on dividends, which are highly variable * No actual fixed remuneration In consideration of all the four factors, Hyundai is most likely a principal and not an agent. Hence we can reasonably conclude, after thorough application of the framework, that Kia is a subsidiary of Hyundai. Question 3Identification of four requirements in IFRS 10 that are challenging to interpret and apply Considering the purpose and design of the investee Paragraph B5 of IFRS 10 explains that â€Å"when assessing control o f an investee, an investor shall consider the purpose and design of the investee in order to identify the relevant activities, how decisions about the relevant activities are made, who has the current ability to direct those activities and who receives returns from those activities†.Paragraphs B51-B53 then goes on to explain the factors to be considered when determining the purpose and design of the investee. However, IFRS 10 does not explain how the purpose and design of the investee can be used to â€Å"identify the relevant activities, how decisions about the relevant activities are made, who has the current ability to direct those activities and who receives returns from those activities†, which paragraph B5 suggested. A simplistic scenario is given in paragraph B6, whereby the investee is controlled by means of equity investments.Beyond this straightforward case, paragraph B7 directs readers back to the factors listed in B3 to determine control (relevant activities , ability to direct relevant activities, variable returns and ability to use power over investee to affect returns). Furthermore, the factors provided in paragraphs B51-B53 are hard to determine and require much professional judgment. For instance, paragraph B51 states that in the process of assessing the purpose and design, we â€Å"evaluate whether the transaction terms and features of the involvement (at investee’s inception) provide the investor with rights that are sufficient to give it power†.No conclusive elaboration is provided by IFRS 10, and it is uncertain whether being involved in the investee’s inception signifies control. This creates much ambiguity and inconsistent interpretation across firms. Rather than making it seem like an isolated step with little purpose, IFRS 10 should provide clearer guidance for the objective of determining the purpose and design of the investee. Clearer linkages, between the consideration of purpose and design of invest ee and the other factors to be considered when determining control, could also be provided to improve the flow of IFRS 10.Furthermore, more comprehensive and conclusive guidelines could be included to standardise the interpretation of the purpose and design of the investee. Determining the relative size of voting rights According to paragraph B42, an investor can consider the size of its holding of voting rights relative to the size and dispersion of other holdings of the other vote holders to determine whether its rights are sufficient to give it power. However, because relativity encompasses the use of personal judgement, this section may be open to manipulation.In Hyundai’s case, it holds around 35% of the voting rights, including those held by its vice chairman, Chung Eui-sun. If the rest of the voting rights are very widely dispersed, with nobody else holding more than 1%, Hyundai can say that it has control because it is very improbable that all the other parties will c ome together to collectively outvote Hyundai. On the other hand, Hyundai can also claim that there is still a possibility that the other shareholders will collectively vote against Hyundai if it introduces a policy that does not benefit them, so in that case, Hyundai does not have control.We notice that the voting structure remains the same, yet different interpretations can be derived. Paragraph B42 also says that other circumstances, such as voting patterns at previous shareholders’ meetings, can be considered, but it is hard to say if the historical patterns are able to predict the future. Shareholders might not have voted in previous meetings because there were no major decisions that affected them, but if Hyundai intends to propose something revolutionary, the voting situation will definitely change.IFRS 10 can provide more detailed guidance to ensure that this section is applied appropriately and consistently. For example, when determining how widely dispersed the rest of the voting rights are, an investor should consider only the next 10 largest shareholders. If their combined holding is larger than that of the investor, then the investor does not have control based on this requirement alone. When assessing previous voting patterns, the investor should only look at shareholders’ meetings where issues of similar impact were raised.If previous meetings did not encompass such issues, then the voting patterns for those meetings cannot be considered. Considering related parties Paragraph B18 states that an investor can consider whether the investee’s key management personnel are related parties of the investor when determining if the investor has the practical ability to direct relevant activities unilaterally. However, it does not specify how much influence the related parties must have over the investee, so this may not always be a good indicator of power.For example, Hyundai’s vice chairman, Chung Eui-sun, is also on Kiaâ€℠¢s internal board of directors. According to paragraph B18, this should provide evidence that Hyundai has power over Kia. But in order to determine whether Hyundai can direct relevant activities through Chung Eui-sun, we must also consider the amount of influence that he has over Kia’s decision-making process. Kia has 9 directors on its board, of whom two are also presidents in the company, so Chung Eui-sun may not always have his way. If the investor does not take this into consideration, then the determination of control would be flawed.In that sense, this requirement would be more complete if guidance on the influence commanded by related parties was given. Instead of only determining whether there are related parties in the investee’s governing bodies, the investor should also take into account the role and power of the related parties. If the related parties have the final say when it comes to decision-making over relevant activities, then this factor can conclusi vely determine that the investor has power. But if the related parties do not have the final say, then only a minimal weight should be placed on this factor.Determining if investor is a principal or agent Being able to determine if the investor is a principal or an agent is crucial to determining whether the investor has control over the investee. A principal would have power over the investee, but an agent would only have delegated power. Delegated power is held on behalf of a third party who ultimately controls the investee. The method prescribed in IFRS 10 for determining if a decision maker is an agent is the consideration of the factors listed in paragraph B60.Upon further elaboration of the factors, IFRS 10 provides certain cases where the investee is definitely a principal or an agent. For example, paragraph B70 states that â€Å"a decision maker cannot be an agent unless the conditions set out in paragraph B69 (a) and (b) are present. † However, if none of these extre me conditions are met, we must assume that we would have to take all five conditions into account when trying to decide if the investor is an agent. However, there is no prescription in IFRS 10 about how to consider these conditions.In a situation where some of the conditions point towards the investor being an agent and some point towards them being a principal, there is a certain amount of ambiguity in whether the investor should be classified as a principal or an agent. This gives the company some leeway in choosing the decision that would reflect a better financial position of the firm. This could lead to reduced accuracy of financial statements and less comparability among financial statements of different companies.To make this requirement easier to interpret and apply, IFRS 10 should clearly state the relative importance of each factor. For example, the factors which are given a higher relative importance would have a higher influence on whether the company is a principal or an agent, as compared to those with a lower importance. As such, in ambiguous cases, companies will know which factors should be considered first. Given this, all companies will have more similar definitions of principal/agent, thereby reducing the ambiguity and increasing comparability among different financial statements.References 1) Hyundai 2010 Annual Report http://worldwide. hyundai. com/company-overview/investor-relations/financial-information-Annual-Report-view. aspx? idx=13&&nCurPage=1&ListNum=11 2) Kia 2010 Annual Report http://www. kmcir. com/eng/library/annual. asp 3) Merger and Reconfiguring of Hyundai-Kia (Byoung-Hoon Lee, Sung Jae Cho) http://gerpisa. org/rencontre/9. rencontre/S13Lee-Cho. pdf 4) HYUNDAI MOTORS’ DE-CHAEBOLIZATION EFFECTS (Hyunjoong Jun) http://gerpisa. org/rencontre/9. rencontre/S13Jun. pdf

Why Should Recommend Relocating Our Time Honored...

We, the Board of Directors of ABC, Inc., have been faced with the very troubling and difficult decision of whether to recommend relocating our time-honored corporation to China. To decide on what we believe to be the most respectable and ethical choice, we are going to focus on three main aspects of this situation: our long presence in Reading, the environmental impact, and the pros and cons of relocating to China. To start, ABC Steel, Inc. has been located and producing in Reading, Pennsylvania for 120 years. This is a long and enduring relationship that we have built with this city, but packing up our operations here would completely crush this relationship. For example, ABC Steel, Inc. has many employees that are the children of multiple generations of hard workers. We would lose all of these loyal employees. We are also the largest employer in Reading currently and with the city already being one of the poorest in the country, our relocation could eventually cause the collapse of Reading. If we were to move to China to do business, the already high poverty rate of 41.3 percent in Reading would without a doubt raise substantially. Lastly, we had to address what our relocation would do to our customers. Many of our customers do continued business with us because of our long tradition in Reading. If we are to move to China, we have to realize that this could damage this relationship. If they s ee that after 120 years of loyal service that we move our operations to China, weShow MoreRelatedProject Managment Case Studies214937 Words   |  860 Pagesauthorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 750-4470, or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, e-mail: permcoordinator@wiley.com. Limit of LiabilityDisclaimer of Warranty: While the publisher and authorRead MoreManagement Course: Mba−10 General Management215330 Words   |  862 PagesManaging Change 121 121 147 147 Text 3. Why Organizations Change Text Cohen †¢ Effective Behavior in Organizations, Seventh Edition 14. Initiating Change 174 174 Text iii Cases 221 221 225 The Consolidated Life Case: Caught Between Corporate Cultures Who’s in Charge? (The)(Jim)(Davis)(Case) Morin−Jarrell †¢ Driving Shareholder Value I. Valuation 229 229 253 279 1. The Value−Based Management Framework: An Overview 2. Why Value Value? 4. The Value Manager Harvard