...COMPARATIVE ANALYSIS OF FAIR VALUE AND HISTORICAL COST ACCOUNTING ON REPORTED PROFIT: A STUDY OF SELECTED MANUFACTURING COMPANIES IN NIGERIA BESSONG, PETER KEKUNG and CHARLES, EFFIONG DEPARTMENT OF ACCOUNTING FACULTY OF MANAGEMENT SCIENCES UNIVERSITY OF CALABAR, P.M.B.1115, CALABAR, CROSS RIVER STATE, NIGERIA Tel: +234 8037079607 ABSTRACT This study aimed to critically examine the effects of fair value accounting and historical cost accounting on the reported profits. However, since the major objective of any business organization is to make profit and continue in business, what they face in the course of doing their business and the method of accounting they use in reporting their profit may make this noble objective to be unrealistic particularly during inflationary period. Data were collected from both primary and secondary sources and presented and analyzed using ordinary least square. The study revealed that both historical cost and fair-value accounting have significant effect on reported profit. Conclusively, Based on the findings of the study, it is concluded that the amount calculated as depreciation, charged as taxes and paid as dividends greatly influence the operating profit of the company. This simply means that the method of profit measurement will greatly influence the amount charged as taxes, depreciation and dividend on the profit of the company. The study recommended that companies should prepare their financial report using both historical cost and fair-value methods...
Words: 12475 - Pages: 50
...Running head: TRACING THE NATURE OF SEMANTIC CHANGE Tracing the Nature of Semantic Change Shahrin Akter 1521358655 Department of English North South University Tracing the Nature of Semantic Change Introduction Language never stands still. All living languages are continually changing over the course of time due to social, cultural, environmental, historical and linguistic factors. Semantic change is one of the major phenomenon of language change. Basically, semantic change deals with the change of the original meaning of a word as well as the development of a new word which is reflected in the way the words are being used. This paper mainly puts an insight to the major causes of semantic change as well as trace the traditional classification made by various scholars. According to Varshney, “The main factors responsible for semantic change are vagueness in meaning, loss of motivation, polysemy, ambiguous contexts and the structure of the vocabulary”. (p. 284). Over the passage of time, people use words in a new context. Hence the meanings of the words are changing gradually, often to the point that the new meaning is radically different from the original usage. For instance, the word ‘awful’ originally meant ‘awe-inspiring, filling someone with deep awe’, as...
Words: 2548 - Pages: 11
...ANALYSIS OF BIOLOGICAL ASSETS VALUATION WITH FAIR VALUE ACCOUNTING AND HISTORICAL COST ACCOUNTING METHOD IN PLANTATION SUBSECTOR OF INDONESIAN AGRICULTURAL INDUSTRY IN THE PERIOD OF 2007-2012 Karina Putri Ramadhani1 and Indra Pratama2 1 Thesis Writer, Swiss German University 2 Thesis Advisor, Swiss German University Abstract The analysis of biological assets valuation with fair value accounting and historical cost accounting method in plantation subsector of Indonesian agricultural industry, in the period of 2007-2012, tries to evaluate the relevance of historical cost towards the fair value of biological assets. It also tries to look for empirical evidence on the differences in calculations on biological assets between FVA and HCA toward company’s EBIT, net income, and potential tax liabilities. The research tests 5 companies within the plantation subsector in agricultural industry listed in Bursa Efek Indonesia (BEI). This study shows that there is a strong correlation between all variables tested. Among all statistical tests conducted, all hypotheses are rejected. This study concludes that the historical value of biological assets does not represent its real fair market value, or irrelevant. Also, the change in biological assets valuation from historical cost to fair value accounting would significantly affect the company’s EBIT, tax expense, and net income. Keywords: Fair Value, Historical Cost, Agricultural Industry, Plantation, Fair Market, EBIT, Tax Expenses, Net Income...
Words: 3520 - Pages: 15
...Adrienne Korson Marxism: For and Against Marxism is essentially a critique of Capitalism. In order to understand Marxism, one needs to evaluate the history of Marxism. Heilbroner described Marxism as being “inescapable” (Heilbroner, 15). Marxism is credited with the contribution for uncovering an unsuspected level of reality beneath the surface of capitalism. His mode of inquiry for uncovering the hidden reality of capitalism is through his own invented process of socioanalysis. Because of Marx’s legacy of revealing the reality of capitalism, Heilbroner compares him to Freud and Plato, all whose works are inescapable for the truths they have unveiled. Freud and Plato both unveiled hidden realities. Marx shared a further similarity in the sense that his “combination of insight and method permanently altered the manner in which reality would thereafter be perceived” (Heilbroner, 17). Marx’s works in his book Capital is still more relevant today than Adam Smith’s renowned work Wealth of Nations. Marx‘s book placed importance on technology and crises and social tension, and more importantly, undertakes the task of critiquing the political economy. However, the problem of Marxism is within trying to define it. Heilbroner believes that there exists a set of premises that can assist in defining Marxist thought, “so that any analysis that contains these premises can be properly classified as Marxist” (Heilbroner, 20). There are four main premises as described by Heilbroner; the...
Words: 6370 - Pages: 26
...Dancing can be defined as: a series of movements that match the speed and rhythm of a piece of music. Dancing is also a particular sequence of steps and movements constituting a particular form of movements. ------------------------------------------------- Traditional Jazz / African-American vernacular dance[edit source | editbeta] * Black Bottom * Boogie-woogie * Cabbage patch * Cakewalk * Charleston * Chicago stepping * Detroit Ballroom * Drunken Sailor * Hand Dance / Bop * Jitterbug * Jazz dance * Lindy hop * Swing * Tap dance * Texas Swingout * Texas Tommy * Ballroom * Reggae * Calypso * Zumba * Reggaeton dance * Zouk dance * Compas dance * Salsa * Salsaton dance * Soca dance * Bernie[disambiguation needed] dance ------------------------------------------------- Dancehall dance[edit source | editbeta] * Skanking ------------------------------------------------- Experimental / freestyle[edit source | editbeta] * Boogie * Jump up[disambiguation needed] * dance de Gauthier * contemporary ------------------------------------------------- Folk dance[edit source | editbeta] regional dance like in India 1.mass 2,rajastani. 3.punjabi. 4.bhangra 5.dandiya and garba ------------------------------------------------- Hip-hop dance[edit source | editbeta] * Breaking * Bounce * Crip Walk (C-Walk) * Clown Walk * Crown Walk ...
Words: 2718 - Pages: 11
...1950s, climatologists began to establish synoptic climatologies based on this idea in 1973. Based upon the Bergeron classification scheme is the Spatial Synoptic Classification system (SSC). There are six categories within the SSC scheme: Dry Polar (similar to continental polar), Dry Moderate (similar to maritime superior), Dry Tropical (similar to continental tropical), Moist Polar (similar to maritime polar), Moist Moderate (a hybrid between maritime polar and maritime tropical), and Moist Tropical (similar to maritime tropical, maritime monsoon, or maritime equatorial). Historical geography is the study of the human, physical, fictional, theoretical, and "real" geographies of the past. Historical geography studies a wide variety of issues and topics. A common theme is the study of the geographies of the past and how a place or region changes through time. Many historical geographers study geographical patterns through time, including how people...
Words: 318 - Pages: 2
...Assignment 2 1. On February 7, 2014, a subsidiary sold land to its parent for $25,000, and showed a loss of $4,000. The parent sold the land to an outside party in 2018 for $30,000. At what amount should the land be shown on the December 31, 2014 consolidated balance sheet? How much gain/loss on the sale of the land should be reported on the 2018 consolidated income statement? Prepare the working paper entry (in journal entry format) for the intercompany sale for the parent and its subsidiary for the years ended December 31, 2014, 2015, and 2018. 2014 Land $4,000 Intercompany loss on sale $4,000 2018 Loss on sale of land $4,000 Retained earnings $4,000 2. Sally Corporation (a 75%-owned subsidiary) owned a truck with an original cost of $12,000. It had been depreciated for $7,500 in the last 5 years on the straight-line method with 8 years of life and no salvage value. On January 1, 2014, Sally sold the truck to its parent, Paulson Company for $5,280. Prepare the working paper entry (in journal entry format) for the intercompany sale for Paulson Company and subsidiary for the years ended December 31, 2014 and 2015. 2014 Intercompany gain on sale of truck $780 Truck $780 Accumulated Depreciation $260 Depreciation expense...
Words: 414 - Pages: 2
...states that fair value takes over for the old, worn out system of keeping books at historical value. She talks about how using fair value makes account more reliable. Also, it was believed fair value accounting was part of the reason the stock market crashed in 1929. Another point that Karthik had was why people actually support fair value. Fair value replaced the old, worn out system of keep books at historical value. With historical value, you never really need to record anything if the price becomes cheaper. It is a way for your assets to look larger than they actually are. If you record an item at fair value, you are normally reducing that value, so you are also reducing your assets. Sometimes you must actually increase the value because you paid less for the item than it is now worth. Fair value also helps with an insurance policy. If you have something that is stolen, and you do not get a settlement from your insurance company, you record the loss at the adjusted fair value. Fair value is a more reliable form of accounting, at least according to some people. It is believed that if someone is using the real cost on the books, it’ll mean that they are more accurately reporting what they have. Others believe that historic costing is more reliable because you are accurately showing what the product WAS worth. I believe that you should always use the fair value of a product, because historical costing can be overstated. If you are going to make sure that you are accurately portraying...
Words: 662 - Pages: 3
...out the basic conflict between what we know as socialism and capitalism, doing so by first examining what he calls the “Materialist conception of history” (Engels 1939, p. 292). In his materialistic history he claims that the exchange and bartering of products, and their production is the “basis of every social order” (Engels 1939, p. 292). He states that in every society that has ever appeared in history, the distribution and production of goods and the division of society into estates and classes is “determined by what [and how it] is produced… and the exchange of [said] product.” (Engels 1939, p.292) Thus, according to Engels, the basis of our society revolves around production, and consumption, which can clearly be seen even today. Historical Materialism can then be defined as the forces of production, the exchanges of products, and the division of labor according to one’s ability to produce. However in society, often people live from the work of others often called the Bourgeoisie by Engels (p. 292), and it is because of the capitalist mode of production that such a ruling class could be created, and benefit from the work of others. It is here then that we find the fundamental contradiction in capitalism. To find this contradiction, we must look back onto a time when feudalism was the center of the economy, where small-scale production was common, and where the “instruments of labor -land…[a] workshop, tools- were the instruments of [the] labor of individuals, intended...
Words: 1389 - Pages: 6
...Worldview Analysis Essay The institution of family and marriage was at one point one of the strongest institutions between two people that existed in the world. However, due to process philosophy, we can now see that same institution is being attacked and transformed into something that God objects to. As Christians, the Bible is our way to better understand and worship God. If we explore the ESV version in Genesis 2, we see God made man and woman and said that they “shall become one flesh”. Karl Marx however, offered up a different approach. Marx was an Atheist and therefore did not believe in God or the word of God (Martin, 2006). Marx’s atheistic teachings created a succession of process philosophers that eventually brought us to our current situation. By not believing in or following God’s word or established institutions, in this case the family and marriage, humans begin to go against God and away from God. In today’s world, the news headlines are filled with results of process philosophy; homosexual “marriages” being legalized, divorce rates are sky high, domestic violence rates up above normal, etcetera. The biggest of the issues in my opinion that involves process philosophy is the national legalization of homosexual “marriages”. The phrase most frequently used is “gay marriage”. This wording however does not align within a biblical worldview because marriage is between a man and woman. “You shall not lie with a male as with a woman; it is an abomination” (Leviticus...
Words: 909 - Pages: 4
...ВЫСШЕЕ ПРОФЕССИОНАЛЬНОЕ ОБРАЗОВ АНИЕ И. В. ЗЫКОВА ПРАКТИЧЕСКИЙ КУРС АНГЛИЙСКОЙ ЛЕКСИКОЛОГИИ A PRACTICAL COURSE IN ENGLISH LEXICOLOGY Рекомендовано Учебно методическим объединением по образованию в области лингвистики Министерства образования и науки Российской Федерации в качестве учебного пособия для студентов лингвистических вузов и факультетов иностранных языков 2 е издание, исправленное УДК 802.0:801.3(075.8) ББК 81.2Англ 3 я73 З 966 Р е ц е н з е н т ы: доктор филологических наук, профессор кафедры стилистики английского языка Московского государственного лингвистического университета Е. Г. Беляевская; доцент кафедры английского языка Московского государственного лингвистического университета Т. В. Тадевосян; кандидат филологических наук, доцент кафедры английского языка Московской государственной юридической академии А. В. Дорошенко Зыкова И.В. З 966 Практический курс английской лексикологии = A Practical Course in English Lexicology : учеб. пособие для студ. лингв. вузов и фак. ин. языков / Ирина Владимировна Зыкова. — 2 е изд., испр. — М.: Издательский центр «Академия», 2007. — 288 c. ISBN 978 5 7695 4062 2 Учебное пособие охватывает всю программу курса лексикологии анг лийского языка. В нем рассматриваются важнейшие проблемы лексико логии в свете ведущих принципов современной лингвистики. Введение в теоретические проблемы курса осуществляется на фоне обобщающего описания основ лексического строя английского языка. Каждый раздел пособия снабжен вопросами...
Words: 3488 - Pages: 14
...Marxism Today Student’s Name University Affiliation Marxism Today Identify an emerging country and discuss why Marxism might be an option for the country and discuss how Tocqueville may view the country if he were to visit it today. Karl Marx is considered as the father of communism (Wright, Levine & Sober, 1992). He is an individual who has made a lot of contributions in policies of the economy as well as various writing that he has made. This has especially influenced many of the leaders in the emerging countries especially in the way that they run their economies. The main idea that was raised by Karl Marx is that of communism that is highly applied in countries such as china and Korea and has been a major contribution to the prosperity if these economies. He advocated for the unity of the workers. Emerging countries on the other hand are defined as that is on the road attaining industrialization. The theory of Karl Marx can be highly applicable to these economies to help them in the process of industrialization. The country we are going to focus on in this assignment is India. India is considered as in of the emerging economies in the world that for a very long time had practiced capitalism on a very large scale and it is recently losing the sense for the capitalism system. India has been struggling with its economy in terms of bringing about economic growth and also in the terms of providing quality standards of living for their people and this has been caused...
Words: 724 - Pages: 3
...detailed classified list which currently includes 6,809 distinct languages. Although there are many languages, these are not uniformly distributed around the world. Some places are more diverse in terms of distribution of languages. According to Stephen Anderson (YEAR) of the Linguistic Society of America (LSA), out of Ethnologue’s 6,809, for instance, only 230 are spoken in Europe, while 2,197 are spoken in Asia. Among these 2,197 languages in Asia, 171 are spoken in the Philippines. Associated with language are the different systems of writing in the past. Hieroglyphics and cuneiform are some of them. But here in our country, alibata is the primitive form of writing. It is also known as baybayin which literally means “to spell.” It is used even before the Spaniards conquered our country. There are many languages which influenced our official language in the country. Chinese, Arabic, Japanese, Malay and other South Asian languages are just some of these influences. But the two most influential are Spanish and English. Spanish was introduced to us during the Spanish occupation which lasted three hundred thirty three years. During their reign, Spanish became the language of education, trade, politics and religion and by the...
Words: 3107 - Pages: 13
...The critique should include an introduction that locates Wright in contemporary Pauline scholarship, a description (in point form) of the key issues raised by Wright, an assessment of how Wright supports his case, and – as a conclusion – whether his argument and methodology will make a difference to how you read Paul. Introduction The text What St Paul Really Said, written by NT Wright, explores Paul’s intention of writing as opposed to common understandings and interpretations. Although on a surface level Paul’s texts are sometimes thought to be easy reading, they are quite often difficult to understand at a deeper level, especially when one does not consider their cultural context. In this regard, Wright makes a clear attempt to correct many of the contradictory and misinterpreted concepts from Paul’s work. Along with other scholars such as James Dunn, NT Wright fits within a group known as the ‘New Perspective’ on Paul (Thompson 2002, p. 11) This group is known for its fresh understanding on certain aspects of Paul’s thought, particularly its views on the doctrine of justification (discussed below) and first-century Judaism, and has caused considerable controversy amongst other Christians, particularly those who hold to more tradition perspectives. However, although various authors are all termed ‘New Perspective’, there are probably as many ‘New Perspectives’ as there are group members, as each has distinctive contributions to Pauline theology (ibid., p. 12). ...
Words: 1187 - Pages: 5
...In accounting, historical cost is the original monetary value of an economic item.[1] Historical cost is based on the stable measuring unit assumption. In some circumstances, assets and liabilities may be shown at their historical cost, as if there had been no change in value since the date of acquisition. The balance sheet value of the item may therefore differ from the "true" value. While historical cost is criticised for its inaccuracy (deviation from "true" value), it remains in use in most accounting systems. Various corrections to historical cost are used, many of which require the use of management judgment and may be difficult to implement or verify. The trend in most accounting standards is a move to more accurate reflection of the fair or market value, although the historical cost principle remains in use, particularly for assets of little importance. Depreciation affects the carrying value of an asset on the balance sheet. The historical cost will equal the carrying value if there has been no change recorded in the value of the asset since acquisition. Improvements may be added to the cost basis of an asset. Historical cost does not generally reflect current market valuation. Alternative measurement bases to the historical cost measurement basis, which may be applied for some types of assets for which market values are readily available, require that the carrying value of an asset (or liability) be updated to the market price (mark-to-market valuation) or some other...
Words: 1987 - Pages: 8
