World Literature Assignment

Suggestions for World Literature Assignment #2 Following is a list of possible topics for your paper; you are not limited to these, but please get approval of a different or variant topic. Assignment 2 A: Comparative Study This assignment consists of a comparative study based on one world literature work studied in Part 1, Part 3 or Part 4 of the course, and one language A1 work chosen from any part of the course. Unlike assignment 1, this assignment MUST NOT BE BASED ON TWO WL works. The world literature work chosen for this assignment must not be one previously used for assignment 1. Assignment 2B:Imaginative or Creative Assignment This assignment consists of an imaginative or creative piece of writing. It may be based on a study of one world literature work, or on a combination of a world literature work and a language A1 work chosen from any part of the course. The world literature work chosen can be a work studied in Part 1, Part 3 or Part 4 of the syllabus but must not be one previously used for assignment 1. This assignment must be preceded by a statement of intent that will be included in the total number of words. The statement of intent is an essential part of this type of assignment and allows candidates to make explicit their perception of an author’s imagination, values and techniques. Here are some suggestions: ?Comparison of critical approaches (such as Freudian and feminine) ? Interior monologue of a key character ?Monologue ?Add or insert a scene in the play. ?Focus on a minor character ?Compare minor characters in two works ?Comparison of attitudes in two works, such as acceptance of one’s approaching death ? Recurring motifs in a work ?Commentary on author’s choice of title(s) ?Social criticism ?A further passage in the style of the author Letter from a character to author, protesting some aspect of the character/play ? An editorial defending the work to a censorship committee This assignment allows candidates to: ?demonstrate the skills of imaginative or creative writing ? focus on a particular literary aspect of interest and explore this imaginatively and in a variety of ways ? show an appreciation of the cultural elements relevant to the selected aspect ? demonstrate both explicit (in the statement of intent) and implicit (in the creative piece) awareness of the imagination, techniques and values of the author(s) on whose works the assignments is based. Assignment 2C: Detailed Study Assignment 2C consists of a detailed study based on an aspect of ONE WORLD LITERATURE work studied in Part 1, Part 3 or Part 4 of the syllabus. However, this must not be a work previously used for assignment 1. The assignment could take the form of a formal essay or a commentary or analysis of a key passage. This assignment allows candidates to: ?demonstrate the skills of close reading and detailed analytical writing ? show an appreciation of the cultural elements relevant to the analysis

Managing Children’s Behaviour

When children go to preschool, they have to sit still, listen to the teacher and their classmates, understand and obey rules, and get along with others. Many of these children were unprepared to meet these new expectation when they first arrive at a preschool. These are some of the reasons for behavioural issues in preschool. Teachers who encounter these children may not have received much training in classroom management and may not know how to help them change their behaviour. Therefore, the teacher may respond with frustration and anger, inadvertently creating more problems. The teachers may in turn feel stressed and unsupported. Disruptive behaviours like hitting, complaining and disobeying will be discussed in details. Hitting Children may hit others or themselves for a variety of reasons in order to gain attention. Children get angry easily as they have a lack of self-control. Younger children in particular may sometimes have trouble communicating. This is because they may not know the words to describe how they feel or what they want, therefore they act out their feeling s or needs. Analysis of child management approach and benefits and challenges of such approach will also be discussed further. An eclectic approach is a combination of strategies and not a one size fits all approach. It has active involvement and can select the most appropriate strategy for a specific child at a specific time. Different discipline encounters will need different strategies. An eclectic approach also uses the decision-making model of child guidance. It identifies the problem and problem ownership.

TESCO Annual Report 2011 Coursework Example | Topics and Well Written Essays - 1500 words

TESCO Annual Report 2011 - Coursework Example It has particularly realized that for this relationship to materialize it has to continue to be grounded by ethical business practices. In doing so it has established a code of ethics for its staff, which basically set the standards for business behavior within it. In realization of the impossibility of covering every aspect of its activities, TESCO has instead set out principles of business ethics that have to be applied by every team member of TESCO. These sets of principles are in form of laws, policies, local customs and regulations, all of which lays down some of the crucial duties and responsibilities that have been placed on the employees, whenever they might be based. An important component of this code of ethics is the so-called â€Å"protector Line† which is basically an anonymous and confidential helpline that allow staffs to report any wrongdoing that they might encounter in course of their day to day activities from their colleagues. Code of Ethic This code of eth ics also contains modalities on how to raise queries on compliance with the code of ethics where need arises. It is this code of ethics that reinforces TESCO’s commitment in doing business in a way that make a positive contribution to each and every stakeholder in the company. TESCO has always endeavored to work within the British Code of Advertising, Sale Promotion and Direct Marketing. It’s standard contracts that include standard terms and condition guides all its business transactions with external parties like suppliers. TESCO has however faced accusation of price fixing in the past. In this regard, I am referring to the 2007 investigation by the UK Office of Fair Trading (OFT) over accusation of acting as part a cartel with a number of UK hypermarkets (Asda, Safeway, Salisbury and Morrison) in fixing butter, cheese, and milk prices, an accusation that it still rebuff even after a number of its co-accused admitted acting against consumer interests. I have heard on the news that the retail industry has been performing badly because of the ongoing global financial crisis. How serious are the elements of risk faced by Tesco Plc? Do you think the company will improve in the future? The group policy of TESCO is not to use derivatives for the trading purposes; rather some derivatives do not qualify for hedging financial risk which is brought about by global financial crisis. This is because if the hedge is designated where losses and gains on the instrument offset the overall group income. Considering TESCO group, it had a liability relating to the future purchase of minority shareholding of its subsidiary which was purchased during the year. This strategy was aimed at hedging over the risk of global financial crisis. Other than the above strategies, the company would considerable hedge against, foreign exchange risk, credit risk as well as interest rate risk. Therefore, considering the above strategies adopted by the company then it is likely to improve in the future. Do you have any insights from the financial press on this? The main aim of preparing financial statements is to inform the public about the performance of the company so that they can make appropriate investment decisions s whether to invest or not to do so based on their personal decision. The fact that the financial press published the weaknesses that firms are experiencing the global financial crisis, then this was sufficient information to be relied upon in making any decision. What sort of audit opinion

Compare and contrast Abraham as a religious figure in Judaism, Essay

Compare and contrast Abraham as a religious figure in Judaism, Christianity, and Islam How is he so And how might this build each religion - Essay Example Abraham is considered to be the first of three Biblical Patriarchs, who lived after the Flood. According to the book of Genesis, he was the first of Jews, and the founder of the Jewish people. â€Å"For Jewish commentators through the ages, the biblical story of Hagar and Sarah forces a choice between two central principles: reverence for their Jewish ancestors, through whom God creates the nation of Israel, and concern for the powerless, which is enshrined in biblical and subsequent Jewish law† (Trible, P., 2006, 102). According to Judaism Abraham is associated with opening of the idea of ​​monotheism and its development. When he was three years old, he understood that God is the creator of everything and smashed the idols of his father Terah. The "Land of Moriah" is revealed in the history of the sacrifice of Isaac and identified with the Mount Moriah in Jerusalem, where Solomon built the Temple. Therefore, it is believed that the temple was built in the place where Abraham created an altar for burning the offerings. In the Christian tradition the image of the patriarch Abraham is the prototype of the highest piety and righteousness, in both the Old and the New Testament. According to St. John, Abraham was the guardian and teacher of faith and morals of his people among the surrounding Gentiles. St. Augustine wrote about Gods promise to Abraham, the multiplication of progeny and his blessing, which refers to all mankind. The Islam religion considers that the Kaaba was built by Ibrahim (Abraham) together with his son Ishmael in Mecca, on the place, where it stood during the days of Adam. Ibrahim died in Jerusalem at the age of 175 years. Over the cave of Machpelah, where he was buried, Muslims built a mosque and protected it, as one of the holiest shrines. According to the Koran the son of Ibrahim - Ishmael was the progenitor of the Arabic people. Muslims state that Abraham was in Mecca together with

Future Of Software Engineering In The 21st Century. White Paper Essay

Future Of Software Engineering In The 21st Century. White Paper - Essay Example If that is the case than this century will be the time period the computer will grow up. So the same can be said about its heart, the software. Software engineering has only been around for a little more than forty years and definitely has some growing to accomplish. After all, those four decades have seen a â€Å"software crisis† materialize and some would say it has declined or disappeared. Yet Dianna Mullet (2007) writes that the crisis lies with the difference between software development and engineering. Developers are thought of as skilled craftsmen and normally the development cycle is a play it by ear or â€Å"ad hoc† process and new software is beset with cost and time overruns. This also results in increased maintenance and update costs. Unfortunately she also points most universities teach the â€Å"Craft mentality†. Differentially, software engineers approach the task as a scientific discipline. This is important to consider now that the software prod uced for businesses constitutes ninety per cent of all software and the average â€Å"large† software consists of over 50,000 lines of code (Ibid). The time of some teenager making workable software in his spare time (think Mark Zuckerberg) is probably all but over. So then with twelve years almost finished, where does software engineering proceed in this century? ... Ian Summerville of Lancaster University (2002) compares the work of Lord Kelvin when trying to envision the future of software engineering. What he calls the â€Å"human activity†, is that from which traditional science attains results, using standard mathematical equations to determine a practical solution, Although there has to be something of a human element in software, software engineering cannot be measured in the â€Å"normal† way, for the software as an abstract thing only supports the human activity and is not truly a physical part of the equation. That being said, a lab is not the place to conduct experiments in software engineering. True, the development process can be started in the lab but the environment where the software is actually is to be utilized is the only true place where it can be determined as to whether the new software is feasible. He also states that â€Å"There is no technical solution to software complexity†. However, Boehm brings an interesting and hopeful point that the future should hold. Currently there is no software for checking software. Perhaps in the near future even the hardware chip, in conjunction with a program, can check the code to verify its authenticity, to cut down on the astronomical maintenance costs. Summerville agrees with Mullet that finding a way for â€Å"traditional† scientists to recognize software engineering as another discipline in their field is tantamount for the process to succeed in this century. He uses a quote from Kelvin that is dated and sexist, is also relevant in the subject â€Å"Large increases in cost with questionable increases in performance can only be tolerated in race horses and women!† In other words, the accepted way of huge

Globalisation and Sovereignty Essay Example | Topics and Well Written Essays - 1250 words

Globalisation and Sovereignty - Essay Example International Relations theories apply to the concept of sovereignty and the threat implied by the globalization. Realism is one theory, which had been adopted by Bismarck and had been gaining fresh grounds in International Relationship of recent years, and has taken a new look after globalization. Even though the theory is based on international anarchy and how to control it, and how the States become the main actors in world politics, how the States, through self-helping system avoid conflicts, the main instruments of success remains the army and military might. Globalization does not agree with armed conflicts and as the world economy has global connections, if armed conflict happens in one place, rest of the world economy will be hit and so armed conflict will definitely be discouraged during globalization. But the economic might of globalization will definitely be encouraged and the States will compete and negotiate with their own interest in hearts. Founded by Thucidydes, encouraged by Michiavelli, Realism is accepted as one of the pragmatic theories of international relations. Liberalism, another important theory states that States and other international institutions are very important players in the International Relations and have to co-operate, bargain with one another and States are considered to be one player in the world politics and not many players like in Realism. Here states are not independent, but interdependent, and other key actors are the most important international organizations who have a clout all over the world. ... International Relations theories apply to the concept of sovereignty and the threat implied by the globalisation. Realism is one theory, which had been adopted by Bismarck and had been gaining fresh grounds in International Relationship of recent years, and has taken a new look after globalisation. Even though the theory is based on international anarchy and how to control it, and how the States become the main actors in world politics, how the States, through self helping system avoid conflicts, the main instruments of success remains the army and military might. Globalisation does not agree with armed conflicts and as the world economy has global connections, if armed conflict happens in one place, rest of the world economy will be hit and so armed conflict will definitely be discouraged during globalisation. But the economic might of globalisation will definitely be encouraged and the States will compete and negotiate with their own interest in hearts. Founded by Thucidydes, encouraged by Michiavelli, Realism is accepted as one of the pragmatic theories of international relations. Liberalism, another important theory states that States and other international institutions are very important players in the International Relations and have to co-operate, bargain with one another and States are considered to be one player in the world politics and not many players like in Realism. Here states are not independent, but interdependent, and other key actors are the most important international organisations who have a clout all over the world. This theory agrees with glabalisation and a certain loss of sovereignty in place of absolute freedom. The interdependence of the

The Things They Carried Research Paper Example | Topics and Well Written Essays - 1250 words

The Things They Carried - Research Paper Example Certain techniques are used by those at war in order to ensure their survival and victory. Such techniques are known as warfare. Warfare can be categorized into; warfare by objective, doctrine and terrain. War was initially one of the biggest problems facing mankind long ago, and still is. War is an act of resolving conflict by forcing the enemy to do according to the victors’ will (Simons, 23). Different forms of war require different methods of warfare. Types of warfare include; conventional warfare, which is attempting to limit an enemy’s military capability while in battle. Such is used when war is declared between states, and the use of nuclear, biological or chemical weaponry is not allowed. Unconventional warfare is whereby an opponent attempts to acquire triumph through admission of defeat or consent hold up for a side of the conflict. Nuclear warfare is the utilization of nuclear weapons in order to force the other opponents to surrender. Asymmetric warfare is whereby guerrilla tactics are used in order to defeat the enemy. These are mostly used in case where an opponent has an advantage with advanced technology in terms of weapons. Chemical warfare is whereby chemicals are used to coerce the opposition to surrender. Chemical warfare was used during WW1 (The First World War), in which there were so many casualties and numerous injured. Before soldiers go to war, they train in order to be fit and so that they can have an added advantage when in the battlefield. Certain items should be carried that should be used in the war. Items carried are influenced by the time, geographic location, climate and terrain of where the war is to take place. â€Å"The things they carried† which was written by a former soldier, Tim O’Brien, whose personal experiences in war led him to write a book about it. The soldiers in his book participated in the Vietnam War. The war lasted a time period from September 26th 1959 to April 30, 1975. Numerous things were carried by the soldiers, and many of them show the burdens that each soldier was carrying. First ‘Lieutenant Jimmy Cross’ takes letters to Martha, from Mount Sebastian College and reads them daily. Even though he is in love with her, the feeling is not mutual with her. Most individuals carry photographs, and Jimmy Cross takes two of Martha, and in one, she's playing volleyball (O'Brien, 8). What the men carry are things that they require and in this case make sense which include mosquito repellents and marijuana, certificates, pocket knives, candy, the occasional chewing gum openers, heat tabs, watches, dog tags, cigarettes, sewing kits, tablets of salt, lighter, matches, Kool-Aid and water. Things they carry depend on several factors, which included their own beliefs, traditions and priorities. Taking a look at the Henry Dobbins, the machine gunner, who is considerably large, carries extra rations considering his body size. His superstitious nature causes h im to put his mutual friend’s pantyhose around his neck. Ted Lavender, a nervous individual carries marijuana and tranquilizers which he uses to calm himself down, and then there is Kiowa, who is religious and carries an illustrated book of the New Testament that his father gave him (O'Brien, 12). Other things the men carry can be termed as universal for any form of war, which include a medical supply of compressed cotton and other medical supplies that could have given the function of a tent, groundsheet or a raincoat. They carry weapons which include the M-60, the standard

Book Review Essay Example | Topics and Well Written Essays - 1250 words - 2

Book Review - Essay Example Frustrated from being treated as losers, some students took extreme steps like injuring others and more dangerously killing fellow students and others. If we start analyzing the issue from the root cause, we can understand the reasons why children at young age or adolescents develop the tendencies like harassment, discrimination, maltreatment, singling out, humming and hounding which is nothing but bullying. It is clearly understood that bullying has many forms of intriguing aspects related to it. Boys or girls may start at a tender age but it has its own reasons for such strange behavior. The major reasons for children start bullying depends on the characters of parents and teachers etc., since these are the immediate guardians to the children, if not this parents or teachers at school whoever are close to the children with respect to time get to influence them. Human beings develop or grow by observing the surroundings and so they are called as social animals. Bullying is not what which is imbibed by birth, the situations and people around them make children harass whoever comes in contact with them. Children at young age don’t have that much understanding to differentiate between genders or elderly people, teachers, family members and friends are the easiest scapegoats. The beginning of bullying may start from people surrounding the child start interfering in their matter and trying to alter their thoughts and at the same time molding them in a way what their parent or guardians need their wards to grow. This noble effort may be a good weapon to blend their children into a multi-talent adolescent, but it may have serious consequences if the child is already preoccupied by thoughts of his own. At this time if someone tries to interfere with their thoughts and intentions, emotions that may burst paving a way of bullying whoever tries to bother them. The greatest responsibility of molding

Employee perception on suggestion scheme Essay Example for Free

Employee perception on suggestion scheme Essay Introduction:- Suggestion scheme is a formalized mechanism which encourages employees to contribute constructive ideas for improving the organisation in which they work. The overall aim is to gather, analyse and implement ideas in order to create results that have a positive impact on the business and/or deliver new value to customers. There are two approaches to the suggestion scheme * Traditional approach-which offers cash to their employees for the suggestions they provide. * Participative approach-continuous improvement in employee job profile through higher level of participation. SCREENING OF THE SUGGESTION Every suggestion is evaluated as per the criteria adaptability, creativity, originality and efforts, taken by the suggestor/employee. The amount of award is indicated with proper calculation and understanding of committee. If there is rejection then similar remark is indicated. Generally award is given when the suggestion is implemented. However if the suggestions are accepted and the course of implementation is longer, then interim award is given to the suggestor/employee to keep up his moral. In the same format other information regarding the implementing is indicated. A certificate is given to the suggestor/employee when the suggestion is accepted. This is signed by the chairman of the scheme or some top/ respectable person in the organization. In the good cultured company there is practice of giving a certificate of appreciation to the suggestor/employee even if it gets rejected. Often it carries good value to the suggestor/employee. It is more than money for some of them. Objective:- Primary objective:- * To understand employee suggestion scheme. Secondary objective:- * To analyse effective implementation of suggestions availed by employees. * To interpret initialisation in the part of management in processing the provided suggestions. * To measure employee-superior relationship and support. * To integrate creativity and constructive aptitude and attitude in non-personnel employees. * To set up a management infrastructure to generate ideas, evaluate and capture quality ideas and sustain constant flow of ideas.

Adventures Of Tom Sawyer Essay Example for Free

Adventures Of Tom Sawyer Essay I will never forget the time I spent with Tom Sawyer, Huck Finn and Joe Harper on Jackson’s Island. We have always wanted to become pirates. Now that we have found the exact opportunity – Tom being scolded by Aunt Polly and Joe Harper having been whipped by his mother for tasting sour cream – we decided that it is now time to pursue our dream to become real pirates. In that way, we will be able to live a life of freedom and fame, and the whole town will hear about our names. The people who mistreated us will also feel sorry for what they had done. Our rendezvous is Jackson’s Island, which is three miles below the town of St. Petersburg. We met there at midnight. That became the start of our lives as pirates of the sea. Personally, I loved the idea of running away from home. I never had to go to school anymore. I didn’t need to follow rules anymore. And as Tom promised often, all we will need to do is to steal, kill and get rich. So when midnight came, the four of us met at Jackson’s Island. Each of us came with something stolen. Tom brought stolen ham, Joe had a one sided bacon and Huck had a skillet and some tobacco leaves. I brought stolen matches from my mom’s drawer. I figured that if we would stay long in the Island, we would need fire for our daily needs. Tom applauded me for bringing some matches. In those days, matches are not commonly used in St. Petersburg. Very few people had them. We found a raft about a hundred yards away. So we decided to have some fun with it and as usual, Tom was the captain. He commanded our pirate ship as we all pretended to be real pirates, using terms we have heard from sailors as well as lines from books we have read. We decided to settle in a virgin forest about two hundred yards above the head of the island. There, we spread our belongings and also built a huge bonfire. We cooked our ham, bacon and corn pone by roasting them in the fire. We ate and ate until we were so full. There was nothing like it. If the other boys in the village saw us that way, they would greatly envy us without a doubt. There was nothing like a pirate’s life. After eating, we lay down on the grass and talked for a while. Tom started to tell us stories about pirates – how extravagant they are, and how rich and famous. We started to ask him many questions about becoming a pirate. He simply told us that all we had to do was steal belongings and kill other people. In the midst of the conversation, Huck Finn began to smoke tobacco! I instantly followed him with that activity and smoked tobacco as well. Tom and Joe simply looked silently at us in amazement. For a long time now, they had wanted to learn how to smoke, but never had the opportunity. Only Huck and I could smoke. After much talking, we all fell asleep one by one. That was our first night as â€Å"pirates†. Tom was the first to wake up in the morning. The first thing we did was to strip ourselves off our clothes and bathe in the sea. After that, we got ready for breakfast. Joe began to slice bacon and would have cooked it, but Tom and Huck asked him to wait. I was the one who caught a couple of sun perch and catfish! We instantly cooked those fishes along with the bacon and they tasted so good. Then after eating, we lay down on the sand for a long time. Sadness started to creep in, but nobody dared to speak about it. Nobody wants to be accused of being a chicken heart. I think Tom was starting to feel homesick too, but he didn’t want to show his feelings. Our growing homesickness was interrupted when we saw a ferry boat afar off, shooting cannon over the water. This is a sign that somebody in the village got drowned. Shooting cannons over the water made drowned people come up to the top. For a while we wondered who got drowned, and then Tom suddenly had a brilliant thought. We are the ones who got drowned! The entire village was searching for us. Our parents missed us, and the other boys surely heard about us. The girls we admired are now talking about us too! We spent the rest of the entire day swimming, talking, eating and exploring the island. When night came, everyone went to sleep. When I woke up in the morning, Joe and Huck were still sleeping. Tom, however, was nowhere to be found. I looked at the spot where he slept and found a note. I opened the note and it read like this: â€Å"If I don’t come back by breakfast time, all my things are yours.. † Upon reading this, I woke Joe and Huck and showed them the note. We waited for Tom for about an hour but he never came. Huck supposed that Tom felt homesick and went back to Aunt Polly’s house. However, Joe defended Tom and said that he knew his friend would never do such a disgrace. Tom, according to Joe, knew the code of pirates and he is too proud to quit and go home just like that. I told Joe to start cooking breakfast and if Tom never returned by the time we ate breakfast, all his things will be ours. But just before we started to eat, Tom appeared dramatically and entered the camp. He had some news for us. He had â€Å"spied† on St. Petersburg and discovered that the whole town was talking about us – the lost pirates. If our bodies were not found until Saturday, our funeral will be pronounced that very Sunday. We instantly felt like heroes. Then suddenly I had a brilliant idea. What if we could make a comeback on the day of our funeral? Tom and the other pirates liked it very much. Tom slept until noon and when afternoon came, we started to plan our appearance at our funeral on Sunday. That Sunday, while the entire town mourned for us and as the minister preached his eulogy for the â€Å"dead boys†, we were hiding in an unused gallery behind the church as we listened to everything that was happening. Suddenly, we made our appearance to the crowd. Needless to say, everybody welcomed us dramatically. Our loved ones cried with joy. We were the talk of the town for several months and I will never ever forget it. It was the best day of our lives. Part 2: The Commentary The pirate boys led by Tom Sawyer built a community that they have entirely created amongst themselves. It is a community apart from the regular life they have known at St. Petersburg. We can safely say that Tom, Joe and Huck built their pirate community based on their childhood imagination. As young people in a simple town, where modern industrialized America has not yet fully penetrated, these three boys have an inclination towards idealism. Their idea of a perfect life is total freedom. Thus, they chose to pretend as pirates and imitate the pirate’s code of conduct in order to experience the life that they have always dreamed about. To them, escaping to Jackson’s Island is more of an escape from reality. Although they have romantic idealisms as pirates in a free world, the reality remains that in the town of St. Petersburg, they are children and they are not as powerful as they suppose themselves to be. Tom Sawyer is just a kid who can get whipped by Aunt Polly any time of day. He is a student who needs to go to school and study his lessons. He is part of society. So as we have stated, going to Jackson’s Island is an escape from reality. The boys thought that they can build a community on their own – apart from society, authority and responsibility. This thought is evident in Tom’s opening thoughts in Chapter 13: â€Å"Tom’s mind was made up now. He was gloomy and desperate. He was a forsaken, friendless boy, he said; nobody loved him; when they found out what they had driven him to, perhaps they would be sorry†¦Yes, they had forced him to it at last: he would lead a life of crime. There was no choice. † (Twain, 1876). In the community that the boys built, each one played an important role. Tom was the leader because he was the one who provided the vision and insight about the life of a pirate. So in essence, he was providing direction for all of them. Almost everything they did during their getaway in the island was a product of Tom Sawyer’s imagination – based on what he read from books and his own thoughts and romantic dreams. Joe Harper, meanwhile was more of a follower. He also executes Tom’s orders. It is evident that Joe admired Tom for everything that he was. Joe once said: No, Toms true-blue, Huck, and hell come back. He wont desert. He knows that would be a disgrace to a pirate, and Toms too proud for that sort of thing. Hes up to something or other. Now I wonder what? (Twain, 1876) Huck, meanwhile, is a symbol of the free life that Tom and Joe have always longed for. Huck didn’t need to go to school. He is a waif, a vagabond and he is not part of society. The other boys envied Huck because he can smoke tobacco while most boys in St. Petersburg – even Tom and Joe – cannot do that act. Although Tom was the leader, we can say that Huck is the role model for the entire community they have built for themselves. If, for Tom and Joe, the island getaway was an escape from reality, it was a normal day for Huck. He was probably used to going to different places all by himself. The simple community of Huck Finn, Joe Harper and Tom Sawyer was similar to adult communities in that they have a single driving force – the desire to live a life of freedom. If we look at history, almost all communities started with that single driving force. In any given community, there should be a leader, a follower and a symbol of inspiration. As these traits are respectively found in each of our characters, we may say that Tom, Huck and Joe are a perfect embodiment of American idealism. Although their deeds were shown in boyish manner, they represent a greater dimension which reflects the reality of adult life. As the saying goes, â€Å"Men are simply boys who grew up†. Works Cited: Twain, Mark (1993). The Adventures Of Tom Sawyer [electronic version]. New York: Project Gutenberg Ebooks. (Original work published 1876)

Risk Management of Commercial Bank in Malaysia

Risk Management of Commercial Bank in Malaysia Introduction 1.0 Introduction According to Bank Negara Malaysia, Malaysia banking system is divided into 3 main groups which are; 1) monetary institution comprising the Central Bank (Bank Negara), commercial and Islamic financial institutions; 2) non- monetary institutions namely merchant banks, credit and insurance companies, and development banks; and 3) foreign banks representative offices and offshore banks. Prior to the 1997 financial crisis, Malaysia had thirty seven commercial banks, forty finance companies and twelve merchant banks. However, after the financial crisis 1997, most of the banks has consolidation through mergers and acquisitions to strengthening of these financial institutions has result in thirty – five licensed commercial banks, thirty – one finance banks and twelve merchant banks. As to date, there are only twenty – two licensed commercial banks and fourteen merchant banks in Malaysia. (Shanthi Kandiah, 2009) (Table 1) However, among the twenty two licensed commercial banks only nine of the commercial banks are local bank and the rest of thirteen commercial banks are foreign banks. From the nine local commercial banks out of eight banks listed in Bursa Malaysia are: Malayan Banking Berhad, Hong Long Bank Berhad, Public Bank Berhad, Affin Bank Berhad (under Affin Holding Group), Alliance Bank Berhad (under Alliance Financial Group Berhad), Ambank Berhad ( under AMMB Holding Berhad), Eon Bank Berhad (under Eon Capital Berhad) and lastly CIMB Bank Berhad. (under Bumiputra- Commerce Holdings Berhad) while Rhb Bank Berhad, is currently not listed in the Bursa Malaysia. (Table 2) Table 2: List of Local Commercial Banks in Malaysia After the financial crisis 1997, significant numbers of bank had bankrupt or were merged with other financial institutions, which proven that, the failure of bank is due to their failure in managing their liquidity risk properly. In other words, during the financial crisis a lot of banks were incapable to provided sufficient amount of money to meet the current need of their investors. As thus, banks had said as to failure to managing their risk properly because do not have enough money liquidity in banks to meet the demand of their investors. From another perspective, big bank may not always be better because increase in organisation may present more problems than it. Bank have found that to survive it is more necessary to have a leading market share in a variety of businesses rather than just having a lot of assets or a huge capital. Thus, proper management of risk related to assets and capital market among bank is crucial. If the bank was able to assess the risk at an early stage, then the bank may be able to plan for appropriate action to be taken to reduce risk before it occurred. 1.1 Risk Management in Banking Sector Driven by the increasing complexity of doing business, risk management has become an important and integral part of the company’s internal control and governance in order to achieve its plans and objectives. In other words, risk management refers to the methods and processes used by organizations to manage risks (or seize opportunities) related to the achievement of their objectives. ( Azlan Amran, Abdul Manaf Rosli Bin and Bin Che Haat Mohd Hassan, 2009) Risk management in general involves identifying; assessing, responding, prioritizing then risk followed by minimization of risk and control the probability of risk. Risk management is entering into many aspects of banking business such as increased attention and concern must be given to ensure the risk under control. Ideally, risk management in the banking sector is to reduce the risk to the minimum. For example, credit approval, the officer can reduce this risk through measure the ability to pay back by customer before approved the credit. In facing the challenge of global financial environment, banking sector is required to implement integrated risk management systems. (Rajna, 1999) They are required to identify their current risk exposure such as market risk. It is a necessary risk-reducing tool to promote long-term profitability and stability of the banks and enhance the competitive advantage of banks. If a bank has right risk management systems that can effectively capture the risk exposures, there is an opportunity for them to lower their capital charges. As a result, proper risk management practice is essential for banks to maintain competitiveness over the long run. Lastly, to manage the risk in banking sector, first the banks need to identify the risk. The risk related to banking consists of credit risk, market risk; interest rate risk, foreign risk, liquidity risk and operation risk. Risk identification is the first stage of risk management. This mean that, banks need to correctly identify the risk such as market risk of the risk expose because it helps to develop basis for next steps analysis and control of risk management. (Lubka Tchankova, 2002) 1.2 Risk Management Disclosure in Banking Sector The purpose of risk management disclosure is to allow financial analysts, shareholders, creditors, clients and any interested parties to rely on minimal standards of quality and consistency in the risk management policies of financial firms. Greater promote transparency of risk management could benefit investors. Increased transparency is considered in the numerous explanations offered in the finance literature for the willingness of firms to voluntarily disclosure complete and timely information. This is said to be benefit investors as they need comprehensive risk information if they are to completely understand the bank’s risk profile. Risk is an unavoidable element of any business venture, especially for banking sector. In addition to financial risk, a company is also susceptible to business risk or changes in the overall economic climate that can adversely affect the price of its securities. Hence, it is in the stakeholders’ best interest that risk be disclosed in a timely manner. (Azlan Amran, Abdul Manaf Rosli Bin and Bin Che Haat Mohd Hassan, 2009) Disclosure of risk management is to promote a more robust financial system. Moreover, can help to promote and maintain a sound financial system by strengthening the incentives for sound risk management within financial institutions and by improving the information which financial institutions use to make credit allocation decisions to the corporate sector. (Rajna Gibson, 1999) Normally, those banks with better disclosure will tend to attract more investor to invest, or clients more willing to place their money in the bank. Besides that, the disclosure of risk management helps to reduces information asymmetry. Investors and shareholder would be able to justify the risk position of the bank through the disclosure of respective financial information. This also can help them to justify whether the manager is acting on the interests of the company. Besides that, disclosure of risk facilitates supervision and reduces monitoring costs. Public disclosures of risk in banks annual report enable the management to foresee the potential problems; therefore can plan to reduce risk in advance, thus it save the monitoring cost indirectly. (Philip, 2005) It is argued that banks that disclose greater amounts of useful risk information would benefit from a reduction in their cost of finance as the providers of funds will be in better position to judge the bank’s risk level and this will remove the need for them to incorporate a risk premium within the cost of capital. (Linsey and Shrives, 2005) 1.3 Types of Risk in Banking Sector Risk of the banking sector can be varied and widely difference across the banking institution. Generally the risk for banks business can classified into five popular categories: credit risk, interest rate risk, foreign exchange risk, liquidity risk, and operating risk. 1. Credit risk Credit risks the most important risk categories in banking. Risk that due to the borrower unable to repay back to the banks. In order word, credit risk is the bank borrower fail to meet its obligations in accordance with agreed terms and conditions. The aim of credit risk management is to maximize a bank’s risk- adjusted rate of return by maintaining credit risk exposure within acceptable boundary. (Catherine Soke Fun Ho, 2009) Bank Negara Malaysia (2009), credit risk continues to remain the largest source of risk for banking institutions in Malaysia. This is due to the fact that a banking institution’s loan portfolio is typically the largest asset and the major source of revenue. 2. Interest rate risk Interest rate risk is one of the market risks. It is the effect of changes in market interest rate levels on the profitability of the bank. Increases in interest rates may lead to higher profits, lower profits, or no change in bank profiles. While the risk due to changes in interest rates has always been a possibility, this source of risk was not considered to be serious as long as interest rates were stable. Changes in interest rates can damage the bank’s profitability by increasing its cost of funds, lowering its returns on earning assets, and reducing the value of the owners’ investment. 3. Foreign exchange risk (Forex) Risk associate with the loss in the exchange of the currency. Foreign exchange risk is the loss being incurred because of being party to a foreign currency transaction or holding a foreign currency changes. For extreme cases, it may involve blocking of convertibility. 4. Liquidity risk Liquidity, or the ability to fund increases in assets and meet obligations as they come due, is crucial to the ongoing viability of any banking organization. Therefore, managing liquidity is among the most important activities conducted by banks. Sound liquidity management can reduce the probability of serious problems. Indeed, the importance of liquidity transcends the individual bank, since a liquidity shortfall at a single institution can have system-wide repercussions. (Basel, Feb 2000) 5. Operating risk This is refers to the risk of losses or unexpected expenses associated with fraud, check kiting, and litigation. According to Bank Negara 2009, large corporate experience of the failures due to fraud and lapses in internal controls has focused greater attention on improving operational risk management in banking institutions. 1.4 Problem Statements Driven by increase competitive in business environment today, risk management is required to be disclosed in financial statements of the companies in complying with FRS 132. However, there is an issue where a lot of companies are not willing to disclose additional voluntary information in the financial statements. As they worry valuable information is available to their rivals and creates competitive disadvantages. Radiah Otman (2009), firm may not like to disclose extensive information that might have future repercussions for their bare existence due to sensitivity of such information. This is one of the problem which investors or others interested parties do not have extensive information to evaluate banks financial performance. Apart from it, he also said that interest rate disclosure was favored as compared to credit risk among the market risks categories. 1.5 Research Question The purpose of this study is to determine the extent to which commercial banks are providing risk management disclosure (qualitative information) suggested under FRS 132. Thus, the specific research questions are: Research question 1: Which type of risk more likely to be disclosed by commercial banks in Malaysia? Research question 2: Do commercial banks provided additional voluntary disclosure? Research question 3: Do the commercial banks in Malaysia disclose financial risk management objectives and policies? 1.5 Objective of the Study The general objective of this study is to examine whether the commercial bank in Malaysia complying with the general risk management guideline that provide by the FRS 132. However, the objective is broken down as below; a) To examine which type of risks are more likely to disclosed by the commercial banks in Malaysia. b) To make the comparison among commercial banks to the extent of the information disclosed in the financial statement. Whether information disclosed is voluntary information or mandatory information. c) To examine whether the commercial banks in Malaysia disclosure financial risk management objectives and policies. d) To examine whether the commercial banks in Malaysia comply with Financial Reporting Standards in Malaysian. 1.6 Conclusion After the financial crisis 1997 and also Enron scandals, it is increased need for the demand of more risk management disclosure. Risk management plays an important role in the global financial sector. Banking sector is inherently involved in risks and these risks need to be managed. Inherent risks are the risk that due by economic environment. Bank is highly exposed to this risk, as so the effective risk management is crucial. It is important for banks to release risk information to the marketplace that enables stakeholders to assess its risk profile. Disclosure of risk in financial statement able to help investors have a better understanding on how firm value is affect by risk exposure, this also can help to reduce information asymmetry between banks, investors and other stakeholders. One of the major problems here is that some companies are not willing to disclose more extensive information in their annual reports as they worry that the information is quantifiable to their competitors. Besides that, when the cost of disclosure is higher than the benefit, they will choose not to disclose the risk information. Thus, this study is to undertake which type of risk is most likely to be disclosed by commercial banks in Malaysia and examine whether the information disclosed is moderately or voluntary disclosed additional information. This study also evaluates the level of compliance among banks in Malaysia, and whether the banks disclosed financial risk management objectives and policies. 2.0 Introduction Prior to British colonial in Malaysia, accounting in Malaysia more emphasis on the recognize expenditure and revenue rather than recognize income. As after the British colonial and the accounting development and structure change over time there is increasing important for the issue such as recognition, measurement, and accountability. However, the accountants prepare the accounting reports is more emphasis on the shareholder needs. This mean they tend to alter the reports to the amount of income at which their shareholder desired in order to attract more investors. Therefore, sometime the annual reports do not actually reflect the fact of the financial position of the company. As for this reason, accounting standards play important roles to ensure that the annual report of the company is complying with the standard that are required. Companies registered in Malaysia must comply with the Company Act 1965. The Act prescribes the preparation of general purpose financial reports by certain categories of companies, and this preparation is subject to regulations from several sources. The provision of information is essential for decision maker such as investors, creditors and interested parties. However, there is a need for regulations and monitoring to ensure that the information provided to such users is reliable and unbiased. As for financial institution in Malaysia the key players in the financial reporting environment consist of Companies Commission of Malaysia; Central Bank; Securities Commission, and Malaysia Accounting Standards board (MASB). 2.1.0 Companies Commission of Malaysia All companies that incorporated under Company Act 1965 are regulated by Companies Commission of Malaysia. The Act requires certain companies, such as public listed companies or private limited companies, to prepare financial statements in accordance with approved accounting standards. Among other functions, CCM monitors compliance with accounting standards and the Company Act 1965. This involves investigating companies that do not comply with accounting standards. The function CCM includes: * enhancement and promotion of the supply of business and corporate information; * acting as agent of the Government and providing services in collecting and enforcing payment of prescribed fees; * regulating matters relating to corporations, companies and business. * encouraging and promoting proper conduct amongst directors, secretaries and other officers of a corporation The Companies Commission has played an active role in the accounting profession and the Malaysian Accounting Standards Board (MASB). Coordinated efforts are undertaken by the profession together with the Companies Commission and the MASB to identify issues that impact the financial and reporting environment. 2.1.1 Central Bank Bank Negara Malaysia is the central bank of Malaysia. The main objectives are to issue currency and maintain reserves in order to safeguard the value of the currency; Act as a banker and financial adviser to the Government; promote monetary stability and a sound financial structure; and influence the credit situation to the advantage of the country. Apart from that, Bank Negara Malaysia also responsible for regulates and supervise the financial system in Malaysia. 2. 1.2 Banking and Financial Institutions Act 1989 (BAFIA) Banking and Financial Institutions Act 1989 (BAFIA) is one of the legislations to regulate and supervise the financial system. The objective of the Banking Financial Institutions Act, 1989 (BAFIA) is to provide new laws for the licensing and regulation of the institutions carrying on banking, finance company, merchant banking, discount house and money-broking business, for the regulation of institutions carrying on certain other financial businesses, and for the matters incidental thereto or connected therewith. BAFIA was introduced to provide for an integrated supervision of the Malaysian financial system and also to provide the Central Bank with the power to speedily investigate and prosecute, if necessary any illegal activities in an attempt o reduce white-collar crime. 2.1.3 Securities Commission (SC) Securities commission was set up under the Securities Commission Act 1993. The function of the Securities Commission is to promote a strong and healthy securities market and to maintain the confidence of investors in line with the provisions of the Securities Commission Act and the Securities Industries Act 1983. SC also regulates the corporate sector, particularly the listed companies. Company that listed in bursa Malaysia required filing detailed annual reports with the Commission. The period of the financial report date and the issue date must not exceed six months. The annual reports must be audited. The public companies are required to maintain a high standard of financial disclosure in order to provide the public with the information that is necessary to make informed investment decisions. The SC played a significant role in the establishment of the Financial Reporting Act 1997 and continues to be involved in the Malaysia Accounting Standards Board (MASB). The function of the SC included: * supervising exchanges, clearing houses and central depositories; * regulating all matters relating to securities and future contracts, unit trust schemes, take- over and mergers of companies; * encouraging self – regulation; * approving authority for corporate bond issues; * licensing and supervising all licensed persons; * ensuring proper conduct of market institutions and licensed persons. The SC has since 1996 embarked on three phase shift towards a Disclosure Based Regulation (DBR). With effect from 2001, it has embarked on a full DBR focus with requirements of high standards of disclosure, due diligence and corporate governance. Disclosure is crucial to investors who wish to invest or who have invested in securities sp that their investment decision process can be facilitated. Due diligence is a process undertaken by companies in disclosing information, to ensure that all information disclosure in full, timely and accurate. Corporate governance is the process and structure used to direct and manage the business and the affairs of the company towards enhancing business prosperity and corporate accountability with the ultimate objective of realizing long- term shareholder value, whilst taking into account the interests of other stakeholders. 2.1.4 Malaysia Accounting Standards Board (MASB) The Financial Reporting Act 1997 establishes the Financial Reporting Foundation (FRF) and the Malaysian Accounting Standards Board (MASB). The main functions of the FRF are to provide the financing arrangements for the operations of the MASB, and review the MASB performance. MASB is an independent authority to develop and issue accounting and financial reporting standards in Malaysia. The main functions of the MASB are to: * issue new accounting standards as approved accounting standards; * review, revise or adopt as approved accounting standards existing accounting standards; * issue statements of principles for financial reporting; * sponsor or undertake development of possible accounting standards; * conduct such public consultation as may be necessary in order to determine the contents of accounting concepts, principles and standards; * develop conceptual framework for the purpose of evaluating proposed accounting standards; * make such changes to the form and content of proposed accounting standards as it considers necessary. The MASB together with the Financial Reporting Foundation (FRF) make up the framework for financial reporting in Malaysia. 2.2.0 FRS132 Disclosure Requirements In Malaysia, Bank Negara Malaysia’s and Financial Reporting Standards’ requirements act as quality control measures for bank to comply in respect of their disclosure contents of their risk in the annual report. FRS 132 (IAS 32) Financial Instruments – Disclosure and Presentation shall apply for annual periods beginning on or after 1January 2006. FRS 132 should be read in the context of its objective and the Basis for Conclusions, the Framework for the Preparation and Presentation of Financial Statements. In this study, FRS will take as the guideline to examine the level of compliance among banks in Malaysia to the extent of risk information disclosed. According to paragraph 56 of FRS132 Financial Instruments – Disclosure and Presentation, there is a specific requirement that an entity shall describe its financial risk management objectives and policies, including its policy for hedging each main type of forecast transaction for which hedge accounting is used. Similarly paragraph 58 of FRS132 Financial Instrument specifies that an entity shall disclose a description of hedge; nature of risk being hedged, and a description of the financial instruments designated as hedging instruments and their fair values at the balance sheet date. For each type of market risk such as interest rate risk, an entity shall disclose information about its exposure to interest rate risk, including effective interest rates and maturity dates (or contractual re-pricing). On the other hand, for credit risk an entity shall disclose the amount that best represents its maximum credit risk exposure as at balance sheet date, without taking into account of the fair value of any collateral, in the event of other parties failing to perform their obligations under financial instruments, and significant concentration of credit risk. 2.2.1 Foreign Exchange Risk Disclosure Format When hedging instruments held or issued by an entity, either individually or as a class, creates a potentially significant exposure to the foreign exchange, commodity and interest rate risks. Their terms and conditions that warrant disclosure are: the principal, stated face value, for derivative such as IRS, forwards and future contracts; date of maturity, early settlement option held by either party to the instrument, including the period in which, or date at which, the options can be exercised and the conversion or exchange ratio. 2.2.2 Interest Rate Risk Disclosure Format The carrying amount of financial instruments exposed to interest rate risk may be presented in tabular form, grouped by those that are contracted to mature or be re-priced in the following periods after the balance sheet date. It can be one year or less; in more than one year but not more than two years; in more than two years but not more than three years; in more than three years but not more than four years; in more than fours but not more than five years; and more than five years. Interest rate information may be disclosed for individual instruments, or weighted average rates or a range of rates may be presented for each class of financial instrument. 2.2.3 Credit risk Disclosure Format The disclosure of the financial assets exposed to credit risk shall include the carrying amount of the assets in the balance sheet, net of any provisions for loss. For example, in the case of an IRS carried at fair value, the maximum exposure to loss at the balance sheet date is normally the carrying amount because it represents the cost, at current market rates, of replacing the swap in the event of default. Besides that, a financial asset subject to legally enforceable right of set-off against a financial liability shall be disclosed. It is intriguing to learn that even though MASB advise companies to disclose liquidity risk but no format has been suggested to date. 2. 3.0 Definition of commercial banks In the early days, commercial banks were commonly known as exchange banks because their business was concentrated mainly in the financing of external trade. This involved primary transactions in foreign exchange, such as remitting and receiving funds to and from abroad, and trading in commercial bills, including the short- term financing of foreign trade. Commercial banks are defined as â€Å"any person who carries on bank business†, under the Banking Act, 1973. Banking business means the business of receiving money on current or deposit account, paying and collecting checks drawn by or paid by customers, and making advances to customers, and include such other business as the Central Bank, with the approval of the Finance Minister, may prescribe. However, definition under the Banking and Finance Institution Act, 1989 (BAFIA) is almost the same as the definition under Banking Act, 1973 in which a bank can be defined as â€Å"individual or organizations† whom operates the business of banking such as receiving deposits for current account, saving account, making payment and receiving customers’ checks and other financing. Today, all the operations in the banking industry are governed by BAFIA, 1989. It is developed to replace the Finance Company Act, 1969 as well as the Banking Act, 1973. The introduction of the BAFIA is intended to provide an integrated supervision of the Malaysian financial system and to modernize and streamline the laws relating to banking and banking institutions. 2.2.1 History of Commercial Banks Commercial banks worldwide are mostly owned by private sectors. They are formed as a business organization with the objective to make profits. In their early establishment in Malaysia, commercial banks have played an important role in the transaction and development in the industry of commerce. The business was mainly focused in financing the overseas business transactions such as foreign exchange (in term of sending and receiving money to and from other countries) and also financing in the short- term markets. The main focus on external transaction was due to the development of economy sector especially in the import and export. Moreover, the business operations at that time were run by the branches with the supervision of their head office in overseas. The first bank branch in Malaysia was Charted Mechantile Bank, in 1959. The bank’s head office was initially in India, and then shifted to London and lastly China. Later, when the economy has developed drastically, there were more foreign bank branches. Today, the traditional practice of the banking industry in Malaysia has progressed. An important feature in the development of banking is the growing of locally incorporated foreign and domestic banks. BAFIA came into force on October 1, 1989 the domestic bank were required to formally exchange their licenses for new ones issued under BAFIA. The foreign banks, however, were given a time period of five years (up to October, 1994) to exchange their licenses in view of the provision requiring them to incorporate locally. The growth of locally incorporated banks marked a significant change in commercial banking in the country which prior to the 1970’s was dominated by foreign banks. As at the end of 1959, there were then only 8 domestic as compared to 18 foreign banks. After 1982, foreign banks had been restricted from opening new branches in Malaysia in line with the policy to encourage the growth and development of domestic banks, particularly the expansion of the branch network into the rural areas. As at December 1996, there are a total of 37 commercial banks with a total branch network of 15 Risk Management of Commercial Bank in Malaysia Risk Management of Commercial Bank in Malaysia Introduction 1.0 Introduction According to Bank Negara Malaysia, Malaysia banking system is divided into 3 main groups which are; 1) monetary institution comprising the Central Bank (Bank Negara), commercial and Islamic financial institutions; 2) non- monetary institutions namely merchant banks, credit and insurance companies, and development banks; and 3) foreign banks representative offices and offshore banks. Prior to the 1997 financial crisis, Malaysia had thirty seven commercial banks, forty finance companies and twelve merchant banks. However, after the financial crisis 1997, most of the banks has consolidation through mergers and acquisitions to strengthening of these financial institutions has result in thirty – five licensed commercial banks, thirty – one finance banks and twelve merchant banks. As to date, there are only twenty – two licensed commercial banks and fourteen merchant banks in Malaysia. (Shanthi Kandiah, 2009) (Table 1) However, among the twenty two licensed commercial banks only nine of the commercial banks are local bank and the rest of thirteen commercial banks are foreign banks. From the nine local commercial banks out of eight banks listed in Bursa Malaysia are: Malayan Banking Berhad, Hong Long Bank Berhad, Public Bank Berhad, Affin Bank Berhad (under Affin Holding Group), Alliance Bank Berhad (under Alliance Financial Group Berhad), Ambank Berhad ( under AMMB Holding Berhad), Eon Bank Berhad (under Eon Capital Berhad) and lastly CIMB Bank Berhad. (under Bumiputra- Commerce Holdings Berhad) while Rhb Bank Berhad, is currently not listed in the Bursa Malaysia. (Table 2) Table 2: List of Local Commercial Banks in Malaysia After the financial crisis 1997, significant numbers of bank had bankrupt or were merged with other financial institutions, which proven that, the failure of bank is due to their failure in managing their liquidity risk properly. In other words, during the financial crisis a lot of banks were incapable to provided sufficient amount of money to meet the current need of their investors. As thus, banks had said as to failure to managing their risk properly because do not have enough money liquidity in banks to meet the demand of their investors. From another perspective, big bank may not always be better because increase in organisation may present more problems than it. Bank have found that to survive it is more necessary to have a leading market share in a variety of businesses rather than just having a lot of assets or a huge capital. Thus, proper management of risk related to assets and capital market among bank is crucial. If the bank was able to assess the risk at an early stage, then the bank may be able to plan for appropriate action to be taken to reduce risk before it occurred. 1.1 Risk Management in Banking Sector Driven by the increasing complexity of doing business, risk management has become an important and integral part of the company’s internal control and governance in order to achieve its plans and objectives. In other words, risk management refers to the methods and processes used by organizations to manage risks (or seize opportunities) related to the achievement of their objectives. ( Azlan Amran, Abdul Manaf Rosli Bin and Bin Che Haat Mohd Hassan, 2009) Risk management in general involves identifying; assessing, responding, prioritizing then risk followed by minimization of risk and control the probability of risk. Risk management is entering into many aspects of banking business such as increased attention and concern must be given to ensure the risk under control. Ideally, risk management in the banking sector is to reduce the risk to the minimum. For example, credit approval, the officer can reduce this risk through measure the ability to pay back by customer before approved the credit. In facing the challenge of global financial environment, banking sector is required to implement integrated risk management systems. (Rajna, 1999) They are required to identify their current risk exposure such as market risk. It is a necessary risk-reducing tool to promote long-term profitability and stability of the banks and enhance the competitive advantage of banks. If a bank has right risk management systems that can effectively capture the risk exposures, there is an opportunity for them to lower their capital charges. As a result, proper risk management practice is essential for banks to maintain competitiveness over the long run. Lastly, to manage the risk in banking sector, first the banks need to identify the risk. The risk related to banking consists of credit risk, market risk; interest rate risk, foreign risk, liquidity risk and operation risk. Risk identification is the first stage of risk management. This mean that, banks need to correctly identify the risk such as market risk of the risk expose because it helps to develop basis for next steps analysis and control of risk management. (Lubka Tchankova, 2002) 1.2 Risk Management Disclosure in Banking Sector The purpose of risk management disclosure is to allow financial analysts, shareholders, creditors, clients and any interested parties to rely on minimal standards of quality and consistency in the risk management policies of financial firms. Greater promote transparency of risk management could benefit investors. Increased transparency is considered in the numerous explanations offered in the finance literature for the willingness of firms to voluntarily disclosure complete and timely information. This is said to be benefit investors as they need comprehensive risk information if they are to completely understand the bank’s risk profile. Risk is an unavoidable element of any business venture, especially for banking sector. In addition to financial risk, a company is also susceptible to business risk or changes in the overall economic climate that can adversely affect the price of its securities. Hence, it is in the stakeholders’ best interest that risk be disclosed in a timely manner. (Azlan Amran, Abdul Manaf Rosli Bin and Bin Che Haat Mohd Hassan, 2009) Disclosure of risk management is to promote a more robust financial system. Moreover, can help to promote and maintain a sound financial system by strengthening the incentives for sound risk management within financial institutions and by improving the information which financial institutions use to make credit allocation decisions to the corporate sector. (Rajna Gibson, 1999) Normally, those banks with better disclosure will tend to attract more investor to invest, or clients more willing to place their money in the bank. Besides that, the disclosure of risk management helps to reduces information asymmetry. Investors and shareholder would be able to justify the risk position of the bank through the disclosure of respective financial information. This also can help them to justify whether the manager is acting on the interests of the company. Besides that, disclosure of risk facilitates supervision and reduces monitoring costs. Public disclosures of risk in banks annual report enable the management to foresee the potential problems; therefore can plan to reduce risk in advance, thus it save the monitoring cost indirectly. (Philip, 2005) It is argued that banks that disclose greater amounts of useful risk information would benefit from a reduction in their cost of finance as the providers of funds will be in better position to judge the bank’s risk level and this will remove the need for them to incorporate a risk premium within the cost of capital. (Linsey and Shrives, 2005) 1.3 Types of Risk in Banking Sector Risk of the banking sector can be varied and widely difference across the banking institution. Generally the risk for banks business can classified into five popular categories: credit risk, interest rate risk, foreign exchange risk, liquidity risk, and operating risk. 1. Credit risk Credit risks the most important risk categories in banking. Risk that due to the borrower unable to repay back to the banks. In order word, credit risk is the bank borrower fail to meet its obligations in accordance with agreed terms and conditions. The aim of credit risk management is to maximize a bank’s risk- adjusted rate of return by maintaining credit risk exposure within acceptable boundary. (Catherine Soke Fun Ho, 2009) Bank Negara Malaysia (2009), credit risk continues to remain the largest source of risk for banking institutions in Malaysia. This is due to the fact that a banking institution’s loan portfolio is typically the largest asset and the major source of revenue. 2. Interest rate risk Interest rate risk is one of the market risks. It is the effect of changes in market interest rate levels on the profitability of the bank. Increases in interest rates may lead to higher profits, lower profits, or no change in bank profiles. While the risk due to changes in interest rates has always been a possibility, this source of risk was not considered to be serious as long as interest rates were stable. Changes in interest rates can damage the bank’s profitability by increasing its cost of funds, lowering its returns on earning assets, and reducing the value of the owners’ investment. 3. Foreign exchange risk (Forex) Risk associate with the loss in the exchange of the currency. Foreign exchange risk is the loss being incurred because of being party to a foreign currency transaction or holding a foreign currency changes. For extreme cases, it may involve blocking of convertibility. 4. Liquidity risk Liquidity, or the ability to fund increases in assets and meet obligations as they come due, is crucial to the ongoing viability of any banking organization. Therefore, managing liquidity is among the most important activities conducted by banks. Sound liquidity management can reduce the probability of serious problems. Indeed, the importance of liquidity transcends the individual bank, since a liquidity shortfall at a single institution can have system-wide repercussions. (Basel, Feb 2000) 5. Operating risk This is refers to the risk of losses or unexpected expenses associated with fraud, check kiting, and litigation. According to Bank Negara 2009, large corporate experience of the failures due to fraud and lapses in internal controls has focused greater attention on improving operational risk management in banking institutions. 1.4 Problem Statements Driven by increase competitive in business environment today, risk management is required to be disclosed in financial statements of the companies in complying with FRS 132. However, there is an issue where a lot of companies are not willing to disclose additional voluntary information in the financial statements. As they worry valuable information is available to their rivals and creates competitive disadvantages. Radiah Otman (2009), firm may not like to disclose extensive information that might have future repercussions for their bare existence due to sensitivity of such information. This is one of the problem which investors or others interested parties do not have extensive information to evaluate banks financial performance. Apart from it, he also said that interest rate disclosure was favored as compared to credit risk among the market risks categories. 1.5 Research Question The purpose of this study is to determine the extent to which commercial banks are providing risk management disclosure (qualitative information) suggested under FRS 132. Thus, the specific research questions are: Research question 1: Which type of risk more likely to be disclosed by commercial banks in Malaysia? Research question 2: Do commercial banks provided additional voluntary disclosure? Research question 3: Do the commercial banks in Malaysia disclose financial risk management objectives and policies? 1.5 Objective of the Study The general objective of this study is to examine whether the commercial bank in Malaysia complying with the general risk management guideline that provide by the FRS 132. However, the objective is broken down as below; a) To examine which type of risks are more likely to disclosed by the commercial banks in Malaysia. b) To make the comparison among commercial banks to the extent of the information disclosed in the financial statement. Whether information disclosed is voluntary information or mandatory information. c) To examine whether the commercial banks in Malaysia disclosure financial risk management objectives and policies. d) To examine whether the commercial banks in Malaysia comply with Financial Reporting Standards in Malaysian. 1.6 Conclusion After the financial crisis 1997 and also Enron scandals, it is increased need for the demand of more risk management disclosure. Risk management plays an important role in the global financial sector. Banking sector is inherently involved in risks and these risks need to be managed. Inherent risks are the risk that due by economic environment. Bank is highly exposed to this risk, as so the effective risk management is crucial. It is important for banks to release risk information to the marketplace that enables stakeholders to assess its risk profile. Disclosure of risk in financial statement able to help investors have a better understanding on how firm value is affect by risk exposure, this also can help to reduce information asymmetry between banks, investors and other stakeholders. One of the major problems here is that some companies are not willing to disclose more extensive information in their annual reports as they worry that the information is quantifiable to their competitors. Besides that, when the cost of disclosure is higher than the benefit, they will choose not to disclose the risk information. Thus, this study is to undertake which type of risk is most likely to be disclosed by commercial banks in Malaysia and examine whether the information disclosed is moderately or voluntary disclosed additional information. This study also evaluates the level of compliance among banks in Malaysia, and whether the banks disclosed financial risk management objectives and policies. 2.0 Introduction Prior to British colonial in Malaysia, accounting in Malaysia more emphasis on the recognize expenditure and revenue rather than recognize income. As after the British colonial and the accounting development and structure change over time there is increasing important for the issue such as recognition, measurement, and accountability. However, the accountants prepare the accounting reports is more emphasis on the shareholder needs. This mean they tend to alter the reports to the amount of income at which their shareholder desired in order to attract more investors. Therefore, sometime the annual reports do not actually reflect the fact of the financial position of the company. As for this reason, accounting standards play important roles to ensure that the annual report of the company is complying with the standard that are required. Companies registered in Malaysia must comply with the Company Act 1965. The Act prescribes the preparation of general purpose financial reports by certain categories of companies, and this preparation is subject to regulations from several sources. The provision of information is essential for decision maker such as investors, creditors and interested parties. However, there is a need for regulations and monitoring to ensure that the information provided to such users is reliable and unbiased. As for financial institution in Malaysia the key players in the financial reporting environment consist of Companies Commission of Malaysia; Central Bank; Securities Commission, and Malaysia Accounting Standards board (MASB). 2.1.0 Companies Commission of Malaysia All companies that incorporated under Company Act 1965 are regulated by Companies Commission of Malaysia. The Act requires certain companies, such as public listed companies or private limited companies, to prepare financial statements in accordance with approved accounting standards. Among other functions, CCM monitors compliance with accounting standards and the Company Act 1965. This involves investigating companies that do not comply with accounting standards. The function CCM includes: * enhancement and promotion of the supply of business and corporate information; * acting as agent of the Government and providing services in collecting and enforcing payment of prescribed fees; * regulating matters relating to corporations, companies and business. * encouraging and promoting proper conduct amongst directors, secretaries and other officers of a corporation The Companies Commission has played an active role in the accounting profession and the Malaysian Accounting Standards Board (MASB). Coordinated efforts are undertaken by the profession together with the Companies Commission and the MASB to identify issues that impact the financial and reporting environment. 2.1.1 Central Bank Bank Negara Malaysia is the central bank of Malaysia. The main objectives are to issue currency and maintain reserves in order to safeguard the value of the currency; Act as a banker and financial adviser to the Government; promote monetary stability and a sound financial structure; and influence the credit situation to the advantage of the country. Apart from that, Bank Negara Malaysia also responsible for regulates and supervise the financial system in Malaysia. 2. 1.2 Banking and Financial Institutions Act 1989 (BAFIA) Banking and Financial Institutions Act 1989 (BAFIA) is one of the legislations to regulate and supervise the financial system. The objective of the Banking Financial Institutions Act, 1989 (BAFIA) is to provide new laws for the licensing and regulation of the institutions carrying on banking, finance company, merchant banking, discount house and money-broking business, for the regulation of institutions carrying on certain other financial businesses, and for the matters incidental thereto or connected therewith. BAFIA was introduced to provide for an integrated supervision of the Malaysian financial system and also to provide the Central Bank with the power to speedily investigate and prosecute, if necessary any illegal activities in an attempt o reduce white-collar crime. 2.1.3 Securities Commission (SC) Securities commission was set up under the Securities Commission Act 1993. The function of the Securities Commission is to promote a strong and healthy securities market and to maintain the confidence of investors in line with the provisions of the Securities Commission Act and the Securities Industries Act 1983. SC also regulates the corporate sector, particularly the listed companies. Company that listed in bursa Malaysia required filing detailed annual reports with the Commission. The period of the financial report date and the issue date must not exceed six months. The annual reports must be audited. The public companies are required to maintain a high standard of financial disclosure in order to provide the public with the information that is necessary to make informed investment decisions. The SC played a significant role in the establishment of the Financial Reporting Act 1997 and continues to be involved in the Malaysia Accounting Standards Board (MASB). The function of the SC included: * supervising exchanges, clearing houses and central depositories; * regulating all matters relating to securities and future contracts, unit trust schemes, take- over and mergers of companies; * encouraging self – regulation; * approving authority for corporate bond issues; * licensing and supervising all licensed persons; * ensuring proper conduct of market institutions and licensed persons. The SC has since 1996 embarked on three phase shift towards a Disclosure Based Regulation (DBR). With effect from 2001, it has embarked on a full DBR focus with requirements of high standards of disclosure, due diligence and corporate governance. Disclosure is crucial to investors who wish to invest or who have invested in securities sp that their investment decision process can be facilitated. Due diligence is a process undertaken by companies in disclosing information, to ensure that all information disclosure in full, timely and accurate. Corporate governance is the process and structure used to direct and manage the business and the affairs of the company towards enhancing business prosperity and corporate accountability with the ultimate objective of realizing long- term shareholder value, whilst taking into account the interests of other stakeholders. 2.1.4 Malaysia Accounting Standards Board (MASB) The Financial Reporting Act 1997 establishes the Financial Reporting Foundation (FRF) and the Malaysian Accounting Standards Board (MASB). The main functions of the FRF are to provide the financing arrangements for the operations of the MASB, and review the MASB performance. MASB is an independent authority to develop and issue accounting and financial reporting standards in Malaysia. The main functions of the MASB are to: * issue new accounting standards as approved accounting standards; * review, revise or adopt as approved accounting standards existing accounting standards; * issue statements of principles for financial reporting; * sponsor or undertake development of possible accounting standards; * conduct such public consultation as may be necessary in order to determine the contents of accounting concepts, principles and standards; * develop conceptual framework for the purpose of evaluating proposed accounting standards; * make such changes to the form and content of proposed accounting standards as it considers necessary. The MASB together with the Financial Reporting Foundation (FRF) make up the framework for financial reporting in Malaysia. 2.2.0 FRS132 Disclosure Requirements In Malaysia, Bank Negara Malaysia’s and Financial Reporting Standards’ requirements act as quality control measures for bank to comply in respect of their disclosure contents of their risk in the annual report. FRS 132 (IAS 32) Financial Instruments – Disclosure and Presentation shall apply for annual periods beginning on or after 1January 2006. FRS 132 should be read in the context of its objective and the Basis for Conclusions, the Framework for the Preparation and Presentation of Financial Statements. In this study, FRS will take as the guideline to examine the level of compliance among banks in Malaysia to the extent of risk information disclosed. According to paragraph 56 of FRS132 Financial Instruments – Disclosure and Presentation, there is a specific requirement that an entity shall describe its financial risk management objectives and policies, including its policy for hedging each main type of forecast transaction for which hedge accounting is used. Similarly paragraph 58 of FRS132 Financial Instrument specifies that an entity shall disclose a description of hedge; nature of risk being hedged, and a description of the financial instruments designated as hedging instruments and their fair values at the balance sheet date. For each type of market risk such as interest rate risk, an entity shall disclose information about its exposure to interest rate risk, including effective interest rates and maturity dates (or contractual re-pricing). On the other hand, for credit risk an entity shall disclose the amount that best represents its maximum credit risk exposure as at balance sheet date, without taking into account of the fair value of any collateral, in the event of other parties failing to perform their obligations under financial instruments, and significant concentration of credit risk. 2.2.1 Foreign Exchange Risk Disclosure Format When hedging instruments held or issued by an entity, either individually or as a class, creates a potentially significant exposure to the foreign exchange, commodity and interest rate risks. Their terms and conditions that warrant disclosure are: the principal, stated face value, for derivative such as IRS, forwards and future contracts; date of maturity, early settlement option held by either party to the instrument, including the period in which, or date at which, the options can be exercised and the conversion or exchange ratio. 2.2.2 Interest Rate Risk Disclosure Format The carrying amount of financial instruments exposed to interest rate risk may be presented in tabular form, grouped by those that are contracted to mature or be re-priced in the following periods after the balance sheet date. It can be one year or less; in more than one year but not more than two years; in more than two years but not more than three years; in more than three years but not more than four years; in more than fours but not more than five years; and more than five years. Interest rate information may be disclosed for individual instruments, or weighted average rates or a range of rates may be presented for each class of financial instrument. 2.2.3 Credit risk Disclosure Format The disclosure of the financial assets exposed to credit risk shall include the carrying amount of the assets in the balance sheet, net of any provisions for loss. For example, in the case of an IRS carried at fair value, the maximum exposure to loss at the balance sheet date is normally the carrying amount because it represents the cost, at current market rates, of replacing the swap in the event of default. Besides that, a financial asset subject to legally enforceable right of set-off against a financial liability shall be disclosed. It is intriguing to learn that even though MASB advise companies to disclose liquidity risk but no format has been suggested to date. 2. 3.0 Definition of commercial banks In the early days, commercial banks were commonly known as exchange banks because their business was concentrated mainly in the financing of external trade. This involved primary transactions in foreign exchange, such as remitting and receiving funds to and from abroad, and trading in commercial bills, including the short- term financing of foreign trade. Commercial banks are defined as â€Å"any person who carries on bank business†, under the Banking Act, 1973. Banking business means the business of receiving money on current or deposit account, paying and collecting checks drawn by or paid by customers, and making advances to customers, and include such other business as the Central Bank, with the approval of the Finance Minister, may prescribe. However, definition under the Banking and Finance Institution Act, 1989 (BAFIA) is almost the same as the definition under Banking Act, 1973 in which a bank can be defined as â€Å"individual or organizations† whom operates the business of banking such as receiving deposits for current account, saving account, making payment and receiving customers’ checks and other financing. Today, all the operations in the banking industry are governed by BAFIA, 1989. It is developed to replace the Finance Company Act, 1969 as well as the Banking Act, 1973. The introduction of the BAFIA is intended to provide an integrated supervision of the Malaysian financial system and to modernize and streamline the laws relating to banking and banking institutions. 2.2.1 History of Commercial Banks Commercial banks worldwide are mostly owned by private sectors. They are formed as a business organization with the objective to make profits. In their early establishment in Malaysia, commercial banks have played an important role in the transaction and development in the industry of commerce. The business was mainly focused in financing the overseas business transactions such as foreign exchange (in term of sending and receiving money to and from other countries) and also financing in the short- term markets. The main focus on external transaction was due to the development of economy sector especially in the import and export. Moreover, the business operations at that time were run by the branches with the supervision of their head office in overseas. The first bank branch in Malaysia was Charted Mechantile Bank, in 1959. The bank’s head office was initially in India, and then shifted to London and lastly China. Later, when the economy has developed drastically, there were more foreign bank branches. Today, the traditional practice of the banking industry in Malaysia has progressed. An important feature in the development of banking is the growing of locally incorporated foreign and domestic banks. BAFIA came into force on October 1, 1989 the domestic bank were required to formally exchange their licenses for new ones issued under BAFIA. The foreign banks, however, were given a time period of five years (up to October, 1994) to exchange their licenses in view of the provision requiring them to incorporate locally. The growth of locally incorporated banks marked a significant change in commercial banking in the country which prior to the 1970’s was dominated by foreign banks. As at the end of 1959, there were then only 8 domestic as compared to 18 foreign banks. After 1982, foreign banks had been restricted from opening new branches in Malaysia in line with the policy to encourage the growth and development of domestic banks, particularly the expansion of the branch network into the rural areas. As at December 1996, there are a total of 37 commercial banks with a total branch network of 15

Neurology and Neurosurgery Essay -- Medical Brain Health Essays

Neurology and Neurosurgery Neurology Overview Although our primary interest is with the Medial Temporal Lobe, also called the V5 area, a discussion of the entire motion perception pathway is instructive. Motion perception actually begins with the specialized visual receptors in the retina known as M-cells (from the Latin word magnus, for large). As the name implies, the M-cells are relatively large, located in the peripheral retina, and respond quickly to transient visual stimulation making them ideally suited for motion detection. By contrast, P-cells are smaller, located in the fovea, react more slowly to stimuli, and are suited to fine-detail vision. Impulses from the retina then travel via the optic nerve to the optic chiasm where fibers of the optic nerve from the inner (nasal) half of each retina cross while those from the outside (temporal) half of each retina stay on the same side. This partial crossing is a feature of mammals, whereas for most vertebrates below mammals, all the fibers cross. It must be pointed out that no motion processing is actually done in the optic chiasm. About 20% of the axons leaving the optic chiasm go to the Superior Colliculus, which is responsible for certain eye movements and spatial localization. The remaining 80% of the axons go to the Lateral Geniculate Nucleus, LGN (Schiffman, 2000, p. 71-73). The LGN represents the next motion processing step after the M-cells in the retina. The Magnocellular Division of the LGN specifically processes the impulses from the M- cells in the retina and is uniquely suited to distinguishing small contrasts between light and dark areas thereby enhancing three-dimensionality and motion ef... ..., J. W. (2004). Biological Psychology (8th ed.). Belmont, CA: Thompson-Wadsworth. Naikar, N. (1996). Perception of apparent motion of colored stimuli after commissurotomy. Neuropsychologia, 34(11),1041- 1049. Nawrot, M., Rizzo, M., Rockland, K.S., Howard, M. (2000). A transient deficit of motion perception. Vision Research, (40),3435-3446. Schiffman, H.R. (2000). Sensation and Perception (5th ed.). New York: John Wiley & Sons. Ulbert, I., Karmos, G., Heit, G., & Halgren, E. (2001). Early discrimination of coherent versus incoherent motion by multiunit and synaptic activity in human putative MT+. Human Brain Mapping, 13(4),226-238. Vaina, L.M., Cowey, A., LeMay, M., Bienfang, D.C., & Kikinis, R. (2002). Visual deficits in a patient with kaleidoscopic disintegration of the visual world. European Journal of Neurology, (9),463-477.

The Behavior of Cult Leaders and Members Explained by using Psychologic

This essay will examine and describe the behavior of cult leaders and cult members by using and applying psychological principles. I will specifically highlight the behavior of Jim Jones and his followers and explain what factors that caused them to believe wholeheartedly in the doctrine of Jim Jones. I will also explain what psychological tactics were used to influence his believers to be participants in mass suicide and the psychological factors that contributed to the belief that this was their only option. What is a cult? According to (Pratkanis & Aronson, 2001,p.307) the term cult is used to described to describe a pattern of social relations within a group† and that cults can be â€Å"centered on a range of issues, including race, politics, therapy, self-help as well as spirituality and religion.† Another distinctive feature of cults or new religious moments are that they have â€Å"distinctive religious rituals and beliefs related to its god or a person, they also practice isolation from the surrounding culture and have a charismatic leader† (Myers, 2011, p.197). Cults are by no means new phenomena; they have been around since before the beginning of written history. Some of the earliest cults were recorded by the ancient Mesopotamian, Greek and Egyptian civilizations. There were also early Christian cults, such as the Essenes and the Gnostics. There are also the examples of modern cults, such as The Children of God, Heaven’s Gate and the Branch Davidians. In addition to cults, there are also modern new age organizations and movements. These groups tread a fine line between being an authentic religious organization and have some of the same characteristics of being a cult. In these types of organizations; it is often di... ...al psychological principals for his own purposes. I firmly believe that in the very end Jones used the power of informational social influence to gain obedience and conformity. This was the decisive factor that caused his followers to drink the cyanide laced Kool- aide and commit what Jones called a â€Å"revolutionary suicide.† Works Cited The Ford Foundation. (96-10). PBS,The American Experience . Jonestown the Life and Death of Peoples Temple. Retrieved 4/6/2012, from http://www.pbs.org/wgbh/americanexperience/features/general-article/jonestown-california/. Myers, D. G. (2002). Exploring psychology (5th ed.). New York, NY: Worth Myers, D. G. (2012). Exploring social psychology (6th ed.). New York, NY: McGraw-Hill. Pratkanis, A. (2002). Age of propaganda: the everyday use and abuse of persuasion. New York: W.H. Freeman.

Historical cost accounting Essay

Advantages †¢Historical cost accounts are straightforward to produce †¢Historical cost accounts do not record gains until they are realized †¢Historical cost accounts are still used in most accounting systems Disadvantages †¢Historical cost accounts give no indication of current values of the assets of a business †¢Historical cost accounts do not record the opportunity costs of the use of older assets, particularly property which may be recorded at a value based on costs incurred many years ago †¢Historical cost accounts do not measure the loss of value of monetary assets as a result of inflation. Current purchasing power accounting Advantages †¢CPP method adopts the same unit of measurement by taking into account the price changes. †¢Under CPP method, historical accounts continue to be maintained. CPP statements are prepared on supplementary basis. †¢ CPP method facilitates the calculation of gain or loss in purchasing power due to the holding of monetary items. †¢CPP method uses common purchasing power as measuring unit. So, the comparative study is easy. †¢ CPP method provides reliable financial information for taking management decision to formulate plans and policies. †¢CPP method ensures keeping intact the purchasing power of capital contributed by shareholders. So, this method is of great importance from the point of view of the shareholders. Disadvantages †¢CPP method considers only the changes in general purchasing power. It does not consider the changes in the value of individual items. †¢CPP method is based on statistical index number which cannot be used in an individual firm. †¢ It is very difficult to choose a suitable price index. †¢CPP method fails to remove all the defects of historical cost accounting system. †¢The use of general price index for CPP method is questioned. While general price index deals with consumer goods, business is interested in the price movement of producer goods. Current cost accounting Advantages †¢More relevant †¢Provides up to date information with financial markets †¢Takes inflationary adjustments into account. â€Å"Critics have argued market value(current cost) reveals economic realities that are hidden by historical cost accounting. †¢Investors and creditors also prefer the market value accounting. â€Å"the information about the market value at the reporting date, the changes in that value and the components of that change- all provide the investors the valuable information for his decision making.† †¢In F/S, easier to view and determine whether the asset or liability is at risk or not Disadvantages †¢Unreliable   Ã¢â‚¬ ¢Volatile, when market price of an asset and liability is not available, the value is estimated (inappropriate) Continuously contemporary accounting Strengths †¢CoCoA provides information about an entity’s capacity to adapt. Chambers considers such information crucial for effective decision making †¢It solves the ‘additivity’ problem-there is a common basis of valuation (net-market values) so it makes logical sense to add the various asset values together. †¢There is no need for arbitrary cost allocations through depreciation. Weaknesses †¢Not all assets will have a readily determined market price-hence a deal of subjectively will be involved. †¢Some assets can generate income within a particular entity, but have little or no value to anybody else (for example, the case of the blast furnace). The ‘value in use’ of such assets is ignored. †¢It values assets on the basis of the separate disposal of the respective assets. The implication of this is that assets which cannot be separately sold are deemed to have no value-for example, goodwill. This attribute of CoCoA has attracted a great deal of criticism. †¢CoCoA has never had widespread acceptance within the business community and hence there would be numerous obstacles to its implementation. †¢Because CoCoA would represent a radical departure from current methods of accounting, its adoption could cause major social and economic implications. †¢People are used to preparing and reading historical cost accounting reports, hence there would be a need to re-educate them about the strengths and limitations of CoCoA-this might be costly. †¢If an entity does not expect to sell an asset, it is questionable whether the selling price is really that relevant. †¢Tied to the above point, valuing all assets on the basis of selling prices has been criticised if it is considered that the entity is a going concern. †¢Determining the market price of unique assets introduces a degree of subjectivity into the accounting process.