Money Laundering Control in Nigeria

Money Laundering Control in Nigeria Money laundering INTRODUCTION This dissertation makes a contribution to the worrying issues of money laundering in Nigeria and the control mechanism within the economy. Money laundering is a global problem which warranted a declaration by the United Nations. The declaration strongly condemns money laundering because it aids the use of financial systems for illicit drug trafficking and other serious crimes such as terrorism. For example the work of Okogbule on (Official corruption and the dynamics of money laundering in Nigeria 2007), and the work Chukwumerie on (Nigerias Money Laundering (prohibition) Act, 2004: A tighter noose, 2004), and the work of Chibuike (Ethics in Nigerian Banking, 2004), all these scholars did not give a look at the banking sector in regard to money laundering compliance and if Nigeria, is really regulating according to international practicing. Therefore, that gives the researcher more effort in looking inwards to the banks, since that is where large transaction takes place. THE OVERVIEW OF MONEY LAUNDERING The research project is on Money laundering Control in Nigeria, and how it has been a very serious problem in that country especially in recent times during the civilian administration, (Chukwuemerie, 2006). But it is not only Nigeria, which its affecting, it is a menace in the whole world that even requested the United Nations making a declaration strongly condemning laundering of money through the illicit drug trafficking and other serious crime, as well as the use of the financial systems of the states for that purpose, (UN Resolution S- 20/4 D) Evidence from around the world proves this view. According to Walker, (1999), around $2.85bn is been laundered yearly around the globe. Again, for example the United Kingdom Government recently issue a cheque of One hundred and fifty thousand (150,000) pounds to the Attorney General of Nigeria, as part of the proceeds laundered by a former Governor in Nigeria (Joshua Dariye), also a cheque for $2 million belonging to former governor of Bayelsa State, Chief Diepreye Alamieyeseigha, was also returned to Nigeria by the British government and promised to returned the sum of Fourty Million (40,000,000) pounds recovered from some Nigerian Government Officials; (Oyedele, 2008) THE INTERNATIONAL FIGHT AGAINST MONEY LAUNDERING Money laundering has been a global problem since the beginning of the 20th century. Uche (2007) relate that there were 12 multilateral drug treaties between 1912 and 1972. These treaties helped in regulating the manufacturing and trading of drugs worldwide (United Nations, 1987). For instance, Nadelemann (1988) reports the United Nations adoption of the ideals of Vienna Convention on illicit traffic of narcotic drugs and psychotropic substances. The convention emphasises on tracking down the wealth of money launderers. Article 5(2) of the Vienna convention provides that each party must enact domestic laws to enable it to identify, trace, seize, freeze, and forfeit all manner of profit derived from or used in Money laundering offences. Further all member nations are required to assist other member within their territory in the fight against money laundering offences; (Article 5(4b)). In 1990, the Council of Europe convention on Laundering, search, seizure and confiscation of the proceeds from crime was adopted. And one of the notable differences is that it goes beyond drug related crimes. The wolfsberg, this are group of eleven banks that came together to fight money laundering. The group was formed in the year 2000, at Chateau Wolfsberg in north east of Switzerland; the group released their anti money laundering principles to their correspondence banks, all in order to fight money laundering. The Financial Action Task Force (FATF) is an inter-governmental body whose purpose is the development and promotion ofnational and international policies to combat money laundering and terrorist financing.The FATF is therefore a policy-making body created in 1989that works to generate the necessary political will to bring aboutlegislative and regulatory reforms in these areas. The FATF has published 40+9Recommendations in order to meet this objective. For example, the case of former Nigerian Head of State (Gen. Sani Abacha), $675.2m; 75.3m GBP; were all recovered by the government of Nigeria, with the assistance of the other countries were the money was laundered; (Shehu, 2004). MONEY LAUNDERING IN NIGERIA Okogbule (2007) argue that money laundering was relatively unknown in Nigeria up to the mid 1980s. Further, he relate that it is now being used as a means of corruption in every segment of Nigerian society. For this reason, the military government enacted a decree (which decree and when was it enacted) . Thereafter, the civilian administration that came in 1999 repealed the decree and came up with the Money Laundering (Prohibition) Act of 2004 which gave birth to the Economic and Financial Crimes Commission (EFCC). Pursuant to the Act, the commission is empowered to investigate and prosecute any person or corporate body who commit any act of money laundering. For instance, a former governor in Nigeria was charged with money laundering offence for bringing into the United Kingdom the sum of 3.2 Million Dollars in 2005 (Guardian Newspaper, 2005). Reiterating the laundering issue, the Chairman of Economic and Financial Crimes Commission (EFCC), Mrs. Farida Waziri mentioned that the Nigerian government lost over 285 Billion Naira in 10 years. These tend support the argument that there is a regulation gap in the regulation of money laundering in Nigeria. It is in context that this research intends to look at money laundering regulations in Nigeria, so as to contribute towards developing the country. THE SCOPE OF THE STUDY The scope of the study will focus on the effectiveness money laundering regulation in the Nigerian Banking sector, and whether the Nigerian authorities have anything to learn from, how Money laundering is dealt with in the world (International Standard)? AIMS OF THE STUDY The main focus of the dissertation is to find out the effectiveness of money-laundering regulations in regards to banks in Nigerian, and compare it with the international standard? The extent of money laundering in Nigeria The effectiveness of money laundering regulations in Nigeria The international standard on Money laundering Control What lessons Nigeria can learn from that Chapter Two: LITERATURE REVIEW CONCEPT OF MONEY LAUNDERING Money laundering can generally be defined as the process of converting or transferring Criminal proceeds with the intention of disguising their illicit origin (UN, 2000: Art. 3(a)(i)). The extent of the problem becomes clear, considering that, in 1996, the International Monetary Fund (IMF) estimated the money laundering business at around 2-5 per cent of the worlds gross domestic product (Camdessus, 1998), which amounts to up to US$1.5 trillion (Financial Action Task Force FATF, 2007). Moreover, it is claimed that the money laundering business is the third biggest industry worldwide following the international oil trade and foreign exchange (Preller, 2007, pp 234). In one of the definitions it says conversion transfer of any property, knowing such property is gotten from drug related offense or even acting in the scheme to conceal the true information of the origin of such property in order to protect such person from facing the legal consequences of his/her action. FATF organization defines money laundering as a concise the processing of criminal proceeds to disguise their illegal origin in order to legitimize the ill gotten gain of crime. Law Dictionary (1990) refers to it as an investment or other transfer of money flowing from racketeering, drug transactions, and other illegal sources into legitimate channels so that its original source cannot be traced. Money laundering has been defined as a way funds obtained from illegal sources, and put into an account that cannot be traced for possible action; Okogbule, (2007). It has also been described as the processing of funds derived from illegal or illegitimate sources, through legal financial channels with a view to legitimizing and concealing or disguising the source of such funds (Osinbajo and Ajayi, 1991, Okogbule, 2007). THE EXTENT OF MONEY LAUNDERING IN NIGERIA Money laundering was not a prominent crime in Nigeria until the late 1980s, during the period of an oil boom with a tremendous increase in the level of revenue and commercial activities in the country (Okogbule, 2007, pp 52). Therefore, the issue of money laundering in Nigeria it is now through the official corruption, which has been exploited by public officers in Nigeria, who incorporate companies and use as a conduit pipe by awarding some phoney contracts and lodge the money through the companies bank accounts, both in Nigeria and abroad, several millions or even billions of naira are transferred from the government treasuries (Okogbule 2007). The former Chairman of the Economic and Financial Crimes Commission (Nuhu Ribadu), told the BBC in 2006, that $380bn had been stolen or wasted in Nigeria since independence. That $140m had been recovered from one unnamed former Nigerian leader and that nearly $400m of illegally gained assets had been identified in the possession of a former governor of Bayelsa State. Last year, Nigeria recovered $458m found in Swiss bank accounts linked to the countrys late military ruler Sani Abacha. Mr Abacha was in power from 1993 to 1998 and is thought to have embezzled billions of dollars. Last year his son, Abba Sani Abacha, was charged with money laundering and fraud after being extradited to Switzerland. According to Chukwuemerie, (2006), rate of financial crimes in Nigeria project a bad image abroad. And how Nigerians are been treated with disdain in the foreign land, again he talks about the crimes related to opening of account by customers, because in Nigeria, before the Money laundering prohibition act 2004, anyone can go and open account without a proper identification. However, the main issue is corruption that wears many faces, which are nepotism, bribery, treasury looting, and inflation contract prices, money laundering and advance fee frauds and most of these crimes are destroying the economy of the country; (Ajayi and Ososami, 2007). The case of former Head of Sate Gen. Sani Abacha, he was accused with his cronies of embezzling over $5bn and which out of the money $2.3bn were stolen direct from the government treasury and the remaining were received as a bribes for contracts. The money was laundered in various foreign bank accounts in UK, USA, Switzerland, Luxembourg, Hong Kong; (Ige, 2002, Shehu, 2004). Investigation by the UK financial services authority (FSA), the London Metropolitan Police confirmed that over $1.3bn of Abacha money passed through London; (Chamberlin, 2002, Shehu, 2004, pp). Furthermore, according to a study conducted by the Nigerian Trade and Investment Center in UK, shows that about two million Nigerians living in United Kingdom have investments worth almost Ninety four Billion (94bn GBP) pounds. And out of these amounts of money 84bn is in real estate, 7bn in vehicles, while the remaining 3bn is in stocks and shares; (Adesina and Madunagu, 2004, Malgwi, 2004). Malgwi, (2004), in his paper gives an example of former Head of State Late Gen. Sani Abacha, fakes daughter who duped an American the sum of Seven Million ($7) dollars, with the pretence that her late father left the sum of $100m in the central bank of Nigeria, and the account is coded. Therefore, she need his assistance with some money to bribe the officials of the apex bank to get the money out and he will get thirty (30%) percent of the money. Quite recently, a serving chief of staff to the governor of Rivers State (Ezebunwo Nyeson Wike), was caught by the Economic and financial Crimes Commission (EFCC), laundering the sum of N4.670 Billion (Four Billion, Six Hundred and Seventy Million Naira), which the commission believes was public money that was diverted into his personal account (Babafemi, 2009). He has since been charged by a court to explain the sources of the money. This is the problem with the country people in position of authority are abusing the trust people repose on them, everyday it is happening even with the money laundering regulation in place. There is no exact statistics of the amount of money been laundered in Nigeria, but below are some of the high profile cases been prosecuted by the economic and financial crimes commission from 2007 to 2009; CHAPTER THREE: THE MONEY LAUNDERING REGULATION IN NIGERIA The phrase money-laundering was not in the Nigerian dictionary, until in the 1980s which was when it was recognised and efforts were made to deal with the problem by the government. Therefore, there were decrees set by the government of Generals Muhammad Buhari, Ibrahim Babangida and Sani Abacha as heads of state and military president respectively, prohibiting activities related to money-laundering (Exchange Control (Anti Sabotage) Decree No 7 of 1984, National Drug Law Enforcement Agency Decree No 48 of 1989, now Caps No 29 Laws of the federation of Nigeria, 2004; Okogbule, 2007). 1995 decree corrected one of the defects of these laws which limited the activities to Drug traffickers in order to avoid loophole which gave way for the accused person to escape justice when the case is not drug trafficking; (Adekunle, 1999; Okogbule, 2007). It was in this recognition of the defect or inadequacy of the previous Decrees to cover all the aspects of money laundering that gave birth to the enactment of the money-laundering (prohibition) Act, 2003 which covers everything relating to the offence. And after One year of its enactment it was amended through the money-laundering prohibition (Amendment) Act 2004, in order to give the agencies more power to institute an investigation and prosecute offenders (Okogbule, 2007). However, the amendment was based on two philosophies. Firstly, it was on the need to control the practice of huge financial transactions in Nigeria, since the country is known as a cash society. In the amended Act, it states that no person or corporate body shall make or accept cash payment of sum exceeding N500, 000 or its equivalent in the case of individuals, while in the case of corporate bodies the amount is N2, 000,000, unless the transaction is done through a financial institution, the provision is design to enhance the monitoring capabilities of the regulatory institutions over huge financial transactions and encourage the use of financial institutions (Okogbule, 2007). However in the second philosophy in the act, it is a directive requiring disclosure of any financial transaction exceeding a certain sum of money. Section 2(1) of the Act, state that: A transfer to or from a foreign country funds or security exceeding the sum of $10,000 or its equivalent shall be reported to the central bank of Nigeria. And it further said that a report should be made pursuant to the above provision to indicate the nature and amount of transfer, the names and addresses of the sender and receiver of the funds or securities (Okogbule, 2007). MONEY LAUNDERING REFULATION IN RELATION TO INSTITUTIONS IN NIGERIA The money laundering (Prohibition) Act 2004, of Nigeria in section 1 states that no person or corporate body shall, except through transactional institutions, make or accept deposit of a sum exceeding, A, for an individual the sum of N500, 000 or its equivalent in other currency and B, the sum of 2,000,000 for a corporate body, that anything above this should be made through the financial institution likewise for the individual costumer. In section 2 of the prohibition of money laundering act states that any transaction from or to foreign country of funds or securities exceeding the sum of US $10,000 shall be reported to the central bank of Nigeria (in the act refer to Central Bank) or security and exchange commission. Again in section 2 sub section 1, states that the report should indicate the nature and the amount of the transfer, the names and addresses of the sender and receivers of the funds or securities. CUSTOMER DUE DILLIGENCE However, it is provided in section 5(1) of the Act that before opening an account for or issuing passbook or even entering into any business relationship with a potential customer, the financial institution shall verify the customers identity and address. For individual, he is required to provide proof of his identity by presenting to the financial institution a valid original copy of an official document bearing his names and photograph; Secondly, he is to show proof of his address, by presenting to the financial institution the originals of receipts his/her utilities issued within the last three months by public institution (example, electricity or water bill). In the case of a body corporate, its proof of identity shall be provided by the presentation of its certificate of incorporation and other valid official documents attesting to the existence of the body corporate. Where a manager, employee, or assignee is delegated by a body corporate to open or operate an account, such a person shall in addition to the requirements specified for private individuals also show proof of a power of attorney granted to him for that purpose. One important provision in the Act designed to facilitate the detection of money laundering activities is section 6(1). It provides as follows: When a financial institution is requested to carry out a transaction, whether or not it relates to the laundering of the proceeds of a crime or an act, the financial institution shall seek information from the customer as to the origin and the destination of the funds, the aim of the transaction and the identity of the beneficiary. In order to make this surveillance function more effective, financial institutions are required within seven days of the transaction to carry out the following actions: Draw up a written report containing all relevant information about the transaction as well as the identity of the principal and where applicable, those of the beneficiary. Take appropriate action to prevent the laundering of the proceeds of a crime or an illegal Act. Send a copy of the report and action taken to the Central Bank, the Commission, the Securities and Exchange Commission, or such other appropriate regulatory authority, as the case may be. Significantly, any financial institution which fails to comply with the above provisions is guilty of an offence and liable upon conviction to a fine of N1, 000,000 each day for as long as the offence continues. In order to emphasize the importance of records of transactions, it is provided that these records are to be kept and preserved for at least a period of 10 years, and that the records shall be communicated to the Central Bank, National Drug Law Enforcement Agency (NDLEA), judicial authorities, Customs Officers, and such other persons as the Central Bank may from time to time specify. However, the mandatory disclosure requirement concerning financial transactions is contained in section 10 of the Act. It is to the effect that a financial institution or casino shall report to the Agency in writing, lodgement or transfer of funds in excess of One million (N1, 000,000) Naira or its equivalent in the case of an individual and Five million (N5, 000,000) Naira or its equivalent in the case of a body corporate. This report is to be submitted within seven days of any single transaction. And even an ordinary citizen other than a financial institution may voluntarily give information on any transaction, lodgement, or transfer of funds involving the amounts set out above. This ensures that even when a financial institution fails to report as required, information about the transaction still gets to the Agency (See Chukuemerie, 2004, Okogbule, 2007b). The intent of the provisions is to enable the Agency ascertain the origin of the funds and determine whether to direct a stoppage of the transaction or not. This it can do when acknowledging receipt of such disclosure, report or information received in furtherance of the provisions. If the Agency is unable to ascertain the origin of the funds within a period of 72 hours, it may make a request to the Federal High Court for an order that the funds, accounts, or securities referred to in the report be blocked, and an order made by the Court in pursuance of this provision shall be enforced forthwith. Section 9(1) of the Act provides that every financial institution shall develop programmes to combat the laundering of proceeds of a crime or other illegal act. These shall include: The designation of compliance officers at management level at its headquarters and at every branch and local office; Regular training programmes for its employees; The centralization of the information collected; The establishment of an internal audit unit to ensure compliance with and ensure the effectiveness of the measures taken to enforce the provisions of the Act In order to ensure compliance with this provision, the Governor of the Central Bank of Nigeria is empowered to impose a penalty of not less than one million Naira on any financial institution which fails to comply with the above provisions. And that makes it a very important provision since the threat of immediate sanction which could be suspension of the banks operating license can engender compliance with the statutory provision. THE MONEY LAUNDERING OFFENCE IN NIGERIA The actual money laundering offences are provided for in sections 14 18 of the Act which also specify the penalties for such offences. Thus, section 14(1) provides as follows: Any person who converts or transfers resources or property derived directly or indirectly from illicit traffic c in narcotic drugs or psychotropic substances or any illegal act, with the aim of either concealing or disguising the illicit origin of the resources or property or aiding any person involved in the illicit traffic c in narcotic drugs or psychotropic substances or any other crime or illegal act to evade the legal consequences of his action; or collaborates in concealing or disguising the genuine nature, origin, location disposition, movement or ownership of the resources, property or rights thereto derived directly or indirectly from illicit traffic c in narcotic drugs or psychotropic substances or any other crime or illegal act, commits an offence under this section and is liable on conviction to imprisonment for a term of not less than 2 years or more than 3 years. Significantly, a person who commits an offence under this subsection shall also be subject to the same penalty notwithstanding the fact that the various acts constituting the offence were committed in different countries or places. It is not difficult to ascertain the rationale behind this provision since, very often; money laundering entails the perpetration of some of the acts in one country and the others in other countries. This brings to the fore the transnational nature of money laundering which has given rise to international concern for its regulation. Section 16 of the Act provides that any person who: Whether by concealment, removal from jurisdiction, transfer to nominees or otherwise retains the proceeds of a crime or an illegal act on behalf of another person knowing or suspecting such other person to be engaged in a criminal conduct or has benefited from a criminal conduct; or Knowing that any property either in whole or in part directly or indirectly represents another persons proceeds of a criminal conduct, acquires or uses that property or has possession of it, commits an offence under this Act and is liable on conviction to imprisonment for a term of not less than 5 years or to a fine equivalent to 5 times the value of the proceeds of the criminal conduct or to both such imprisonment and fine. It is difficult to fashion the rationale for this marked variation in the punishment specified under this section and that provided for in section 14 of the Act relating to the actual conversion or transfer of funds from such criminal or illegal activities which is stated to be not more than three years. Although it may be said that the opportunity created by a willing receptacle could have emboldened the suspect and thus facilitated the commission of the offence, it is nevertheless incongruous to have such marked disparity in the punishment for both kinds of offences, when the level of moral reprehensibility is more for the actual converter or transferor of such illegal funds than the receiver. THE EFFECTIVENESS OF MONEY LAUNDERING REGULATION IN NIGERIA The government of former president Obasanjo, of Nigeria was able to start the fight against corruption and money laundering, by presenting the bill Money laundering (Prohibition) Act 2004, before the national assembly which was accented by the government and put into use immediately in order to fight the menace in the country. However, by the year 2006, the EFCC was able to secure the conviction of the former inspector general of police, Mr Tafa Balogun for several offence mostly on money laundering, by showing that ACT that no one is above the law in the country and it shows that it has the political will to tackle the canker worm of money laundering in all its ramifications (Okogbule, 2007, Chukwuemerie, 2006). Furthermore, within the first two years of creating the Economic and Financial Crimes Commission in Nigeria, they proved effective and were able to recovered [sic] more than $1.5bn (N203.5bn) of looted funds and arrested more than 200 people and out of the 200, 50 people were convicted and recovered $37.1M (N5bn) from import malpractices (Malgwi, 2004). Again the EFCC was able to secure a plea bargain with a former governor of Edo State of Nigeria, Mr Lucky Igbinedion, which in the agreement consented in refunding the sum of N500M stolen funds and forfeit some of his properties. It was not only Igbinedion that got the plea bargain, Mr Nwude, Mr DSP Alamieyeseigha former governor of Bayelsa State of Nigeria, also enjoy the gesture (Alli, 2008). However, recently the Chairman of the financial crimes commission in Nigeria, admit that they are not fully enforcing the money laundering regulation in the country while hosting stock broking firms in her office. Waziri said the anti-graft agency would start the immediate enforcement of the provisions of the Money Laundering (Prohibition) Act 2004, and prosecute all stock broking firms that default in their obligation to the suspicious transactions reports and currency transaction reports (Akinsunyi, 2009). Under Section 23 of the Money Laundering Act, firms carry on the business of investment and securities (this includes stock broking firms) are designated as financial institutions and there is an obligation on them to file with the Nigerian Financial Intelligence Unit all suspicious transactions, and file with the Nigerian Financial Intelligence Unit all currency transactions above N500, 000 for individuals and the N2 million for companies. But all that is done by stock broking firms in the country. And up to extent a an investment firm took a loan of N90 Billion from a bank in order to manipulate the market, but that is between Bank and it is customer, but the utilization of the loan is different which is contrary to Section 20 of the BOFIA and the regulations of the Central Bank of Nigeria (CBN) and carries a jail term of between two and three years. It is also a breach of the Investment and Securities Act (see Thisday Newspaper, August, 2009). However, this bring us to the issue of reporting system adopted by the Financial Action Task Force and was even part of the Nigerian Money Laundering (Prohibition) Act 2004, which is in section 6 sub-section 1(a) that direct financial and non financial institutions to draw up a written report on any illegal transaction and submit within seven days to the relevant authorities. That means the Act, is not been followed by the Banks and stock broking firms. FACTORS FOR AND AGAINST MONEY LAUNDERING REGULATION IN NIGERIA There is no doubt that with the enactment of the Money Laundering Act 2004 the Nigerian Government has taken a bold step in its efforts to fight against money laundering in the country. However, it is effort and resourcefulness may not bear the required results if the well-known problems of enforcement of law in the country are not adequately addressed in the provisions. It is a common feature in Nigeria that individuals and institutions prefer to subvert laid down rules rather than comply with them, for example the recent banks audit conducted by the new Central Bank Governor, it shows how reckless the banks are operating, given out a loan of N490 Billion without a collateral, which form part of analysis in given out to loan to any customer by a bank and is used to settle out the debt in case the loan goes bad, but they ignore that and give out the money without following the laid down rules. The assurance being that even when they fail to comply, officials from the regulatory institutions will always compromise their positions. This brings to the fore the popularity of corruption in the country as such officers are often settled to overlook noncompliance with statutory provisions (Okogbule, 2007). In such situation, there is usually an unethical alliance between regulatory officers on the hand and the defaulting financial institutions. Therefore, there will be inadequate or ineffective enforcement of the rules, to the detriment of the country. However, recently an upright officer (Barrister Abubakar Abba Umar) with the Corporate Affairs Commission (CAC) in Nigeria lost his life in the course of his duty. He was involved in making the organisation a very good place that it suppose to be, because to get a company registered in Nigeria, it might take you two to three months, but his coming within a day after full verification you can get your company registered. While in course of investigation of certificate fraud in the organisation, he was forced to hand over some lawyers involve to EFCC for prosecution (see Leadership newspaper, 2009), seeing all this thing happening nobody will like to give himself up in order to do a good job in fighting money laundering in Nigeria. According to Andrew (2004, pp 173), he argues that the Act is faithfully implemented by Economic and Financial Crimes Commission, the Central Bank of Nigeria, the National Drug Law Enforcement Agency and the Minister of Commerce, this relevant authorities are the ones in positions to see the implementation of the Act to the later. However, if they did not enforce the implementation concurrently together, there is every chance that the Act, will not be effective as it suppose to be in checkmating the money laundering activities in the country. There is also problem of regular monitoring of the activities of these financial institutions. Inspectorate and Compliance Officers are known to be lax in their monitoring of the operations of these institutions, due to the fact that they are conniving together to subvert the law regulating the institutions (see Okogbule, 2007). <

Environmental Ethics Essay

Suppose that putting out natural fires, culling feral animals or destroying some individual members of overpopulated indigenous species is necessary for the protection of the integrity of a certain ecosystem. Will this actions be morally permissible or even required? Is it morally permissible or even required? Is it morally acceptable for farmers in non-industrial to practice- slash and burn techniques to clear areas for agriculture? Consider a mining company witch has performed open pit mining in some previously unspoiled area. Does the company have moral obligation to restore the landform and surface ecology? And what is the value of a humanly restored environment compared and to consume a huge portion of the planet’s natural resources. If that wrong, it is simple because a sustainable environment and to consume a huge portion of the planet’s natural resources. If that is wrong, is it simple because a sustainable environment is essential to present and future well-being? Or such behavior also wrong because the natural environment and or its various contents have certain values in their own right so that these values ought to be respected and protected in any case? These are among the questions investigated by environmental ethics. Some of them are specific questions faced by individuals in particular circumstances, while others are moral global questions faced by groups and communities. Yet others are more abstract questions concerning the value and moral standing of the natural environment and its nonhuman components. In the literature on environmental ethics the distinction between instrumental value and intrinsic value( meaning non-instrumental value) has been of considerable importance. The former is the value of things as means to further some other ends. A set of rules outlining human responsibility concerning environmental ethics defines the relationship towards ‘’the surroundings, both biotic and abiotic’’ collective called the environment’’ (Blackmore,1977) Any person who has ever given a though to the need to protect and develop the environment has either implicit or explicit code of ethics regarding these issues that determines everyday behavior patterns. In the same way, I also have my own values and ethics regarding environmental issues that define my responsibility to the natural environment. Although at times I can violate these values when the situation proves to be challenging, I nevertheless hold them in high steem. First of all , my Ethical approach is grounded in the belief that ‘’we must recognize the inherent rights of nature and natural system to survive intact (Blackmore,1997) . All too often human beings view nature and natural system as a pleasant surrounding for their leisure time or a resource for economic activity. This is a dangerous point of view since it leads to the destruction of natural habitats through over-using, rampant pollution, depletion of resources, and the extinction of wild flora and fauna. I believe that people in their activities should recognize preservation of natural systems as an important priority that has to be considered Along with economic efficiency and at times even override it. The Earth has suffered too much from the influence of humans, and it is time to give it a rest and let it recuperate from the damage. Accordingly environmental problems will consist in problems either for human interest or for the interest of the non-human animals, and an acceptable environmental ethic would have this individual interest as its grounds. Indeed those who believe that only sentient or conscious creatures have interest and that having interest is necessary for warranting moral consideration will hold that nothing else has interest on witch environmental problems could turn. Problems for ecosystems are thus held to turn invariably on the interest of sentinel or conscious individuals, and within such and ethic, priority is liable to be placed on averting, suffering premature death for vulnerable individuals, whether is best done by the introduction of humane methods of farming, by abstaining from eating meat by curtailing human interventions in the natural order, or even possibly by intervening to reduce the suffering inflicted by predators on prey. Millions of people are influenced by such ethic, and their approach to environmental problems would often follow the general pattern just mentioned. Others, However, suggest that environmental ethics must start somewhere quite different. Thinking about the environment involves taking much greater account of ecological systems than such an individualist approach can do, and if we fail to understand the natural system of our planet we are likely to generate ecological catastrophes, either by neglect or through seeking to rescue individuals while the system on witch we depend is crumbling. By the time we have understood such systems, our focus will no longer be on the individual suffering or, since far more is at stake, such as the survival of whole species, and the health of the whole ecosystems We need to prioritize the Preservation and rehabilitation of species and of ecosystems. New and modern ’’Green technologies and the conservation of natural resources Oil, Gas, Land ect will have to be more regulated in as universal Ethics in our global economy. Bibliography Abram,D. , 1996 The spell of the sensuous, New York : vintage books Michael Walzer, interpretations and social Criticism ( New York: Basic Books,1988} J. Bair Callicutt, In defense of the land Ethic ( Albany: State of New York press, 1989) Eugene Hardgrove, Foundations of environmental ethics ( Englewood Cliffs: Prentice hall, 1989) Samuel Hays, Conservation and the gospel of efficiency ( Cambridge, MA: Harvard University press,1959)

The Effect of Legalizing Same Sex Marriage - 2305 Words

There are roughly 313,900,000 people living in the United States and within those people roughly 9,000,000 people categorize as either lesbian, gay, bisexual or transgender (gates). This statistic was calculated throughout many surveys issued in 2010 throughout all states in the United States. These statistics were presented in an article written by Gary J. Gates in April of 2011. Now that it is currently almost the year 2014 the number of homosexuals have only risen in the past few years due to the legalization of same sex marriage throughout some states. Same sex marriage is becoming a well-known controversy in the United States due to complete opposite opinions. Society often examines the changes throughout the years in terms of consequences rather than in benefits. The legalization of same sex marriage is often portrayed as consequential to society however when examined more closely there would be more benefits to society if this controversy was viewed in terms of positive change . Benefits society could achieve from legalization of same sex marriage are providing new economic and business opportunities, and encouraging equal opportunity and a non-discriminatory society. Although same sex marriage has become well know in the most recent years it has been acknowledge as early as 35.5 years ago. In fact according to Procon.org â€Å"On May 18, 1970, two University of Minnesota students, Richard John Jack Baker and James Michael McConnell applied to Hennepin County DistrictShow MoreRelatedGay Marriage Essay1744 Words   |  7 Pages 02/02/2012 Legalizing same-sex marriage has been a debate going on for quite some time. The recognition of such marriages is a civil rights, political, social, moral, and religious issue in many nations. Since 2001, ten countries have begun allowing same-sex couples to marry nationwide. In the United States the federal government does not recognize same-sex marriage, but such marriages are recognized by some individual states. Proposition 8 in NovemberRead MoreThe Legalization Of Gay Marriage1411 Words   |  6 Pagesgay marriages is one of the most controversial issues throughout particularly in modern life. This paper, based on secondary research, arguing for legalizing same-sex marriage through specific analysis of its positive influences. In particular, there are two main benefits regarding society as well as economy. The finds of the research indicate that gays or lesbians are completely an important part of society. Therefore, they must have the rights to live and marry legally as other opposite-sex couplesRead MoreSame-Sex Marriage Issues Controversies Essay example1180 Words   |  5 Pagesnamed gay marriage â€Å"one of the key struggles of our time†. According to the website â€Å"ProCon.org† as of January 6th 2014, 17 states have taken the plunge and legalized same-sex marriage. Marriage is â€Å"one of the basic civil rights of man†. Yet, we are still waiting on 66% of our nation to do the right thing and legalize gay marriage. The ban on gay marriage has deprived gay, lesbian, and bisexuals of many benefits that come with being married. Also, it has been proved that banning gay marriage createdRead MoreAnalysis of Koppelmans Arguement in Support of Same Sex Marriage948 Words   |  4 Pagesfew decades, the question of allowing for same-sex marriage is a recurring topic of controversy. In the houses of same-sex couples, the need for equal rights is of great importance. Currently, many states ban the marriage of same-sex couples and d o not view a marriage between same-sex couples as an official marriage. These states quote the Constitutional definition of marriage as a union between a man and a woman. Therefore, with this definition, the marriage of a man and a man or a woman and a womanRead MoreShould Marriage for Same Sex Couples be Legal in United States?1220 Words   |  5 PagesMarriage as generally define is the union between one man and one woman. However a recent debate over same-sex marriage has stirred a nationwide debate reverberating in the halls of Congress, at the White House, in dozens of state courtrooms and legislatures, and is also becoming a speech-making topic for election campaigns at both the national and state levels. As the debate for this controversial topic rages on, the American religious community view on the topic remains deeply divided over theRead MoreAgainst Same-Sex-Marriage882 Words   |  4 PagesAgainst Same-Sex Marriage Marriage is the formal relationship between a man and a woman, usually recognized by the law, by which they become husband and wife. In terms of legal recognition and acknowledgement, the majority of states, authorities, and jurisdiction limit marriage to opposite sex couples or two persons of opposite gender. Same sex marriage would weaken the definition and respect for the institution of marriage. When discussing same sex marriage, the true meaning and definition of marriageRead MoreSame Sex Marriage Should Be Legal Essay1072 Words   |  5 PagesSame sex marriage Same sex marriage also known as gay marriage is the union between two of the same gender having all legal rights allotted to this agreement in a given jurisdiction. According to opponents of same sex marriages such unions are more of abandonment of gender since one cannot be in the said union and still believe gender is important. Supporters of same sex marriage however refer to same sex unions as marriage equality. Same sex marriages challenge the traditional meaning of marriageRead MoreLegalization of Same-Sex Marriage1446 Words   |  6 Pageshomosexuals are demanding the same rights and benefits as others (The Gay Rights Movement). Many homosexual Americans believe that they are being excluded from â€Å"one of the basic civil rights of man (Support for same-sex marriage hits new high; half say Constitution guarantees right†). They have formed organizations, gone to court, and rioted all over the nation; but they are still being denied the simple right to marry (The Gay Rights Movement). Redefining marriage will allow all Americans accessRead MoreLegalization Of Same Sex Marriage1594 Words   |  7 PagesWhy The Nationwide Legalization Of Same Sex Marriage Will Greatly Benefit The Economy Same-sex marriage has been a long debated issue in the United States. Since the nationwide legalization of same-sex marriage in countries such as Holland, Belgium, and Canada American gay couples have been pushing harder for equal marriage rights under the law. Opponents claim that allowing same-sex unions would not only lead to less stable marriages and higher divorce rates for heterosexual couples, but also precipitateRead MoreSame Sex Marriage884 Words   |  4 PagesSame Sex Marriage Is the definition of marriage being threatened in the United States? President Bill Clinton signed the federal Defense of Marriage Act into law on September 21, 1996. This Act defined marriage at the federal level as between a man and a woman. The federal DOMA statute ensured that no state would be forced to recognize gay marriages performed in other states and prevented same-sex couples from receiving federal protections and benefits given to married heterosexual couples. On

Functionalism Of Sociology And Social Anthropology Essay

FUNCTIONALISM IN SOCIOLOGY In sociology and social anthropology the term functional analysis is used not only in the mathematical sense, where a function expresses a correspondence between two variables such that the second, or dependent, variable is said to be a function of the first, or the independent variable. Sociologists, of course, like all scientists, are interested in establishing such dependencies. The term functional analysis in their work also has a special connotation similar to the use of the notion of function in describing biological systems or such artifacts as self-organizing systems?for example, a heat engine with a thermostat. Such a system can be considered as a unitary whole; it is differentiated into elements, and the function of the elements can be said to be the part they play in maintaining the system in a persisting state or (in the case of artifacts) in maintaining the efficiency of the system for the purpose for which it has been set up. Herbert Spencer (1820-1903) first used the t erm, comparing societies to the human body (called organ analogy). Each organ in our body (the heart, the brain, the stomach) serves a specific function in maintaining?life. If one part stops working, it affects the overall function of the body. Functionalists look at society in the same way- each part (like the military, the educational, medical, etc.) helps the society function, and the more differentiated the parts, the more difficult it becomes for one partShow MoreRelatedTheoretical Frameworks Of Sociology And Sociological Perspective Essay918 Words   |  4 Pages What does Sociology have to do with me? Why do people think or act differently than you? Why are some people rich while others are poor? Why do some commit crimes, break laws and others do not? 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Is it history natural of them corporations human. 3.-the sociology can define is as the study scientific of the life group of them humans, since frequently is gives a use incorrect to them terms sociology and sociologist, would be worth the penalty mention here something of what not is sociology, as field of knowledge, the sociology not isRead MoreSoc/100 - Applying Sociological Perspectives1063 Words   |  5 PagesApplying Sociological Perspectives Social networking sites - such as Facebook, Instagram, Twitter, LinkedIn, and, Pinterest, just to name a few - provide individuals with an online web of global networking that allows maintaining social ties with one another. Sociologists often ponder, How do these social websites impact society? 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Although Saussure only wrote about the language, the ideas that developed were later incorporated into numerous disciplines, both the social sciences and humanities. Prior to the work of Saussure, theRead MoreAlfred Herbert Radcliffe-Brown : Understanding Of The Sociological Paradigm761 Words   |  4 PagesFor this sociology class assignment is to present my understanding of three historical sociological paradigms by using three contemporary sociological theorists of color. The three major Sociological Paradigms are Structural Functionalism, Social Conflict, and Symbolic Interactionist. The Structural Functionalism sociological theorist that I will be focusing on will be Alfred Reginald Radcliffe-Brown, a British sociologist. 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A Good Example Of Environment - 3143 Words

An industries environment allows organizations to survive and strive by undertaking the opportunities presented to them and overcoming the threats that may come in its way. A good example of environment influence would be the opportunity presented to smartphone application writers created by organizations such as Apple and Samsung with the lines of smart phones Iphone and Samsung Galaxy and at the same time a threat to newspaper companies, as the usage of online sources of information increases. The study of strategic management, through the use of various frameworks, gives organizations the possibility to identify their position in the industry in respect to its competitors. Moreover this allows them to set realistic goals to pursue†¦show more content†¦Firstly the political environment refers to the influence governments may have on the industry’s environment. When looking at Ryanair, an airline with 1,600 routes around the european union and north africa, legislation varies between governments of different countries, forcing them to adapt to the different tax policies between countries such as Spain and Morocco, however government taxes don’t vary as much given most flights are within the EU however there is passenger service charge, which some airports have which â€Å"is a charge made by the airport authority to an airline for the use of the terminal, runway, emergency services, security facilities†(Ryanair, 2015). Furthermore there is a l egislation on the maximum hours a pilot can fly for, which forces Ryanair to hire more employees. Additionally any passengers on flights which are delayed or cancelled have the right to refund, hence the self pride Ryanair have on being the best on time airline with â€Å"91% OF RYANAIR FLIGHTS ON-TIME IN JUNE†(Ryanair,2015). 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Adoption of Ifrs Free Essays

string(187) " more likely to understand the different assumptions used by management to calculate such pension accounting, which will limit the chances of management to engage in earnings management\." ADOPTION OF IFRS: IT`S BENEFITS AND IMPACTS ON FIRMS AND COUNTRIES AROUND THE WORLD The IASB was established in 2001 and since have assumed the responsibility of the standard setting from its predecessor body, the International Accounting Standards Committee (IASC) and began issuing International Financial Reporting Standards (IFRS). IFRS has recently been dominating the regulatory changes in accounting for listed companies around the world. Through the years, over 100 countries have adopted IFRS reporting, some of which include Australia, the European Union, India, Japan, South Africa, Russia and most recently Canada. We will write a custom essay sample on Adoption of Ifrs or any similar topic only for you Order Now In addition, the U. S. Securities and Exchange Commission (SEC) are working towards the final element of a work plan to incorporate IFRS into the U. S. financial reporting jurisdiction. In November 2007, the SEC voted to allow foreign issuers that report in IFRS to file their financial statements with the SEC without reconciling to U. S. generally accepted accounting standards (GAAP). Accounting standard setters anticipate that the use of IFRS will improve the comparability of financial statements, improve reporting transparency, and increase the quality of financial reporting which in turn will lead to greater investor confidence. From an economic perspective, some believe that it’s challenging to perceive that such expectations will be achieved as a result of converting to IFRS. However according to proponents of IFRS, publicly traded companies believe that applying these principles will allow for a single set of high quality accounting standards as this will contribute to better functioning of the capital markets (Quigley 2007). In the following paper I will discuss the reasons why firms around the globe have adopted IFRS in relation to the financial reporting and disclosure quality, comparability across firms and countries, and the costs and benefits associated with reporting improvements. Most countries are in favor of adopting IFRS, from the viewpoint that IFRS standards are more capital market oriented, which in turn provides higher quality information that will benefit constituencies of financial statement users as supposed to local GAAP (Daske and Gebhardt 2006). If this statement is true, one way to validate it is through recommendations by empirical studies that suggest firms engaging in IFRS implementations should see an increase in market liquidity followed by a decrease in the firm’s value of cost of capital. According to Leuz and Wysocki (2008), they have provided some evidence in relation to the effects of reporting quality on market liquidity. They indicate the issue regarding information asymmetry, where investors who possess less knowledge of a firm’s reporting structure or policies, are concerned about trading with the better informed investors. They indicate how these non-informed investors are to lower the price at which they are willing to buy, to protect themselves from losses incurred from trading with better informed investors. Hence investors that possess less information about a stock are less likely to trade. These effects of adverse selection and information asymmetry reduce the liquidity of securities market. Therefore, IASB strongly encourages essential financial disclosure. This will alleviate the adverse selection problem and will result in increased market liquidity by leveling the playing field among all market participants. In addition, other studies have shown that improvements in financial reporting and disclosure can affect the cost of capital in a variety of ways. Some of which include, investors that require a higher return from less liquid securities and lower estimation risk as this makes it easier for the investor to estimate a firm’s future cash flow. This in turn, will improve risk sharing in the economy by making investors aware of certain securities or by making them more willing to hold them (Leuz and Verrecchia, 2004). Hence reducing the cost of capital. As important as it can be for firms to disclose essential information to investors, other firms can also benefit from these disclosures for the purpose of decision making and will help reduce the agency problem existing between shareholders and management. For example, â€Å"disclosure on operating performance and governance arrangement provides useful benchmarks that help outside investors to evaluate other firms managerial efficiency or potential agency conflicts and, in doing so, lower the costs of monitoring† ( Leuz and Wysocki, 2008). In addition, the information environment has improved as firms switch over to IFRS, which has also contributed to the increase in higher quality financial reporting. According to Mary E. Barth (2006) firms that voluntarily adopted IFRS generally seek lower earning management, lower cost of capital, and more value relevant of earnings. All of which interpret evidence of higher accounting quality. Barth indicates that the accounting quality could be mproved by removing other accounting methods that are not reflective of a firm’s performance and which are used by managers to manage earnings. As part of his testing, he compared firm’s earnings management between those firms reporting under IFRS and firms reporting according to their local GAAP. As a result of his study, it was indicated that after firms had adopted IFRS, they had larger volatility swings in net income, increase ratio of variance in cash flows, higher correlation of accruals and cash flows, small positive ne t income, and increased occurrence of larger losses. Opponents argue that a single set of internationally accepted high quality financial reporting standards may not be appropriate for certain firms as they are exposed to different cultural, political and legal differences as this might continue to impose major obstacles in the progress towards the harmonization of standards. These differences however may not provide for any greater value relevance and reliability. For example a study conducted by Ball (2006) indicates that pension accounting may be subject to earnings management in countries that have less developed pension systems. Another empirical study indicates that managers can take advantage and use different assumptions to manipulate financial statements (Soderstorm and Jialin Sun, 2006). Proponents of IFRS argue that using common accounting standards across countries will make it more cost efficient for investors to identify earnings management. When accounting standards are uniformed and relevant disclosure is provided, investors are more likely to understand the different assumptions used by management to calculate such pension accounting, which will limit the chances of management to engage in earnings management. You read "Adoption of Ifrs" in category "Papers" The second important factor as to why countries have chosen to adopt IFRS, is mainly because of its increase in accounting comparability across firms. The advantage of a global movement towards IFRS reporting makes it easier for investors and stakeholders to compare different firms and the relevant information to help them assess the company objectives. Comparative reporting will enable users of financial statements in identifying which firms are more or less profitable. Firms that are exposed to high or low risk of return as a result, will reduce investors information asymmetries and lower estimation risk. Moreover, the improvement in comparability across firms allows for increase market liquidity and reduces firms cost of capital (Luez et al. 2008). Studies have suggested that prior to adopting IFRS, firm’s local GAAP standard which were tailored to the needs of analysts and investors would in theory reduce biased information and build investor confidence. A study conducted by Tan, Wang and Welter in 2009, indicated that once firms had adopted IFRS, their foreign analysts had increased significantly more for those who had the greatest level of GAAP differences. There have been a number of studies conducted to test whether IFRS adoption does in fact increase comparability. The outcome of these studies are mixed. Bielstein et al. (2007) concluded that IFRS adoption, results in greater foreign investment for countries that have strong reliability and comparability. Other empirical studies claim that cultural, political and business differences continue to impose significant obstacles in increasing the comparability of accounting information. Lang Maffet and Owens (2010) find that accounting comparability does not improve for IFRS adopters relative to a control group of non-adopters. The two conclude that there is little evidence that IFRS adoption increases comparability. Overall, from the research obtained, there is little empirical evidence proven on the effects of reporting comparability than reporting quality. The third important factor for countries adopting IFRS, are the costs and benefits associated in producing high quality accounting standards and the improvement in comparability across firms. As mentioned previously, the ultimate benefit a firm receives by adopting IFRS reporting is from the increase in market liquidity followed by a lower cost of capital. In order to achieve this high standard, there are costs that a firm is exposed to. Such incurred costs include transitional costs, ongoing costs of compliance to the firms, and enforcement costs relevant to government agencies (Standish, 2003). Standish summarizes his findings in relation to cost and benefits of firms moving to IFRS that will tend to see lower transaction costs when preparing financial reports. They will only be reporting against a single set of accounting standards instead of multiple sets. In addition, he makes note of a â€Å"positive network externality† that arises through the use of a single set of accounting standards by all constituencies. This will save market participants from requiring additional time and energy of having to learn, apply and understand multiple sets of standards. Other benefits that result from the transition to IFRS will improve comparability between firm’s financial statement for investors and shareholders. Thereby, making investment decision’s easier. According to Leuz and Wysocki (2008), there are direct and indirect costs associated with improving reporting. The direct costs include preparation, validity and circulation of accounting reports. These costs can vary and increase significantly. In addition, firms will require assistance and hire consultants that have expertise in IFRS reporting. These specialists help train key personnel in the organizations so that they are able to produce financial statements that are in accordance to IFRS reporting. The costs tend to be more difficult for smaller companies to finance such activities for disclosures and reports, as their profitability margins are small. Disclosure costs have characteristics of indirect costs. Whereby a firm can reduce its monopoly power by providing too much detail to the market, as sensitive profitability information is assimilated to its competitors. Other empirical studies have noted that with these costs and cost-benefit trade-offs that firms are undergoing, it may not be suitable for them to obtain high quality reporting. Rather, encourage firms to provide certain disclosures which the cost of disclosing such information does not exceed their benefit. Moreover, it is of importance that the standard setters recognize the net benefits obtained from the high quality reporting and comparability, as they differ across firm industries and countries (Leuz and Wysocki, 2008). It’s relatively evident why most companies would like to switch over to IFRS due to the number of benefits that are associated with the transition as described above. One would automatically presume that a single set of accounting standards that are used universally by most firms within different countries would deliver comparability, increase reporting transparency, allow for foreign investments, hence increasing market liquidity and low cost of capital. However, there is very little empirical evidence that claim these characteristics as being true after conversion. Having said that, Ball (2006) has noted that IASB has been successful in serving the public by developing comprehensive set of high quality standards that have convinced over 100 countries to adopt these principles for the purposes of financial reporting. There are some advantages of having a single set of accounting standards unified. As such, these standards contain characteristics of a â€Å"public good†, for example, the investor can use this information in an annual report without eliminating its usefulness to other investors. In other words, the marginal cost for another investor viewing these annual reports would be zero. A second advantage of unifying accounting standards and disclosure practices is to reduce management from using their own judgement in financial reporting, by reducing the risk of altering the reports to mislead capital market participants. Moreover, these uniform standards provide protection for auditors against firms. These standards are to also be enforced by auditors, whereby the firm has very little opportunity to shirk, hence reducing information asymmetry and increasing investors and stakeholder’s confidence of the firm. Lastly, unifying these standards will increase the accounting comparability across firms. If each firm or country were to implement different local accounting standards, this can impose high costs for both the firm and its external users, such as investors as this will create negative externalities and will reduce domestic investments which can impact countries trade volume profitability, where the majority of countries main source of income is driven from. Opponents of IFRS adoption feel that a single set of accounting standards do not benefit all firms and countries. These differences in countries arise from cultural, economic, political and legal systems. For example, firms may have to respond to political pressures from the government due to balance sheet volatility, as a result of fair valuing. The IASB should review accounting standards as they are released to eliminate the possibility of political pressures on countries that are exposed to such tight regulation. One of the main reasons why countries and firms around the world adopt IFRS is due to the results achieved from reporting quality and disclosure practices. However, IFRS can occasionally produce ineffective reporting quality and disclosure. For instance, IFRS can lack in setting descriptive details in their guidelines that make it difficult for countries to follow. Some countries find their local GAAP easier to read and understand due to the level of detail and examples provided. These complexities in the rules creates havoc for firms that would like to report in IFRS, but find it challenging to exclusively follow these guidelines outlined by the IASB. As a result, this can lead to poor financial reporting quality. Other countries and firms conclude that fewer rules and guidelines will encourage management to produce effective accounting policies that will rompt them to make appropriate judgement calls. Information asymmetry and agency costs play a significant role in relation to the disclosure and financial reporting quality. The key motivating factor for any firm is, the more disclosure provided will create a positive signal to investors and hence, will reduce the information asymmetry and agency costs. Companies will see increases in investor confidence while earning high profitability levels. Moreover, firms adopting IFRS, chances are that they are subject to fewer opportunities to part take in earnings management or deceive investors. Studies have indicated that countries which have adopted IFRS do not all achieve the same degree of benefit. The study implies to those countries which have a weak structure in place for investor protection, will tend to see the most benefits from adopting of IFRS. In contrary, countries that have a strong structure in place for investor protection will see marginal benefits. The increase in benefits received by a country whether small or large will improve investor protection and provide for more comparable and comprehensive financial reporting. The cost and benefits of a firm converting to IFRS can be substantial depending on how one views it. The benefit driven through the implementation of IFRS will include lower cost of capital, increases firm value and creates a stable level of investors’ confidence. In addition, as discussed above, the benefits will also increase as a result of better financial reporting quality and cross country comparability for foreign investors, auditors and other constituencies. These benefits obtained through adoption of IFRS are not free. The cost of implementing such an accounting standard can cost firms millions. There are various types of costs that are incurred in the different processes a firm undergoes. The transition costs can be significant in relation to auditing fees. The cost of auditing work will increase, due to testing and validating accounting data as most of the assumptions used by firms are judgemental. Other costs involve training key personnel to apply applicable standards in practice. Companies tend to have shortages of staff that have ever been exposed to IFRS accounting, this is more apparent in Canada. As a result, these companies struggle as they need to learn and apply these new standards. Moreover, the cost related to the risk involved of manipulation of accounting standards, as these standards do not provide strict reporting rules for companies to follow, can impose a huge cost on the firm, if the auditor refuses to provide an unqualified opinion on the firm. Overall, the costs are generally higher during the first couple of phases through the transition. In the long run, costs tend to decline as employees are more aware of the standards and a basic foundation has been developed by IFRS consultants and auditors. At the present moment IFRS reporting is widely used by many countries across the globe. Based on the studies gathered above, countries and firms are optimistic about replacing their local GAAP to IFRS accounting standards. By moving towards a universal set of high quality accounting standards this will lead to improving the firm’s performance, by increasing shareholders wealth though investors’ confidence, lower cost of capital hence reducing information asymmetry. In addition, other benefits include comparability across all nations, this will help facilitate in better understanding by investors of accounting information released in public financials. Comparability will result in an increase of auditors understanding in the types of policies and assumptions companies implement. This will help ensure that companies are not partaking in earnings management. Comparative accounting standards can be most beneficial to analysts. This will enable analysts to predict the firm’s future forecast of cash flows in comparison to the industry average. As mentioned above, the IFRS accounting standards are costly to implement. Studies have made reference to these transition costs as extremely pricy to develop, however, in the long run their costs tend to decline. This may in fact be true, however, for those companies that have incorporated IFRS standards, will continue to see new accounting pronouncements issued by the IASB, as they work to improve their guidelines. As a result, firms will continue to spend in areas of training and seeking professional advice on how these new standards will impact their firm. References 1. Bielstein , 2007. How the IFRS movement will affect financial reporting in the U. S. : Article: KPMG 2. Daske andGebhardt, 2006. Discussion of Daske and Gebhardt, Journal of Accounting Finance and Business Studies. 3. Lang, Maffet and Owen, 2010. Earnings Movement and Accounting Comparability, the Journal of Accounting Research 4. Leuz and Verrecchia , 2004. Firms Capital Allocation Choices, Information Quality and the Cost of Capital 5. Luez and Wysocki, 2008. Economic Consequences of Financial Reporting and Disclosure Regulation, Journal of Accounting Research 6. Mary E. Barth, 2006. Accounting Quality : International Accounting Standards, The Journal of Accounting Research 7. Ray Ball, 2006. International Financial Reporting Standards (IFRS): Pros and Cons for Investors, Journal of Accounting Research 8. Soderstorm and Jialin Sun, 2007. IFRS Adoption and Accounting Quality: A review, The Journal of Accounting Research 9. Standsih, 2003. Evaluating National Capacity for Direct Participation in International Accounting Harmonization, Journal of Accounting Research 10. Tang, Wang and Welkor, 2011. Analyst Following and Forecast Accuracy After Mandated IFRS Adoption. Journal of Accounting Research. 11. William R. Scott, Fifth edition , 2009. Financial Accounting Theory How to cite Adoption of Ifrs, Papers

Kate and Merle in Ferris Beach McCorkle Ferris Bea Essay Example For Students

Kate and Merle in Ferris Beach McCorkle Ferris Bea Essay ch Essays Kate and Merle in Ferris Beach Kates perspective and understanding of deceptive appearances is heightened by her encounter and ensuing relationship with Merle Hucks. Kate had gone to school with Merle and been his neighbor for many years, but never knew him as anything more than a bully and a Hucks. However, Kate finally meets Merle one day at Mrs. Pooles house and learns that all her judgments and fabricated perceptions of him were based on his appearance and on rumors, and they were way off target. When Kate finally gets to know Merle, she finds that he is a very compassionate young man and nothing like what she had judged him to be. Her understanding of Merle becomes clear one evening as she watches Dexter, R.W., and the rest of the vigilantes rape Perry Loomis. In an attempt to save Perry from the violent unfolding, Merle is brutally beaten down by Dexters companions. Merle chivalrous behavior demonstrates to Kate that he is certainly not one of them; he is different. ` Shortly after the rape, Merle and Kate meet for the first time in the Whispering Pines graveyard to discuss what happened to Perry. The graveyard is significant because it serves as a symbolic haven where the youths of Fulton can evade the society around them, explore their minds, and employ their imaginations. Her meeting with Merle in the graveyard initiates her first real relationship with a boy and also confirms the very reality of the rape she witnessed a few nights earlier. The rape signifies the bitterness of the dark side of Kates surrounding society which becomes vividly clear to her. Kates understanding of Merle marks another threshold in her education as she realizes how deceptive appearances can be. When Kate has the chance to delve beneath Merles misleading facade, she learns that he has a much different character than she ever thought.Kate and Merle are very close to one another when tragedy again strikes down into their lives, this time with the arson of Merles house and the murder of his brother Dexter. The Hucks tragedy serves as a threshold which provides Kate with a deeper understanding of relationships and the significance of family. As the drama unfolds in front of the Hucks house, Kate stands by Merle comforting him until he leaves her to attend to his family. She watches Merle and his family console one another and she realizes that tragedy affects everyone regardless of their social class. The Hucks are certainly not upper-class nor are they even middle class citizens. However, they are still humans and when tragedy reigns down upon them, they are affected just like everyone else. As she stands watching the fire and the emotional drama, Kate realizes that tragedy transcends the walls of social classes and affects people on all levels.