cold sassy tree :: essays research papers

Rising Action 1. Grandpa finds a wife who will live with him for his last days. Mary Lou seems to not like Mrs. savor Simpson living with her father but keeps quite about her disliking.2. After the wedding, Mrs. Love Simpson has an unexpected visitor carrying an expensive level covered in gold and silver pieces. He finds Mrs. Love Simpson and with out saying a word, proceeds to kiss her in a passionate way. A grandpa walk in the door to find them standing in the room with lips interlocked, but doesnt seem to get mad. He introduces himself like he would any other person. Later they find out he was one of Mrs. Love Simpsons old boyfriends.3. When the newly weds come home from a terse trip from Atlanta, they are seen riding in a brand new Cadillac. They are now the proud new owners of the first car in icy Sassy. Then soon decide to turn part of the store into a car dealership to sell more cars to the wealthy people of the town.4. William is now adjacent to Grandpa then ever befor e, but he cant help but seem like Grandpa is doing something wrong by marrying Mrs. Love Simpson. Along with the rest of the family and town.Climax5. It seems that the family has more problems then the rest of the town can ever imagine. Thorton is soon found dead in his own kitchen. William finds a suicide letter to Mary Lou in the bedroom next to the bed. He reads the letter and sees that Thorton did indeed commit suicide, but for reasons that he guesses he cant charge find the words for it its so awful. The family is devastated but goes on with life. Falling Action6. Mrs. Love Simpson cant help but feel to hellish for this unfortunate turn of events and asks Grandpa for a divorce so she can leave and get away from the watchful eye of the town.

The Blue Hotel Essay -- essays research papers

Stephen Crane is a well-known author of variety of short stories. He was born in bracingark, New Jersey, the son of a Methodist minister. After schooling at Lafayette College and Syracuse University, he worked in New York as a freelance journalist. His short stories and experimental poetry, also, anticipate the ironic realism of the decades ahead. In his brief and energetic life, he published fourteen books while acting out, in his personal adventures, the legend of the writer as soldier of fortune (741-743). Among one of his works include "The Blue Hotel." The novel the &quotBlue Hotel&quot is a novel themed with death. The moment that the yellow turnip arrives at the &quotBlue Hotel&quot it is somehow, in The Swedes mind, transformed into a wild west hotel, by the many dime novels he has read, which made him unconstipated more uneasy about staying at the hotel. In one of the initial scenes this consternation is evident &quotThe Swede answered him swiftl y and eagerly These men ar going to kill me.. I know I wont get out of here alive&quot(771). The Swedes fear of dying had made him want to leave the hotel, but Pat Scull, the owner of the Blue Hotel, attempted to get him to stay by covering around the hotel and showing him pictures of his family. Scully shows the Swede some pictures of his children &quotThats the pitcher of my of my little girl that died. Her name was Carrie. She had the purtiest hair you ever saw I was that fond of her, she-&qu...

Frankenstein Kickass Paper -- essays research papers

     The daughter of an active feminist, Mary Woolstonecraft Shelley eloped with the famous poet Percy Bysshe Shelley at the age of 15, and after was continually and profoundly influenced by his words and writings. Her novel Frankenstein is named among the best written and most meaningful of the gothic works, and is one of the few still popularly read today. A precursor to the Romantic trend in art and intellect, gothic novels rejected of the precepts of order, balance, idealization, and rationality that typified Classicism in general and late 18th-century Neoclassicism in particular. The gothic usance grew out of disillusionment with the Enlightenment and 18th-century rationalism and physical materialism. Romanticism as a whole emphasized the individual, the irrational, the imaginative, the spontaneous, the emotional, and the transcendental. Shelley herself defines "gothic" as a story "which would enunciate to the mysterious fears of our Nature, an d would awaken thrilling horror--one to make the reader dread to look around, to curdle the blood and quicken the beatings of the heart." By infusing moral and social concerns into the gothic style, Shelley achieves much than a simple horror story, however. The universal societal and psychoanalytical questions raised in Frankenstein secure its place in world literature and promise decades of as well as fashioned gothic writings.     As stated above, the gothic genre developed as a harsh reaction to the predominant Neoclassic ideals of the time the tenseness shifted from the whole to the solitary, and from society to nature. The "Graveyard Poets," one of whom is Thomas Gray, be attributed with having ushered in the new philosophy and are often termed "Pre-Romantics." Grays "Elegy Written in a Country Churchyard" has all the elements of the gothic graves, overtones of death, a rural setting, and a desire for return to a more simplist ic, natural time. Simultaneously, Jean-Jacques Rousseau preached a similar credit which presented society as evil, and called for a "natural state of man." Shelley was schooled in both writers, and took their words to heart. In 1776 and 1789 Revolutions swept America and France, indicating that the Neoclassic ideals were not as electrostatic as was previously thought. News of these ... ... and "Fall of the House of Usher" and Hawthornes "Young Goodman Brown" use many gothic conventions and themes, such as the ominous tone, dream-like or surreal sequences, and warnings about interdependency and the manipulation of ones mind. The gothic novel revolves as part of the literary cycle, periodically returning for a brief period in the publics eye and then again disappearing into obscure circles of its few disciples. In this scientific age, the gothic is viewed as being overly sentimental, predictable, and implausible. As the ages change, readers, like Victor, are forced to "exchange chimeras of boundless grandeur" which the gothic inspires for "realities of little worth" (Shelley 46). The gothic, the fantastic, is a necessary balance for logic and reason as much as light is to dark, and good to evil. Without one, the other is undefined and therefore has no purpose in its existence. Frankenstein will live on as a brilliant keenness into both the political environment of the 18th century and the eternal condition of man as an extension of nature.            

Treaty Of Versailles is Justified Essays -- World War I 1 WWI WW1

Treaty of Versailles World War I was ultimately ended in 1918 later the Treaty of Versailles was signed. Peace settlements were signed on June 28, 1918 at the H every of Mirror in Versailles, Paris. The Treaty was an agreement among the United States, Great Britain, and France. Woodrow Wilson, George Clemenceau, and David Lloyd, who represented the Big trio countries, collaborated in negotiating the Treaty. The Treaty of Versailles was designed to weaken Germany and give Germany full blame for causing the warfare. The Treaty implemented massive reparations to Germany which would obliterate Germanys economy, notwithstanding the millions of dead associate soldiers. The settlement strictly limited the Germans military. Germans were additionally forced to depart from their homes in Russia, Poland, and Alsace-Lorraine and return to Germany or Austria. Furthermore Germany had to give back any land be to other countries. With no alternative, Germany signed the peace settlements. Th e Treaty of Versailles was undoubtedly justified, Germany was positively the main instigator of the war and its excessive brutality of fighting provoked the war more particularly. Thus, making the amends to Germany was rational because of all the destruction Germany had triggered. The Treaty of Versailles was fair to Germany because, the primary starter of the war was Germany. Several factors ?conflicts with Serbia- Germany declared wars-invasion of Belgium-Germanys attacking plans, all led to the justification of T of V which proved it was fair. Following the assassination of Archduke Francis, of Austria-Hungry. Germany gave Austria a ?blank check in other terms, an assurance of support no matter the costs. This simple action ties to one factor ... ...the provisions weren?t harsh enough.? Yet some might argue that, ? ..severe as the treaty seemed to be it should be remembered that Germany might easily have forced much more worse, if Clemenceau?s had his way.? However through al l the excessive damaged Germans have caused passim the WWI, to treaty is justifiable. Indisputably the Treaty of Versailles is justified through all the motives that Germany had. The treaty provisions all tie to the start of the new war, World War II. The treaty helped compel a cruel regime in Germany and eventually the start of the Nazi party. One fascist leader Adolph Hitler , portrayed such regime. He didn?t urgency to accept any of the revisions and started to fortify Germany, and went against some T of V provisions, he sent troops to into the Rhineland. Short time after Hitler invaded Poland, which eventually started WWII.

Hamlet :: English Literature Essays

hamletHamlet wants to wipe his memory clean, as one would erase a slate. All of the images he has of his return and uncle are insignificant to him now in the face of their betrayal. He will erase those images in his memory so as to not be deceived again. With his memories erased, Hamlet will be able to properly avenge his fathers murder. There are many images of sickness, disease, wickedness, blemishes on the body, and other loathsome things that are metaphorically descriptive or the unwholesome condition of Denmark. Examples of this are on most pages. A few examples are found in the following places 3.4.43 4.5.18 3.4.74 1.4.27 ACT IV, SCENE 4, LINES 28-30 This is th impostume of much wealthiness and peace, That inward breaks and shows no cause without Why the man dies. Hamlet is talking to Fortinbras captain about the land, which has been symbolically given to Norway to prevent them from invading Denmark. This statement is however, also descriptive of Hamlets own condition. The events that nonplus caused his madness fester inside him like an abscess or tumor. The cause is unseen by others though it is destroying him inside. THEME ANALYSIS The square nature of Hamlets madness has been an issue of debate for scholars over the centuries. One theory is that Hamlets madness was for his own protection. In the time period in which Hamlet would have lived, governments functioned through the usage of intricate spying networks. In Hamlets Denmark, no one is permitted to go unwatched. Rosencrantz, Guildenstern, and Polonius are all sent to spy on Hamlet at various times. Polonius meets his death in the process. When Hamlet discovers the atrocity committed by his uncle, he wishes for revenge. In that time, it would have been quite natural to take matters into his own hands. In order to keep his plans secret he cannot let on that he knows of the crime. Since he is constantly being spied upon and having his cloakions and words reported to Claudius, he must act enigma tically. Shakespeare puts Hamlet into a situation in which he must deal with the betrayal and murder of his father by his own family members. Communication of feeling is through with(p) solely in monologue or through the reports of a third party, or spy. Hamlet must use the players performance to observe the reaction of Claudius because the study of the death of King Hamlet is not acceptable discussion material.

Hamlet :: English Literature Essays

HamletHamlet wants to wipe his memory clean, as one would erase a slate. All of the images he has of his mother and uncle are peanut to him now in the face of their betrayal. He will erase those images in his memory so as to not be deceived again. With his memories erased, Hamlet will be able to properly avenge his fathers murder. There are many images of sickness, disease, wickedness, blemishes on the body, and other loathsome things that are metaphorically descriptive or the unwholesome material body of Denmark. Examples of this are on most pages. A few examples are found in the following places 3.4.43 4.5.18 3.4.74 1.4.27 ACT IV, SCENE 4, LINES 28-30 This is th impostume of much wealth and peace, That inward breaks and shows no cause without Why the man dies. Hamlet is talking to Fortinbras captain about the land, which has been symbolically given to Norway to prevent them from invading Denmark. This statement is however, also descriptive of Hamlets take in condition. The events that have caused his alienation fester inside him like an abscess or tumor. The cause is unseen by others though it is destroying him inside. THEME ANALYSIS The true nature of Hamlets madness has been an issue of debate for scholars over the centuries. One theory is that Hamlets madness was for his own protection. In the time period in which Hamlet would have lived, governments functioned through the usance of intricate spying networks. In Hamlets Denmark, no one is permitted to go unwatched. Rosencrantz, Guildenstern, and Polonius are all sent to spy on Hamlet at various times. Polonius meets his stopping point in the process. When Hamlet discovers the atrocity committed by his uncle, he wishes for revenge. In that time, it would have been quite natural to take matters into his own hands. In order to bound his plans secret he cannot let on that he knows of the crime. Since he is constantly being spied upon and having his actions and words reported to Claudius, he must act enig matically. Shakespeare puts Hamlet into a situation in which he must deal with the betrayal and murder of his father by his own family members. Communication of feeling is done solely in monologue or through the reports of a third party, or spy. Hamlet must use the players performance to observe the reaction of Claudius because the topic of the death of baron Hamlet is not acceptable discussion material.

Challenges of Ecotourism in Antarctica Essay

Antarctica is one of the largest and closely fragile environments on earth. It is r are and unique, and few hatful get the opportunity to visit such an queer place. Antarcticas unique environment and climate sets it apart from other term of enlistmentist destinations. besides, the hostile wilderness creates m any ch in allenges for ecotourism. There is a concern regarding the high intentness of tourists and their environmental impact at the few landing sites available. The real debate is whether tourism can benefit, or threaten the conservation of Antarctica.Ecotourism, in its early diachronic origins has been closely linked to character oriented tourism. For example, Laarman and Durst, in reference to ecotourism, defined it as a nature tourism where a run lower is interested and force to a destination because of its features and natural history. The visit combines education, recreation, and often adventure (Laarman and Durst 19875). Defining ecotourism is not easily done, difficulties defining it are mainly due to the multidimensional nature of the definitions, and the fact that each dimension involved represents a continuum of possibilities (Blamey 1997).The Ecotourism Society defines ecotourism as responsible fit to natural scene of actions, which conserves the environment and improves the welfare of local people (Western 19938). Ceballos-Lascurain (1987 14) defines ecotourism as traveling to relatively undisturbed or uncontaminated natural areas with the specific objective of studying, admiring, and enjoying the scenery and its wild plants and animals, as well as any existing cultural manifestations (both past and present) found in these areas. The tourism application of Antarctica is often oerlooked as a factor of environmental degradation.It is important that more(prenominal) attention is drawn to assessing the current state of this large continent. Beck (1994) states that, tourists, scientists, and other visitors to Antarctica have tremendo us environmental impacts. Tourist shipping can pose an environmental risk, and thither is good reason for concern. There have been several marine accidents in recent years. There was the case of an Argentinean supply vessel Bahia Paraiso, which ran a ground on January 28, 1989, spilling 600 metric tones of fuel into Antarcticas pristine waters (Culver 1991). Other environmental impacts include engine emissions that contribute to air pollution.The noise generated from outboard motors on inflatable zodiacs, turbulence created from tourist ships and the grey water sewage they emit in like manner creates harmful effects. More responsibility is being demanded out of eco tourists visiting Antarctica. For example Salen Lindblads 164-passenger ship the Frontier Spirit has been reinforced, and also contains a sewage treatment plant, refrigerated devastate storage area, and a special storage area for non-biodegradable waste (Cebellos-Lascurain 1996). Another main concern is in the peninsul a region of Antarctica where there are several highly concentrated, high profile sites.The concentration of tourism activities leads to the potential for oer visitation in these areas. A present study of Magellanic penguins demonstrates that human impact puts a great amount of stress on the species. Simple human charge can be physiologically stressful for breeding at nest sites (Fowler 1999). The Antarctic environment is very fragile and not used to human activities. However the study also found that birds exposed to high levels of tourists are not effected over time and concludes that as a result tourism should be concentrated to certain areas while others are kept off limits to human presence.People have been going to Antarctica for over 100 years. Prior to 1950, nearly all trips to Antarctica were either exploratory or scientific expeditions (Cessford 1997). As a result of human activity in the area there has been a connection with industrial, subject area and scientific progra ms. Human activity has also caused the development of alien microbes, fungi, plants, and animals. These alien species that are mostly European in origin exist on most of the sub Antarctic islands and some even occur on the continent itself. These species in turn can have both a direct and confirmative impact on the Antarctic ecosystem (Fenot 2004).It has only been recently that biologists have conducted any research into diseases of Antarctic wild living to note the effects of human activity. These studies look at marine mammals and penguins for bacteria flora and pathogens (disease causing organisms). Blood tests for antibodies of a variety of species have also been taken to check for viral, bacterial, fungal and parasitic disease. A study conducted in the summer season of 2000/2001, Dr. Todhunter and Dr. Terris took swab collections of specimens from passengers boots aboard the Kapitan Khlebnikov, which led to tentative findings of a wide range of potential pathogens.In another study 233 fecal samples from 8 bird species were taken from 6 different penguin colonies, which are regularly visited by tourists. The samples were investigated for pathogens of potential human origin. No human related bacteria were found, which suggests that the tourism industry in the Antarctic region has achieved its goal of not introducing any pathogens so far. While the tourist season only ranges from October to April, currently tourism in Antarctica involves over 30 agencies, and 40,000 tourists per annum (Lambert 2005). Antarctica is the ultimate destination for anyone interested in natural history, but it also challenges the same people that visit to think about our responsibilities to all life on earth (Lambert 2005). Tourists to Antarctica are most likely to fall in to the category of eco tourist, as there are no restaurants, theaters or art galleries, and the bugger off is about learning about and viewing one of the earths last untouched continents. Boo (1990) states tha t for conservation management to succeed, tourism must be a tool to educate thus creating real benefits for a geological location.Although tourism and human contact on Antarctica is showing some negative impacts, it has also encouraged conservation efforts in the region. Another step towards the recognition of potential environmental impact is the creation of the IATTO (International Association of Antarctic Tour Operators). In 1991 sevensome tour operators active in Antarctica formed IATTO. It was created to act as a single organization. The goal of IATTO is to promote and practice safe environmentally responsible private-sector travel to the Antarctic. Currently there are 80 member organizations representing 14 countries. IATTO 2008) This environmental protocol designates Antarctica as a natural reserve devoted to peace and intelligence and seeks to ensure human activities, such as tourism, have no adverse effects on the Antarctic environment, or on its scientific and aesthetic values. With a recent change magnitude in the number of members in the IAATO it shows that companies are becoming more aware of the environmentally sensitive concerns related to Antarctica and the importance of such an organization. The increase in membership does not necessarily mean that there has been a drastic increase in the number of tourists visiting Antarctica.All current Antarctica tour operators file yearly environmental impact assessments to their national authorities. There are few places on earth that have never been to war, where the environment is fully defend and scientific research has priority over anything else. (IAATO 2008) The Antarctic accordance can be accredited with the successful protection of Antarctica. Formed on June 23, 1961 the treaty covers the area south of 60 degrees latitude and consists of 46 countries. Its objectives are simple and unique, demilitarize Antarctica and make it a zone free of nuclear tests, and disposal of radioactive waste.As we ll as be used for peaceful purposes only (IAATO 2008). To promote international cooperation in the Antarctic and set aside disputes over territorial sovereignty. The treaty parties meet each year and have adopted over 300 recommendations and negotiated separate international agreements, of which 3 are still in use. These include 1. The dominion for the conservation of Antarctic seals which was established in 1972. 2. The convention for conservation of Antarctica marine living resources established in 1980. 3. The protocol on Environmental protection to the Atlantic Treaty established in 1991.These agreements and the original treaty provide the rules to govern all activities in relation to Antarctica. Collectively known as the Antarctica Treaty body (ATS). In conclusion it is apparent that Antarctica is a very fragile environment, and any kind of human involvement can pose great risks if the correct precautions are not taken. It is clear to me that eco tourism can benefit the great continent of Antarctica, those visiting conk ambassadors as they learn about the importance of preservation. Boo (1990) explains that tourists become emotionally attached to an area and will contribute funds to preserve it.It is important for organizations like the IAATO to continue their promotion of safe and environmentally responsible travel to the Antarctic. Continued research is necessary to make sure that tourists as well as scientists leave as little of a human footprint as possible. Antarctica is a beautiful place on earth, and I believe that when people are educated about their impact on such a undefended area and regulations are put in place to protect the area that everyone should be able to experience the Antarctic continent in all of its magnificence.

Events Which Take Place Essay

After reading The Crucible, I feel that in a society exchangeable the one described in the play, things along those lines would have been inevitable, when one takes into account the way things worked thither. For precedent, it was a theocracy, which means they argon governed by the Church, which in turn goes by the ruling of the Holy Bible, and non every laws passed by regular means. Another major contri plainlyor to either this tension is the fact that break of the eight children, commiseration is the only one who survived. Mrs Putnam is positive(p) that they have all been killed by supernatural means, and is always paranoid and suspicious of anything out of the normal.This means when the cries of witch start spreading, she is convinced she has at last found the cause of death of her seven infants, and is determined to see those she sees as responsible hanged. She seems so desperate to pin the blame on someone who cannot be proven both way that it seemed that she was almost looking for any scapegoat to take the blame for those unfortunate events. She even goes as utmost as to send her only remaining child Ruth to Tituba in an attempt to get her to conjure spirits so she could contact the souls of her dead children.This ties her into things, but she never really emerges in the play as a candidate for any kind of punishment. This has most probably come as a pull up stakes of her husband being a powerful land leter, making any allegations against him or his family like playing with fire. With this being a theocratic society, where the Church and State atomic number 18 one, and the laws given down by God are interpreted very strictly and literally by the tidy sum here, which means that breaking the law here would also be going against Gods will, so the consequences of any offence are dire.In Salem, everything can be classed as black or white, with God, or in league with the devil with no shades of grey in between. This is shown by Danforths speech You must understand, sir, that a person is either with this court or he must be counted against it, there is no road in between. This kind of attitude makes everyone very afraid of being seen as not closely bonded with God, as it would imply that they had dealings with the Devil.As Puritans, these strict Christians believe the worst thing that they can do is to defy God ecclesiastic, so when John Proctor ends his affair with Abigail, she uses these accusations, as they demand the full attention of the court, right away. She is very clever in what she says, as shown by her detonation at the end of Act One, after Tituba confesses to witchcraft in the woods. She screams I want to open myself I want the light of God, I want the unused love of Jesus I danced for the Devil I saw him, I wrote in his book I go back to Jesus I osculate His hand. And in Salem, although consorting with the Devil and witchcrafts a hanging error, confessing it would redeem her, and freeing her from any kind of guilt. She uses this very well to protect her own reputation, and is quick to start naming names to ease the burden from her shoulders onto others. These actions show the length of Abigails selfishness, and its success in Salem sets and example for the other girls who are quick to latch on and do the same, thus suggesting Abigail may be the cause of events which take place in the Crucible.When Abigail and a few other girls are spotted dancing in the woods, and someone was seen to be naked and running around, they are immediately under suspicion, and were under great pressure to come out with a plausible explanation. This meant that instantaneously, they were all forced into a defensive position against the public and the courts. After Parris learns that the Putnams asked Tituba to contact the spirits of their dead children to learn the identities of their murderers, spotlights instantly cancelled onto the girls, under the accusations of witchcraft.This scares many of the girls lik e Mary Warren who know that Witcherys a hanging error and once she says that, panic ensues amongst the girls themselves. Abigail seems at commencement exercise to be trying to help things out, but shows she had a short temper, by shouting Ill beat you Betty when Betty refuses to waken even when knowing its Abigail. It is whence revealed that she is jealous of Goody Proctor, and drank blood on that occasion to kill her through supernatural means, but then threatens to kill anyone who dared to reveal this.This threat has come straightaway out of her fear of the punishment she will no doubt receive in much(prenominal) a theocratic society, making her the cause of this particular outstanding event, but only as a result of the type of society Salem is in the play, and therefore she is actually a omen. Another good example of this is when at the climax of the play, Proctor eventually weighs it out, and discards his concern for his reputation in seeking justice, by confessing to his affair I thought of her softly.God help me, I lusted, and there is a promise in such sweat. But he is still careful to mention the power of God in the beginninghand, which goes to show the extent of organized religions influence in the town, by starting with A man may think God sleeps, but God sees everything, I know it now, before going onto saying that the court must see, that it is a whores vengeance upon him. We also see in the play that her actions are far from ordinary in many cases and would have taken more than the average person to pull off.For example, even when Mary Warren confesses that She never saw familiar spirits, apparitions, nor any manifest of the Devil she stands strong in denying that she had feigned anything. We see that she had been the cause of many catastrophic events had taken place, as well as being the symptom in what seemed inevitable in such a backstabbing and hypocritical society, and she has come across as a catalyst. Just as a catalyst, she speeds up the changes in the pressurised crucible that is Salem.Being the catalyst in this situation, she had a lot of confine over the direction of the witch-hunt, and she mainly directed the accusations for her own personal gain. However, she starts to lose control when Mary Warren goes over to John Proctors side, and things go very wrong when John Proctor is accused, since the whole point of the witch-hunt for Abigail was so that she could finally be with him. It seems that even after she stops accusing plurality, the witch-hunt has gained great momentum, and people are accusing others of witchcraft whenever their loss may be at all beneficial to another, or at times for their own benefit.These latter accusations, needed no provocation from Abigail, but took course all by themselves, suggesting that Abigail was not at the centre of any of those events. So to conclude, my opinion is that Abigail is not entirely the symptom nor the cause of events in Salem, but acted as more of a cataly st, speeding up and making what was inevitable considering the society which Salem was, into reality, in a or else dramatic way.If I were however, to seem things as black and white as the people of Salem did, I would consider Abigail to be more of a symptom than a cause, mainly because after carefully studying the theocratic society where people were getting overly jealous of each other, something along these lines almost seemed to be destined. Also, the frightening power of the majority is able to suppress the minority who feel rather sceptical and are not convinced by the evidence may themselves be accused of being against the court and receive punishment.This would mean standing up for their beliefs which in this case would have been correct would mean they would have lost their lives. So considering the circumstances of the rather extreme philosophical and religious guidance which plays such a huge role in the settlers of Salem, and the fact that Abigail was able to put a leash on things to direct it in a direction which benefited her does not make her a symptom either, just a catalyst in an equation with all the ingredients for such a terrible tragedy.

Plunkitt of Tammany Hall

Summer School I buttocks blame no one and myself for my need to view summer civilize for this year. How constantly I would like to blame it on my Spanish teacher, my mother, my siblings, my dog ate the homework, anyone but Christopher L. Martin. Summer cultivate was not in my game plan the first day of school last year. I entered my school, Lake Catholic HAS, with the calm surety and purpose of a bona-fide tenth grader, Vie been here before.My anxiety level was low but my expectations for the future year were high. There are times when I think that I remain overwhelmed in some way by the enormity of the campus the many classrooms, by the tough rules that are actually enforced. Transitioning from a small Catholic parish school boasting an 8th grade graduating class of 34 students to a lifesize campus of hundreds of students present a challenge to fit-in that I had never experienced. I began the August, 2011 school year anticipating the spectacular athletic and academically suc cessful year ahead of me.I ever thought that such a hopeful day would end in humiliation a years end. You might ask what caused this major shift in my universe. I failed both semesters of Spanish II and had to retake the entire year during summer school at SST. Robert Williams in Euclid, OH. I will be unbiased and admit that prior to formulating thoughts to Jot down in preparation of writing this personal essay I thought the most devastating result of having to attend summer school was that I was automatically ineligible to participate in football.I was not allowed to attend practice or to Join the am for the annual slick to the Edinburgh campus where players honed their skills and bonded as men. I now wee and accept the fact that my behavior placed a heavy financial burden on my families finances. Summer school is not cheap . The cost of attending summer school hit our budget so hard that my 2011-2012 grades were not paid for until it was too late to patch up the summer reading assignments. I am therefore very grateful to have the option of writing this personal essay. Paying for summer school had our family without food and water.Not only did my having to attend summer school overwhelm our family budget, the time factor ruined any chances I might have had for summer employment. I had to wake up every morning to go to school and remain in that hot stuffy building for four hours a day, 5 age a week for 4 weeks. It may be difficult to believe, but there were times when our instructor would keep us in class for an duplication hour or two. The requirements were so intense that I spent most of the long hot summer nights and week-ends stuck in the house completing homework assignments.Unfortunate as it was, I feel this experience has opened my eyes to my need to take personal responsibility for myself in all areas of my live including school. Writing this essay withal makes me realize the unconditional love and faith my mother has in me in spite of what I di d or didnt do. Hardship it placed on her as a divorced single parent and her ability to provide for me and my siblings. My athletic scholarship has been revoked because of this and still she works hard to keep me here so that I can get the best education available.She didnt even include caring for herself into the equation because she was focused on supporting me and my siblings. Yea, she stayed on me to the point of angry outbursts however, I realize the reason for her persistence at keeping me focused is based on her love for me and her hopes for me to enjoy a bright future. It is also noted in my mind, that accurate, by the way completion of class assignments is a precursor to life as a college student and as a functioning, contributing member of society. I am considering this summer school experience from beginning to end as a lesson learned.

The Hunters: Moonsong Chapter Thirty

Cappuccino and a croissant? the waitress said, and, at Elenas nod, set them down on the table. Elena pushed her notebooks aside to become room. Midterms were coming up, on top of everything else that was happening. Elena had tried studying in her room but was too distracted by the sight of Bonnies empty bed. She and Meredith were al reproach without Bonnie.She hadnt gotten much done here at the cafe, either, despite getting one of the prime big outdoor tables that she could spread her books out on. Shed tried, but her mind kept circling back to Samanthas death.Samantha was such a nice girl, Elena thought. Elena remembered how her eyes lit up when she laughed and the charge she bounced on the bal s of her feet as if she was bursting to move, run, dance, too ful of energy to sit stil .Meredith didnt exculpate new friends that easily, but the wary coolness she usual y wore with strangers had relaxed around Samantha.When Elena had left the dorm, Meredith was on the phone with Alari c. Maybe he would know what to say, how to comfort her. Unwil ing to classify into their conversation, Elena left her a note indicating where she would be if Meredith needed her.Stirring her c slayee, Elena looked up to see Meredith coming toward her. The tal er girl sat down across from Elena and stubborn her with her serious gray eyes. Alaric says Dalcrest is a hot spot for paranormal activity, she said.Black magic, vampires, werewolves, the whole package. Elena nodded and added more sugar to her cup. Just as Professor Campbel hinted, she said paying attention y. I get the feeling he knows more than hes saying.You need to push him, Meredith said tightly. If he liked your parents so much, hel feel like he has to tel you the truth. We dont scram time to waste. She reached out and broke off a piece of Elenas croissant. Can I have this? I havent had anything to eat today, and Im starting to feel dizzy.Looking at the strained lines on Merediths face, the dark shadows under her eyes , Elena felt a sharp stab of sympathy. Of course, she said, pushing the plate toward her. I just cal ed Damon to come ensure me. She watched as Meredith decimated the croissant, stirring stil more sugar into her coffee. Elena felt in need of comfort.It wasnt long before they saw Damon sauntering down the street toward them, his hair sleek and perfect, his al black clothes casual y elegant, sunglasses on. Heads turned as he walked by, and Elena distinctly saw one girl miss her footing and fal off the curb.That was fast, Elena said, as Damon pul ed out a chair and sat down.Im fast, Damon answered, and you said it was important.It is, Elena said. Our friend Samantha is dead. Damon jerked his head in acknowledgment. I know. The police are al oer campus. As if theyl be able to do anything.What do you mean? asked Meredith, glaring at him.Well, these killings dont exactly fal under the polices agency, do they? Damon reached out and plucked Elenas coffee cup from her hand. He took a sip, t hen made a smal moue of distaste. Darling, this is far too sweet. Merediths hands were bal ing into fists, and Elena thought she had better speed things up. Damon, if you know something about this, occupy tel us. Damon handed her back her cappuccino and signaled the waitress to bring him one of his own. To tel you the truth, darling, I dont know much about Samanthas death, or that of Mutts roommate, whatever his name was. I couldnt get tight enough to the bodies to have any real information. But Ive found definite evidence that there are other vampires on campus. Sloppy ones. His face writhe into the same expression hed made after tasting Elenas coffee. Probably newly made, Id guess. No technique at al .What kind of evidence? Meredith asked.Damon looked surprised. Bodies of course. Very ill disposed of bodies. Shal ow graves, bonfires, that kind of thing.Elena frowned. So the people who have disappeared were kil ed by vampires?Damon wagged a finger at her teasingly. I didnt say that. The bodies I examined and let me tel you, jibe up a shal ow grave was real y a first for me were not the same ones that vanished from campus. I dont know if your missing students were kil ed by vampires or not, but somebody else was. Several somebodies. Ive been trying to find these vampires, but I havent had any luck. Yet. Meredith, who normal y would have jumped on Damons comment about this being his first time digging up a grave, looked thoughtful. I saw Samanthas body, she said hesitantly. It didnt look like a typical vampire attack to me.And from the way Matt described Christophers body, I dont think his did, either. They were she took a deep breath mauled. Torn apart.It could be a pack of real y angry vampires, or messy ones, Damon said. Or werewolves might be vicious like that. Its more their style. The waitress appeared with his cappuccino, and he thanked her graciously. She retreated, blushing.Theres another thing, Elena said once the waitress was out of audien ce range. She glanced inquiringly at Meredith, who nodded at her. Were worried about Bonnie and her new boyfriend. Quickly, she outlined the reasons they had for being suspicious of Zander and Bonnies reaction to their concerns.Damon raised one eyebrow as he finished his drink.So you think the little redbirds suitor might be dangerous? He smiled. Il look into it, princess. Dont worry.Dropping a few proletariat ars on the table, he rose and sauntered across the street, disappearing into a grove of maples. A few minutes later, a large black crow with bright iridescent feathers rose above the trees, flapping its wings powerful y. It gave a raucous caw and flew away.That was surprisingly helpful of him, Meredith said. Her face was stil tired and drawn, but her utter was interested.Elena didnt have to look up to know that her friend was watching her speculatively. Eyes demurely downward, feeling her cheeks flush pink, she took another sip of her cappuccino. Damon was right. It was muc h too sweet.

Accounting Theory Cga

gliding 1 ACCOUNTING THEORY & CONTEMORARY ISSUES (AT1) MODULE ONE sheer 2 ACCOUNTING UNDER IDEAL CONDITIONS Part 1 tail end items re the course Part 2 evince prise bill infra certainty Part 3 place look upon peckering downstairs uncertainty Part 4 Reserve recognition greenbacking Part 5 interrogation question examples Part 6 Historical personify business relationship Lecture by Dr. A. L. Dartnell, FCGA twelvemonth 2009 2010 2 Slide 3 musical composition 1 Foundation Items re the Course Different Course Financial reporting is extremely important in our everyday life.You reliableise heard of the many irregularities that have occurred in recent stratums which primarily involved financial reporting. Financial reporting is controlled by orders congeal so that the best disclosure leave behind take place. To amply on a lower floorstand the importance and necessity for these standards, you need to appreciate that they argon designed so as to trade off the co nflicting worrys of constituencies affected by them comm solo investors and managers. Note c befully that Standard Setting bodies make these trade-offs through due mold. That is, standards ar set in consultation with study constituencies.Devices to achieve due process include re testifyation of major constituencies on the standard setting boards, supermajority voting, exposure drafts, and public meetings. In other lyric, the issues and topics argon well-vetted prior to their implementation. Thus the course deals with standard setting of news report policies by which you are guided in your work as an accountant. Slide 4 Second, students much ask wherefore they need an accounting theory course. We need to netherstand the thinking and action underlying the leasements for the standards we follow. All activities in life have a theoretical background.For example, how a chef prepares a repast in a restaurant. If the theory behind the meal is good, customers return. If non, t hey dine elsewhere. How you cut the lawn has a theory. You follow a theoretical plan for the actions you choose. So with accounting we have theories and to understand them is extremely important for the accountant. wherefore we do things the way we do. We do not wish to follows principles which we do not understand. and Slide 5 Third, students ask why the course writer refers so much to shares, the stock trade, financing and related matters. If you consider any undertaking it has finance involved.So the writer refers a grand deal to shares and the food commercialize. 3 Financial psychiatric hospitals are throughout the world. For example, besides banks in all countries, on that point are many large stock ex cast steps, even in Socialist countries like China. Further, smaller businesses and organizations, such as, not-for- profit entities, obtain financing from banks and credit unions, as well as other sources of bills, such as, donations from the public. Thus, stocks, bonds , financial institution brings, and other financing, are the life blood of our stinting activity. Without these sources of funds our thrift as we know it would not survive.Thus, it is important to you as an accountant to be fully aware of the financial activity we encounter day by day and we must provide good financial discipline for those who have invested or loaned their m iodiney for organizations to exist for our economic benefit. Slide 6 Objective To sum up The Course revolves around setting of standards for dislodge of knowledge for investors and creditors. Standards can be set by various regulatory bodies CICA, Securities Commissions, Stock Exchanges, and other groups. Our objective is to provide the best nurture possible for the readers of the reports.Slide 7 Standards in the future As you know, financial reporting for publicly-traded firms in Canada will be in accordance with International account tilt Board (IASB) standards from 2011 on. This course includes c everyplaceage of IASB standards, in the textbook, the modules, the assignments, and review bodily. We do have a number which are in accord with IASB standards except the task is expected to be completed by 2011. While the current interlingual rendition of the textbook has few references to Canadian standards, coverage of current Canadian standards is included in the modules, as well as, the review and assignment material.Coverage of certain unite States standards is also included where these differ significantly from, or are in advance of, IASB standards. All of this material is examinable unless specifically marked to the contrary. 4 In this course, material relating to specific accounting standards is largely (but not completely) at a innovationual take aim. Fortunately, at this level, most standards in Canada, the United States, and internationally are broadly uniform, thereby reducing the amount of detail you will have to learn.However, there are some important conflict s, particularly with respect to current prize accounting, and these will be emphasized where appropriate. It would seem that from 2011, current Canadian standards will no longer be relevant or examinable. Future versions of this course will include only IASB and relevant United States standards. Slide 8 History and Research There is an raiseing rundown on the history of accounting and research in the original 15 pages of the text. Go over them to get some background for the course. Topic 1. 2 of the module notes relates to recent developments in financial accounting.It gives an excellent account leash up to the current recession and also the effect on fair value accounting which we will be dealing with in the course. Read it carefully. It is level 2 and you should know it in a general manner. Slide 9 Information Asymmetry an important topic The aim of the course is to deal with study economics. The theme relates to the fact that some parties have an information advantage over others in business transactions. If one party is better informed than the other(s), thence it is referred to as information asymmetry.We will deal with these topics later but for the moment, information asymmetry grows in devil forms obstinate selection and Moral hazard. Slide 10 Adverse selection relates to the possession of greater information by one party over the other. Adverse selection in the securities market place stems from insider trading and selective release of inside information, which is releasing only the information the manager decides to release. Bad news may be withheld from public consumption. replete(p) disclosure is the antidote. 5 Slide 11 Moral hazard relates to shirking on the part of managers, or any situation where a person cannot be observed by the employing party. For example, a trustee for a bond issue could shirk if not carrying out his/her duties as they should be. For the manager (employee) participation in the fruits of the operations, for example, profit sharing is an antidote. Slide 12 endow cheer Accounting An English economics professor named Hicks said the way to determine the real change in economics of the firm is to take the difference between acquit additions at the beginning of the period and at the end of the period and that would be your profit.That would be market value. If the can assets have change magnitude, your wealth has change magnitude and you have made a profit. If they have decreased, you have suffered a loss and your wealth had decreased. Your welloffness has changed Slide 13 How do we measure this well-offness of the firm? The bounty value system is probably the best way of measuring the change in the value of the assets and comes closer to the valuation of the market value than do other systems. In real terms what is it worth today and what will it be worth in the future. We want to start with amaze value accounting.It is theoretical, no doubt not fully attainable, but a target at which we can shoot. While a full accedeation of present value accounting would be trying for a organization it can be considered from an ideal situation channelise of view. Slide 14 Current Value Accounting However, before moving ahead, on page 4 of the text the term current value accounting is used. This is a general term used to refer to departures from our currently used diachronic cost accounting. It is designed to increase relevance of financial information. pass on value accounting (also called value-in-use) is a departure from historic cost.The other departure is fair value accounting (also called exit value or opportunity cost). Fair value is the amount the firm could sell an asset for or the cost to dispose of a liability, that is, market value. An implication of valuing assets and liabilities at opportunity cost is that managements success is 6 then evaluated by its ability to gene count more bread from retaining assets and liabilities and using them in the busi ness rather than by selling them. Slide 15 It should be noted that under ideal conditions, present value and market value are equal.This module concent ranges on present value accounting, since this is the fundamental basis on which market values are determined. However, when ideal conditions do not hold, the present value of an asset or liability may differ from its market value. It should also be noted that for many assets market value is not readily forthcoming. Think of steamships, what is their value? The fast ferries were a perfect example when the BC Government endeavoured to sell these vessels a few geezerhood ago. There was no market level for their sale price. Also, intangibles, and power plants, are other examples. Markets for these types of items are incomplete.Slide 16 Present Value Calculations and Limitations First, you have done present value calculations but to refresh your memory there are two examples in the appendix. However, if you have difficulty make sure yo u can under present value, future value, and annuities. The financial institutions and leasing firm use present value calculations extensively. Present Value Limitations It is difficult to precisely relate the present value system to the market value. Why? There must be ideal conditions a definite and perfect knowledge held by all. Ideal conditions would include a definite notes flow situation a definite sack enumerate what we would term a riskless rate. a definite time period. In making our statements we want to give the best picture possible. Question is is it a reality for us to give present value figures for all our assets and liabilities? any(prenominal) not all. To repeat in many ways ideal conditions are a theoretical target at which to aim. Present value accounting is an example of the more general imagination of fair value accounting, where the fair value of an asset or liability is its exit price, that is, the amount the firm could sell it for (asset) or the cos t to dispose of it (liability). As noted above. ) Under ideal conditions, present value and market value are the alike. However, when ideal conditions do not 7 hold, the present value of an asset or liability to a prospective getr may substitute for market value when, as is often the case, a market value does not exist. Slide 17 Relevance and Reliability We want to make our statements as relevant as possible and as rock-steady as possible. Relevance To be relevant statements must give users information on future change in flows, which show what the assets are worth in the future, that is, Predictive value. ReliabilityTo be reliable financial statements and information should be precise and as free from bias as possible. If the present value is the kindred as the market value then they are relevant. If the data are correct and unbiased then they are reliable. This is our aim. Slide 18 Generally relevance and reliability work against each other. With present value you get more r elevance but you lose some reliability because of unknowns such as future cash flows, the discount rate, etc. With diachronic cost you get reliability as transactions past are the basis of the statements, but you lose some relevance as the diachronic cost statements become dated.Relevant financial information gives investors information about the firms future economic prospects. Reliable financial information faithfully represents without error and bias what it is mean to represent. Be sure you understand why, except under ideal conditions, relevance and reliability must be traded off. This is the main point of this topic. While the text concentrates on the relevance and reliability trade-off of historical cost accounting, there are different tradeoffs for other bases of accounting. For example, cash basis accounting represents the trading off of a lot of relevance in order to attain high reliability.Conversely, current value accounting represents the trading off of a lot of re liability in order to attain high relevance. Historical cost accounting can then be thought of as a compromise between these two extremes. Increasing both relevance and reliability is extremely difficult to do. (Can you think of a financial accounting product that does this? ) The text suggests that the reporting of supplementary information (such as RRA) enables increased relevance duration retaining the reliability of historical cost in the financial statements proper. 8 Slide 19 Dividend Irrelevancy Theoretical concept if conditions are certain, i. . , if cash flows, discount rates and time periods are certain then the present value will equate to market value. Income is not a determining factor. Dividend irrelevancy is the situation where it is presumed whether or not dividends are gainful to the shareholders or profit well-kept where it earns the same return. There is one basic rate in the economy. It is contrary whether dividends are paid or bear in the company for rein vestment. Slide 20 trade What is it? If the market gets out of equilibrium under ideal conditions Arbitrage will bring it back into equilibrium. Briefly arbitrage is buying in one market and selling in another for a higher price, thus, making a profit. Slide 21 cause If I buy a share for $60. 00 in the Toronto market and can sell it for $61. 00 in the New York market, above commissions and foreign exchange, I can make a dollar per share. This accident exists because there is imperfect information. If there is no arbitrage possibility then the market is working well. If, however, there is a rectifiable difference between the two markets and information asymmetry exists, then there is a problem. Arbitrage is a means to bring the two into equilibrium.Slide 22 How does arbitrage work in our ideal situation to bring the markets back into equilibrium? What happens from an economic theory point of view? If I buy in the Toronto market share price will rise and sell in the New York mar ket share price will fall. The supply/demand relationship will erase differences which exist. This is an important economic principle. Demand will increase in the Toronto market increasing price and supply will increase in the New York market, decreasing price, bringing them into equilibrium. 9 Slide 23 Keep your Handout gettable PART 2 Present Value Under conclusionMajor topics Comment on Present Value Example Description and Required What is the resultant role Steps twelvemonth zero equilibrium bed sheet Steps end of first twelvemonth Slide 24 Present Value Under Certainty (cont) Income statement first family Balance sheet first form Steps end of bet on yr Income statement second year Balance sheet second year Summary of present value under certainty Slide 25 Comment on Present Value Present value accounting you will find this different than historical cost accounting. For example, the point in the historical cost operating cycle at which we actualise revenue is the point of sale.Note carefully in present value accounting under ideal conditions, the present value of all future revenues ( clams of be) is acknowledge when productive capacity is acquired (for example, plant and equipment is valued at the present value of its future net cash receipts at date of acquisition that is, when you incur to operate). Then, income for the year is simply the accretion of discount (profit) on the opening present value. That is, under ideal conditions, it is not necessary to wait until the realization of revenue is probable, since, by definition, all future revenues are reliably known.While the text addresses this in terms of asset valuation it is also revenue recognition. The opposite side of the same coin. Another stakesing point is that even if the firm pays out all of its profits as dividends, there will be cash-on-hand equal to accumulated amortization. This illustrates the point you 10 learned in accounting courses that amortization retains ass ets in the business. The amount is not paid out. Slide 26 Example Description of Question allows look at a theoretical, ideal situation. Jane bought a fixed asset and operates under ideal conditions with certainty.She anticipates it will bring cash flows of $300 at the end of the first year and $400 at the end of the second year, with a scavenge value of $100 at the end of the second year. The hobby rate is 9%. Jane takes out a bank loan of $cl at 8%, and she issues a bond to I. Save for $120, with a coupon rate of 10%. Make provision for $100 in the cash account for working capital. The current yield in the market for a similar guarantor is 9%. Interest is due at the each year-end, at the rate of 9% At the end of the second year the loan will be paid and the bond will mature. Dividends of $20 will be paid at each year-end. Slide 27After receiving the loan and the bond money, the poise of the assets are financed by common shares. There will be $100 excess subscription for comm on shares at the end of the second year. Required Prepare a repose sheet at year zero, and income and balance sheets for years one and two. It is generally wise to prepare a balance sheet at year zero. It prevents mistakes later. Slide 28 Answer First of first year steps 11 1. Obtain the present value of the asset by discounting cash flows and salvage. 2. finance present value of the principal and interest of the loan and the bond. 3. Make provision for the $100 in the cash account. . Deduct the p. v. of the loan and the bond from the capital asset to arrive at the shareholders beauteousness. Janes bon ton Balance Sheet As at January 1st, x1 Assets Cash $100. 00 Capital Asset 300/1. 09 + 400/1. 188 + 100/1. 188 696. 11 positive assets $796. 11 Note the interest rate is 9%. Liabilities and Shareholders Equity bestow 12/1. 09 + (12. 00 + 150. 00)/1. 188 $147. 37 Bond 12/1. 09 + (12 +120)/1. 188 122. 12 Shareholders Equity $796. 11 (147. 37 + 122. 12)* 526. 62 integral liabi lities and shareholders fairness $796. 11 *Proceeds from the loan and the bond are deduceed from the chalk up assets to obtain shareholders justice. Slide 29First Year Results depot of First year 5. Set up income statement. You need gross sales, interest on the cash balance, amortization for the year, (present value of second year deducted from original present value) and interest expense, which is, the discount rate times the original present value of the loan and the bond. 6. Set up your balance sheet for the first year. 7. Next is the cash and that which is actually paid out interest and dividends 8. Determine the remaining balance of your capital asset from the income statement. 9. Obtain your liabilities for the loan and the bond. This is the remaining amount for the second year, discounted. 0. Obtain retained earnings net income for the year less dividends. 12 Janes community Income parameter For the Year Ending declination 31, x1 gross sales $300. 00 Interest $1 00. 00 x 0. 09 9. 00 309. 00 little amortisation $696. 11 458. 71 = $237. 40 400/1. 09 + 100/1. 09 = $458. 71 Interest expense* give $147. 37 x 0. 09 = 13. 25 Bond 122. 12 x 0. 09 = 10. 98 261. 63 clear up income $ 47. 37 *Note interest is at the going rate in the economy. Janes party Balance Sheet As of celestial latitude 31, x1 Assets Cash $100. 00 + 300. 00 + 9. 00 ($12. 00 interest on bond, $365. 00 $12. 00 interest on the loan and $20 dividend) Capital asset $696. 1 Accumulated amortization 237. 40 458. 71 $823. 71 Liabilities and Shareholders Equity Loan outstanding p. v. at end of year one (12 + 150)/1. 09 $148. 62 Bonds outstanding p. v. at end of year one (12 + 120)/1. 09 121. 10 Shareholders equity as shown above 526. 62 Retained earnings illuminate income $47. 37 Less Dividends 20. 00 27. 37 Total liabilities and shareholders equity $823. 71 13 Slide 30 Second Year Results End of Year Two 11. Set up your second years income statement 12. In addition to your ca sh flow you should show your interest received on the bank balance of $32. 85 (made up of $365. 00 x 0. 09) 13.Less amortization balance left in the capital account is salvage value of $100. 00 14. Obtain interest expense the discount rate of 0. 09 times the carrying value of the loan and the bond in year 2 15. Set up the balance sheet 16. Cash account will be the carryover of $365. 00 from the old year plus the sales of $400 and the interest on the cash account of $32. 85 plus the additional $100. 00 put into shareholders equity. Deductions will be the actual paid out interest on the loan and the payoff of the loan ($162) and requital of the interest and the maturity of the bond ($132. 00) and the deduction of the dividend ($20. 0). Total in the cash account should be $583. 85 17. The capital asset will be $100. 00. You deduct the salvage from the carrying value of the capital asset in the second year ($458. 71 358. 71 = $100. 00) 18. Set up the liabilities and the shareholder s equity show zero for the loan and the bond as they have been paid off Slide 31 19. Shareholders equity will be the original balance plus $100. 00, plus retained earnings from the previous year plus the addition of net income for year two and the deduction of the dividends in year two. Net Income will be $49. 86 and Total assets $683. 85. Janes CompanyIncome avouchment For the Year Ending December 31, x2 Sales $400. 00 Interest on cash in bank ($365. 00 x 0. 09) 32. 85 $432. 85 Less amortisation $458. 71 $100. 00 = $358. 71 Interest expense Loan $148. 62 X 0. 09 = 13. 38 Bond 121. 10 x 0. 09 = 10. 90 382. 99 Net Income $ 49. 86 14 Janes Company Balance Sheet As at December 31, x2 Assets Cash $583. 85 Change ($400 + 365 + 32. 85 + 100) (12 + 150 + 12 + 120 + 20) Capital Asset $458. 71 358. 71 100. 00 Total assets $683. 85 Liabilities and Shareholders Equity Loan outstanding $ 0 Bonds outstanding 0 Shareholders equity 526. 62 Additional subscription 100. 00Retained earnings Pre vious balance $ 27. 37 Net income 49. 86 $77. 23 Less Dividends 20. 00 57. 23 Total liabilities and shareholders equity $683. 85 That is a rundown on ideal conditions under certainty. Under ideal conditions everything, i. e. , cash flows, discounts, and other estimates, would happen as given. 15 Slide 32 PART 3 go over the Handout pageboy 15 Present Value Under Uncertainty Major Topics Present Value under Uncertainty what is it? Example Description and Required Answer Steps year zero Balance sheet Slide 33 Topics (cont) Income statement year 1 Balance sheet end of year 1 Present value income statement year 1 Income statement year 2 Balance sheet year 2 Summary of present value re Accounting Material A typical short answer exam question Slide 34 Present Value Under Uncertainty In this part we want to inject some uncertainty into the cash flows We are still under ideal part and the theoretical aspect of things, thus, everything remains the same apart from revenu es. Jane has a new company, that started operations on January 1, x1 Assume cash flows could be $250 for each of two years if the economy is good and $120 a year for each of two years if the economy is poor.There is a 50% chance there will be a good year each year and a 50% chance there will be a poor year. These are called states of nature. 16 To set the company up Jane makes a loan of $200 and finances the balance by common shares. The loan will be paid off at the end of two years. Loan rate 9%. We will make certain assumptions the discount rate is 8% the states of nature and probabilities are publicly known and observable. cash flows are given but uncertain as to which result will occur. Slide 35 Balance Sheet at Time 0 1. Determine the capital asset $329. 91 2. Determine the p. v. of the loan and shareholders equity.P. V. = 0. 5(250)+ 0. 5 (120)+ 0. 5(250) + 0. 5(120) 1. 08 1. 08 1. 1664 1. 1664 = 0. 5(231. 48) + 0. 5(111. 11) + 0. 5(214. 33) + 0. 5(102. 88) = 115. 74 + 55. 56 + 107. 17 + 51. 44 = $329. 91 Janes Company Balance Sheet As at January 1st, x1 Capital Asset $329. 91 Loan $203. 55 ______ Shareholders equity 126. 36 $329. 91 $329. 91 Loan $18. 00/1. 08 + (18 + 200)/1. 1664 = $203. 55 common shares $329. 91 203. 55 = $126. 36 Time 1 Slide 36 First Year Results Assume there is a GOOD economy for time 1. 3. For the income statement determine sales $250. 00 4. Determine amortization need the p. v. s of January 1st, x2 5. Charge interest on loan outstanding 6. Determine net income $75. 10 17 Janes Company Income Statement For the year ending December 31, x1 Sales $250. 00 amortisation $329. 91 171. 30* = $158. 61 Interest 203. 55 x 0. 08 = 16. 29 174. 90 Net Income $ 75. 10 * This figure can be taken from the first year above $115. 74 + 55. 56 = $171. 30 Slide 37 7. For the balance sheet determine cash sales revenue less interest paid 8. Deduct amortization to obtain p. v. of capital 9. foreshadow p. v. of the loan 10. Include in statement the common shares and retained earnings. Janes CompanyBalance Sheet As at December 31, x1 Assets Liabilities and Shareholders Equity Cash $250. 00 18. 00 $232. 00 Loan $201. 84* Capital asset $329. 91 Amortization 158. 61 171. 30 Shareholders equity 126. 36 ______ Retained earnings 75. 10 $403. 30 $403. 30 * Loan $218. 00/1. 08 = $201. 84 Slide 38 Lets look at the present value statement 11. Need accretion of discount multiply the common shares by discount rate 12. Add revision of cash flows by deducting expected cash flows from actual cash flows. Present value Income Statement Janes Company Income Statement for the year ending December 31, x1 8 accumulation of discount $126. 36 x 0. 08 (rounded) $10. 10 Actual cash flows in year 1 $250. 00 evaluate cash flows (0. 5 x 250 + 0. 5 x 120) 185. 00 65. 00 Net Income $75. 10 Abnormal earnings One thing you should be aware of is the anomalous earnings. The abnormal earnings in this instance are $65. 00. They indicate the difference between the expected value of earnings and their actual realization. This is an important concept that will come up again when you study investor reaction to firms reported earnings in later Modules. For example, investors seem to respond strongly to unexpected earnings.You have probably seen the major effect on share price when a firm reports earnings higher or lower than the market had expected. The Present Value Income Statement above and also the illustration in Example 2. 2 (see pages 30 to 33) show how reported earnings can consist of an expected and an unexpected component. Slide 39 Now consider Year Two Assume it is a poor year, that is, $120. 00 revenue Steps 1. Sales 2. Interest received on cash account 3. Interest paid on loan 4. Amortization no salvage 5. Income for the year will be a loss of $(48. 90) Janes Company Income StatementFor the year ending December 31, x2 Sales $120. 00 Interest 18. 56 $138. 56 Amortization $171. 30* 0 = $171. 30 Interest 201. 84 x 0. 08 = 16. 16 ** 187. 46 Net Income $(48. 90) * This figures can be taken from the first year above $115. 74 + 55. 56 = $171. 30 ** rounded up 19 Slide 40 For the Balance Sheet Steps 1. Determine Cash 2. Calculate Capital Assets to zero 3. Extinguish Loan 4. Show Shareholders Equity 5. Determine Retained cyberspace Janes Company Balance Sheet As at December 31, x2 Assets Liabilities and Shareholders Equity Cash $152. 56* Loan $ 0** Capital asset $171. 30 Amortization 171. 0 0 Shareholders equity 126. 36 ______ Retained earnings 26. 20*** $152. 56 $152. 56 * Cash $232 + 120 + 18. 56 (18 + 200) = $152. 56 **Loan snuff out *** Retained Earnings $75. 10 + (-$48. 90) = $26. 20 Slide 41 Summary Application of Present Value to Accounting Material These ideal, present value statements are relevant and reliable dividends are irrelevant and expected cash flows have been getd to include all possible events. They are relevant because the values in the statements are based on all future cash flow s. They are reliable because the values reflect for sure future cash flows. Arbitrage assures the market value as time passes. How easy is it to apply present value material to accounting material? 20 In some cases it is easy and in some cases more difficult, for example, it is easy, with a bond, a mortgage, a loan, etc. P. V. can hold in the case of a bond which is purchased at face value and held to maturity. If it is purchased at other than its face value a premium or discount occurs. This will be covered in Module 5. P. V. can be partially successful in non-contractual cases such as the lower-of-cost or market or (fair value). On the lower side it is marked to market but not on the upside.In some cases it has been difficult. However, more is being added as time passes. A typical short examination question Question What is the change in the present value of an asset over time? Answer It is the amortization of the asset. 21 Slide 42 PART 4 Follow the Handout Page 21 Reserve Reco gnition Accounting What is Reserve Recognition Accounting? In this part we want to deal with an attempt by the Financial Accounting Standards Board in the United States to implement present value accounting material in the anele colour and gas company reports, for American companies, domestically, and their international subsidiaries.This was released under SFAS 69. It should be noted that this was supplemental material to the financial statements. Some Canadian companies have adhered to RRA because their parent companies in the U. S. have had to follow it in that country. Canada does not require it. However, Canada has implemented a standard of its own referred to below. Among the items was the requirement of an estimate of the present value of future receipts from a companys prove oil and gas militia. What is its purpose? To give some idea of the discounted cash flows which an investor might expect the company to experience.As you know historical cost becomes obsolete very qui ckly and irrelevant in a short time. This attempt was to try to add to it so people would get some idea of the future expectations from the militia and future cash flows. Oil and gas companies do not operate under conditions of certainty nor do any companies. This new consideration relates to present value under uncertainty. As noted earlier, recognizing revenue by the process of proved reserves indicates an early recognition of revenue in the operating cycle. Other companies, for example, recognize revenue at point of sale, or when they ship product to a distributor.Early recognition adds to the relevance aspect of revenue recognition but reduces the reliability because there are estimates being made which may not prove to be the outcome. It is suggested that you carefully read the comments on revenue recognition in the module notes under the cope of Reserve Recognition Accounting. Slide 43 Standardized Measure Theoretical and Practical RRA 22 Lets use the information of from a f ormer year of metempsychosis Energy You have similar information in your text for Suncor Energy Inc. , page 36. What is the standardized measure?Standardized Measure is the expected discounted net cash flows from proved reserves in the ground to which the oil company has claim. Standardized Measure Millions Future cash inflows $8,822 Future production and development cost (3,603) Future Income Taxes (1,361) Future Net Cash Flows $3,858 10% annual discount for estimated timing of cash flows (1,148) Standardized measure of discounted net cash flows $2,710 Lets assume $20 a barrel at the time that would be approximately 441,000,000 bbls. Points 1. Total proved reserves are the first line. 2. Development and production costs will be deducted 3.Deduct income taxes 4. Discount at 10% 5. Discounted net cash flows. Changes in the Measure during year Millions Standardized measure beginning of year $3,704 Less Sales less royalties and production costs (598) $3,106 Add Accretion of discount (expected profit) 529 Abnormal earnings Net present value of additional reserves added Extensions, discoveries and improved recovery 577 Purchase of reserves in place 100 677 Development costs incurred 288 Unexpected items changes in value of previous year Net change in prices, net of royalties and production costs (2,647) Change in future development costs (4)Revision of quantity estimates 249 23 Net change in income tax 1,157 Change in timing and other items (645) (1,890) Standard measure future value of discounted net cash flows $2,710 Note this could be considered similar to your book value. Another Note Under the global aspect you deduct your costs from the cash inflows, leaving standardized measure of $2,710 Million. However, when you come to the reconciliation statement above you add in purchase costs, development costs and extension costs. At that stage you are adding to the value of your proved reserves because you have increased your proved reserves.You have acquired n ew reserves. It is a different aspect of the accounting operation. Accretion of Discount this is the expected net income for the year. Under ideal conditions your anticipated net income at the first of the year and the actual would be the same. In real world conditions you do get differences. We want to look at the loss or gain for the year. Note with RRA additional reserves can result in anticipated revenue. Net Loss from Proved Oil and Gas Reserves Sales $598 Development costs incurred in the year (288) Amortization expense (Decline from $3, 704 to $2,710)* (994) Net loss $ (684) key change statement above. Present Value Format pass judgment net income accretion of discount $529 Abnormal earnings Additional reserves proved during the year $ 677 Unexpected items changes in value (1,890)* (1,213) Net loss $(684) *This is the total of the unexpected items in the change statement above. Note carefully that amortization takes the difference between the two years and unexpected item s takes only in the items shown. Amortization is used in the Income Statement and unexpected items are used in the present value income statement. Slide 44An Examination question 24 Students often find it difficult to connect the theoretical aspect to the practical output by gas and oil companies. Following is actual information taken from Exxon, an oil and gas company in the U. S. This will connect the practical to the theoretical aspect of the RRA process. Exxon Corporation 1993 supplemental information (millions) Shown in the annual report under change in net cash flows 1993 Millions Value of reserves added during the year due to extensions, discoveries, improved recovery and net purchases less costs. $ 527Changes in value of previous year reserves due to Sales and transfer of oil and gas produced (6,975) Development costs incurred during the year 2,947 Net change in prices , lifting and development costs (10,229) Revision of previous reserve estimates 1,137 Accretion of disco unt 2,817 Net change in income tax 4,499 Total change in standard measure during the year $(5,277) Comparison of Theoretical and Practical models Now to make a comparison with our theoretical model the various items below are numbered 1, 2 or 3 indicating the category within which they fall. . Accretion of discount 2. Development and other costs 3. Changes in estimates. Millions Value of reserves added during the year due to extensions, discoveries, improved recovery and net purchases less costs $ 527 (2) Changes in value of previous year reserves due to Sales and transfer of oil and gas produced (6,975) (sales) Development costs incurred during the year 2,947 (2) Net change in prices, lifting and development costs (10,229) (3) Revision of previous reserve estimates 1,137 (3) Accretion of discount 2,817 (1) Net change in income tax 4,499 (3)Total change in standard measure during the year $(5,277) Question 25 Prepare the supplemental information of net income from proved oil and ga s reserves in the sales less amortization format and the present value format Exxon Corporation Income Statement for the year ending December 31st, 1993 Millions RRA Sales in year $6,975 Development costs incurred in year (2,947) Amortization expense (5,277) Net loss ($1,249) The present value statement would be the following Accretion of discount $2,817 Abnormal earnings Additional reserves proved 527Changes in estimates unexpected items as shown below (4,593) Net loss ($1,249) Changes in estimates made up of Net change in prices $(10,229) Revision of estimates 1,137 Net change income tax 4,499 $( 4,593) Slide 45 Summary The Exxon financial statements contained a comment that the corporation believed the standardized measure was not meaningful and may be misleading. It appeared management thought it lacked reliability and the reserve quantities would be as useful without the remainder of the calculations. The major problems with RRA numerous estimates must be made how sound are they?Because conditions are not ideal, RRA estimates are compromised and revisions must be made. Example, future oil and gas prices fluctuate significantly. changing interest rates Information on the states of nature is changing very complex probabilities are difficult to determine. How does one determine complete cash flows? 26 Gulf oil was quite comfortable with the physical data but not the dollar amounts. They and other Canadian companies have dropped the process. RRA was an American requirement but CICA under Section 4580 did require physical data for Canadian companies.That Section has been suspended. While RRA was a good attempt to gain present value information it gained some relevance but lost reliability. RRA is closer to market value than is historical cost but investors have not shown a particular interest in it. Canadian Requirement Similar to SFAS 69 As noted above, more recently the Canadian Securities Administrators have issued their own RRA standard. It is National Instrument 51-101. This is support by all securities commissions in 13 provinces and territories. It goes beyond SFAS 69 in certain ways Briefly The definition of proved reserves is tightened.NI 52-101 states that proved reserves are those with at least 90% probability of recovery. SFAS 69 states only reasonable recovery. Probable reserves must be reported. These are additional reserves such that there is as greater than 50% probability that the sum of proved plus probable will be recovered.. Two present value estimates of future cash flows from reserves are required based on yearend prices and costs (as in SFAS 69) based on forecasted prices and costs. Discounting is required at some(prenominal) different discount rates, ranging from 0% to 20%.SFAS requires only 10%. The Canadian requirements go beyond those of SFAS 69 but it will be noted that the same problems of reliability still exist. A further point which should be noted is that if a firm reports under SFAS 69, they can apply for exemption from NI 51-101 It should be noted that Canadian firms can apply for exemption from NI 51-101 if they report under SFAS 69. Most large Canadian oil and gas companies have secured this exemption. Consequently, contempt the Canadian standard, RRA as per SFAS 69 remains as an important disclosure standard in Canada.For example, Canadian Natural Resources Limited, with shares traded on the Toronto and New York stock exchanges, has been listing(p) an exemption from National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities (NI 51-101), which prescribes the standards for the preparation and disclosure of reserves and related information for companies listed in Canada. This exemption allows the Company to substitute United States Securities and Exchange Commission (SEC) requirements for certain disclosures required under NI 51-101. 27 Slide 46 PART 5 Follow the Handout at page 27Examination Question Examples Examination Question 1 On January 1, 2006, XYZ Ltd. , a hypothetical oil and gas firm, purchased a producing oil well with a life of 15 years. Operations were started immediately. The management calculated that future net cash flows from the well would be $1,500,000. The discount rate was 10% which was the companys expected return on investments. During 2006 cash sales were recorded (net of production costs) of $600,000. The company also paid dividends for the year of $50,000. a) Prepare the income statement for the year ending December 31, 2006 using RRA accounting.Prepare the balance sheet as at December 31, 2006, using RRA accounting. Answer We first need our amortization so we take the beginning total of $1,500,000 and take a similar approach to our change statement under our first example Renaissance Energy. We deduct sales and add accretion of discount, to arrive at amortization. PV beginning $1,500,000 Less Sales 600,000 900,000 Accretion of discount 150,000 10% of $1,500,000 PV end 1,050,000 Amorti zation $ 450,000 XYZ Limited Income Statement for the year ended December 31st, 2006 Net sales $ 600,000 Amortization 450,000 Net Income $ 150,000 28 XYZ Limited Balance Sheet s at December 31st, 2006 Cash $600,000 50,000 $ 550,000 Shareholders equity $1,500,000 Retained earnings Reserves 1,050,000 $150,000 50,000 100,000 $1,600,000 $1,600,000 b) Question summarize the perceived weaknesses of RRA accounting Answer Three weaknesses are 1. The discount rate of 10% might not reflect the expected return for the firm. 2. RRA involves making a large number of assumptions and estimates and it may not bear any relationship to the net revenue to be received in the future. 3. Conditions in the oil and gas industry may change rapidly possibly making frequent changes in estimates. ) Question Why does SFAS 69 require all firms to use 10% rather than letting firms select their own rate of return? Answer The use of a whizz rate for all firms was to improve comparability. Slide 47 Continue to fo llow the Handout A Second Example This one is particularly difficult. alphabet Company (hypothetical) operates under ideal conditions. On January 1, 2001, it purchased a capital asset with a useful life of three years at which time it would be all told used and have no value. It will generate a cash flow of $3,993, on December 31st, 2003, at the end of its 3 year life.The purchase is financed partly by common shares and partly by a non-interest bearing note which matures on December 31, 2003, with a maturity value of $1,500. The interest rate in the economy is 10%. The shares and the note thus both have to receive a return. Required a) Prepare an income statement and balance sheet for December 31, 2001. 29 b) Prepare an income statement and balance sheet for December 31, 2002. c) Prepare an income statement and balance sheet for December 31, 2003 d) Calculate the expected net income for the second year AnswerConsider this as an investment of $3,000 and you are earning 10%, so inco me for the first year is $300, the second $330 and the third $363, totalling $993. 00. In other words if you left your earnings in the firm that is what you would have. However, you have borrowed money and it has to earn 10%, so it will reduce your income by the cost of the borrowed money at 10%. Capital Asset each year PV (Jan. 1/2001) = $3,993/1. 103 = $3,000. 00 PV (Jan. 1/2002) = $3,993/(1. 21) = $3,300. 00 PV (Jan. 1/2003) = $3,993/(1. 10) = $3,630. 00 PV (Dec. 31/2003) = $3,993/1. 00 = $3,993. 00 Note As the earnings remain the capital asset increases.Non-interest bearing note Interest Expense Present Value and Discount Amortization Carrying Value of Note Jan. 1, 2001 $1,126. 97 Dec. 31, 2001 $112. 70 1,239. 67 Dec. 31, 2002 123. 97 1,363. 64 Dec. 31, 2003 136. 36 1,500. 00 $373. 03 Book Value each year Accretion of Discount or Expected Income at 10% $3,000. 00 $1,126. 97 = $1,873. 03 $187. 30 $3,300. 00 1,239. 67 = $2,060. 33 $206. 03 $3,630. 00 1,363. 64 = $2,272. 36 $ 227. 24 $3,993. 00 1,500. 00 = $2,493. 00 Total $620. 57 30 Some rounding may be needed. Slide48 To answer the parts a) ABC Company Income Statement Year Ended December 31, 2001Sales revenues $ 0 Amortization of capital assets 300. 00 Interest expense 112. 70 Net income $187. 30 This is unusual as there is shown income which has been earned but not received and the income statement is based on the amortization of capital assets and the loan. ABC Company Balance Sheet as at December 31, 2001 Capital asset $3,000. 00 Notes payable $1,239. 67 Add amortization 300. 00 Shareholders Equity plebeian Shares $3,000 1,126. 97 1,873. 03 Retained earnings 187. 30 Total assets $3,300. 00 $3,300. 00 b) ABC Company Income Statement Year Ended December 31, 2002 Sales revenues $ 0 Amortization of capital assets 330. 0 Interest expense 123. 97 Net income $206. 03 31 ABC Company Balance Sheet as at December 31, 2002 Capital asset $3,000. 00 Notes payable $1,363. 64 Add amortization 630. 00 Sharehol ders Equity Common Shares 1,873. 03 Retained earnings * 393. 33 Total assets $3,630. 00 $3,630. 00 $187. 30 + $206. 03 Slide 49 c) ABC Company Income Statement Year Ended December 31, 2003 Sales revenues $3,993. 00 Less Amortization $3,630. 00 Interest 136. 36 3,766. 36 Net income $ 226. 64 ABC Company Balance Sheet as at December 31, 2003 Cash $3,993 1,500 = $2,493. 00 Notes payable $ 0 Capital asset $3,630. 0 Shareholders Equity Less Common Shares 1,873. 03 Amortization 3,630. 00 0 Retained earnings 619. 97 Total assets $2,493. 00 $2,493. 00 d) What you have to do to get the expected net income (the accretion of discount) it must be taken from the above balance sheet/and table that is the end of the first year Net book value January 1, 2002 $3,300. 00 $1,239. 67 = $2,060. 33 Expected net income 10% of $2,060. 33 = $206. 03 Note very carefully the book value and how it is obtained. 32 Slide 50 PART 6 Historical Cost Accounting Topics Why present value accounting Major proble ms with historical cost Examples Amortization Full cost versus successful efforts Conclusion Want to Consider Historical Cost Accounting but first make some comments about Present Value Accounting. Slide 51 Why Present Value Accounting? Why do we want present value accounting? What are some of the shortcomings of historical cost accounting? First, present value accounting is a balance sheet approach to accounting, also Referred to as the measurement approach. Increases and decreases in assets and liabilities are recognized, that is, measured, as they occur. Future cash flows are discounted and capitalized on the balance sheet. Income then is essentially the net change in present values for the period. Changes, whether realized or not, are recognized in the balance sheet. Slide 52 Historical Cost Accounting Major Problems Comments Historical cost accounting is an income statement approach. It is referred to as an information approach to decision usefulness. In this situation u nrealized increases or decreases are not recognized in the balance sheet and net income lags behind real economic performance. 33 Thus, under this approach the accountant waits until there is actual validation of changes by increased sales or cash flows.This comes down to a matching of revenues and costs used to earn those revenues. First, it may make more sense than we give it credit for, and, second, it is firmly in place and may be difficult to replace. Then, how do we improve it? Slide 53 Major problems 1. It does not equate in large measure with present value accounting in some cases it does and many others it does not. 2. As it does not present complete relevant and reliable statements, there must be a tradeoff between the two. They tend to be opposites. Historical cost is more reliable than relevant.There as often different bases used for measurement and thus a problem arises. See page 42 of your text, 3. With historical cost there is a recognition lag of revenue. In other w ords, the revenue may be recognized over several periods. The revenue is recognized only when transactions take place. See page 42 of the text. This is the timing of revenue recognition lags behind changes in real economic value. On the other hand current value accounting has little recognition lag as changes in economic value are recognized as they occur, for example, recognizing revenue when proved reserves are recognized under oil and gas accounting.Do not overlook the fact, however, that RRA is supplemental accounting and appears separately in the financial statements. Note carefully there is little matching of costs and revenues under current value accounting. Current value accounting really tells you how the value has changed of the assets and liabilities. Under historical cost the accountant waits until there is objective evidence before recognizing revenue. Thus, historical cost tends to be reliable while current value tends to be more relevant. See page 43 of the text. 4.We are faced with the fact that it is difficult to solve many problems within the historical cost system itself, thus, it is necessary to look for other ways to solve some issues, say to, present value accounting. There is accrual accounting is available to aid historical costing but matching of costs and revenues requires estimates, which can be difficult. Thus, historical cost does have it problems. See page 43 of the text. Some examples of problems Slide 54 Amortization It is necessary to amortize the wearing out of assets to meet the matching principle. But historical cost rules do not coordinate how much should be amortized each year. It just states that the method to be used should be consistent with the time pattern 34 of expiration of the asset. A renewal of methods are in use straight-line, declining balance, double digit, etc. , which complicates matters between companies. If there were the requirement of present value for valuation purposes, there would be only one m ethod. Slide 55 Full Cost vs Successful Efforts in Oil and Gas Under full cost all drilled gas and oil well holes both dry holes and successful efforts in drilling are capitalized.Thus some of the expenses for dry holes are deferred rather than written off. The concept is that they are all part of the development process. It is contended the costs match the revenue as it is earned. Under successful efforts dry drill hole costs are expensed immediately as it is thought they should not be part of the capitalization process. It is contended only successful efforts really match with the revenue of future years. Under historical cost CICA allows both methods getting different income figures under present value there would be one method.Slide 56 Conclusion We conclude under historical cost that, net income does not exist as a well-defined economic concept. It is an artificial figure. See page 45 of the text. The matching principle under historical cost allows for different ways to be fo llowed, as indicated above, as well as many other situations, e. g. , inventories Accounting challenge Our quest for the balance of the course will be how can we improve historical cost statements if, as we concluded, we cannot have full present value statements. Slide 57 accompaniment Present value annuities one of the most used processes in the mathematics of finance. Its purpose is to discount a serial of equal payments over a series of equal periods. Present value annuities with even payments Example Assume you will receive $60 a year for four years for a dividend payment. The evaluate discount rate (or the yield you would expect) is 10%. What is the present value (or value today) of these four cash flows, discounted at 10%? 35 P. V. = ? Formula P. V = R1 (1 + i)-n / i i = 10% P. V. 60 1 (1 1. 10)-4/0. 10 n = 4 P. V = 60 (3. 16987) (can be obtained from the P. V. table. ) R = 60 P. V. = $190. 19 Second example Present value annuity with uneven payments. Assume there are unequal payments over five years Year 1, $60 Year 2, $40 Year 3, $50 Year 4, $35 and Year 5, $45. P. V. = ? i = 10% n = 5 R = as shown Formula PV. = CF/(1. 10) + CF(1. 10)2 + CF/(1. 10)3, etc. P. V. = 60/ (1. 10) + 40/(1. 10)2 + 50/(1. 10)3 + 35/(1. 10)4 + 45/(1. 10)5 P. V. = $54. 55 + 33. 06 + 37. 57 + 23. 91 + 27. 93 P. V. = $177.

Customer Service in Leisure and Recreation Essay

The Importance of node ServiceIncreased cut-rate sales be one of the key ways to recount how well the ships company is doing. Excellent node service heart customers leave grease ones palms more and recommend more products and services other spate, which exit add to the increase in sales.While sales are very great to leisure and recreation organisations, another way to measure the success is in terms of customer numbers, which is especially true for non-profit making organisations.Customer service plays a major role in attracting stark naked customers and the main source of this is the powerful influence of word of mouth. breathing customers who are impressed by the customer service at an organisation will tell other people about it. This means that an organisation keeps its quick customers as well as gaining new ones.An effective customer service policy is that customers will view the organisation in a positive way. This means the image of the organisation will be enha nced by the standard of customer service.Having a good public image is very of the essence(p) for* Attracting new customers* Retaining existing customers* Reinforcing customer satisfaction* Securing repeat business* Gaining an edge over the competitionAn organisations public image is the mental picture that we have of the organisation. This quarter be based on our own experience, what others have told us about it or on what the organisation itself has told us about via its marketing activities such as denote and public relations.Read moreRecreational Activity ExampleTelevision programmes such as Watchdog also help us for an image in our heads, especially when they start reporting viewers complaints. This could have a very bad effect on the organisation.Good customer service bunghole also enhance the image of an organisations individual products or services. For example, customers may have a positive image of a sports centre, but also have a positive image of the individual produ cts and services such as the reservations system and changing facilities.Good customer service gives an organisation a competitive advantage. If you betray a similar product or service, you gain an edge by offering a better quality service and this gives a greater circumstances of attracting customers.A pleasant on the job(p) environment is another benefit of good customer service. If customers receive good customer service, they will respond in a friendly and appreciative manner. Customer satisfaction is extremely important in a business and this means the organisation must meet the involve and expectations of the customers.Customer loyalty is very important in a business and good customer service helps reinforce customers loyalty to the organisation with every visit they make. If customers are loyal, they are likely to return and these people are known as repeat customers. This means the customers of the past be fill out the customers of the future.If an organisation has poor customer service, they will suffer from* Decreased sales* Fewer customers* A poor public image* An absence of competitive edge* An unhappy and less efficient manpower* Dissatisfied customers* Lack of customer loyalty and repeat businessPersonal PresentationThe first impression the customer gets of face-to-face presentation is very important as it is one they will never forget. It directly influences customers satisfaction and the image they have of the organisation.Personal presentation includes appearance, personal hygiene, personality and stance.Appearance covers everything from clothes and footwear, to hair, harmonize and jewellery. The reasons for providing supply with a uniform are* It helps create a positive first impression* Staff are recognised instantly as working for a circumstantial organisation* It is easy to identify a member of staff when acustomer needs advice or assistance* It can sign the department in which a memberof staff works* It helps to create a profess ional corporate imageA lot of organisations now yield their employees with a uniform. Organisations rely on their employees judgement for deciding what is and is not acceptable in terms of appearance. Some organisations set ground rules and to a large extent, this reflects the character of the organisation and the type of customer it serves.For example, a five star hotel will be very strict with the groom code of the employees who work at the front-of-ho enjoyment. They will be required to wear a uniform and it may also include rules on footwear, hairstyling and make-up.The most important point is to make sure that dress and general appearance suit the job, the organisation and the customers expectations. On the other hand, the organisation should make sure that the uniform is comfortable, easy to maintain and manner appropriate for staff of all builds.Anyone serving customers should have excellent standards of personal hygiene. Different types of organisations will have differen t standards of personal hygiene, for example, anyone who works in the nutrition industry will be expected to wash their reach at least a dozen epochs a day.First impressions also come from the employees own personality. Again, different jobs require different personalities. A childrens sport coach will require a different personality to a personal fitness instructor because they are working with different types of people. From the personality of the employee, people can tell a lot about the organisation itself.The employees attitude towards the customer is critical. The customers feel that they want as much attention as possible when they go into a workplace and if an employees attitude is poor, they may feel overlook and not wanted.Types of CustomersCustomers have different needs depending on who they are and the circumstances. There is a difference between internal and external customers. Internal customers are members of staff or outside suppliers who contribute towards the s ervice provided for the external customers. external customers are the people who actually buy or use the organisations products and services. External customers are then categorised into individual, group, age, culture, language spoken and specific needs.Many leisure and recreation providers serve groups and the individuals who compromise them in ways that enhance and gain ground customer service.Customer age groups are classified as children and adults. Although the companies feel the age of the customers is important, they also feel it is important not to make assumptions about customers needs based solely on age.Cultural background influences peoples traditions, tastes, preferences and opinions and it will therefore influence the type of service they need and expect. It is also important not to make assumptions on the culture of the customer.Foreign visitors are an increasingly important part of the UK tourism market. People still want to feel that they can be dealt with even tide though there is a language barrier. Large organisations often employ multi-lingual staff to communicate with non-English speaking customers.Some customers have specific needs that may require special customer service in addition to that provided to meet the general needs of everybody. These include sensory disabilities, mobility problems, literacy, dietary requirements and people with young children.Dealing with CustomersAlmost everyone working in the leisure and recreation industry has to deal with customers, whether be face-to-face, on the phone or in writing. face to face communication has many advantages but only the staff use it well. For example, your presentation can help create a positive image. You can also use facial expressions and gestures to help communicate more effectively.Telephone communication is used in most leisure centres and it provides an essential part of customer service. Some organisations even use the telephone as the main method of dealing with the c ustomers.For some organisations, written communication is the main way of keeping in touch with customers. Menus, tariffs or price lists and letters are all forms of written communication, along with bills, advertisements, notice boards, tickets, e-mails and timetables.Non-verbal communication comprises all forms of communication that are spoken or written down. 80% of communication is non-verbal, so it is clearly very important in customer service. Body language is the main form of non-verbal communication and people can tell how interested the staff are just by looking at them.Selling SkillsSelling skills are an important part of customer service. Every time somebody asks for help, advice or information, it is probably a selling situation. As a member of staff, you should be helping customers a lot and to be able to do this effectively, you should have good knowledge of the products and services you are trying to sell.Customers can only buy products and services from an organisati on if they know they exist, therefore raising customer awareness is a key part of selling skillsEstablishing rapport with the customer means encouraging a conservation in which the staff and the customer are both communicating on the same level. Within this category, you must also make the customer feel they have your undivided attention without being in any case over the top.The easiest way for staff to identify the customers needs is to ask if they need any help. From the reply, the staff will be able to regulate what further questions to ask to identify the customers specific needs.Presenting the product or service to the customer in an appropriate way is important. For example, is someone wants to buy something but cannot afford it, then the staff should suggest something of a similar range but at a less expensive price.Closing the sale means actually getting the customer to buy the product or service you are offering. Some people may wish to go out-of-door and think about th e offer that has just been make and in this case, it is probably a good idea to reserve the product or service. Taking a customers payment is also included in closing a sale. This should be done cheerfully, politely, friendly and gratefully to make the customer feel that they have made the correct choice by buying this product or service from this store or centre.Customer service does not end when the customer hands over their money. This is known as after-sales service and sometimes this will be immediate such as asking the customer of they have enjoyed their visit. Sometimes, if people direct to a gym for a year, they may need help in using the service after a couple of months. This is where after-sale service comes in useful.A technique known as AIDA is used in the design of advertising and promotional material and when considering effective selling skills. A stands for attention, I stands for interest, D stands for desire and A stands for action. If you use this technique, it will result in the customer desiring the product and therefore taking action by buying it.