A Book Report on Poe’s “The Tell Tale Heart”

The Tell-Tale Heart, by Edgar Allan Poe, is written in the first person. This is proven because â€Å"I† is used to tell the story. This story told is by a participating narrator. The narrator is also the main character. The point of view used in this story is the unreliable narrator; this is a point of view according to Literature by X. J. Kennedy and Dana Gioia. This view was chosen because the narrator was very deceptive, deluded and deranged. For example, â€Å"I cut off the head and the arms and the legs†. (pg. 36). I find this to be extremely deranged. The narrator was also very deceptive by playing a trick on the older man in bed every night. The deluded madman would spy on the old man at midnight every night for seven days straight. By the eighth day he had this deranged plan to kill him. So, at midnight the madman came into the room quietly, or so he tried, and suffocated the old man. In the meantime the old man was scared when he heard some noises but probably thought that it was only a mouse or something. Because the man did not get up and check on the noises, it cost him his life. The old man was tricked on thinking it was just a noise an old house makes. Therefore, The point of view used in the story was that of an unreliable narrator in the first person. Raymond Carver had many influences in his life that contributed to his short stories and poems. But his main influence was his family. With two kids and married at the age of 19, he definitely had his hands full. He would try and write stories to support his children while engaging in other labor jobs during the day. Everyday life is an inspiration on everyone. People might not realize it but what happens everyday has an affect or influence on the way they approach life. For example, Carver†s day at the laundry mat. He realized that life isn†t what it is cracked out to be and he noticed this just by being frustrated because he couldn†t get any driers. Also, Carver†s professor at Chico State University, John Gardner, was a great influence at the time. Gardner helped Carver with some of his short stories. He would help Carver by being really patient and helping understand what he needs to do better. Education is a great influence on life. It introduces new perspectives to life and opens many new doors of opportunity. Without education or his family Raymond Carver might not have been as successful as he has. A Book Report on Poe’s â€Å"The Tell Tale Heart† The Tell-Tale Heart, by Edgar Allan Poe, is written in the first person. This is proven because â€Å"I† is used to tell the story. This story told is by a participating narrator. The narrator is also the main character. The point of view used in this story is the unreliable narrator; this is a point of view according to Literature by X. J. Kennedy and Dana Gioia. This view was chosen because the narrator was very deceptive, deluded and deranged. For example, â€Å"I cut off the head and the arms and the legs†. (pg. 36). I find this to be extremely deranged. The narrator was also very deceptive by playing a trick on the older man in bed every night. The deluded madman would spy on the old man at midnight every night for seven days straight. By the eighth day he had this deranged plan to kill him. So, at midnight the madman came into the room quietly, or so he tried, and suffocated the old man. In the meantime the old man was scared when he heard some noises but probably thought that it was only a mouse or something. Because the man did not get up and check on the noises, it cost him his life. The old man was tricked on thinking it was just a noise an old house makes. Therefore, The point of view used in the story was that of an unreliable narrator in the first person. Raymond Carver had many influences in his life that contributed to his short stories and poems. But his main influence was his family. With two kids and married at the age of 19, he definitely had his hands full. He would try and write stories to support his children while engaging in other labor jobs during the day. Everyday life is an inspiration on everyone. People might not realize it but what happens everyday has an affect or influence on the way they approach life. For example, Carver†s day at the laundry mat. He realized that life isn†t what it is cracked out to be and he noticed this just by being frustrated because he couldn†t get any driers. Also, Carver†s professor at Chico State University, John Gardner, was a great influence at the time. Gardner helped Carver with some of his short stories. He would help Carver by being really patient and helping understand what he needs to do better. Education is a great influence on life. It introduces new perspectives to life and opens many new doors of opportunity. Without education or his family Raymond Carver might not have been as successful as he has.

Partnership Care Nursing: A review of two Peer-reviewed Journals on Care Nursing

Introduction The concept of teamwork in health and social care has a vast literature. For instance, a policy developed by the Department of Health in 2007 mainly focused on eradicating inequalities in health service provision through partnership working between primary care providers and other social care agencies. Today’s healthcare service status demands teamwork, which is particularly true for nurses who have to deal with multiple of factors during their professional service provision. On the same breadth is the increased call for more patients’ involvement in their health, including on the right to make decision and seek legal support on the basis of their health. In other words, every patient receiving healthcare services, including nursing service is entitled to be actively involved in their own care. The philosophy behind partnership working in nursing is based on several concepts and principles: empowerment, autonomy & rights, power-sharing, information sharing, respect, mak ing informed choices, and paternalism. The aim of this paper is to analyse ideas from two different articles by different authors on the topic of nursing, particularly on the partnership working in nursing. Discussions Article I: Patient participation in nursing care: towards a concept clarification from a nurse perspective In their study, â€Å"Patient participation in nursing care: towards a concept clarification from a nurse perspective† Sahlsten et al. (2007) explored the evolution of patient participation, a concept that has not only gained significant transformation overtime, but also brought with it more challenges on definitions and dimensions of patient participation. The authors used focus group interviews to collect data, conducting open interviews on the selected seven groups. While the data gathering took five months to accomplish, the researchers were able to uncover the respondent’s perspectives in depth. While the focus group interviews may have mainly focused on the meaning and implementation of patient participation in line with the study’s aim, the results can clearly reveal what nurses value most in terms of patient participation. Respondents rated equal partners’ participation, co-operation, and shared responsibility as the most significant factors in rel ational nursing (Sahlsten et al., 2007, pp. 635-636). While the aim of the study was to explore â€Å"the meaning of patient participation in the nursing care from a nurse perspective† (Sahlsten et al., 2007, p.632), the review of other authors’ works reveals a plethora of issues in the nursing care and partnership working. The nurse-patient relationship is considered successful when both parties view each other as partners, with the nurse required to use professionalism, knowledge and positive ideas in the implementation of nursing care plan. Patient, on the other hand, is expected to have the intellectual ability to understand and make the right choices with regard to their own nursing care. The authors, however, faults the incongruence relationship between studies conducted in relation to patient participation on one side and definitions, elements and processes in literature and practice on the other side. Although there are a lot of empirical literature on nursing theories and patient participation, the authors claim t hat no empirically grounded theory has ever been established, calling for significant insight into more studies related to the concept of patient participation in their own nursing care. The authors claim that the traditional approach where patients were mere recipient of nursing care has changed, and subsequently replaced by the more active patients who are directly involved in their own care. More importantly, patients’ participation simply means the opportunity for them to participate in their own care, with regular adjustment as the situation may demand. Article II: The relational core of nursing practice as partnership Jonsdottir, Litchfield and Pharris (2004), while exploring â€Å"the relational core of nursing practice as partnership†, focused their analysis on the evolving relational core of nursing care in the backdrop of increased technology use and outcome-oriented approaches. The three authors, unlike their previously outlined counterparts, only focused on critical review of the available literature, espousing the role of evolving dialogue between nurse and patient in terms of partnership nursing and care. While technology is considered in the positive side in terms of medical breakthroughs, experts and general observers alike have associated it with distraction in health care services that need personalised attention including nursing (Jonsdottir, Litchfield and Pharris, 2004, p.241). In retrospect, the authors claim that the distracted modern nurse sees patient as a problem rather than partner to be attended to, consequently obscuring the humanness of nursing experience. To emphasise on the need to correct the deteriorating relational nursing concept in the perspective of partnership, Jonsdottir, Litchfield and Pharris (2004) outline and analyse various research studies that backs the need for nurses to be real partners through presence, care, and attentiveness in every stage of care nursing. The authors categorically state that the patients need medical treatment as priority, but emphasis should also be given to proven holistic approaches to care nursing, which studies have revealed to be equally significant in the overall healthcare. The focus on holistic care nursing should thus be based on dialogue between nurses and patients, for example, where the former should be in a position to explain to the latter why a certain procedure or activity is necessary in the process of care nursing. Conclusion While the two set of authors had different approaches to their respective work, both articles exemplifies harmony in terms of the need for partnership care nursing. One may, however, notice that the former article largely referred to partnership in the perspective of increased patient participation in own care nursing. The latter article mainly focused on partnership as a dialogue between nurse and patient. It is prudent to state that the former authors’ focus on patient elevation is largely due to historical background of healthcare service provision that pushed patients to the periphery of their own health. Nonetheless, the difference in semantics and approach notwithstanding, the two sets of authors agree that both patients and nurses need to collaborate, and view each other as partners rather than either one party feeling superior to one another. After all, it is common knowledge in the health care cycle that post-modern health and social care services requires more than t he post-war’s â€Å"one-size-fits-all† approach that dominated the universal health care service provision more than fifty decades ago. References Jonsdottir, H., Litchfield, M. and Pharris, M.D. 2004. The relational core of nursing practice as partnership. Journal of Advanced Nursing, 47(3), 241-250. Sahlsten M.J., Larson I.E., Sjostrom B., Lindencrona, C.S. and Ploskae. 2007. Patients participation in nursing care: towards a concept clarification from a nurse perspective. Journal of Clinical Nursing, 16, 630-637.

Brief history of IHG: Essay

The history of intercontinental is rooted in an unlikely industry that traces back to 1777. William Bass was the visionary of a brewery company, Bass, that was based in the UK, and had acquired a number of well-known brewery companies up until the 1960s. These additions made Bass one of the largest brewers and pub owners in the UK. It was not until 1988 that Bass decided to move into the hotel industry with its purchase of Holiday Inns International. A stroke of luck and timely business interests made this acquisition more opportune than ever envisioned. The following year legislation passed the â€Å"Beer Orders,† that limits the number of pubs major brewers can own. Consequentially, Bass limits their number of Pubs and focuses on further hotel developments. The ensuing decade significantly shapes Intercontinental as it is recognized today. In 1990 Bass buys North American Holiday Inn business and launches Holiday Inn internationally. Holiday Inn Express is developed in 1991 to serve the limited service segment and Crowne Plaza was branded in 1994 to appeal to the upscale market. Bass takes another journey in the field of hospitality in 1995 with its purchase of the Harvester restaurant chain. Late in 1996, Bass again tries to reemerge in the pub industry, but was met with unwavering barriers. Franchising becomes apart of the business outline of Bass in 1997 when it decides to sell their North American mid-scale properties to private owners flying under the same Bass branded flags. 1998 brought forth the most noteworthy change in Bass’s purchase of the InterContinental hotels. This was the first addition that brought a Bass brand to an upper-scale market. In 2000 it sells Bass Brewers and changes the company’s name to 6Continents and in 2001 acquires the European Posthouse Chain. It later purchases InterContinental Hong Kong and with these acquisitions 6contienets develops a strong hold on the Asian Pacific travel market. In 2002 the company divides into two separate entities, one for hotels and the other for soft drinks. On April 15, 2003 the name of the hotel sector is officially changed to the InterContinental Hotels Group. In 2004 the addition of Hotel Indigo is made and Staybridge Suites UK launches in 2005. 2006 was another year for IHG’s Global expansion to Asia with its joint venture with All Nippon Airways, which is the largest hotel operator in Japan.

Self Introduction Issues Essay Example | Topics and Well Written Essays - 250 words - 1

Self Introduction Issues - Essay Example I am a deep writer, preferring complex and interconnected topics than straightforward concepts. At the moment, I can say I have been writing for two years. In some cases, especially creative writing, I write papers that are longer than expected because I have â€Å"a lot to talk about.†My personal philosophy on writing is that it is a medium of communication; what I cannot relay verbally I put down. I also believe that writing is part of history. Consequently, by documenting what I experience and think, I leave a historical legacy that others can be inspired by. I hate the ambiguity that sometimes creeps into writing (Widdows 26). Over the years, I have accepted that it is a part of writing that cannot be avoided, but I hate that it hinders my prolificacy. What I like about writing is the appreciation people show for the thoughts and feelings that I put out. The first quote in the book feels true for me; the rest seem to contradict my experiences with – or opinions of à ¢â‚¬â€œ writing.

Organization Chart and Management Team Gaps Research Paper

Organization Chart and Management Team Gaps - Research Paper Example This research paper follows the improving of the organizational structure of the Capstone Accountants company. From Mintzberg where basic parts of an organization are comprehensively designated, Capstone Accountants can be said to contain the operating core and a small middle line. This simplified structure, that is created in the research paper requires high decentralization which seems not to be the case in Capstone Accountants. The company will have four vice presidents, all the VPs will be taking orders from the CEO and execute it or delegate it to lower-level employees. The firm will also have one administrative assistant who will be directly answerable to the VP Operations. The administrative assistant and the two accountants will be at liberty to delegate some duties to lower-level employees with knowledge and proficiency prerequisite in handling specific tasks The organization structure for Capstone Accountants is diagrammatically represented in this paper. While the construc ted team seems solid and able to cover the main points of the plan, the â€Å"gray haired factor† will affect Capstone Accountants due to scantiness of seasoned proficient management with a vast familiarity with the industry. However, Capstone Accountants will prioritize training and make it an ongoing component to guarantee the growth of the management team. Such partnership will contract qualified trainers who will offer training to the management team as a way of ensuring that the team is updated and well-equipped with the current trends and emerging issues in the highly competitive industry.

Article 4 Essay Example | Topics and Well Written Essays - 500 words

Article 4 - Essay Example Seemingly, a rush decision to implement what has not been sufficiently exhausted may elicit a regressive effect rather than a progressive one. Generally, the article expresses confidence in the new technology but expresses reservations of its actualization in the absence of utter scrutiny from all the concerned stakeholders. R-DNA plays a pivotal role in expediting the time within which DNA results are obtained (Asplen par. 1). In the past, the experience has always been waiting for lengthy durations for the determination of DNA results. The problem with that was that the further away the results were from the time of the commission of a crime, the more problems it paused for the investigation team. The DNA played the role of a component in the investigation because it could not be sufficiently relied to isolate the identity of a suspect. However, with a possibility of getting the DNA results within a record ninety minutes to one hour, the DNA test will assume the role of driving the investigations and not merely being a component. R-DNA is poised to free government labs of various tests that previously conducted there. Such a move will see the government labs intensify lab usage for sophisticated tests that require human intervention to figure out the conclusion. According to Asplen (par. 3), the room created in the labs will enable specialists to curl through evidence to come up with a hidden information to expedite the judicial process. R-DNA is also likely to prove useful to government agencies that are not criminal in nature (Asplen par. 6). For example, border patrol may wish to establish the authenticity people’s identifications through this test. Current mechanisms for establishing a person’s identification are culpable of artificial alterations, thereby compromising the integrity of the system. For example, use of fingerprints may prove

Check the file i sent Assignment Example | Topics and Well Written Essays - 1000 words

Check the file i sent - Assignment Example God is real, a truth and exists because he is conceivable to the human mind, he is conceivable to Descartes’ mind. Just as explained in Meditation1 all things that Descartes grew up to believe in was challenged and a new system of beliefs which had no doubt in them were established, here the existence of God is justified through doubtless belief. My thesis builds on Descartes’ primary logic that whatever the mind can conceive and facilitates the propagation of the belief exists. Therefore my understanding states that both God and Evil Demon exist as it can be conceived with distinct attributes and qualities. The Thesis states that God exists, because it is he who is putting these thoughts and it is he who is responsible for the author has come to be, i.e., his birth as a human being, his existence and his life. Similarly as stated in Meditation 1 â€Å"No, surely I must exist if it’s me who is convinced of something. But there is a deceiver supremely powerful ad cunning, whose aim is to see that I am always deceived†. (Descartes, 1641, p.137) This goes to show the authors belief that the Evil Demon exists. Would Descartes think that his having an idea of the Evil Demon proves that the Evil Demon exists?   Descartes states that the Evil Demon exists, as the deceiver, as a sublime thought in a human mind to constantly question the existence of one self, about the realism of one’s physical structure (i.e., eyes, hands, legs, head etc) and natural habitat like land, water, air, wind, earth etc. The Evil Demon exists as a force that tries to disprove that he exists. The author concludes by saying that, thus having fully weighed every consideration, I must finally conclude that the statement â€Å"I am. I exist† (Descartes, 1641, p.138) whenever I state or mentally consider it. Another perspective of Evil Demon’s existence is: based on the premise of Descartes’ system of thoughts and the fact that presentation al reality determines the strength of the case for the existence of an object of thought; the Evil Demon exists because of having a concrete idea with clear presentational reality of the Evil Demon. The fact that Descartes can have a clear idea of the Evil Demon together with all its attributes of evil, malice, loathness, craftiness etc leads to the fact that the Evil Demon exists. It is a thought that comes from within and is clear and distinct. Just like there is a supremely powerful and good power that we call God, who is the source of all truth, there is an evil demon, supremely powerful and cunning who works as hard as he possibly can to deceive the author (Descartes, Knowledge and Reality, Meditation 1, p. 138). Why did Descartes think that his having an idea of God proves God exists? Descartes’ primary approach is to withdraw his senses and empty his mind of thoughts of all physical things that he has seen so far in life like objects, people, things and articles. He ei ther empties his mind from it or writes them off as non-existent and not real. The fact that he can comprehend the concept of God clearly and distinctly is the basis for the argument that God exists. The idea of God is planted in his mind and this idea is clear, distinct and makes him certain. Therefore, according to Descartes, God exists. Descartes believes that whatever he thinks exists due to the connection of the outer reality and its logical conclusions with the inner reality of our imaginations. The very fact that the mind can comprehend God as a super power capable of making anything happen is

Democratic Deficit in Canada Term Paper Example | Topics and Well Written Essays - 2250 words

Democratic Deficit in Canada - Term Paper Example What and how a country faces democratic deficit is all dependent on the perception of its people towards the government policies, this thinking alone could be as a result of higher expectations of the people from its government or it could very well be because of their objectives. The subjective thinking of the people or the objective thinking is what categorizes a country to be labeled as suffering from democratic deficit or not suffering from Democratic deficit. A system usually falls under the category of Democratic Deficit because as society grows and becomes more complex the needs change and become of different priorities which need to be met by the elected representatives. Failing of which the people see it as not working as a democratic system and hence term the system Democratic Deficit. In a similar manner the democratic institutions have to be in accordance to the changing needs like for example an institution that worked for a few hundred people would not prove successful with the figures of hundreds changing to millions. Hence the Democratic Deficit sets where the government fails to keep up with the growing demand of technology and economic environment. Even the media plays a very important role to the problem of democratic deficit by publicizing one view to the extreme. ... e of the media to project the situation in a manner without thinking up tactics of promoting its own cause only then would the people be able to grasp the deficiencies if any in the government or even the good beneficial effects that the system is affording. The knowledge gain factor is directly associated with the media in the current times and one must ensure that the media plays its vital role fully and duly. What the term democratic deficit implies is that it is the differences of the different people's opinions in the sizing up of their government. We could also put it in this way that basically the people feel that they are being neglected and their needs are not addressed. By Canadian standards the democratic deficit stems from the fact that when a definite gap is seen in the involvement, trust and decision making of its people. The main characterizing point of the system to be in democratic deficit is when there is a low voter turnout; people do not take an active interest in politics and a failure of trust in the democratic institutions. Canada has shown a gradual decline of the voter turnout. This started from the Second World War and was especially marked in the years 1953, 1974 and 1980. If the recent elections were to be accounted for then one would note how the eligible voter's number was by far greater than the number who did vote and the party one. Canada has seen less interest in the Canadian politics and leadership since 1960's. Today Canada suffers from democratic deficit as the people of Canada do not have high opinions about their politicians and they simply don't trust them. They are of the opinion that those who stand to be elected are misfit and will not keep their word and are more after the money than they have any care about the people or

Innovative nursing care delivery model Term Paper

Innovative nursing care delivery model - Term Paper Example Nurses form a critical part of this model because they have immense knowledge on patient evaluation and education just to mention a few. The model aims at avoiding complications such as phantasm, which is commonly caused by hospital admission of the elderly patients. Joynt and Kimball (2008) describe ACO as a collaboration that involves various parties including primary care clinicians, the hospital, and other healthcare professionals. These parties work jointly with an aim of not only ensuring quality service delivery, but also reducing the high costs of care provided to patients. Upon ACO’s success, all providers are offered to keep part of the saving contributed by the organization. The ACO model exposes nurses and clinical officers to leadership skills. Through this, health employees are able to take the mantle of organizational leadership especially in providing care in underserved areas. Retail clinics, also referred to as nurse-managed health clinics (NMHCs), are created with the aim of offering holistic primary care services and quality services to particular populations such as those deemed underserved or vulnerable. Debra (2013) posits that retail health centre are an important avenue where healthcare can be offered as per the model. The model as pursued by the federal government depict the above model. According to Debra (2013), retail clinics are, usually, associated with schools, federally qualified health center and social service agencies. Retail health centre bring health care close to people and ensure that services are affordable and of high quality. Through retail health centre patients save a lot of their finances used in emergency room care. Involvement of nurses in these clinics helps in not only containing costs but also optimizes patient outcomes. This is an innovative Care Delivery Model, which makes use of technology in monitoring patients with chronic illness. Usually, data goes back to the

Soviet Victory in the Eastern Front Secured Allied Victory in World War II Essay Example for Free

Soviet Victory in the Eastern Front Secured Allied Victory in World War II Essay I. Introduction The Second World War (1939 1945) was the most devastating and dreadful in the history of humanity. As the German troops and its allies advances in the western and eastern   fronts of   Europe as well   as in Africa , the Middle East and Asia, thousands of lives were lost and the damaged to property was almost incalculable.   Perhaps fifty million people died, both soldiers and civilians (Perry 713). In the early days and months of the war,   it seems that the Allied forces was in the losing end of the battle as European nations were invaded and occupied by the German Nazi forces.   The Allied powers (Britain and France) were no matched for the German army for the former were not prepared for the war. Meanwhile, Adolf Hitler decided to invade the Soviet Union so that in the Eastern Front a fierce war broke out on June 22, 1941. Victory looks inevitable for Germany as they surrounded the city of Leningrad, and advances towards Moscow and Stalingrad. However, the Russian armies and civilians put up a courageous stand, refusing to surrender to Nazi troops for three years amidst the loss of lives in fighting and starvation. Soviet Union’s courageous resistance to German invasion was a major factor in the Allies’ ultimate victory in Europe, as the Germans suffered critical losses and depletion of resources on the war in the Eastern Front (Perry 700-713). This paper   discusses why the Soviet victory in the eastern front was critical for allied victory in the Second World War. The condition of the Allies in the western front is described as well as the situation in the eastern front where Germany suffered its major losses. II. Allied defeat in the western front By the time that Hitler invaded the Soviet Union, he was already successful in conquering and occupying most of Europe and rendered the Allied forces in the western front almost at his mercy. There are several reasons for this: A. Germany was prepared to dominate Europe Germany’s invasion of other European nations was planned in spite of the world’s efforts to prevent another world war. The Treaty of Versailles, as part of its provision for Germany, ordered the nation to reduce its army, limiting it only to 100,000 to   Ã‚  ensure that it will not indulge in another foolish idea of starting another war which the world had horribly witnessed and endured in 1914-1918.   However, Adolf Hitler, the German Fuhrer, rose to power in the early 1930’s. His first step in restoring Germany’s power was to rebuild its military forces, which the Versailles Treaty forbade. Under the Weimar Republic, Germany had begun secretly to rearm on a small scale. In 1935, Hitler openly declared that Germany would build a peacetime army of 550,000 men. This was a clear violation of the Treaty of Versailles (Perry 696).   In 1939, the German Imperial Office for Economic Planning of Warfare published the results of the census. They had stated â€Å"In the course of Germany’s rearmament, the economic planning of warfare increasingly came to the forefront. As the experience of the World War has shown for a country as Germany a clarification of the economic problems of warfare is of paramount importance for the result of a war† (   Fremdling 3 ). Moreover, Hitler had assessed that a slow form of warfare will only deplete their resources and led the people to be discouraged with war. He had envisioned a quick invasion and occupation through the use of the nation’s resources, advance technology and preparation.   Hitler also prepared the people psychologically for the upcoming war. Propaganda campaigns were successively launched to prepare the population for wartime sacrifices (Overy 2000). Britain and France renounced German rearmament, but neither nation took action. Both wanted to preserve peace. Britain was not prepared for war and France was not ready to fight alone. Overall, in spite of its preparation, Germany could not be considered as superior to the combine powers of Britain or France or other European nations that it had invaded. The Germans had in fact fewer and poorer-quality tanks but they emphasized high standards of training and operational preparation and technical efficiency. Furthermore, the policy of appeasement, where peacekeeping nations granted Hitler’s demands to avoid war, had largely helped Hitler to occupy European nations and territories in the first days and months of the war. He then used the food resources of this conquered nations to feed his forces and use their weapons, fuel and machines for warfare (Perry 699). At the start of the war, then, the German army was already prepared to dominate Europe.   In the years following the First World War, they had studied their mistakes, especially with the use of trench warfare, and opted for Blitzkrieg, a lightning attack that employed tanks and mobility to defeat an enemy before help from the allies arrived. They spent years perfecting the use of the new weapons of war tanks, armored divisions and air power (Overy 2000; Perry 698). B. Allied powers   and Europe was   unprepared and opposed war Despite the increasing aggression of Hitler and Mussolini in the 1930’s, Britain and France were reluctant to opposed Germany. It was because they were not yet prepared for another war; for they had not anticipated that a war would break out so soon. They had dutifully observed disarmament and appeasement to avoid conflict in Europe especially as they had just witnessed the horrors of the First World War. So both psychologically and militarily, the two nations were not geared  Ã‚   for battle when Germany turned aggressive. Moreover, in the years after World War I, Britain faced staggering economic problems.   Merchant ships had been lost in the war and it was losing markets to other nations so that Britain had drastically reduced spending for armaments. Like Britain, postwar France faced economic problems, too, for under its soil most of the wars in the First World War were fought. Villages, farms and railroads had been destroyed. Retreating German’s had wrecked mines, factories, forest, and orchards. In addition, millions of young Frenchmen had been killed or wounded. To help them rebuild, the French had counted on Germany’s payment of reparations. In 1922, however, Germany declared it cannot pay no more. By the time Germany  Ã‚   threatened the peace in Europe, France was able to form a large army but it relied mainly on the defenses of the Maginot Line, its huge border fortifications. Built in the 1930’s the line was a series of massive forts and underground shelters, proceeded by minefields. It stretched the length of France’s border with Germany (Perry 699). Aside from the reluctance of the   two Allied superpowers ( Britain and France) to enter the war,   the early victory of   Germany was due to the fact that other   Europeans, including   the British,   thought that the treaty of Versailles were treating the Germans unfairly   hence,  Ã‚   there was a widespread   German sympathy at first. That is why Germany was unopposed when it invaded territories under the argument of self-determination (the right of national groups to determine their own political status, for example, Czech lands occupied by Germans would belong to Germany).   Besides, communism, led by Russia, was rising in Europe and to many people in Europe, Hitler’s fascism seemed more acceptable and stable (this was of course in the days when nations did not yet see how cruel Hitler really was)(Perry 670). C. United States noninvolvement The United States was a big help in winning the First World War for the allies. Like in the first war, United States at first did not interfere with what happened in Europe. In short, the American people once again wish to stay out of European wars.   In the 1930’s, many believed that US decision to participate in the   First World War was a grave mistake so that Congress passed the Neutrality Act that â€Å"isolates† the US from any armed conflict around the world. The provision of the Act does not allow the US to intervene, participate or interfere in a war between two countries (Perry 699). D. Nazi-Soviet Pact prevents Russia from stopping Germany Although the Soviet Union fought against Germany in the First World War, in the second war it agreed to enter in a Nazi-Soviet Pact.   This pact of friendship and nonaggression was signed between Germany and Soviet Union in August 1939. In this pact, the Soviet Union agreed, in return for half of Poland, not to interfere with Hitler’s invasion. Although Britain and France do not trust the Soviet Union, this move stunned France and Britain for they needed Soviet Union, which had a large army,  Ã‚   at their side especially to defend Poland. Therefore,   because the powers of the Soviet Union was put on hold as a consequence of the pact, early on the morning of September 1, 1939 ,   German troops marched into Poland, and German planes bombed railroad and cities. Country after country then fell to Germany and its allies, the Axis powers. In 1940, Nazi forces occupied Denmark and attacked Norwegian ports which were vital for German war effort. In the next month, Belgium, the Netherlands and Luxembourg also surrendered to Hitler, after heavy bombings had devastated cities and terrorized the civilian population. France then fell to German hands in June 1940. With the fall of France, Britain now stood alone to oppose Germany. Meanwhile, Germany became stronger as German troops were feed with the supplies of conquered lands and use their weapons for wars (Perry 700). III. Soviet invasion and victory in the eastern front Historians agree that Germany’s invasion of the Soviet Union was Hitler’s biggest mistake (Perry 699). Hitler had ensured before that the Soviet Union will not interfere with his war plans in Europe and the latter had been successful in occupying almost all European countries, and even those in Africa, without any intervention of Russia. Yet he pushed beyond his limits and chose to takeover a country that had been unconquered in all wars, the Soviet Union. In this nation, Hitler squandered most of his military resources.   Two decisive battles that was a turning point for the Allies was the battle in Stalingrad and Kursk. A. Hitler’s ambition While British resistance continued in the western front, Hitler was planning to open a second front and attack the Soviet Union. Even though Hitler and Stalin had made a nonaggression pact, one of Hitler’s aims had always been to destroy communism and seize Soviet territory.   He wanted land for German settlers, rich grain fields to feed the German nation, and oil, and coal, and iron ore to supply the German war machines. To prepare the way for the invasion of the Soviet Union, Hitler’s forces occupied Bulgaria and overran Greece and Yugoslavia. By June 1941, Germany had 3,300 tanks, 5,000 planes and nearly four million soldiers (including from Italy, Romania, Finland and Hungary) massed long the Soviet border. Although Britain and other democratic western countries do not trust the Soviet Union, nevertheless, they were ready to extend aid when Germany attacked it. Soviet Union was included in the United States Land-Lease Act of March 1941, wherein President Roosevelt was allowed by the US Congress to sell, lease or lend military equipment to nations whose defense was vital to American security. Aid was estimated to have reached about $11 billion in war material under that program (Perry 703). B. Soviet Union Resistance and victory At first, it seemed that Hitler was unstoppable even in the eastern front. It was in December 1940 that Hitler planned to invade the Soviet Union after he was successful in the western front. His war tactics in invading Russia was no different from what he had used in the west, which was using blitzkrieg or â€Å"lightning war† that used quick massive attacks on land and in the air. He began his assault in June 1941 wherein he divided his three million forces into three groups to attack the north, center and south of Russia using a series of devastating pincer movements. The Soviets were surprised and unprepared for this invasion so that it took only four months for German forces to penetrate towards Leningrad and Moscow (Overy 2000). Soviet armies suffered enormous losses in the first months of the German offensive, holding back the invaders while slowly retreating. By the first week in October 1941, German troops were only fifty miles from Moscow. The people of the Soviet Union suffered great hardship. In September, German forces surrounded the city of Leningrad, trapping some three million people there with only enough food and supplies for a short time. The siege was not completely ended for more than two years. Nearly a million people died from starvation and disease (Perry   Ã‚  701; Werth 442). As the Soviet troops withdrew, they burned crops in the fields and destroyed equipment. These â€Å"scorched earth† tactics left no food or supplies for the advancing Germans. The arrival of autumn rains and winter snow slowed the German offensive, for blitzkrieg tactics were not effective on muddy, snowy roads. Fresh Soviet troops arrived from Siberia with winter equipment, while the Germans shivered in summer uniforms as the temperature dropped to 30 degrees below zero. The Russian winter stopped the German army much as it had defeated Napoleon’s Grand Army over a century earlier. The attacking Germans were nearing to their target but failed to capture it because of physical and mental exhaustion and shortage of personnel (Perry 701). Despite the setbacks of the winter of 1941-1942, the next spring and summer brought a new German offensive in the Soviet Union. The main target of the German attack was Stalingrad on the Volga River. The city was a vital center for north-south transportation by river, railroad and canal (Fitzgibbon 214). In late August, German troops reached the Volga. Six hundred German planes bombarded Stalingrad, enveloping it in flames and killing 40,000 civilians. By September 1, German soldiers were in the suburbs, but people would not abandon their city. Soviet soldiers and civilians fought house to house and street to street. In the words of a Soviet general, the defenders fought â€Å"for every brick and stone, for every yard of Stalingrad earth†. Stalingrad became no longer a town. By day, it was an enormous cloud of burning, blinding smoke. In late November, Soviet Marshal Georgi Zhukov brought in new troops. They began a â€Å"pincer† movement, closing in from two sides and threatening to trap the German Sixth Army in the city (Perry 702). Zhukov had stated â€Å"It was clear to me that the battle of Stalingrad was of the utmost military and political importance. The fall of the city would enable the German command to cut off the south of the Soviet Union from the rest of the country. We might lose the great waterway of the Volga River, on which a heavy flow of goods was moving from the Caucasus† (Slabad 132). Exhausted and short of food, medical supplies, weapons, and ammunition, the German commander begged Hitler to order a withdrawal. Instead, Hitler’s Lufwaffe commander, Herman Goering, tried unsuccessfully to send in supplies by plane (Perry 702). Finally, in February 1943, the remnants of the German troops in Stalingrad surrendered. In this surrender, it was estimated that 300,000 German soldiers from the German 6th Army was taken prisoner by the Russians and this capture was considered by most historians as one of the turning points for the fall of Germany. The German armies attributed this defeat directly to Hitler who had been undecided when and where to actually strike in the Soviet Union so that his troops had suffered in the Russian winter. Many had felt that Hitler had led his forces to danger in overstretched steppe of southern Russia. In addition, they blamed Hitler for interfering in military strategies when he took direct command of the German forces in December 1941. Nevertheless, in spite of this, there was a general belief among Hitler’s generals that the Soviet Union was weak in the south and therefore was not capable of any serious resistance (Overy 2000). Meanwhile, in 1943 the Germans attacked Kursk in Operation Citadel (the German code name for the Kursk offensive). Kursk was situated halfway between Moscow and the Black sea.   In this attack an order was issued that German tank production be increased to a capacity of 600 units per month.(Fitzgibbon 215). Around 900,000 German troops was deployed for this battle including 2, 700 tanks and 2,000 warplanes around Kursk (Dupuy Martell 76). The Soviets were not ignorant of this attacked for the Russian intelligence and Lucy spy ring delivered to them pertinent information regarding the details of the offense. The Germans planned the attack in Kursk well; they build a defense stretching 250-300 kilometers from west to east (Caidin 74). Yet the fierce resistance of the Russian army forced the Germans to give up long stretches of held ground and before long they had retreated in Dnieper so that instead of pushing inland in the eastern front they were repelled to the west (Overy 2000). Needles to say, the Soviet Supreme Command was victorious in the battle at Kursk and were now preparing to liberate Soviet territories that were overtaken by the Germans in the south. In 1943, two-thirds of those German occupied territories were liberated and slowly but surely the Russians were now pushing the battles towards the west, approaching the borders of other German conquered nations. The Russian offensive would eventually take them to Berlin (Perry 705). Yet Hitler’s potential to conquer Russia was big at first especially if he drove straight to Moscow, the heart of Russia, instead of maneuvering down to the south after he already incurred severe Russian losses. Winning Russia at his side would greatly increase his capacity to dominate all of Europe and remove the Russian threat. However, his mistaken military diversions in Russia had needlessly plunged his troops to face the Russian winter in summer clothing and made him lose war resources. The Soviet Union also had other advantages. The advantage of the Soviet Union to other nations in times of battle is that it is a big country of large army and fierce winter that can stop its enemies in their tracks. Instead of expanding its power, it is in the battle in the eastern front that Germany suffered it severest losses, for they had deployed millions of men there along with thousands of tanks. The Soviet Union was in fact the place where Hitler gambled in the war.   It is estimated that 80% of German casualties was incurred in the battle in the eastern front which   stretches 1000 miles (Perry 703).   Historians were unanimous in declaring World War II was won in the east (Overy 2000). Many historians agree that as long as Hitler was not in war with Russia, he had options and possibilities of winning the Second World War. And even if he did invade Russia, he should have gone to Moscow directly and convinced the Russian people that he was going to liberate them from Stalin’s communism but as such, he was already known for Nazi brutality (Perry 703).

Examining the usefulness of Financial Statement Analysis

Examining the usefulness of Financial Statement Analysis Financial statement analysis involves the assessment of a businesss past, present and future condition. The objective is to identify the weaknesses as well as the strengths of a business. If weaknesses are found, the business can take appropriate steps to correct or overcome them. On the other hand, the business can use its strengths to its advantage. In this way, the business will be able to improve its overall financial situation in the future. As the business owners they are intently interested in how well their business is doing. The most likely way to determine the status of a business is by analyzing the financial data and that means crunching the numbers. The basics of financial analysis usually mean calculating different financial ratios and then coming to conclusions about the how the company is financially performing. Financial ratios here refer to principal tools for financial analysis as they can be used to answer numerous questions regarding the businesss financial well being. Financial ratios are used by three main groups. First is Managers, who employ ratios to help analyze, control, and thus improve their firms operations. Second is a credit analyst, such as bank loan officers or bond rating analysts, who analyze ratios to help ascertain a companys ability to pay its debts. Third is stock analyst, who is interested in a companys efficiency, risk, and growth prospects. Also, the ratios provide useful information to users of financial statements for example investors and analysts to assess and evaluate the operations undertaken as well as being used to analyze its performance and position over time (Al-Ajmi J., 2008). As stated by Al-Ajmi J. (2008), the most important of the users groups to know about financial ratio analysis are investors and creditors because these users interested to read the contents of financial statements and calculate a variety of financial indicators before they want to make any final decisions on credit and investing decisions. To them, they believe that through analyzing financial statement will provide valuable financial indicators and have predictive power. Financial analysis can be done through assessing the financial statement of company. Financial statement in this case focuses on balance sheet, income statement, cash flow statement and statement of changes in equity. Financial ratios are generally classified into four main groups liquidity ratios, activity ratios, gearing ratios, and profitability ratios. The liquidity ratios can be used to measure whether the firm can repay its financial obligations on time or not. The two commonly used liquidity ratios are the current ratio and the quick ratio. Next is activity ratios can be used to measure how effectively the firm uses its resources (assets) to generate sales or revenue. This ratio is so called efficiency, turnover or even business asset management ratios. Commonly used to measure activity ratios are inventory turnover ratio, average collection period, accounts receivable turnover ratio, non-current assets turnover ratio and total assets turnover ratio. Third is gearing ratios also called debt management ratios and leverage ratios. This ratio indicate how the firm is utilizing outside funds to finance its assets and whether the firm can pay the interest on the use of these non-owner supplied f unds as well as repay the principal or the original amount of the loan. Commonly used to measure gearing ratios are debt ratio, time interest earned ratio and debt to equity ratio. Lastly are profitability ratios which can measure the end results of the firms ability to produce profits from its resources as well as to measure the companys use of its assets and control of its expenses to generate an acceptable rate of return. The most commonly used ratio is gross profit margin and net profit margin. Knowing the financial ratios of our business is important because by knowing what these ratios mean and being aware of trends can aid the entrepreneur in better managing a business in future. In general this paper is reviewing the literature review on the effect of analysis of financial ratios on business financial performance or financial situation in three different types of industries. Focus on the analysis of financial ratio in service industry, financial industry and higher institutional education. There are different views and different effects when financial ratio analysis going to used to analyze company performance from different types of industry. LITERATURE REVIEW 2.1 USEFULNESS OF FINANCIAL RATIOS Financial ratios are said as the most widely used indicators of company. It play a role to value firms, to distinguish creditworthy companies compare to others, to identify acquisition targets and to indicate the process of organizational in completing or the time needed to complete a task (Al-Ajmi J., 2008). The financial analysis model known as a quite helpful tool for executives to measure or predict enterprise bankruptcy or enterprise failure provides concerned decision-makers (authorities) with the possibility or hoping to avoid failures. Also it becomes an early warning system to the corporate management. (Karacaer and KapusuzoÄÅ ¸lu, 2008). As stated by Karacaer and KapusuzoÄÅ ¸lu, (2008), the most highest ratios contribution in the analysis regarding the variables whose effect the financial condition of the sample enterprise are ROE, debt ratio, net working capital, acid test ratio, net profit ratio, cash ratio, and current ratio respectively. Among of them, the liquidity ratios are the main element in these ratios. It is observed that all the variables have differing but significant effects on the corporate financial situation. Financial ratios can be used as financial indicators which allow for comparisons between companies, between industries, between different time periods for one company, between a single company and its industry average. Apart from that, financial ratios generally hold no meaning unless they are benchmarked against something else, like past performance or another company and industries. The reason behind that is the ratios of firms in different industries, which face different risks, capital requirements, and competition are usually hard to compare if we have no other things to compare (Wikipedia). As mentioned by Salmi, Timo Roy Dahlstedt Martti Luoma Arto Laakkonen (1988), financial ratios are commonly used for comparison of financial position intra-industry. Also, in financial statement analysis a firms performance and financial status are frequently evaluated in relation to other firms in the same branch of industry or in relation to industry averages. 2.2 STEPS TO EFFECTIVELY FINANCIAL RATIOS As stated by Darrel Hulsey, the basics of financial analysis usually mean calculating different financial ratios and then coming to conclusions and clarification regarding on how the company is financially performing in business activities. There are certain things that must be considered before too many conclusions are drawn. Firstly, understand what comprise different financial ratios before start analyzing companys data. Must take into consideration all financial ratios numbers derived from financial statement comprise of balance sheet and income statement. Balance sheets represent a reflection for a particular point in time. Income statements present a cumulative time summary of performance. For example, year-end financial statements should include a balance sheet that presents how various company accounts look on that particular day at the end of the year, whereas the income statement shows how companys performance over the period Second is evaluating external influencing factors. As with all companies, the financial statements can be influenced by various factors like management or owner decisions and discretionary spending, seasonal effects, legal structure choice, type of industry, customer mix, or a number of other issues. These factors can influence the financial statements and will, in turn, influence the financial ratios analysis. Third is look at internal trends. Always keep in mind is that one ratio alone tells one very little. A clear picture starts developing when one looks at ratios over different time increments. By comparing financial results against prior performance one gets a better idea of what is occurring within the company. Trends will start to develop and can give insight into areas that may need corrective attention or to areas that may need to be reinforced. Internal trend analysis is most likely most beneficial because one is comparing similar business situations over various periods of time. Fourth is compare results to the industry. Comparing your business performance to other similar businesses is a common way to judge how well the business is doing. Even though this is very common, there are limitations to doing so. First realize these comparative ratios represent an average. Averages are simply that and most likely your business will vary somewhat. Next be sure you are comparing your business to other businesses similar in asset size and sales volume. In some cases there may be no suitable comparisons. Try to insure you are comparing apples to apples. There are several sources to get comparative financial data including private companies such as Risk Management Association (RMA) and trade associations that collect data from their members. Knowing what is the average for your industry is important. The averages can serve as a general benchmark for your business. Additionally, these averages are often times used to compare your business performance when you are seeking capital from outside sources such as a bank. Being different may not be a deal killer, but not being able to explain why you are different may indeed be a deal killer. 2.3 THE EFFECT OF ANALYSIS OF FINANCIAL RATIOS ON BUSINESS FINANCIAL SITUATION IN DIFFERENT INDUSTRIES 2.3.1 SERVICE INDUSTRY In measuring the performance of service firms, the most strongest and consistent ratios used are activity and profitability ratios. Obviously, the profitability ratios indicate that small service firms have higher returns to sales than large firms. Specifically, service firms have less liquidity, greater activity, and higher profitability. Interestingly, the small and medium size service firms had higher total debt levels. The short-term debt findings show that service firms used significantly smaller amounts of short term funding. Means that service industry more prefer to finance the business activity through long term debt. On top of that in service industry, the most suitable of ratio to measure business profitability is by calculating return on equity. Apart from that, activity ratio was measured by a primary ratio and a secondary ratio. It refers to sales to assets and sales to inventory respectively (Michael D., John X. and Steven J.). The results found by Michael D., John X. and Steven J. associated with the activity ratios for service firms show a positive and significant relationship an concluded that size of firm very unrelated to productivity of public firms in service sector The growth in air transportation industry gives a picture that performance evaluation is important for executives body to identify and recognize the operating problems arise in market competition. According to Feng C.M. and Wang R.T. (2000), referring to previous study it more concerning airline performance evaluation which only focus merely on operational performance. However, evaluation on financial performance is seems to be ignored. As far as we are concern, to measure the survival prospect of an airline market can be look through the financial performance of the company itself. The absence of financial ratios may lead to biased assessment. There are three main types of performance indicators used in airline industry. The first one is production efficiency, marketing efficiency and execution efficiency which relate to department of production, marketing and management (Feng C.M. and Wang R.T., 2000). As stated by Feng C.M. and Wang R.T. (2000), in making analysis of financial statement of airline industry, assets and capital of the owners equity are classified as the input of financial factors. Moreover debts and expense are classified as the output of the financial factors and for revenue or otherwise losses categorized as the outcome of financial factors. Due to that, the input financial factors characterized by sunk cost which included flight equipment and interest expense, while its output by intangible products. Otherwise its consumption characterized as not-stored services. 2.3.2 FINANCIAL INSTITUTIONS Evaluating the performance and financial condition of the financial service organizations is very critical. The intermediation role of financial institutions in market trading is such that performance in this sector indirectly gives impacts on other sectors of the economy. When performance is good it will contribute a positive effect on the economy but when the financial sector is distressed and got some problems then they will contribute a negative effect on other sectors of the economy (Ibiwoye A., 2010). In the perspective of banks to achieve their aims for institution development was by growing the components of their assets as an alternative of moving to increase the profitability. All of these require the determination and management of several factors, which play an important role in the profitability of banks in the new environment (Halkos and Salamouris 2004). In U.S Banks, to increase investors hope and confidence, they adopt Dominion Bond Rating Service (DBRS) which provides bank ratings as a forward-looking measure of a banks ability to meet its financial obligations. The DBRS ratio analysis focuses on four interrelated aspects of a banks financial health. First is Earnings Power, it refers to the ability to generate consistent profits and grow capital internally. Second is Asset Quality, it refers to the potential for losses that could impair earnings and capital. Third is liquidity where it focuses on cash resources available to meet short-term obligations. And the last one is Capital Adequacy; it refers to the ultimate creditor protection against future losses (Reid, Lister, Schwartz, and Muranyi, 2005) According to Al-Ajmi J., (2008), the financial indicators that analysts use as basis for decisions are not necessarily all equally useful to them in making any decision. There are no significant differences between credit analysts and financial analysts with respect to 40 of the indicators identified in the study. From the perspectives of 244 credit analysts and financial analysts in Bahrain, they are measured by the ranking of 71 financial indicators and 5 components of corporate governance. Based on the result it shows that credit analysts consider the quick ratio as the most useful ratio, followed by the non-recurrent ratio. For the financial analysts they consider price-earnings as the most useful ratio, followed by the market-to-book ratio. It is also worth mentioning that the efficiency difference between large and small banks reaches its maximum value in 1999. While doing financial analysis it has a positive relationship between size and performance. Besides, through mergers and acquisitions it leads to a continuous increase of average efficiency of the larger banks while efficiency of the small banks is impaired. It is proved that the higher the size of total assets leads to the higher of the efficiency is. It is evidenced from the significant increase in the sum of the total assets employed in the market as well as the increase in the average level of Banks Assets (Halkos and Salamouris, 2004). 2.4.3 HIGHER EDUCATION INSTITUTIONS As study did by Buddy N.J. (1999), it identified a set of financial ratios that summarize the financial situation of a higher education institution in which the ratios helped to analyze the financial solvency and viability of the six higher education institutions in Oklahoma. The study focused on the ability of the institutions to meet current and future financial requirements of the institutions. Therefore financial ratio analysis is the most suitable and known as an effective communication to the mind of users regarding financial situations of universities and colleges to internal and external entities. On top of that, ratios known as excellent tools for facilitating the communication, analysis, and understanding of large masses of complicated, detailed information of the institutions. As what have been found in study conducted by Chabotar, (1989); Cirtin Lightfoot, (1996), they concluded that financial ratio analysis could also serve as a tool to evaluate the efficiency, effectiveness and accountability of higher institution education as what been done by ratio analysis in analyzing business financial condition. In this case Buddy N.J. (1999) said that financial ratio analysis allows for the evaluation of past performance and for future planning of institutions. By identifying a manageable number of quality ratios, the presentation of financial data may be more efficient and tell a better story and give a better picture of the true financial condition of the institution of higher education. The reduction of a large mass of numbers into a few manageable, easily interpreted ratios will allow both internal and external entities to make better-informed decisions regarding financial position and condition of higher learning institutions. In the opinion of Buddy N.J. (1999), understanding the financial condition of higher education institutions become an important part in view of decision making to respond to any pressures arise. As supported by Chabotar, (1989) where work on financial ratio analysis for higher education institutions has aimed at clarifying and explain the perceptions and making judgments of financial distress more credible. Financial ratios can also have the reverse use, to identify what is unique about a higher education institution. The most frequently cited motivation for financial ratio analysis is the ability to control for the effects of size difference over time and across institutions As mentioned by Buddy N.J. (1999), financial ratio analysis can help both the institutional user and those agencies to make funding decisions. This is due to where the financial ratio analysis could be used to obtain the physical evidence of any deviations of the norms and could also allow management by exception. Also financial ratios recognized as an indicator to whether conditions are getting worse or getting better which may allow management by exception and alerts the institution to the possibility of future financial distress. Besides, financial ratio analyses have a role to identify how and in what ways the condition is changing (Collier Patrick, 1978). Lupton, Augenblick, and Heyison (1976) in their study identified the indicators which include institutional control, enrollment trends, trends in education and general expenditures, current fund revenues to expenditures, academic expenditures to education and general expenditures, freshman full-time equivalents (FTEs) to total undergraduate FTEs, and tuition and fees to student aid revenues. All these indicators determined by using a panel of experts, as well as discriminate analysis, to determine 16 discriminating indicators of financial condition. Whereas, Collier and Patrick (1978) conducted theory-based research and developed a set of dimensions that describe financial condition which comprise of financial independence, revenue drawing power, financial risk, revenue stability, and reserve strength. Same as what being done by Lupton etc., Collier and Patrick also used experts and discriminate analysis to determine the indicators that differentiate between strong and weak private institutions and between strong and weak public institutions. As agreed by Buddy N.J. (1999) the purpose of institutional comparisons is to highlight differences and to raise important questions about past and future policies for internal and external entities. The reason is many higher education institutions differ from comparative peers for good and valid reasons. The argument might be that, when an understanding is reached for why an institution scores differently from its comparative peers, a conclusion can be drawn as to what is unique about that institution as compared to others institutions. Referring to study of Buddy N.J. (1999), he found that many of the measures financial ratios used by higher education institutions are based on what sources financial revenues are earned and for what services expenses are incurred. Based on the result it allows both internal and external entities to monitor institutional effectiveness and efficiency. There are 15 key financial relationships being used by Donald E. Miller (1972) to set forth for business and industry a cause-and-effect ratio analysis based. The reason is higher education institutions will find themselves in a particular financial position because of some cause or causes. The 15 ratios have been applied and tested as a unified system in thousands of business situations demonstrated that, when used together; provide a fundamental financial understanding to the users. The interrelationships that exist among financial resources require a better examination of the institutions total fund structure. A better understanding o f the trends in and the condition of the financial resources is important to the early detection of any institutional distress. Changes in resources are symptoms of those internal and external factors might cause financial pressure or development. A higher education institution with sufficient financial resources can withstand adverse trends and has the flexibility to institute changes at opportune moments to reverse the trends. Resources merely provide the opportunity to be flexible through economic changes and experiment where possible without jeopardizing and impair the institutions future prospect. 3.0 CONCLUSION It is important to analyze trends in ratios as well as their absolute levels. Trend analysis can provide clues as to whether the firms financial situation is likely to improve or to deteriorate. Financial statement analysis involves a study of the relationships between income statement and balance sheet accounts, how these relationships change over time (trend analysis), and how a particular firm compares with other firms in its industry as we called as benchmarking. In addition, financial statements are used to help predict the firms future earnings and divi ­dends. From an investors standpoint, predicting the future is what financial state ­ment analysis is all about. From managements standpoint, financial statement analysis is useful both to help anticipate future conditions and, more important, as a starting point for planning actions that will influence the future course of events The importance of financial statement analysis should not be underestimated. The understandable format of financial ratios allows virtually any stakeholder and users of financial statement to acquire a basic comprehension of the most critical financial policies of institutions and their financial condition. Chabotar, K. J. (1989). Financial ratio analysis comes to nonprofits. Journal of Higher Education, 60(2), 188-208. (ERIC Document Reproduction Service No. EJ 389 089) Cirtin, A., Lightfoot, C. (1996). Financial statement analysis for private colleges and universities. The National Public Accountant, 41(8), 29-34. Collier, D. J., Patrick, C. (1978). A multi-variate approach to the analysis of institutional financial condition. Boulder, CO: National Center for Higher Education Management Systems. Chabotar, K. J. (1989). Financial ratio analysis comes to nonprofits. Journal of Higher Education, 60(2), 188-208. (ERIC Document Reproduction Service No. EJ 389 089) Lupton, A. H., Augenblick, J., Heyison, J. (1976). A special report: The financial state of higher education. Change, 8(8), 20-35. Miller, D. E. (1972). The meaningful interpretation of financial statements: The cause-and-effect ratio approach. New York, NY: American Management Association, Inc.

Asynchronous JavaScript and XML (AJAX)

Asynchronous JavaScript and XML (AJAX) Anjan Thapaliya Abstract AJAX stands for Asynchronous JavaScript and XML. It is a web technology that evolved in early 2000 and uses a mix of technology like JavaScript and XML. This paper discusses about how AJAX technology works in modern web application and various advantages and disadvantages. This paper also discusses about various frameworks available for AJAX that can be used on different platforms. History In the past, when there was no such thing as AJAX, the websites needed to reload each and every time for retrieving even small bits of information from the server or processing a tiniest client request, which made the webpages very inefficient. Every time there is a page refresh, it put consumed some bandwidth and put some load on the request processing server. In order to overcome this cycle of request-response, and fetch required data from the server without having to make a round trip, Microsoft came up with iframe technology is as early as 1999 but it was clunky and not efficient. The core of today’s AJAX technology, known as XMLHTTP object was first implemented by Microsoft Outlook in 1999. The term â€Å"AJAX itself was first used my Jesse James in one of his articles in 2005 to talk about this new technology. W3C came up with its first round of documentation for the XMLHttpRequest and called it a web standard in 2006. Classic web application vs. Ajax web application AJAX has transformed how people view at webpages from a simple HTML document into a dynamic web application. The early web sites rendered the webpage as a plain HTML pages. It lacked features like dynamic updates and synchronization with services and servers. The web server in classic web applications performed all the serving up responses to requests with each round trip. Due to this overhead of constant server round trips, web sites in the early 2000 performed poorly and were not as dynamic in terms of updates and synchronization. On the contrary, AJAX based web sites perform better in terms of faster rendering and quicker updates. Not all the data processing is done on the sever side, as a connection is silently made to the server in the background which responds back by giving back the required data in some format like XML or JSON. The resulted data is then formatted using XSLT or CSS in the client side for a better rendering of the view. The diagram below shows how websites in the past differ from modern web sites that make use of AJAX technology: (Ajax: A New Approach to Web Applications, J. Garrett, 2005) What is AJAX? AJAX is a modern web technology that leverages a bunch of existing web technologies to create faster and more efficient web applications. AJAX frees web sites from the need to post the whole webpage back to the server for small piece of information and lets pages or parts of a page update by receiving small chunks of data from the server magically behind the scene – without users barely noticing the page refresh. This is what is referred to when people talk about the â€Å"Asynchronous† behavior of AJAX. In a tradition sense, a classic web site always has to have an event send some kind of request to the server which will then result a response being sent back to the client from the server. That usually means, only one request can be responded at a time and any subsequent request have to wait until the previous requests have been processed by the server. When a user clicks on a button, that will trigger some kind of event resulting in either post or get request to the s erver, which will need to be processed by the server first and then the right view is served up to the user. Now this can happen behind the scene without the browser needing to do a complete post back to the server. The advantage of asynchronous call is that data can still be requested from a server without a complete post back to the server and all happens behind the scene and the user is barely affected by what is going on behind the scene. Instead of having to wait for the response result, pages or even parts of a page load asynchronously. What make up AJAX? AJAX is not a new programming language, nor is it just one new technology. It is rather a mix of existing technologies. The following make up the AJAX: JavaScript: It is a client side scripting language interpreted by browsers. JavaScript is one of the most important components of AJAX technologies. It is responsible for capturing user events and making a call to the server asynchronously for the needed data. Today, there are many JavaScript libraries like jQuery that have simplified how AJAX calls are made and in what format are the response data received. Since the advent of JSON, the response of an AJAX call doesn’t just have to be in XML format, but it can also be in JSON format. DOM: DOM stands for Document Object Model, which means it is a JavaScript Object model of an HTML document or XML document. It is the way JavaScript sees its content and structure. It is an object that includes how the HTML/XHTML/XML is formatted, as well as the overall state of the browser. CSS: CSS stands for Cascading Style Sheet and is used to present data or document in a certain style. It is the language to decorate the content, essentially separating the style from the actual content. XMLHttpRequest: XMLHttpRequest is probably one of the most powerful JavaScript Objects that has properties and methods to really change the overall architecture of today’s modern web application. It was designed by Microsoft and are now widely being adopted and by IT giants like Google, Mozilla, and Apple etc. This JavaScript provides an easy mechanism to fetch data from a URL without having to do a complete post back to the server over either http or ftp protocols. A web page can have a part of it doing something dynamically through the use of this object while the user is doing something else without really affecting user’s interaction with the page in any manner. XMLHttpRequest object has various properties and methods to open, close or cancel connection to a server and fetch data or send status of current request whether it is a success or failure etc. Below are some of the important properties and methods commonly used in AJAX based web applications. XMLHttpRequest object has following six methods abort (): This methods basically cancels an asynchronous call being made to a server. getAllResponseHeaders (): This methods returns all headers information as a string. getResponseHeader (header): It returns string containing header information or null if there is no header in the response at all or response is not sent out yet. open (method, url): This method is used to initiate a request call to a server. send (body): This method is used to send a browser request to the server, irrespective of whether it is synchronous or not. setRequestHeader (header, value): This method is used to set the HTTP request header to a certain value. There are six important properties of the XMLHttpRequest object: onreadystatechange: This property determines which callback function to call when the readyState property changes readyState: It is the current status of XMLHttpRequest object and can have any possible values from 0 to 4, where each values have a certain meaning. 0: The request has not been initialized. 1: The AJAX call has established connection to the server. 2: request received: The AJAX call request has been received by the server. 3: The AJAX call request is being processed. 4: The AJAX call request has completed and the response is ready. responseText: It returns a string which contains the body of the response responseXML: It retrieves the response body as XML DOM Object. status: Indicates what the current HTTP status code is like 200 for OK and 404 for server not found etc. statusText: It retrieves a friendly HTTP status of an AJAX request. Ajax Event life cycle The below diagram show the lifecycle of AJAX events in a web application (AJAX Asynchronous JavaScript and XML, Saikrishna, 2009): When a user visits an AJAX web site, the engine is first loaded and initialized before any AJAX related operation. The Ajax engine basically works around the two processes shown in cyan boxes in the above picture. The lifecycle of an AJAX operation is as follows: A user requests a webpage with AJAX implementation in his/h. Page is loaded in computer browser. User interacts with the site and creates an event, like a button or a link clicking. The click event initiates the AJAX call, and sends a data request to the server and also specifies how the needed data should be returned back, either as XML or JSON etc. The server resolves and processes the request and also prepares the response data in the required format. Server responds to the client browser with the requested data. A callback function gets the data, and transforms and updates the web page. This happens all behind the scene and user will never have to see his/her page post back to the server like the regular web pages do. Ajax Frameworks Like any other web application framework, people have developed various frameworks around AJAX so that an these frameworks can be used on a specific platform, with a specific language etc. and basically provides API for developers to easily make use of AJAX technologies in more efficient and abstracted manner. These frameworks have unique components to accept request or process request using AJAX and are adapted to a particular language platform like ASP.NET or PHP etc. There are many AJAX frameworks for different platforms and languages. Some of the notable AJAX frameworks are listed below: For .NET web applications: ASP.NET Ajax Framework Web.Ajax For PHP web applications: Tigermouse Zephyr Pherry For Java web applications: Salto Ajax Buffalo Ajax Apache Wicket For JavaScript based web applications: jQuery Prototype Atom.js etc. Real World Usage of AJAX: Live searches: It is an important feature in modern search engines made possible by AJAX. Users don’t have to type the whole thing and autocomplete kicks in as soon as few letters are typed in and the expected results show up instantly as we start entering the term we are looking for. When we visit the large search engine sites like Google or Bing and search for anything, then we get the autocompleting service as well as list of matching results instantaneously instead of having to wait for the server to process and send back the results. In the below figure, while searching for Chicago Airport, the auto-completion kicks in and the user can see a list of his/her choices. Real time messaging and chat with Ajax: Ajax updates social media pages like Facebook and twitter pages without refreshing the page which helps user see updates and communicate with people real time. Chat web applications like meebo use AJAX extensively to enhance the chat experience. Drag and drop: One of the important features of Ajax is that it lets users drag and drop files and plugins on a webpage and such drag/drop events are automatically persisted to the server. This can be seen in cloud storage sites like dropbox or onedrive. Instant login feedback: When user enters the wrong login credentials, then the login failure response is instantaneous, instead of having for the page to post back to the server and the failed response to come back to the user. Real world Users of AJAX There are many web sites and applications that use AJAX nowadays. The most prominent and early adopters are sites like YouTube, Google maps, Gmail, Facebook etc. Facebook seems to have great implementation of AJAX as the posts and updates are show almost instantaneously and doesn’t need any page refresh. AJAX implementation in Facebook site is what does the trick in instant updates of user status, messages etc. A Google map is one of the oldest and the most popular AJAX based web application. The Google map fetches XML data of the places a user is looking for and transforms the received data into complex map imagery. Users can drag locations around or zoom in and out and the page doesn’t have to reload to reflect the new changes. Gmail also uses AJAX for variety of useful features like spell check, auto save incomplete as drafts, fetching new emails etc. Flickr uses AJAX in its site for loading pictures in a picture carousel manner where when a user clicks for next pict ure, there is no page refresh, the click of the next button simply fetches the next pictures and presents the user with the next picture – which makes perfect sense because there is not really a need to refresh the whole site to just to retrieve one photo in a current sequence of photos. Advantages and disadvantages AJAX has become a vital aspect of modern web application. AJAX has many advantages but it does also have some disadvantages. Here are some advantages and disadvantages of AJAX: Advantages: AJAX helps lessen the round trips between the client and the server. A site’s overall response time will be a lot faster. Open source JavaScript libraries like JQuery, Prototype, etc. for development Disadvantages: AJAX is an extra abstraction layer and will complicate design and development Security is a concern since files are downloaded client side. AJAX based web pages are not indexed for search. Browsers with JavaScript turned off won’t be able to render AJAX web sites. Summary Ajax is a great technology and should be used when sites have a lot of plugins on a page and each need to refresh dynamically. AJAX makes a site more dynamic and performance is improved significantly as it cuts down on the number of post backs the page has to go through. It is also important to know that AJAX has its own advantages and disadvantages. It is important to distinguish which web applications require AJAX and which ones can do without it. Very simple web pages with very little data interactivity can probably do away with AJAX. Developers should always focus on the requirements of the site and wisely if AJAX is necessary or not to match the requirement. References Saikrishna. (2012, June 9).AJAX Asynchronous JavaScript and XML. RetrievedJuly20, 2014, from http://wegonemad.blogspot.com/2012/06/ajax.html Advantages of using Ajax in your website | BounceWeb Web Hosting Blog. (n.d.). Retrieved from  http://blog.bounceweb.com/advantages-of-using-ajax-in-your-website/ Ajax: A New Approach to Web Applications | Adaptive Path. (n.d.). Retrieved from http://www.adaptivepath.com/ideas/ajax-new-approach-web-applications/ Ajax History Information. (n.d.). Retrieved from  http://www.xmluk.org/ajax-history-and-information.htm Ajax pros and cons. (n.d.). Retrieved from  http://www.jscripters.com/ajax-disadvantages-and-advantages/ Codeproject. (). What is AJAX? Retrieved from  http://www.codeproject.com/Articles/534632/WhatplusisplusAJAX-3f Getting Started AJAX | MDN. (n.d.). Retrieved from  https://developer.mozilla.org/en-US/docs/AJAX/Getting_Started The characteristics of Ajax Applications. (n. d). Retrieved from http://www.openajax.org/member/wiki/images/8/89/NexawebAjaxCharacteristics.pdf

Poetry paper :: essays research papers

Final Paper Assignment For the last paper, you should focus on a poem or poems. You have several options: Write about one (or two) or the poems we’ve discussed in class, with the aim of bringing some new perception to it. For example, we’ve discussed some poems in pairs because one refers to the other and helps us to understand it—we’ve discussed this in class, but you could take it further and deeper. Write about a theme that you find in more than one poem, particularly in which the positions taken are different. â€Å"Out, Out† by Frost and â€Å"How Annandale Went Out† both talk about when life becomes unlivable—how far do you go to save life? Why do the personae—the speakers within the poems—make the choices they do? How does the Macbeth speech add to the discussion—or does it? You could also take the Macbeth poem by itself for analysis of its various complexities. Write about two war poems that present similar arguments in different ways: the fact that war isn’t pretty, and people back home really don’t know what it is like—and maybe it is better that way. You can talk about the â€Å"human† behind the â€Å"soldier†Ã¢â‚¬â€as in â€Å"Vergissemeinnicht† or â€Å"The Death of a Soldier.† You may take a poem, as in the last paper, and relate it to you—starting with a thesis that connects the poem to your experience, develop a paper that sheds light on what the poem has to say because of something that happened in your life, and then come back full circle to connect to how the poem helped you understand better the experience you had. You may choose a poem we have not covered. IF YOU CHOOSE TO DO SO, YOU MUST GET THE POEM APPROVED BY ME: NOT ALL POEMS ARE CREATED EQUAL AND JUST BECAUSE IT IS IN POETIC FORM DOES NOT NECESSARILY MAKE IT â€Å"GOOD.† You should write a draft of this over the weekend—get a solid sense of your ideas and get them down on paper and bring that with you to your conference next week. If you don’t have a draft, there won’t be anything for us to talk about and your conference will be a waste of time. Conference time is not time to figure out what poem you want to write about; it is about improving on the ideas you already have developed. If you have a question about the topic you’ve chosen or the direction you’re going, send me an e-mail so that I can get back to you.

The Brilliance of William Faulkners Nobel Prize Acceptance Speech

The Brilliance of William Faulkner's Nobel Prize Acceptance Speech      Ã‚  Ã‚   On December 10, 1950 , William Faulkner delivered his Nobel Prize acceptance speech to the academy in a voice so low and rapid that few could translate his murmurs. When his words were published in the newspaper the following day, they were recognized for their brilliance; in later years, Faulkner's speech would be lauded as the best speech ever given at a Nobel ceremony. His acceptance speech is much like his literary life- he wrote many novels, poems, and short stories, as many works as most writers produce in their lifetime in just over a decade, but received little recognition for them until after he had retired. In both his career and his speech, he was neither understood nor noticed until the next day, the next decade- after the fact. As a young writer his sales sagged, and he was largely unknown in America for much of his life. Was it because he refused to write anything lacking what he considered the "old verities and truths of the heart?à ® Faulkner's speech stressed the writer's duty to help man endure by keeping alive these truths in his or her work. He did not wish to fuel the American reader's shallow taste for tales of "lust and not love, defeats in which nobody loses anything of value, victories without hope.à ® His tenth novel, The Unvanquished, is indeed a compassionate, truthful story in which Faulkner meets his own literary standards. Through his use of Bayard's innocent, childish recollections as narration, John Sartoris as a minor character, and overall beautiful language, Faulkner wrote a novel that preached the age-o... ... his work. He wanted to create something out of the human spirit that did not exist before. His world view was optimistic- that man will not only survive, he will endure supported by pillars that writers build to help him do so. Faulkner wanted to write of pride and compassion, honor and sacrifice, the old verities and truths of the heart. Through skillful narration, intelligent usage of the John Sartoris character, and language of a superb quality, Faulkner not only wrote the way he said the world needed to endure, he put aside profit and glory to sculpt his life's work into something that never existed before. He wrote The Unvanquished with heart.    Works Cited:    William Faulkner: Nobel Prize Acceptance Speech. Online. Available- http://www.mcsr.olemiss.edu/~egjbp/faulkner/lib_nobel.html   

Bonus Reflection Paper on the Kawakami Paper

Bonus Reflection Paper on the Kawakami Paper and Stanley Milgram’s Obedience Study Ella Price In Kerry Kawakami’s paper â€Å"Mispredicting Affective and Behavioural Response to Racism† the paradox of remarking upon how strongly overt prejudice is condemned within modern society and the acts of why blatant racism still frequency occurs were scientifically examined (Kawakami, K. , Dunn, E. , Karmali, F. , & Dovidio, F, D. , 2009).The results of this study were truly astonishing, yet frightening as the differences between predicted responses and actual responses to racist behaviour was investigated. Given either two settings of a private or public environment, groups of non- black participants were used to basically illustrate the average racism theory, which states that individuals today who embrace egalitarian beliefs may continue to harbour nonconscious negative feelings towards outgroups, in this case, blacks (Kawakami et al. , 2009).Groups were given a scenari o to predict or literally physically show how they would feel and behave and how they actually feel and behave upon hearing a racist comment. Participants in the role of the forecaster had time to recognize the social demands dictated by widespread egalitarian norm, and therefore responded in ways they believed were socially acceptable rather than according to their true inclinations (Kawakami et al. , 2009). On the contrary, actual responses were perceived to be based on spontaneous more unconscious attitudes.As a result, Kawakami concluded that despite current egalitarian cultural norms, one reason why reason and discrimination remain so prevalent in society may be that when people are literally within a scenario of overt racist acts, they do not respond in the way they anticipated in terms of egalitarian norms, which promotes prejudice and racism to continue (Kawakami et al. , 2009). This study was very interesting and reflective of bizarre yet sickening modern social drawbacks. This study draws a parallel to Stanley Milgram’s Obedience study to authority figures.It was a series of social psychology experiments which measured the willingness of study participants to obey an authority figure of the experimenter who instructed them to perform acts that conflicted with their personal egalitarian conscience (Cherry, 2010). These experiments commenced subsequently after World War II, when people had a difficult time trying to understand how a whole country can come together in such an atrocious fashion. Milgram asked himself, â€Å"Was there a mutual sense of morality among those involved? † (Cherry, 2010).Milgram's testing suggested that it could have been that the millions of accomplices were merely following orders, despite violating their deepest moral beliefs (Cherry, 2010). How violent can a person choose to be under the influence of an authority figure or in Kawakawi’s study, despite the social demands of egalitarian cultural norms, w hen and how much will people choose to slack in their response to overt acts of racism, whether it is because of feelings of guilt, embarrassment or genuine racism(Kawakami et al. , 2009).The majority of today’s prejudice studies branched off from after WWII, to explore the human psyche and to understand and prevent racism, prejudice, stereotyping and discrimination from taking such a deep fierce hold on society (Cherry, 2010). Initially, the first minority of studies that forked off from this era, began to point fingering directly at Germans, labelling them as inherently evil people, prone to racism, discrimination and prejudice, but as the field of social psychology and prejudice research progressed we began to better understand an individual’s psych for better and for worst (Cherry, 2010).Psychologist has discovered the dilemma of the human mind and its unstable frightening truth: We are not as nice as we would like to anticipate. In Stanley Milgram’s experim ent on obedience people would act in response to an authority figure, the experimenter, who would ask them to do something which seemed inherently immoral (Cherry, 2010). Despondently, it was discovered that the powers of obedience by an authoritarian often ensnared, restrained and imprisoned common sense and humanity.Similarly the study conducted by Kawakami, tell us that although we would like to believe that when someone did something wrong we would stand up for justice and morality but unfortunately, those who do stand up appear to be the statistical inconsistencies (Kawakami et al. , 2009). References Kawakami, K. , Dunn, E. , Karmali, F. , & Dovidio, F, D. (2009). Mispredicting affective and behavioural responses to racism. Journal of Science, 323, 276-278. Cherry, K. (2010). The Milgram Obedience Experiment: The Perils of Obedience. Retrieved March 31, 2010, from http://psychology. about. com/od/historyofpsychology /a/milgram. htm

Accounting Standard in Bangladesh

A REPORT ON APPLICATION OF BANGLADESH ACCOUNTING STANDARDS IN BUSINESS [pic] DEPARTMENT OF FINANCE UNIVERSITY OF DHAKA REPORT ON APPLICATION OF BANGLADESH ACCOUNTING STANDARDS IN BUSINESS FINANCIAL ACCOUNTING –I F-103 Submitted To Dr. H. M. Mosarof Hossain Associate Professor Department of Finance Faculty of Business Administration University of Dhaka Submitted By Members of Group-3 Section-B 14th Batch Department of Finance Names |Roll No | |Upoma Antara Husain |14-052 | |Zubairia Khan |14-050 | |Nazmul Ehsan Omiya |14-054 | |Monowar Hossain |14-008 | |Md. Rubel Ahmed |14-030 | DATE OF SUBMISSION 1 May 2008 TABLE OF CONTENTS CHAPTER I: ? INTRODUCTION ? OBJECTIVES OF APPLYING BAS IN BUSINESS ? IAS ADDOPTED AS BAS ? SHORT DESCRIPTION OF BASs CHAPTER II: ? ABOUT PRIME BANK LIMITED ? BAS USED IN PBL ? APPLICATION OF BASs IN PBL ? IMPORTANCE OF APPLYING BAS IN PBL ? CONCLUSION CHAPTER III: ? ANNEXURE ? BIBLIOGRAPHY CHAPTER I INTRODUCTION The rules and guidelines adopted and im plimented worldwide in accounting record keeping and statement preparation ror maintaining uniformity are known as International Accounting Standared (IAS). IAS were issued between 1973 and 2001 by the board of the International Accounting Standards Committee (IASC). Bangladesh Accounting Standards (BAS) are adopted From IAS by Institute of Chartered Accountants of Bangladesh (ICAB) for preferred accounting practices in all kinds of business in bangladesh. To standardize the accounting system with the level of IAS, the ICAB (Institute of Chartered Accountants of Bangladesh) has been adopting BAS since 1984. The Institute of Chartered Accountants of Bangladesh is a professional accountancy body in the Bangladesh. It is the sole organisation in the Bangladesh with the right to award the Chartered Accountant designation. The ICAB updated and adapted many important and the time demanding standards in several time BAS is a set of standards which controls the system of accounting in Bangladesh. In our country Companies listed with Dhaka & Chittagong Stock exchange are to prepare their accounts according to the Securities and Exchange Rules 1987 and the International Accounting Standards (IAS) as adopted by the Institute of Chartered Accountants of Bangladesh known as Bangladesh Accounting Standards (BAS). At present the (TRC) Technical research Committee of ICAB screens and evaluates IFRSs and recommends particular IFRS to the council of the ICAB for adoption. Prime Bank Limited is one of the promising banks in our banking sector. It is listed with Dhaka and Chittagong Stock Exchange. The financial statements of the Bank are prepared under the historical cost convention except investments and in accordance with the Bank Companies Act, 1991, Bangladesh Bank Circulars, International Accounting Standards and International Financial Reporting Standards adopted by the Institute of Chartered Accountants of Bangladesh as BAS, Companies act 1994, SEC Rules 1987 and other laws and rules applicable in Bangladesh. IAS ADOPTED AS BAS BAS are developed by the ICAB and are based on older IASs – generally those developed by the IASC rather than the improved IASs and new IFRSs developed by the IASB. The Technical and Research Committee of the ICAB develops the standards. Adoption requires approval of the ICAB Council. A list of IASs Adopted as BASs is shown below. IAS |Version of IAS |BAS Number |Remarks | | |Adopted in Bangladesh| | | |IAS 1: Presentation of Financial |1987 |BAS 1 |2003 revisions not yet considered | |Statements | | |by ICAB | |IAS 2 : Inventories |1992 |BAS 2 |2003 revisions not yet considered | | | | |by ICAB | |IAS 7 : Cash Flow Statements |1992 |BAS 7 |— | |IAS 8 :Accounting Policies, Changes in |1993 |BAS 8 |2003 revisions not yet considered | |Accounting Estimates, and Errors | | |by ICAB | |IAS 10: Events After the Balance Sheet |1999 |BAS 10 |— | |Date | | | | |IAS 11: Construction Contracts |1993 |BAS 11 |— | |IAS 12: Income Taxes |2000 |BAS 12 |— | |IAS 14: Segment Reporting |1997 |BAS 14 |— | |IAS 16: Property, Plant and Equipment |1997 |BAS 16 |2003 revisions not yet considered | | | | |by ICAB |IAS 17: Leases |1998 |BAS 17 |2003 revisions not yet considered | | | | |by ICAB | |IAS 18: Revenue |1993 |BAS 18 |— | |IAS 19; Employee Benefits |2002 |BAS 19 |2003 and later revisions not yet | | | | |considered by ICAB | |IAS 20; Accounting for Government Grants |1983 |BAS 20 |— | |and Disclosure of Government Assistance | | | | |IAS 21: The Effects of Changes in Foreign |1993 |BAS 21 |2003 and later revisions not yet | |Exchange Rates | | |considered by ICAB | |IAS 22: Business Combinations |1998 |BAS 22 |IAS 22 has been superseded by IFRS | | | | |3, which has not yet been | | | | |considered by ICAB | |IAS 23: Borrowing Costs |1993 |BAS 23 |— | |IAS 24: Related Party Disclosures |1994 |BAS 24 |2003 revisions not yet considered | | | | |by ICAB | |IAS 25: Accounting for Investments |1987 |BAS 25 |IAS 25 has been superseded by IAS | | | | |39, which has not yet been | | | | |considered by ICAB | |IAS 26: Accounting and Reporting by |1987 |BAS 26 |— | |Retirement Benefit Plans | | | | |IAS 27: Consolidated and Separate |1998 |BAS 27 |2003 revisions not yet considered | |Financial Statements | | |by ICAB | |IAS 28: Investments in Associates |1998 |BAS 28 |2003 revisions not yet considered | | | | |by ICAB | |IAS 29:Financial Reporting in |Not yet Adopted |— |— | |Hyperinflationary Economies | | | | |IAS 30 :Disclosures in the Financial |1990 |BAS 30 |IAS 30 has been superseded by IFRS | |Statements of Banks and Similar Financial | | |7 (effective 2007), which has not | |Institutions | | |yet been considered by ICAB | |IAS 31: Interests In Joint Ventures |1999 |BAS 31 |2003 revisions not yet considered | | | | |by ICAB | |IAS 32 :Financial Instruments: Disclosure |Not yet adopted |— |— | |and Presentation | | | | |IAS 33: Earnings Per Share |1999; |BAS 33 |2003 revisions not yet considered | | | | |by ICAB | |IAS 34: Interim Financial Reporting |1998 |BAS 34 |— | |IAS 35: Discontinuing Operations |1998 |BAS 35 |IAS 35 has been superseded by IFRS | | | | |5, which has not yet been | | | | |considered by ICAB | |IAS 36: Impairment of Assets |1998 |BAS 36 |2004 re visions not yet considered | | | | |by ICAB | |IAS 37: Provisions, Contingent Liabilities|1998 |BAS 37 |1998 | |and Contingent Assets | | | | |IAS 38: Intangible Assets |1998 |BAS 38 |2004 revisions not yet considered | | | |by ICAB | |IAS 39: Financial Instruments: Recognition|Not yet adopted |— |— | |and Measurement | | | | |IAS 40: Investment Property |2000 |BAS 40 |2003 revisions not yet considered | | | | |by ICAB | |IAS 41: Agriculture |Not yet adopted |— |— | SHORT DESCRIPTION ON BAS †¢ BAS 1: Presentation of Financial Statements This Standard prescribes the basis for presentation of general purpose financial statements to ensure comparability both with the entity’s financial statements of previous periods and with the financial statements of other entities. It sets out overall requirements for the presentation of financial statements, guidelines for their structure and minimum requirements for their content. A complete set of financial statements comprises: (a) a statement of financial position as at the end of the period; (b) a statement of comprehensive income for the period; (c) a statement of changes in equity for the period; (d) a statement of cash flows for the period; e) notes, comprising a summary of significant accounting policies and other explanatory information; and (f) a statement of financial position as at the beginning of the earliest comparative period when an entity applies an accounting policy retrospectively or makes a retrospective restatement of items in its financial statements, or when it reclassifies items in its financial statements. †¢ BAS 2: Inventories The objective of this Standard is to prescribe the accounting treatment for inventories. A primary issue in accounting for inventories is the amount of cost to be recognized as an asset and carried forward until the related revenues are recognized. This Standard provides guidance on the determination of cost and its subsequent recognition as an expense, including any write-down to net realisable value. It also provides guidance on the cost formulas that are used to assign costs to inventories. Inventories shall be measured at the lower of cost and net realisable value. †¢ BAS 7: Cash Flow Statements The objective of this Standard is to require the provision of information about the historical changes in cash and cash equivalents of an entity by means of a statement of cash flows which classifies cash flows during the period from operating, investing and financing activities. †¢ BAS 8: Accounting Policies, Changes in Accounting Estimates, and Errors The objective of this Standard is to prescribe the criteria for selecting and changing accounting policies, together with the accounting treatment and disclosure of changes in accounting policies, changes in accounting estimates and corrections of errors. The Standard is intended to enhance the relevance and reliability of an entity’s financial statements and the comparability of those financial statements over time and with the financial statements of other entities. †¢ BAS 10: Events After the Balance Sheet Date The objective of this Standard is to prescribe: a) When an entity should adjust its financial statements for events after the reporting period; and (b) The disclosures that an entity should give about the date when the financial statements were authorized for issue and about events after the reporting period. The Standard also requires that an entity should not prepare its financial statements on a going concern basis if events after the reporting period indicate that the going concern assumption is not appropriate. †¢ BAS 11: Construction Contracts The objective of this Standard is to prescribe the accounting treatment of revenue and costs associated with construction contracts. Because of the nature of the activity undertaken in construction contracts, the date at which the contract activity is entered into and the date when the activity is completed usually fall into different accounting periods. Therefore, the primary issue in accounting for construction contracts is the allocation of contract revenue and contract costs to the accounting periods in which construction work is performed. This Standard shall be applied in accounting for construction contracts in the financial statements of contractors. †¢ BAS 12: Income Taxes The objective of this Standard is to prescribe the accounting treatment for income taxes. For the purposes of this Standard, income taxes include all domestic and foreign taxes which are based on taxable profits. Income taxes also include taxes, such as withholding taxes, which are payable by a subsidiary, associate or joint venture on distributions to the reporting entity. The principal issue in accounting for income taxes is how to account for the current and future tax consequences of: (a) the future recovery (settlement) of the carrying amount of assets (liabilities) that are recognized in an entity’s balance sheet; and (b) Transactions and other events of the current period that are recognized in an entity’s financial statements. †¢ BAS 16: Property, Plant and Equipment The objective of this Standard is to prescribe the accounting treatment for property, plant and equipment so that users of the financial statements can discern information about an entity’s investment in its property, plant and equipment and the changes in such investment. The principal issues in accounting for property, plant and equipment are the recognition of the assets, the determination of their carrying amounts and the depreciation charges and impairment losses to be recognized in relation to them. †¢ BAS 17: Leases The objective of this Standard is to prescribe, for lessees and lessors, the appropriate accounting policies and disclosure to apply in relation to leases. The classification of leases adopted in this Standard is based on the extent to which risks and rewards incidental to ownership of a leased asset lie with the lessor or the lessee. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership. †¢ BAS 18: Revenue The primary issue in accounting for revenue is determining when to recognize revenue. Revenue is recognized when it is probable that future economic benefits will flow to the entity and these benefits can be measured reliably. This Standard identifies the circumstances in which these criteria will be met and, therefore, revenue will be recognized. It also provides practical guidance on the application of these criteria. Revenue is the gross inflow of economic benefits during the period arising in the course of the ordinary activities of an entity when those inflows result in increases in equity, other than increases relating to contributions from equity participants. This Standard shall be applied in accounting for revenue arising from the following transactions and events: (a) the sale of goods; (b) the rendering of services; and c) the use by others of entity assets yielding interest, royalties and dividends. †¢ BAS 19: Employee Benefits Employee benefits are all forms of consideration given by an entity in exchange for service rendered by employees. The object ive of this Standard is to prescribe the accounting and disclosure for employee benefits. The Standard requires an entity to recognize: (a) a liability when an employee has provided service in exchange for employee benefits to be paid in the future; and (b) An expense when the entity consumes the economic benefit arising from service provided by an employee in exchange for employee benefits. †¢ BAS 20: Accounting for Government Grants and Disclosure of Government Assistance This Standard shall be applied in accounting for, and in the disclosure of, government grants and in the disclosure of other forms of government assistance. Government grants are assistance by government in the form of transfers of resources to an entity in return for past or future compliance with certain conditions relating to the operating activities of the entity. They exclude those forms of government assistance which cannot reasonably have a value placed upon them and transactions with government which cannot be distinguished from the normal trading transactions of the entity. Government assistance is action by government designed to provide an economic benefit specific to an entity or range of entities qualifying under certain criteria. Government assistance for the purpose of this Standard does not include benefits provided only indirectly through action affecting general trading conditions, such as the provision of infrastructure in development areas or the imposition of trading constraints on competitors. †¢ BAS 21: The Effects of Changes in Foreign Exchange Rates An entity may carry on foreign activities in two ways. It may have transactions in foreign currencies or it may have foreign operations. In addition, an entity may present its financial statements in a foreign currency. The objective of this Standard is to prescribe how to include foreign currency transactions and foreign operations in the financial tatements of an entity and how to translate financial statements into a presentation currency. The principal issues are which exchange rate(s) to use and how to report the effects of changes in exchange rates in the financial statements. †¢ BAS 22: Business Combinations The objective of this standa rd is to prescribe the accounting treatment for business combinations (both acquisitions and, in exceptional instances in which the acquirer cannot be identified uniting of interests). It provides guidance on the classification of a business combination, which includes whether an acquirer can be identified, and whether shareholders of the combining entities share mutually in the risks and benefits of the combined entity. BAS 23: Borrowing Costs Borrowing Costs Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset form part of the cost of that asset. Other borrowing costs are recognized as an expense †¢ BAS 24: Related Party Disclosures The objective of this Standard is to ensure that an entity’s financial statements contain the disclosures necessary to draw attention to the possibility that its financial position and profit or loss may have been affected by the existence of related parties and by transactions and outstanding balances with such parties. †¢ BAS 26: Accounting and Reporting by Retirement Benefit Plans This Standard shall be applied in the financial statements of retirement benefit plans where such financial statements are prepared. Retirement benefit plans are arrangements whereby an entity provides benefits for employees on or after termination of service (either in the form of an annual income or as a lump sum) when such benefits, or the contributions towards them, can be determined or estimated in advance of retirement from the provisions of a document or from the entity's practices. The financial statements of a defined contribution plan shall contain a statement of net assets available for benefits and a description of the funding policy. †¢ BAS 27: Consolidated and Separate Financial Statements The objective of BAS 27 is to enhance the relevance, reliability and comparability of the information that a parent entity provides in its separate financial statements and in its consolidated financial statements for a group of entities under its control. The Standard specifies: (a) the circumstances in which an entity must consolidate the financial statements of another entity (being a subsidiary); (b) the accounting for changes in the level of ownership interest in a subsidiary; (c) the accounting for the loss of control of a subsidiary; and (d) the information that an entity must disclose to enable users of the financial statements to evaluate the nature of the relationship between the entity and its subsidiaries. †¢ BAS 28: Investments in Associates This Standard shall be applied in accounting for investments in associates. However, it does not apply to investments in associates held by: (a) venture capital organizations, or (b) Mutual funds, unit trusts and similar entities including investment-linked insurance funds. †¢ BAS 30: Disclosures in the Financial Statements of Banks and Similar Financial Institutions The objective of BAS30 is to prescribe appropriate presentation and disclosure standards for banks and similar financial institutions as a supplement of the requirements of other standards. It provides the Requirement for classification of items in the income statement and balance sheet by their nature, and for the balance sheet in order of relative liquidity. Identifies the income statement and balance sheet line items requiring disclosure. ? Additional disclosure requirements, including concentration of assets, liabilities and off-balance items, losses on loans and advances, and general banking risks. †¢ BAS 31: Interests in Joint Venture: This Standard shall be applied in accounting for interests in joint ventures and the reporting of joint venture assets, liabilities, income and expenses in the financial statements of ventures and investors, regardless of the structures or forms under which the joint venture activities take place. However, it does not apply to ventures’ interests in jointly controlled entities held by: 1. (a) venture capital organizations, or 2. b) Mutual funds, unit trusts and similar entities including investment-linked insurance funds. †¢ BAS 33: Earnings Per Share The objective of this Standard is to prescribe principles for the determination and presentation of earnings per share, so as to improve performance comparisons between different entities in the same reporting period and between different reporting periods for the same entity. The focus of this Standard is on the denominator of the earnings per share calculation. This Standard shall be applied by entities whose ordinary shares or potential ordinary shares are publicl y traded and by entities that are in the process of issuing ordinary shares or potential ordinary shares in public markets. An entity that discloses earnings per share shall calculate and disclose earnings per share in accordance with this Standard. †¢ Bas 34: Interim Financial Reporting The objective of this Standard is to prescribe the minimum content of an interim financial report and to prescribe the principles for recognition and measurement in complete or condensed financial statements for an interim period. Timely and reliable interim financial reporting improves the ability of investors, creditors, and others to understand an entity’s capacity to generate earnings and cash flows and its financial condition and liquidity. This Standard applies if an entity is required or elects to publish an interim financial report in accordance with International Financial Reporting Standards. Interim financial report means a financial report containing either a complete set of financial statements (as described in IAS 1 Presentation of Financial Statements (as revised in 2007)) or a set of condensed financial statements (as described in this Standard) for an interim period. Interim period is a financial reporting period shorter than a full financial year. †¢ BAS 35: Discontinuing Operations The objective of this standard is to enhance the ability to make financial projections by segregating information about discontinuing operations from information about continuing operations. BAS 35 does not establish any recognition or measurement principles in relation to discontinuing operations-these are dealt with under other BAS. In particular, BAS 35 provides guidance on how to apply BAS 36, Impairment of Assets, and BAS 37, Provisions Contingent Liabilities and Contingent Assets, to discontinuing operations. †¢ BAS 36: Impairment of Assets The objective of this Standard is to prescribe the procedures that an entity applies to ensure that its assets are carried at no more than their recoverable amount. An asset is carried at more than its recoverable amount if its carrying amount exceeds the amount to be recovered through use or sale of the asset. If this is the case, the asset is described as impaired and the Standard requires the entity to recognize an impairment loss. The Standard also specifies when an entity should reverse an impairment loss and prescribes disclosures. †¢ BAS 37: Provisions, Contingent Liabilities and Contingent Assets The objective of this Standard is to ensure that appropriate recognition criteria and measurement bases are applied to provisions, contingent liabilities and contingent assets and that sufficient information is disclosed in the notes to enable users to understand their nature, timing and amount. IAS 37 prescribes the accounting and disclosure for all provisions, contingent liabilities and contingent assets, except: (a) Those resulting from executory contracts, except where the contract is onerous. Executory contracts are contracts under which neither party has performed any of its obligations or both parties have partially performed their obligations to an equal extent; (b) Those covered by another Standard. †¢ BAS 38: Intangible Assets The objective of this Standard is to prescribe the accounting treatment for intangible assets that are not dealt with specifically in another Standard. This Standard requires an entity to recognize an intangible asset if, and only if, specified criteria are met. The Standard also specifies how to measure the carrying amount of intangible assets and requires specified disclosures about intangible assets. An intangible asset is an identifiable non-monetary asset without physical substance. †¢ BAS 40: Investment Property The objective of this Standard is to prescribe the accounting treatment for investment property and related disclosure requirements. Investment property is property (land or a building—or part of a building—or both) held (by the owner or by the lessee under a finance lease) to earn rentals or for capital appreciation or both, rather than for: (a) use in the production or supply of goods or services or for administrative purposes; or (b) Sale in the ordinary course of business. OBECTIVES OF USING BAS IN BUSINESS †¢ Standardized Accountings : The objective of applying BAS in business is to standardize the accounting issues and preparation of financial statements. †¢ International Recognition: To keep consistency with International Business the use of International Accounting Standards adopted as BAS is important. It helps the businesses to gain international recognition. †¢ Maintaining Uniformity: Accounting standards are maintained in order to ensure uniformity in recording accounts and preparing financial statements within the businesses both in country and abroad. †¢ Ensuring Transparency: An important objective of applying BAS is to ensure proper disclosure of necessary information in the financial statements. It provides transparency in the statements. †¢ Providing Reliability: The application of BAS provides reliability and consistency in the accounting record keeping and financial statements to the outside parties. CHAPTER II [pic] ABOUT PRIME BANK LIMITED The Prime Bank Limited (â€Å"the Bank†) was incorporated as the public limited company in Bangladesh under companies Act, 1994. It commenced its banking business with one branch from April17, 1995 under the license issued bi Bangladesh Bank. Presently the Bank has 61 branches all over Bangladesh and a booth located at Dhaka Club, Dhaka. The Bank had no overseas branches as at 31 December 2007. The Bank went for Initial Public Offerings in 1999 and its share is listed with Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited as a publicly traded company for its general class of shares. VISION The vision of the Bank is to be the best Private Commercial Bank in Bangladesh in terms of efficiency, capital adequacy, asset quality, sound management and profitability having strong liquidity. MISSION The mission of the Bank is to build Prime Bank Limited into an efficient, market driven, customer focused institution with good corporate governance structure. Continuous improvement in the business policies, procedure and efficiency through integration of technology at all levels. STRATEGIC PRIORITY The strategic priority of the Bank is to have sustained growth, broaden and improved range of products and services in all areas of banking activities with the aim to add increased value to share holders’ investments and offer highest possible benefits to the customers. CORE VALUE †¢ For customers It refers to become most caring Bank by providing the most courteous and efficient services in every area of our business. For employees It promotes well-being of the employees. †¢ For shareholders It ensures fare return on the investments of the shareholders through generating stable profit. †¢ For the community As a socially responsible corporate entity the Bank maintain s close adherence to national policies and objectives. [pic]BAS FOLLOWED IN PRIME BANK The Institute of Chartered Accountants of Bangladesh (ICAB) is the sole authority for adoption of International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS). While preparing the financial statements, Prime Bank allied most of IAS and IFRS as adopted by ICAB. Details are given below: Name of the BAS | BAS no | Status | |Presentation of Financial Statements | 1 | Applied | |Stationeries | 2 | Applied | |Cash Flow Statements | 7 | Applied | |Accounting Policies, Changes in Accounting Estimates and Errors | 8 | Applied | |Events after the Balance Sheet Date | 10 | Applied | |Construction Contracts | 11 | N/A | |Income Taxes | 12 | Applied | |Segment Reporting | 14 | Applied | |Property, Plant and Equipment | 16 | Applied | |Leases | 17 | Applied | |Revenue | 18 | Applied | |Employee Benefits | 19 | Applied | |Accounting for Government Grants and Disclosure of Government Assistance | 20 | N/A | |The Effects of Changes in Foreign Exchange Rates | 21 | Applied | |Borrowing Costs | 23 | Applied | |Related Party Disclosures | 24 | Applied | |Accounting for Investments | 25 | Applied | |Accounting and Reporting by Retirement Benefit Plans | 26 | Applied | |Consolidated and Separate Financial Statements | 27 | Applied | |Investments in Associates | 28 | N/A | |Disclosures in the Financial Statements of Banks and similar Financial Institutions | 30 | Applied | |Interests in Joint Ventures | 31 | N/A | |Earnings per share | 33 | Applied | |Interim Financial Reporting | 34 | Applied | |Impairment of Assets | 36 | Applied | |Provisions, Contingent Liabilities and Contingent Assets | 7 | Ap plied | |Intangible Assets | 38 | N/A | |Investment Property | 40 | Applied | |Agriculture | 41 | N/A | | Name of the BFRS | BAS no | Status | |Share Based Payment | 2 | N/A | |Business Combinations | 3 | N/A | |Non-current Assets Held for Sale and Discontinued Operations | 5 | N/A | |Exploration for and Evaluation of Mineral Resources | 6 | N/A | *N/A=not applicable [pic] APPLICATION OF BAS IN PRIME BANK LIMITED For the convenience of discussion we are showing the effect of some important BASs in record keeping and accounting of Prime Bank Limited. †¢ BAS No. 1: Preparation of Financial Statements: The financial statements of the bank are prepared in accordance with BAS-1 to give a fair view of the state of the Bank’s affairs and of the results of the operations and cash flows. The financial reports for the year ended in 31 December 2007 are given as annexure for viewing. †¢ BAS No. 7: Cash Flow Statement Cash flow statement has been prepared in accordance with the BAS-7 â€Å"Cash Flow Statement† under direct method as recommended in BRPD Circular No. 14, dated June 25 2003 issued by the Banking Regulation and Policy Department of Bangladesh Bank. †¢ BAS No. 12: Income Taxes Provision for current income tax has been made @ 45% as prescribed in the Finance Act, 2007 on the accounting profit made by the Bank after considering some of the add backs to the income and disallowances as expenditure as per income tax laws in compliance with BAS-12 â€Å"Income Taxes†. †¢ BAS No. 16: Property, Plant and Equipment All fixed assets are stated at cost less accumulated depreciation as per BAS-16 â€Å"Property, Plant and Equipment†. The cost of acquisition of an asset comprises its purchase price and any directly attributable cost of bringing the asset to its working condition for its intended use inclusive of inward freight, duties and non-refundable taxes. †¢ BAS No. 17: Leases Leases are classified as finance leases whenever the ‘terms of the lease’ transfers substantially all the risks and rewards of ownership to the lessee as per BAS-17 â€Å"Leases†. ? The Bank as lessor Amount due from lessees under finance leases are recorded as receivables at the amount of the Bank’s net investment in the leases. The Bank as lessee Assets held under finance lease s are recognized as assets of the Bank at the date of acquisition or if lower, at the present value of the minimum lease payments. †¢ BAS No. 18: Revenue ? Interest income In terms of the provisions of the BAS-18 â€Å"Revenue†, the interest income is recognized on accrual basis. ? Investment income Interest income on investments is recognized on accrual basis. ? Fees and commission income Fees and commission income arises on services provided by the Bank are recognized on a cash receipt basis. ? Dividend income on share Dividend income on share is recognized during the period in which declared and ascertained. Interest paid and other expenses in Conventional Banking In terms of the provision of the BAS-1 â€Å"Presentation of Financial Statements† interest and other expenses are recognized on accrual basis. ? Profit paid on deposits in Islamic Banking Profit paid to mudaraba depositors is recognized on accrual basis as per provisional rate. †¢ BAS No. 19: Employee benefits The retirement benefits accrued for the employees of the Bank as on reporting date have been accounted for in accordance with the provisions of BAS-19, â€Å"Employee Benefit†. Bases of enumerating the retirement benefit schemes operated by the Bank are outlined below: ? Provident fund Provident fund benefits are given to the permanent employees f the Bank in accordance with Bank’s service rules. All confirmed employees of the Bank are contributing 10% of their basic salary as subscription to the fund. The Bank also contributes equal amount of the employees’ contribution. ? Gratuity fund Actuarial valuation of gratuity scheme had been made to assess the adequacy of the liabilities provide for the scheme as per BAS-19, â€Å"Employee Benefits†. ? Welfare fund Prime Bank’s employees’ welfare fund is subscribed by monthly contribution of the employees. The Bank also contributes to the Fund from time to time. Disbursement from the fund is done as per rules for employees’ welfare fund. ? Incentive bonus Prime Bank started an incentive bonus scheme for its employees. 10% of net profit after tax is given to the employees in every year as incentive bonus. This bonus amount is being distributed among the employees based on their performance. †¢ BAS No. 21: The Effects of Changes in Foreign Exchange Rates Foreign currency transactions are converted into equivalent Taka using the ruling exchange rates on the dates of respective transactions as per BAS-21, â€Å"The Effects of Changes in Foreign Exchange Rates†. Foreign currency balances held in US Dollar are converted into Taka at weighted average rate of inter-bank market as determined by Bangladesh Bank on the closing date of every month. Balances held in foreign currencies other than US Dollar are converted into equivalent US Dollar at buying rates of New York closing of the priviou7s day and converted into Taka equivalent. †¢ BAS No. 33: Earnings per Share Basic earnings per share have been calculated in accordance with BAS-33, â€Å"Earnings per Share† which has been shown on the face of the profit and loss account. This has been calculated by dividing the basic earnings by the weighted average number of ordinary shares are standing during the year. The bonus shares issued during the year 2007 were treated as if they had been in issue in previous year also (declared for 2006 result). Hence, in computing the basic earning per share of 2006, the total number of shares including the said bonus shares has been considered as weighted average no. f shares outstanding during the year 2006 as per BAS-33, â€Å"Earning per Share†. †¢ BAS No. 37: Provisions, Contingent Liabilities and Contingent Asset s A provision is recognized in the balance sheet when the Bank has a legal or constructive obligation as a result of a past event and it is probable that an outflow of economic benefit will be required to settle the obligations, in accordance with the BAS 37, â€Å"Provisions contingent Liabilities and Contingent Assets†. [pic] IMPORTANCE OF APPLYING BAS IN PBL †¢ Abiding By The Rules: Adopted BASs are enforceable for listed companies by SEC rules. So proper application of BAS in PBL is maintained to abide by the regulations of the nation. Guideline For Accounting Issues: BAS provides guidelines on different accounting issues to contribute to a common strategy and framework of reference for accountancy development and ensures transparent financial reporting, in accordance with sound corporate governance. †¢ Presenting Relevant & Reliable Information: Applying BAS in the record keepings and preparation of financial statements makes the accounting information relevant and reliable to all involved parties. †¢ Assistance in International Business: Application of BAS is important for keeping up to the International Standards which is important for International business. †¢ Co-operation Between Different Parties: The use of BAS helps promote co-operation between governments, the accountancy and other professions, the international financial institutions, regulators, standard setters, capital providers and issuers. CONCLUSION In the world of globalization it is essential for businesses around the world to standardize the accounting record keepings and preparation of financial statements. The government of Bangladesh has made the International Accounting Standards adopted by Institute of Chartered Accountants of Bangladesh as Bangladesh Accounting Standards enforceable for all listed companies in order to ensure transparency and standard in accounting issues. Like other listed companies of our country Prime Bank Limited record their accounts and prepare their financial statements in compliance with these standards. The effects of these standards provide guidance and reliability in the accounting information. CHAPTER III ANNEXURE [pic] Balance Sheet As at 31 December 2007 2007 2006 PROPERTY AND ASSETS Taka Taka Cash In hand (including foreign currencies) 663,028,189 452,560,474 Balance with Bangladesh Bank and its agent bank(s) (including foreign currencies) 4,755,788,872 3,662,426,602 5,418,817,061 4,114,987,076 Balance with other banks and financial institutions In Bangladesh 1,625,581,391 627,964,960 Outside Bangladesh 791,887,088 485,749,435 2,417,468,479 1,113,714,395 Money at call and short notice – 1,490,000,000 Investments Government 12,090,285,095 7,673,700,299 Others 607,735,533 170,682,648 12,698,020,628 7,844,382,947 Loans and advances/investments Loans, cash credits, overdrafts, etc 53,814,967,656 41,307,504,065 Bills purchased and discounted ,868,053,856 3,702,713,983 57,683,021,512 45,010,218,048 Fixed assets including premises, furniture 660,490,066 412,107,309 Other assets 710,613,052 914,107,309 Non-banking assets – – Total assets 79,588,430,798 60,899,475,793 2007 2006 LIABILITIES AND CAPITAL Taka Taka Liabilities Borrowing from other banks, financial institutions 390,869,490 345,944,757 Deposits and other accounts Current/ al-wadeeah current deposits 10,590,463,357 8,261,264,165 Bills payable 1,144,540,968 528,231,748 Savings bank 6,027,260,878 4,125,622,204 Term deposits 52,750,109,722 41,808,962,467 Bearer certificate of deposit – – Other deposits – – 70,512,374,925 54,724,080,584 Other liabilities 3,411,909,021 1,969,561,728 Total liabilities 74,315,153,436 57,039,587,069 Capital/ Shareholders’ equity Paid-up capital 2,275,000,000 1,750,000,000 Statutory reserve 1,873,543,597 1,404,170,652 Revaluation gain 2,723,913 – Other reserve – – Retained earnings 1,112,009,852 705,718,072 Total Shareholders’ equity 5,273,277,362 3,859,888,724 Total liabilities and Shareholders’ equity 79,588,430,798 60,899,475,793 Balance Sheet as at 31 December 2007 [pic] 2007 2006 Taka Taka OFF-BALANCE SHEET ITEMS Contingent liabilities Acceptances and endorsements – – Letters of guarantee 10,480,381,241 9,476,314,713 Irrevocable letters of credit 21,193,628,862 17,392,748,116 Bills for collection 1,414,716,406 1,060,486,687 Other contingent liabilities – – 33,088,726,509 27,929,549,516 Other commitments Documentary credits – – Forward assets purchased – – Undrawn ote issuance – – Undrawn formal standby facilities – – Liabilities against forward purchase and sale – – Others – – 33,088,726,509 27,929,549,516 Other memorandum items Value of travellers’cheques in hand 141,383,952 14,284,764 Value of Bangladesh Patras in hand 1,348,897,500 346,193,975 1,490,281,452 360,478,739 Total 34,579,007,961 28,290,028,255 Profit and Loss Account For the year ended 31 December 2007 [pic] 2007 2006 Taka Taka Interest income 7,170,099,616 5,198,790,368 Interest paid on deposits (5,226,592,564) (3,698,441,036) Net interest 1,903,507,052 1,500,349,332 Investment income 1,294,205,056 419,496,059 Commission, exchange 1,198,942,404 998,117,247 Other operating income 419,555,862 314,073,525 Total operating income (A) 4,816,210,375 3,232,036,163 Salaries and allowances 725,285,435 561,930,122 Rent, taxes and insurances 159,529,399 113,987,335 Legal expenses 24,728,362 4,951,307 Postage, stamp 60,999,650 47,690,052 Stationery 121,691,050 63,382,686 Managing Directors’ salary 9,131,448 6,400,000 Directors’ fees 2,224,444 2,734,300 Auditors’ fees 791,725 570,990 Charges on loan losses – – Depreciation and repair of Bank’s assets 102,185,026 71,657,509 Other expenses 352,779,110 227,768,616 Total operating expenses (B) 1,559,345,650 1,101,072,827 Profit/ (Loss) before provision(c=A-B) 3,256,864,725 2,130,963,336 Provision for loans/investments Specific provision (350,000,000) (210,000,000 General provision (350,000,000) (180,000,000) Provision for off-balance sheet items (210,000,000) – (910,000,000) (390,000,000) Provision for diminution – – Other provision – – Total provision (D) (910,000,000) (390,000,000) Total profit / (loss) before taxes(C-D) 2,346,864,725 1,740,963,336 Provision for taxation Current tax (1,015,000,000) (592,362,815) Deferred tax 68,800,000 96,709,995 Net profit after taxation 1,400,664,725 1,051,890,526 Retained earnings (previous) 180,718,073 2,020,213 1,581,382,073 1,053,910,739 Appropriations Statutory reserve 469,372,945 348,192,667 General reserve – – 469,372,945 348,192,667 Retained surplus 1,112,009,852 705,718,072 Earnings per share (EPS) 61. 57 46. 24 Cash Flow Statement For the year ended 31 December 2007 [pic] 2007 2006 Taka Taka A) Cash flows from operating activities Interest receipts in cash 7,076,601,586 5,616,509,362 Interest payments (5,266,592,564) (3,698,441,036) Dividends receipts 7,976,958 1,777,066 Fees and commission receipts in cash 1,198,942,404 998,117,247 Recoveries of loans 415,867 – Cash payments to employees (729,416,883) (596,830,122) Cash payments to suppliers (286,567,522) (175,315,699) Income taxes paid (476,148,788) (590,139,079) Receipts from other operating activities 419,555,862 314,067,381 Payments for other operating activities (470,041,003) (296,680,802) Cash generated from operating activities 1,474,725,917 1,573,064,318 Increase/ (decrease) in operating assets and liabilities Statutory deposits – – Purchase of trading securities (1,197,259,262) (1,161,365,969) Loans and advances to other banks – – Loans and advances to customers (12,672,803,463) (13,094,105,540) Other assets (3,796,358,897) 2,494,489,750) Deposits from other banks /borrowings 62,890,500 (490,439,000) Deposits from customers 15,171,985,121 18,833,626,261 Others liabilities accounts of customers 616,309,220 (140,262,287) Trading liabilities – – Other liabilities 1,437,147,293 (177,440,778) (378,089,488) 1,275,522,937 Net cash from operating activities 1,096,636,429 2,848,587,255 B) Cash flows from operating activities Debentures 4,932,282 5,000,000 Proceeds from sale of securities – – Payments for purchase of securities (430,320,723) (58,856,689) Purchase of property (333,719,898) (98,473,598) Payment against lease obligation (2,785,500) (1,995,468) Proceeds from sale of property 277,045 325,900 Net cash used in investing activities (761,616,794) (153,999,855) C) Cash flows from financing activities Dividend paid – – Net cash from financing activities – – D) Net increase/(decrease) in cash and cash equivalents 335,019,635 2,694,587,400 E) Effects of exchange rate – – F) Cash and cash equivalents at beginning of the year 7,468,239,215 4,773,651,851 G) Cash and cash equivalents at the end of the year 7,803,258,850 7,468,239,215 Cash and cash equivalents at the end of the year Cash in hand 663,028,189 452,560,474 Balance with Bangladesh Bank 4,755,788,872 3,662,426,602 Balance with other banks 2,382,784,489 1,061,064,639 Money at call and short notice – 1,490,000,000 Reverse repo – 800,000,000 Prize bonds 1,657,300 2,187,500 7,803,258,850 7,468,293,215 Statement of Changes in Equity Particulars |Paid up capital |Statutory reserve |Revaluation |Retained earnings |Total | | |(Taka) |(Taka) |gain/loss |(Taka) |(Taka) | | | | |(Taka) | | | |Balance as at 1 January 2007 |1,750,000,000 |1,404,170,652 | – |705,718,072 |3,859,888,724 | | | | | | | | |Changes in accounting policy | | | | | | | | | | | | | | | | | | | | |- |- |- |- |- | |Restated Balance |1,750,000,000 |1,404,170,652 | – |705,718,072 |3,859,888,724 | | | | | | | | |Surplus on revaluation of |- |- |- |- |- | |properties | | | | | | | | | | | | | |Surplus of investments |- |- |12,723, |- |12,723,913 | | | | |913 | | | |Currency translation differences | | | | | | | |- |- |- |- |- | |Net gains and | | | | | | |losses(Unrecognized) |- |- |12,723, |- |- | | | | |913 | | | |Net profit for the year | | | | | | | |- |- | |1,400,664, |1,400,664,725 | |Dividends | | |- |725 | | | | | | | | | |Issue of share capital |525,000,000 – | |(525,000, |- | | | | |- |000) | | |Appropriation | | | | | | | |- |- | |- |- | | | | |- | | | | |- |469,372,945 | |(469,372, |- | | | | |- |945) | | |Balance as at 31 December 2007 | | | | | | | |2,275,000,000 |1,873,543,597 |12,723,