Heart of Darkness vs. Apocalypse Now Essay - 816 Words

In Heart of Darkness and Apocalypse Now, both Joseph Conrad and Francis Ford Coppola create similar statements through their creations as they both centralize their views upon the effects of environmental changes that affect the human condition. The film Apocalypse Now vaguely reflects a similar message pursued by Conrad’s novella, due to the difference in time period, place setting, and circumstances in which the film was created. Conrad wrote his novella during British colonization, focusing upon imperialism. Coppola’s film similarly focused upon the barbaric nature of man, which demonstrates the insanity of the Vietnam War. In Heart of Darkness, Conrad centers his main focus upon the journey of Marlow, a sailor, who travels into†¦show more content†¦Kurtz’s lack of restraint and hunger for ivory consumes not only his soul but drains all of his physical existence. Upon seeing him, Marlow states, â€Å"I could see the cage of his ribs all astir, the bo nes of his arm waving (126)†. Conrad focuses on the physical features of Kurtz to display the madness that has consumed him. However, though Kurtz’s body is deteriorating, Kurtz’s mind continues to thrive. Conrad shows this in Marlow’s shock of witnessing a flame of passion that remains in Kurtz’s eyes as he converses without signs of exhaustion (126). Conrad continues to describe Kurtz as a shadow composed of tranquility and satisfaction. Conrad’s incorporation of this detail signifies the evil and greed that consumes Kurtz and is reflected through his physique. However, the power of Kurtz’s presence is personified through the action of his words. As the strength in his voice captures Marlow’s attention, it merely reflects his influence upon his followers. The power reflected through his voice displayed his confidence as well as his position as a leader for the natives. Hi demeanor displays an air of arrogance that makes others feel less equal to him. Those who follow him fear him, but also continue to respect him. In Apocalypse Now, Coppola creates a similar, however unique parallel structure as Willard meets Kurtz.Show MoreRelatedHeart of Darkness vs. Apocalypse Now1031 Words   |  5 Pagesoutstanding feat. Francis Ford Coppola s Apocalypse Now did not only that, but won Academy Awards for Best Cinematography and Best Sound. Coppola can not take all the credit for this enlightening movie. The film was loosely based off of Joseph Conrad s Heart of Darkness. Though Conrad was not credited in Apocalypse Now, his novella has a great impact on Coppola s cinematic masterpiece. Captain Benjamin Willard of Apocalypse Now and Heart of Darkness s Marlow are very much alike. Both are sentRead More Apocalypse Now vs Heart of Darkness Essay1120 Words   |  5 Pages Francis Ford Coppola’s Apocalypse Now lacks the impact of its inspiration, Joseph Conrad’s Heart of Darkness. While the basic elements of imperialism and human nature remain intact, the characters of the film bare little resemblance to their literary counterparts. The film serves as a re-interpretation of Conrad’s novella, updated from 19th-century British imperialism in the Congo to a critique of 20th-century U.S. imperialism in Southeast Asia. Coppola’s changes in setting and plot structure, howeverRead MoreComparative Essay1096 Words   |  5 Pagesanalysis: â€Å"Heart of Darkness† â€Å"Apocalypse Now† Student: Mora Vandenbroele Teacher: Azucena Estigarribia Year: 11th â€Å"A† â€Å"Heart of Darkness† vs. â€Å"Apocalypse Now† It is very interesting how humans are so intrigued about the evilness in the world, and the dedication of some men to compare Hell with the Earthly horror. Joseph Conrad, a genius writer, took his time to show this with his masterpiece â€Å"Heart of Darkness† that wasRead MoreIn Search of the Unknown: Apocalypse Now1584 Words   |  6 PagesIn Search of the Unknown Apocalypse Now is a film based on the story Heart of Darkness, written by Joseph Conrad. By analyzing the book, the readers do not just understand the theme and plot of the story, but also makes readers look back in the 19th century Colonialism and see how the world worked under Imperialism. The movie, Apocalypse Now also correlates with the book, but this time the setting does not take place in the 19th century, but in the 20th century when United States was at war withRead More Transformation in Heart of Darkness and Apocalypse Now Essay1685 Words   |  7 PagesTransformation in Heart of Darkness and Apocalypse Now      Ã‚  Ã‚  Ã‚   Since Francis Ford Coppola’s   Apocalypse Now was based on Joseph Conrads novel, Heart of Darkness, it is possible to draw many parallels between the two works. Both can be interpreted as metaphors for a journey through the inner self, and each has its own particular message to convey. In many ways they also appear to have similarities to Arthurian Legend, in particular the quest for the holy grail, and other allegorical journeyRead MoreEssay on Compare and Contrast Heart of Darkness/Apocalypse Now1353 Words   |  6 PagesApocalypse Now, directed by Francis Ford Coppola, is the story of Captain Willards journey up the Nung River in Cambodia to kill a general, Kurtz, who has lost control of himself. It is set in the Vietnam War and is a very gritty and affecting film. Imagine my surprise when I learned that it was sort of based on Joseph Conrads famous novella, Heart of Darkness. Conrads book, the tale of the sailor Marlowes African adventure, is a study on the evils of colonialism. The two stories at first glanceRead MoreAnalysis Of The Book Heart Of Darkness 706 Words   |  3 PagesEnglish 202 17 October 2015 Marlow vs. Willard The stories in the book Heart of Darkness, by Joseph Conrad and the movie Apocalypse Now directed by Francis Ford Coppola are very similar. The main characters in both are similar, but do have their differences, like who they were before they took the job, the settings they were put in, . Before we can compare the characters, we have to compare the stories first. Apocalypse Now was inspired by the story Heart of Darkness. Even though Coppola based hisRead More Marlow Vs. Willard Essay1083 Words   |  5 PagesMarlow vs. Willard Charles Marlow and Captain Willard have many characteristics that would make them alike and different. Marlow, from the novel Heart of Darkness, was a man who was on a mission through Cambodia to find Kurtz. Captain Willard, from the movie â€Å"Apocalypse Now†, was a man on a mission to exterminate a fellow member of the United States Armed Forces, Kurtz. â€Å"Apocalypse Now† is a Vietnam parallel of the novel Heart of Darkness. While both these men were on a search for a man, theyRead MoreJoseph Conrad s Heart Of Darkness And Francis Ford Coppola s Film Apocalypse1785 Words   |  8 Pagesculture has popularized the idea of good vs evil but the concept is far more complex than simply drawing a battle line between two individuals or groups looking to overcome the other in the name of good or evil. Man in general is quite capable of carrying out every kind of evil, no matter how righteous or pure, without any influence from supernatural forces. Works such as Joseph Co nrad s novel Heart of Darkness and Francis Ford Coppola’s film Apocalypse Now illustrate the journey of man into theirRead MoreHow to Read Lit Like a Prof Notes3608 Words   |  15 Pagesindirectly c. Symbolic Vampirism: selfishness, exploitation, refusal to respect the autonomy of other people, using people to get what we want, placing our desires, particularly ugly ones, above the needs of another. 4. If It’s Square, It’s a Sonnet 5. Now, Where Have I Seen Her Before? a. There is no such thing as a wholly original work of literature—stories grow out of other stories, poems out of other poems. b. There is only one story—of humanity and human nature, endlessly repeated c. â€Å"Intertexuality†Ã¢â‚¬â€recognizing

Sex and Religion Free Essays

Sexual origin and conduct morals differentiate between cultures and have evolved gradually over time to what we now know today. The conflict between sexuality (sex) and religion has been ever present in every cultures history. This conflict, however, comes in two parts: sex as in the action and sexuality. We will write a custom essay sample on Sex and Religion or any similar topic only for you Order Now The action of sex, or conduct, has many different views that can sway easily from polar to polar. From the belief that sex is immoral and dirty, to the belief that sex is the highest expression of the divine, this an example on how the view of each religion differ greatly from each other. Some religious faiths believe that only sex as a means of biological reproduction between a formal marital couple is acceptable and even promoted; while on the other hand, sex for the basis of pleasure is considered sinful and looked down upon. There seems to be little middle ground in any of the world’s major and minor religions. But while there may be little middle ground in the direct interpretations of religious texts and values, the middle ground is made up by society that as a whole is very laid back on such matters with only a few high profile individuals who happen to talk more than they walk. Most people tend to such matters with privacy and discretion. The second of the two conflicts is of sexuality and preference, and this is one that grips our nation and many others when really it should not. Religious institutions have such a problem with gay-marriage that through years of successful lobbying against such marital status resulted in many states banning or suspending this right. This is a clear indicator that the seperation between church and state has become a bit of a fallacy. Out of all the major faiths and sects in the world, the Anglican church is the only branch that even allows homosexuals to hold any leadership and pastorship position. Being Anglican, I have been taught that God just wants everyone to be happy and live a good life. If two same-sex people love each other and are happy, then why limit their possibilities to extend that happiness? At the same time, homosexual couples seem to be the only ones not affected by the hellish situation that is a divorce. To be honest, it is unfair that they get rarely encounter any of the pain that a divorce brings. Plus, it allows divorce attorneys a new frontier to cast their loveless shadow over, and add extra impetus in their reservations in hell. Anyways, it’s none of our or any religion’s business to influence the happiness and lives of generally good people who contribute immensly in our world. In Judaism, sex and reproduction are the holiest of acts that one can do, they believe this act is the only one where one can imitate God and bring life to the world. Of course, like many religions, they sanction monogamous and committed heterosexual relationships with marriage. Though, the Jewish Hebrew Bible prohibits adultery and heterosexual intercourse during when the wife in her menstrual period, or known as the Niddah. Orthodox Judaism strongly oppose homosexual sexual acts, while the Traditional division of Judaism views just male homosexuality as a grave sin. With that in mind, female homosexuality is apparently fine with them – I guess they are fans of girl-on-girl action. Contradictions like this just make the view and morality of sex to religious faiths a huge joke. But there is hope as the tolerant attitudes ofReform and Reconstructionist Judaism in relation to both sexual diversity and interfaith marriage have contributed to the rise in popularity to eventually making it the largest Jewish denomination in the United States. For centuries How to cite Sex and Religion, Papers

International Contractual Principles Law †MyAssignmenthelp.com

Question: Discuss about the International Contractual Principles Law. Answer: Introduction: The key issue in this case relates to the formation of a contract between Ian and Amy on the basis of the Facebook advert. And, in case a contract has been formed, does that give Ian any remedies for a breach of contract on part of Amy? A contract is such a document through which one party promises to undergo a particular thing and the other party promises to pay the requisite consideration. A contract is an agreement, which has legal validity due to presence of certain elements in it (Blum 2007, p. 2). These elements include the elements of agreement, i.e., offer and acceptance, consideration, intention, capacity, consent and clarity (Miller Cross 2015, p. 257). When all of these elements come together, in a single agreement, the agreement transforms into a contract, which gets a legal validity and makes the contracting parties contractually obligated to perform the promise stated in the contract. There are different modes of forming a contract, for instance, by verbally exchanging the contractual terms, the contract can be formed. In the similar manner, by stating down on a document, the terms on which the contract is based, a written contract is formed (Mau, 2010 p. 5). The first step for creating a contract is the establishing the presence of agreement, i.e., offer and acceptance. An offer is the initiating point of the contract, where one party offers certain terms to another (Frey 2015, p. 29). It is important that an offer is clearly differentiated from an invitation to treat as there is a key difference between these two. The first major difference is that the invitation to treat shows that the parties want to start negotiating for the contract, whereas the offer shows that the parties want to get into a contract. Also, the offer is needed for contract formation compulsorily, whereas an invitation to treat is not present in every case. In order to understand the difference between an offer and an invitation to treat, the facts of the particular case have to be taken into consideration (Poole 2016, p. 37). In the case of Pharmaceutical Society of Great Britain v Boots [1953] 1 QB 401, the case of invitation to treat was established. This was due to the fact that the goods which are kept by the seller on their shop window were deemed as an invitation to treat and not an offer. This meant that the seller was not required to sell the products kept on shelf, as the same was not an offer till it was taken to the billing counter (E-Law Resources 2017a). Similarly, in the case of Partridge v Crittenden [1968] 2 All ER 421, the court held that the adverts which are given in magazines and newspapers are not an offer and in general are to be taken as an invitation to treat (E-Law Resources 2017b). However, where such advert contains such terms, which can be accepted by acting upon them, it would be deemed as a unilateral offer and a noteworthy case in this regard is that of Carlill v Carbolic Smoke Ball Company [1893] 1 QB 256 (E-Law Resources 2017c). There are certain other communications which are not given the status of either an offer or an invitation to treat. A request for information, in Harvey v Facey [1893] AC 552, in the statement made in this case was not considered as an offer (E-Law Resources 2017d). Gibson v Manchester City Council [1979] UKHL 6 saw the wordings may be prepared to sell was to be construed as just an announcement of price. Further, it was not a different offer, as this information was required just for the purpose of supplementing the original offer which was made (Swarb 2016). The second part of the agreement element in contract formation is the acceptance. It is very crucial that the acceptance is given to the offer which was made and by the person to which the offer had been made (Helewitz 2010, p. 28). The acceptance has to be given to the offer which was made and in the exact manner of it being made. In case there is any change in the communication of acceptance, regarding the contractual offer, the communication is not given the status of acceptance; and instead, is considered as a counter offer. Hyde v. Wrench (1840) 3 Beav 334 provided that in such cases, the original offer comes to an end (McKendrick 2014, p. 80). Another important point regarding acceptance is that it has to be properly communicated. Felthouse v Bindley (1862) EWHC CP J35 saw the court holding that a mere silence is not an acceptance (E-Law Resources 2017e). The date of offer and acceptance are also of importance. When the communication regarding the offer or acceptance reaches the other party that would be date of offer and acceptance. In the cases of emails, in the jurisdiction of Australia, the Electronic Transactions Act, 1999 (Cth) is applicable. Under section 14 of this act, the date for email is to be taken as such date on which the email is sent from the senders electronic device and this is the date of acceptance or offer, depending upon the communication made (Federal Register of Legislation 2011). This is similar to that of the postal rules of acceptance in which the date of actual receipt of the communication is irrelevant and the date of sending is the date of offer/ acceptance (Andrews 2015, p. 51). With the presence of elements of agreement, along with the remaining elements, a contract is created. Where the parties fail to perform the obligation covered under the contract, the contract is deemed to be breached by the party which does not keep its promise. This allows the party which had to face the loss due to non performance of the contract, the option of making a claim for breach of contract against the defendant. This would allow them to apply for monetary damages and equitable damages (McKendrick Liu 2015, p. 431). The key purpose for awarding damages lies in putting the parties in a place where a breach of contract did not take place and this reasoning was given in Addis v Gramophone [1909] AC 488, where the emphasis was not on punishing the breaching party (E-Law Resources 2017f). The case study given here highlights that an invitation of treat was made through the Facebook advert and this was posted by Amy. The reason for treating the invitation to treat lies in the fact that this post opened the possibilities for negotiations as it invited the interests of the people. The stark difference in this case and in that of Carlill v Carbolic Smoke Ball Company, lies in the fact that this was not a unilateral contract which could simply be performed. It needed further confirmation that Amy is ready to sell the dog to the person who has applied for it. Also, the adverts in general are to be taken as invitation to treat only, as was stated in Partridge v Crittenden. And as this is an invitation to treat, on the basis of Pharmaceutical Society of Great Britain v Boots, Amy would not be under an obligation to sell the dog to Ian. The email which Ian same on the very same date, in which an inquiry was made regarding the address, would neither be an offer nor be treated as an invitation to treat. On the basis of Harvey v Facey, it would be simply considered as a request of information. The reason for this lies in the fact that Ian only requested for the information regarding the address and had expressed his desire for buying the dog on sale. Being provided with the address would be considered as another pre-contractual negotiation. The offer in this case was made only when Ian emailed Amy about picking up the dog on a particular day and time. And thus began the formation of contract. On this communication, Amy remained silent, and on the basis of Felthouse v Bindley, this would not be considered as her acceptance. As an acceptance was not obtained in this case, a contract was not formed between the two. The application of the rules to the case study provides that no contract was formed between Amy and Ian; and as a result of this, a breach of contract cannot be claimed by Ian. The key issue in this case relates to the formation of a contract between Judy and Amy on the basis of the elements of contract. Further, the case also relates to the presence of vitiating factor in the contract, which is misrepresentation, on part of Amy, and the resulting remedies for the same. As has been highlighted in the preceding segment, certain elements have to be present for creating a contract. The acceptance part has already been discussed. However, one element regarding acceptance which was not discussed earlier is the acceptance garnered through the conduct of the parties. At times, the conduct of the parties shows that agreement to the offer made. In Brogden v. Metropolitan Railway Company (1877) AC 666, the acceptance was taken to be through the performance of the contract without raising any objections regarding the terms (Swarb 2017a). The next requirement for contract formation is consideration. Consideration is the amount which is to be paid for the promise being undertaken by the other party to do the obligation. It is crucial that the consideration is sufficient; though, the same being adequate is not a requirement. The amount of consideration is something which the parties decide mutually. It can be any value, as long as it has economic aspect (Stone 2005, p. 78). For instance, in Chappell Co Ltd v Nestle Co Ltd [1960] AC 87, the court held that the consideration of three wrappers was valid, due to the condition precent and due to it having an economic value in the context of this case (Swarb 2017b). It is important to note that once a contract has been formed, a higher consideration cannot be asked by the other party. In other words, the contract once formed, with particular terms, cannot be changed, till the time both the parties agree to it. In North Ocean Shipping v Hyundai [1979] 3 WLR 419, which is also known as the Atlantic Baron case, the shipbuilder had asked for more money, which was eventually paid by the plaintiff without any protest. It was held in this case that the contract was voidable owing to duress in the contract. Though, as the actions were brought very late by the claimant, the court held that the plaintiff had lost their right for getting the contract rescinded (E-Law Resources 2017g). The next step in the contract formation is intention. The parties who come together to form a contract need to have a clear intention of forming a contract. This is particularly in the sense that the parties need to be clear that by entering into the contract, the parties would be made legally liable to fulfil the contractual obligations which have been covered under the contract and in case the same is not fulfilled, they would have to bear the consequences of breach of contract (Rush Ottley 2006, p. 350). Another requirement is for the parties to have the requisite contractual capacity for entering into the contract. This means that the parties need to have the majority age, so that they can legally enter into the contract. Also, they need to be of sane mind to make decisions in an informed manner (Miller 2016, p. 251). A key requirement for the contract formation lies in the consent which the parties give to the terms of the contract. This consent has to be given free from any duress or pressure from the other party. The last requirement is of clarity. This means that the terms on which the contract is made, has to be clear to both sides of the parties. It is of utmost importance that each party is clear on the contractual terms, so that they can be clear on what their rights and obligations are under any contract. Also, this would prove to be of help in case the contract is disputed, as the terms mentioned in the contract are referred to in this case. Clarity in terms of contract would mean that a genuine point, which is properly covered under the contract, is included in the contract (Furmston Tolhurst 2010, p. 114). Once all these elements come together, a contract can be formed (Kirst-Ashman Hull 2008, p. 205) As has been covered summarily in the preceding section, the non fulfilment of the contractual obligation leads to a breach of contract and for this, the aggrieved party can apply for different remedies. They can apply for monetary damages, which results in the aggrieved party being paid the amount of consideration owing to the breach of contract. Further, the breaching party can be asked for specific performance of the contract, where they have to specifically fulfil the obligations covered under the contract. Another option is to get an injunction order, where the breaching party is stopped from doing a particular task. Lastly, the aggrieved party can get the contract rescinded (Australian Contract Law 2010). One of the major concepts under the contract law relates to the vitiating factors. Vitiating factors are such factors in a contract, which gives the aggrieved party the right to get the contract rescinded, amongst the other options. The five key vitiating factors which can be present in a contract, making it voidable at the option of the aggrieved party includes misrepresentation, duress, undue influence, mistake and illegality (Barnett Harder 2017, p. 392). Duress is a vitiating factor where by the party is forced to enter into contract, owing to a threat, which could be of physical injury, duress to goods and economic duress (Spark 2013, p. 2013). Misrepresentation Misrepresentation is such a case where one of the parties in a contract, is told a false statement of fact, which induces this party to get into the contract. Once it can be shown successfully, that indeed a case of misrepresentation was present, the aggrieved party has the option of getting the contract rescinded as the presence of misrepresentation would make the contract voidable at the option of the aggrieved party. Alternatively, they can also apply for damages (E-Law Resources 2017h). In the case of Smith v Land and House Property Corp (1884) 28 Ch D 7, the claimant was about to purchase the hotel being sold by the respondent. While the negotiations were going on, the tenant in the hotel was described by the respondent as being the most desirable one. The reality was very different from this. This was due to the fact that the seller knew that the particular tenant was not paying his rent and that he was about to be declared as a bankrupt. The statement lied here was a statement of fact and not of opinion. This was due to the reason that the respondent was in such a position to know the status of payments made by the tenant. And due to the false statement of fact being made in this case, the court held that a case of misrepresentation was indeed present (E-Law Resources 2017i). It is crucial that the false statement is a statement of fact and not that containing an opinion. Bisset v Wilkins [1927] AC 177 was a case where this was upheld by the court. In this case, a statement was made by the respondent in which he stated that the land could possibly hold around 2,000 sheep. The claimant relied on this statement and bought the land. Though, he came to know later on that the estimate given by the respondent was not true. And so, he brought an action for misrepresentation against the respondent. The court held that in this case, the statement of the respondent was one of opinion and did not contain any fact. Hence, the claim of the claimant failed (E-Law Resources 2017j). In a different case, i.e., in Car Universal Credit v Caldwell [1964] 2 WLR 600, the court upheld the presence of fraudulent misrepresentation. And due to these reasons, the court allowed Caldwell to rescind the contract (E-Law Resources 2017k). In the given case study, the first step which is required is to show that a contract was formed between Amy and Judy. Judy came to Amys home business, where she saw the dog which had the same description as the one in the Facebook advert. This would be deemed as an invitation to treat as the goods kept on shelf of the seller are not an offer to sale as per the case of Pharmaceutical Society of Great Britain v Boots. Only when Judy would go to Amy with the intention to purchase the dog, would an offer be made. It is very clearly stated in the case study that Judy went and talked to Amy. This would be deemed as an offer by Judy, whereby she offered to purchase the dog on display for a price of $1,000. As has been stated in the rules segment, the acceptance can be obtained from the conduct of the parties. In this case, Amy accepted the payment which was made by Judy, which on the basis of Brogden v. Metropolitan Railway Company would be deemed as an acceptance by performance of the cont ract. So, the elements of agreement have been clearly established here and were present between Judy and Amy. The next requirement is to show that the element of consideration was present in this case. The case study shows clearly that Judy and Amy agreed to the consideration of $1,000. On the basis of Chappell Co Ltd v Nestle Co Ltd, it is very clear that this value has economic consideration. And so, it would be valid. However, in this case, Judy asked for a higher amount after the contract had been formed. The remedies on the basis of this have been discussed later on. Another step required in the contract formation is intention of the parties. In this case, the intention is very clear as Amy wanted to sell the dog and had invited interests of the parties for the same. And the intent of Judy is also clear as she wanted to buy the dog and even paid a higher sum for the same. Hence, this element was clearly present. The capacity of the parties had to be shown also. There is nothing in the case study which could suggest that either Judy or Amy did not have the requisite capacity to enter into the contract. There is nothing to show that either of them lacked contractual age or that they were not of sound mind. Hence, it is presumed that the parties had the contractual capacity. One of the key elements of the contract which need to be established here is that the terms of the contract were clear. It was very clear in this case that Amy would provide Judy with a pure breed Cavalier King Charles male puppy, who had been properly vet checked, had been vaccinated, wormed and micro chipped. Along with this, the dog had been socialised with the standard puppy training, along with having a beautiful temperament and loved the company of all. The term regarding the consideration was also clear where Judy would pay $1,000 for this dog. It was also clear that Judy would be taking the dog after two days, as she was required to obtain the permission from her landlord. These were the terms on which the contract was formed. The last requirement relates to consent of the parties. The consent to the agreement was given freely by both the parties; though, the presence of vitiating factors, which led to this consent being put in question have been discussed later on. As all the requisite elements of contract were present in this case, a contract was formed between Amy and Judy. The moment Judy asked Amy for additional amount of $200, the contract was breached. This is because the terms of the contract made it very clear that Judy would be provided with a vaccinated dog and that the consideration price was $1,000. There was nothing in the terms which showed that the cost of vaccination would have to be paid separately. Hence, by asking Judy to pay a higher consideration than what was promised under the contract, Amy breached the contract. And in this case, Judy has the option of claiming the extra $200 paid by claiming them as monetary compensation for the breach of contract. Another option available with Judy is to apply for specific performance of the contract. This would mean that Amy would be forced to accept the price of $1,000 only and would not be paid the addition sum of $200. However, these two claims cannot be made by Judy. This is because she agreed to pay the increased sum without even protesting against the same. This would mean that the terms o f the original contract were changed and both parties agreed to it. Hence, Judy would not be successful in making a claim of breach of contract, owing to her acceptance of the increased prices. Vitiating Factors In this case, there are two main vitiating factors which become applicable owing to the conduct of Amy. The first one has been discussed in this segment, which relates to duress. The duress in this case can be established through the case of North Ocean Shipping v Hyundai. Similar to the quoted case, in the case study also, Judy was asked for more money, which Judy paid to Amy without any protest. Asking additional money was established as something which leads to duress in the quoted case. And on the basis of the quoted case, Judy can make a claim of duress against Amy. This would give her the right of getting the contract voided. However, Judy would have to take actions at the earlier, or else, as was done in the quoted case, she would lose her right for getting the contract rescinded. In this case, Amy also indulged in misrepresentation. This is proved from the fact that she lied about the dog being well trained. The dog was not trained as he did not respond to any orders, barked for the whole night, made Judys room a big mess and refused to get along with the people. Also, unlike the initial promise of being properly socialized with standard of puppy training, the dog had clear training problems. This would be deemed as a statement of fact, which was lied upon by Amy, on the basis of Smith v Land and House Property Corp. The reason for this is that Amy was a pet breeder who had bred the dog and who had claimed that he had a number of qualities. Due to her position, she had the capacity to know the truth and would have known that in reality, the dog was not trained properly. The reason for not considering this a statement of opinion, on the basis of Bisset v Wilkins can be found in the wordings of the advertisements which stated that the dog had all these qualities. As the breeder of that particular dog, Amy knew the reality was far from what had been quoted by her in the advertisement. Hence, she made a deliberate and fraudulent misrepresentation in this case. And due to these reasons, Judy can get the contract rescinded in the similar manner as was done in Car Universal Credit v Caldwell. This would allow Judy to go to Amy and ask for the contract to be rescinded. Another option which Judy has in this case is not to get the contract rescinded and instead claim damages. These damages could include the hardships she had to face due to the puppy not being well trained, along with the cost of training the puppy properly, so that the dog behaves properly and responds to the instructions given to it. Conclusion The application of the rules to the case study provides that a contract was formed between Judy and Amy as the requisite elements of contract were clearly present. However, due to the presence of vitiating factor in the contract, which is misrepresentation and duress, on part of Amy, and Judy can apply for remedies in form of rescinding the contract or claiming damages. References Andrews, N 2015, Contract Law, 2nd edn, Cambridge University Press, UK. Australian Contract Law 2010, Remedies, Australian Contract Law, retrieved 31 August 2017, https://www.australiancontractlaw.com/law/remedies.html. Barnett, K Harder, S 2014, Remedies in Australian Private Law, Cambridge University Press, Victoria. Blum, BA 2007, Contracts: Examples Explanations, 4th edn, Aspen Publishers, New York. E-Law Resources 2017a, Pharmaceutical Society of Great Britain v Boots [1953] 1 QB 401 Court of Appeal, E-Law Resources, retrieved 31 August 2017, https://www.e-lawresources.co.uk/Pharmaceutical-Society-of-Great-Britain-v-Boots.php. E-Law Resources 2017b, Partridge v Crittenden (1968) 2 All ER 421, E-Law Resources, retrieved 31 August 2017, https://www.e-lawresources.co.uk/Partridge-v-Crittenden.php. E-Law Resources 2017c, Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256 Court of Appeal, E-Law Resources, retrieved 31 August 2017, https://www.e-lawresources.co.uk/Carlill-v-Carbolic-Smoke-Ball-Co.php. E-Law Resources 2017d, Harvey v Facey [1893] AC 552 Privy Council, E-Law Resources, retrieved 31 August 2017, https://www.e-lawresources.co.uk/Harvey-v-Facey.php. E-Law Resources 2017e, Felthouse v Bindley [1862] EWHC CP J35 Court of Common Pleas, E-Law Resources, retrieved 31 August 2017, https://www.e-lawresources.co.uk/Felthouse-v-Bindley.php. E-Law Resources 2017f, Addis v Gramophone [1909] AC 488 House of Lords, E-Law Resources, retrieved 31 August 2017, https://e-lawresources.co.uk/cases/Addis-v-Gramophone.php. E-Law Resources 2017g, North Ocean Shipping v Hyundai Construction (The Atlantic Baron) [1979] QB 705, E-Law Resources, retrieved 31 August 2017, https://www.e-lawresources.co.uk/North-Ocean-Shipping-v-Hyundai-Construction-(The-Atlantic-Baron).php. E-Law Resources 2017h, Misrepresentation, E-Law Resources, retrieved 31 August 2017, https://e-lawresources.co.uk/Misrepresentation.php. E-Law Resources 2017i, Smith v Land and House Property Corp (1884) 28 Ch D 7, E-Law Resources, retrieved 31 August 2017, https://www.e-lawresources.co.uk/Smith-v-Land-and-House-Property-Corp.php. E-Law Resources 2017j, Bisset v Wilkinson [1927] AC 177 Privy Council, E-Law Resources, retrieved 31 August 2017, https://www.e-lawresources.co.uk/Bisset-v-Wilkinson.php. E-Law Resources 2017k, Car Universal Credit v Caldwell [1964] 2 WLR 600, E-Law Resources, retrieved 31 August 2017, https://www.e-lawresources.co.uk/Car--and--Universal-Credit-v-Caldwell.php. Federal Register of Legislation 2011, Electronic Transactions Act 1999, Australian Government, retrieved 31 August 2017, https://www.legislation.gov.au/Details/C2011C00445. Frey, MA 2015, Essentials of Contract Law, 2nd edn, Cengage Learning, Boston, MA. Furmston, M Tolhurst, GJ 2010, Contract Formation: Law and Practice, Oxford University Press, Oxford. Helewitz, J A 2010, Basic Contract Law for Paralegals, 6th edn, Aspen Publishers, New York. Kirst-Ashman, K Hull, G 2013, Understanding Generalist Practice, 5th edn, Cengage Learning, USA. Mau, S D 2010, Contract Law in Hong Kong: An Introductory Guide, Hong Kong University Press, Hong Kong. McKendrick, E Liu, Q 2015, Contract Law: Australian Edition, Palgrave, London. McKendrick, E 2014, Contract Law: Text, Cases, and Materials, 6th edn, Oxford University Press, Oxford. Miller, R L Cross, FB 2015, The Legal Environment Today, 8th edn, Cengage Learning, Stanford, CT. Miller, RL 2016, Business Law Today, 11th edn, Cengage Learning, Boston, MA. Poole, J 2016, Textbook on Contract Law, 13th edn, Oxford University Press, Oxford. Rush, J Ottley, M 2006, Business Law, Thomson Learning, London. Spark, G 2013, Vitiation of Contracts: International Contractual Principles and English Law, Cambridge University Press, Cambridge. Stone, R 2005, The Modern Law of Contract, 6th edn, Cavendish Publishing Limited, London. Swarb 2016, Gibson v Manchester City Council: HL 8 Mar 1979, Swarb, retrieved 31 August 2017, https://swarb.co.uk/gibson-v-manchester-city-council-hl-8-mar-1979/. Swarb 2017a, Brogden v Metropolitan Railway Co: HL 1877, Swarb, retrieved 31 August 2017, https://swarb.co.uk/brogden-v-metropolitan-railway-co-hl-1877/. Swarb 2017b, Chappell and Co Ltd v Nestle Co Ltd: HL 18 Jun 1959, Swarb, retrieved 31 August 2017, https://swarb.co.uk/chappell-and-co-ltd-v-nestle-co-ltd-hl-18-jun-1959/. Electronic Transactions Act, 1999 (Cth) Addis v Gramophone [1909] AC 488 Bisset v Wilkins [1927] AC 177 Brogden v. Metropolitan Railway Company (1877) 2 App Cas 666 Car Universal Credit v Caldwell [1964] 2 WLR 600 Carlill v Carbolic Smoke Ball Company [1892] EWCA Civ 1 Chappell Co Ltd v Nestle Co Ltd [1960] AC 87 Felthouse v Bindley (1862) EWHC CP J 35 Gibson v Manchester City Council [1979] UKHL 6 Harvey v Facey [1893] AC 552 Hyde v. Wrench (1840) 3 Beav 334 North Ocean Shipping v Hyundai [1979] 3 WLR 419 Partridge v Crittenden [1968] 1 WLR 1204 Pharmaceutical Society of Great Britain v Boots [1953] 1 QB 401 Smith v Land and House Property Corp (1884) 28 Ch D 7

The effect of methamphetamines on prenatal and postnatal development

Biophysical Information: Biophysical Strengths and Hazards The case study on Kim gives a clear information on the effect of methamphetamines on prenatal and postnatal development. The case study shows that the use of Methamphetamines (Meth) by mothers during the prenatal stage may have serious physical effects during the process of giving birth.Advertising We will write a custom critical writing sample on The effect of methamphetamines on prenatal and postnatal development specifically for you for only $16.05 $11/page Learn More Although there is no clear indication that the use of Meth may affect fetus, the intracranial bleeding that Kim suffered during birth could be attributed to this. The mother used this drug during the prenatal period, and Kim’s blood even tested positive for this drug. Two of the common symptoms of usage of this drug include increased blood pressure and muscle breakdown. These two factors have adverse effects during the del ivery process. Most of the problems that Kim had been suffering from could be attributed to the intracranial bleeding she suffered during birth. It is not clear what could have caused this hemorrhage, but it is possible that the blood pressure and the breakdown of the muscles at this important stage could have resulted in this bleeding. This had forced Kim to lead an abnormal life, especially following the severe development delays. Even if it may not be conclusive to state that Meth used by the mother could be responsible for this, it is very likely that the hemorrhage had a lasting negative impact on this child. This is a clear indication that the use of Meth during prenatal care may have serious negative consequences during postnatal developments. Psychological Information: Psychological Strengths and Hazards Kim’s case presents a number of psychological information on prenatal and postnatal care, in relation to bonding and attachment issues. It is clear from the case that Kim should be taken to foster care. However, the mother has strong attachment with the child. The attachment is so strong that the mother ignores the benefits that she could get from this professional care. Child Protective Service (CPS) would help ensure that the child’s condition is not worsened by any form of neglect from the two parents who are addicted to drugs. The ability of the mother to offer care to this delicate child can be demonstrated by the way the other two children are cared for in this family. However, leaving this child entirely under the mother’s care poses some hazards. For instance, some of the effects of Meth abuse include hallucination and depression. When such symptoms come, the mother may lack the capacity to take care of the child appropriately despite the strong bonding.Advertising Looking for critical writing on social sciences? Let's see if we can help you! Get your first paper with 15% OFF Learn More Social Information: Soc ial Strengths and Hazards This case also raises some social issues regarding postnatal care for children who have delicate conditions like Kim. The case brings out the importance of having children like Kim taken to foster care, especially when the parents prove to be completely irresponsible. It is important to understand factors that practitioners should consider in making assessments for foster care placements. As Chor (2013) observes, foster care is appropriate when it is confirmed that parents are irresponsible, and the environment at home is not appropriate for postnatal care. Practitioners should consider factors such as availability of the mother and her ability to care for the child, the level of hygiene in the house and its environment, and any possibility of violence from any member of the family towards the child. At Kim’s family, the environment is generally safe, except for the possible threat that may be posed by the young brothers who may need to play with the ir younger sibling. The parents took the two boys away from the family as a way of protecting Kim from their playful activities, but they returned after three days. This is an indication that although the mother is insisting that she is committed to protecting Kim it is possible that she will forget to follow some of the procedures, and this may jeopardize the condition of this child. The inability of Kim to experience normal development could partly be attributed to the interruption in care giving. Therefore, it is important to understand some of the potential consequences of interruptions in care giving. Upon delivery, Kim experienced intracranial bleeding which could have affected delicate organs in the brain. She also tested positive for Crystal Meth at this delicate stage. This means that the child needed professional prenatal care for the normal growth. The health practitioners realized this, and assigned a nurse for this activity. This would have been done effectively if the mother had given her for foster care. The nurse was forced to trust the parents who insisted that they would stop drug abuse, and this would be confirmed by a regular urine drop test. However, both of the parents failed to pass the tests. As a result, this could have contributed to the severe developmental failure in Kim even after eleven months.Advertising We will write a custom critical writing sample on The effect of methamphetamines on prenatal and postnatal development specifically for you for only $16.05 $11/page Learn More Position Paper Form: Thoughts on Position and Literature Support This case demonstrates that prenatal care is as important as postnatal care, and any negligence at any of the stages may result in serious negative consequences for a child. Kim’s developmental problems can directly be attributed to the intracranial bleeding and premature birth the mother had. She was born prematurely, and experienced hemorrhage in the proc ess. This can be attributed to the parents’ abuse of drugs, especially the use of Meth by the mother. It is an indication that there was lack of prenatal care for the pregnancy. This is supported by the fact that the child tested positive for crystal Meth. As Anderson (1998) observes, it is important for a mother to avoid any hard drugs during prenatal care as a way of protecting fetus. Some of these drugs, Crystal Meth included, always find their way to the fetus through the placenta, and this may affect their development (Buckner, Heimberg, Ecker Vinci, 2013). This means that the parents are directly to blame for the unfortunate incident that occurred during the delivery. The parents have also failed to offer appropriate postnatal care to the child. The father went back to taking beer even after promising that he would avoid the habit. This strongly suggests that these parents have failed to follow the guidelines they were given on how to care for this child. It explains t he severe developmental problems Kim experienced at the age of eleven months. Kim has all the characteristics of failure to thrive and other relevant developmental issues of infancy. This started during premature birth, the intracranial bleeding, and poor postnatal care offered by the parents. Person in the Environment (PIE) Form Social Role It is clear from the case that nurses have social responsibility to ensure that parents act responsibly during prenatal and postnatal care. Kim’s status would have been better if the practitioners had detected crystal Meth in the mother’s blood earlier. Precautionary measures would have been taken. According to Silva and Tavares (2006), any usage of hard drug by the mother during prenatal care may affect the fetus in many ways. Environment As Ashford and LeCroy (2010) observed, the ability of infants to thrive always depends on the kind of postnatal care they are given. The kind of environment offered to an infant at this stage pla ys a pivotal role in ensuring that the child’s development is assured. Kim lacked this positive environment, and this has slowed her rate of development.Advertising Looking for critical writing on social sciences? Let's see if we can help you! Get your first paper with 15% OFF Learn More Mental Disorders Mental disorders can always result from poor prenatal and postnatal care. According to Melo, Suchman, McMahon, Zhang, Mayes, and Luthar (2006), any severe trauma on the brain during birth or at the infancy stage may affect the child’s development causing mental disorders. Kim faces a possible mental disorder, especially due to the trauma that resulted in intracranial bleeding. If she is not given specialized medical attention on time, there is a possibility that she will have to live with a permanent mental disorder that could have been avoided if an appropriate prenatal and postnatal care was offered. Physical Disorders It is possible for an infant to suffer physical disorder if the mother fails to offer an appropriate prenatal or postnatal care as needed. Abuse of crystal Meth by the mother could have resulted in failure of muscles during delivery, which could have caused physical injury on Kim’s skull. Besides the mental injury that could be caused, Kim may be forced to live with other physical disorders resulting from the damage of various parts of brain. References Anderson, V. (1998). Assessing Executive Functions in Children: Biological, Psychological, and Developmental Considerations. Neuropsychological Rehabilitation, 8(3), 319-349. Ashford, J. B., LeCroy, C. W. (2010). Human behavior in the social environment: a multidimensional perspective. Belmont: Cengage Learning. Buckner, J. D., Heimberg, R. G., Ecker, A. H., Vinci, C. (2013). A biopsychosocial model of social anxiety and substance use. Depression and Anxiety, 30(3), 276-284. Chor, K. (2013). Overview of Out-of-Home Placements and Placement Decision-Making in Child Welfare. Journal Of Public Child Welfare, 7(3), 298-328. Melo, P., Suchman, N. E., McMahon, T. J., Zhang, H., Mayes, L. C., Luthar, S. (2006). Substance-abusing mothers and disruptions in child custody: An attachment perspective. Journal Of Substance Abuse Treatment, 30(3), 197-204. Silva, M., Tavare s, M. (2006). Effects of Prenatal Exposure to Methamphetamine on the Development of the Rat Retina. Annals of the New York Academy of Sciences, 1074(1), 590-603. This critical writing on The effect of methamphetamines on prenatal and postnatal development was written and submitted by user Harmony W. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

History of Education Essays

History of Education Essays History of Education Essay History of Education Essay Education began in the earliest prehistory, as adults trained the young in the knowledge and skills deemed necessary in their society. In pre-literate societies this was achieved orally and through imitation. Story-telling passed knowledge, values, and skills from one generation to the next. As cultures began to extend their knowledge beyond skills that could be readily learned through imitation, formal education developed. Schools existed in Egypt at the time of the Middle Kingdom. Matteo Ricci (left) and Xu Guangqi (right) in the Chinese edition of Euclid’s Elements published in 1607 Plato founded the Academy in Athens, the first institution of higher learning in Europe. The city of Alexandria in Egypt, established in 330 BCE, became the successor to Athens as the intellectual cradle of Ancient Greece. There, mathematician Euclid and anatomist Herophilus constructed the great Library of Alexandria and translated the Hebrew Bible into Greek. European civilizations suffered a collapse of literacy and organization following the fall of Rome in AD 476. In China, Confucius (551-479 BCE), of the State of Lu, was the country’s most influential ancient philosopher, whose educational outlook continues to influence the societies of China and neighbors like Korea, Japan and Vietnam. Confucius gathered disciples and searched in vain for a ruler who would adopt his ideals for good governance, but his Analects were written down by followers and have continued to influence education in East Asia into the modern era. After the Fall of Rome, the Catholic Church became the sole preserver of literate scholarship in Western Europe. The church established cathedral schools in the Early Middle Ages as centers of advanced education. Some of these establishments ultimately evolved into medieval universities and forebears of many of Europe’s modern universities. During the High Middle Ages, Chartres Cathedral operated the famous and influential Chartres Cathedral School. The medieval universities of Western Christendom were well-integrated across all of Western Europe, encouraged freedom of inquiry, and produced a great variety of fine scholars and natural philosophers, including Thomas Aquinas of the University of Naples, Robert Grosseteste of the University of Oxford, an early expositor of a systematic method of scientific experimentation, and Saint Albert the Great, a pioneer of biological field research. The University of Bologne is considered the oldest continually operating university. Elsewhere during the Middle Ages, Islamic science and mathematics flourished under the Islamic caliphate which was established across the Middle East, extending from the Iberian Peninsula in the west to the Indus in the east and to the Almoravid Dynasty and Mali Empire in the south.

Organizing Your Genealogy Files

Organizing Your Genealogy Files Piles of copies of old records, printouts from genealogy websites, and letters from fellow genealogy researchers are sitting in piles on the desk, in boxes, and even on the floor. Some are even mixed in with bills and your childrens school papers. Your papers may not be completely disorganized if youre asked for something specific, you can probably find it, but it definitely isnt a filing system that you would describe as efficient. Believe it or not, the solution is as simple as finding an organizational system that suits your needs and research habits and then making it work. It might not be as simple as it sounds, but it is doable and will ultimately help to keep you from spinning your wheels and duplicating research. Which Filing System is Best Ask a group of genealogists how they organize their files, and youre likely to get as many different answers as genealogists. There are a number of popular genealogy organization systems, including binders, notebooks, files, etc., but there truly is no individual system which is best or correct. We all think and behave differently, so ultimately the most important consideration in setting up your filing system is that it must fit your personal style. The best organization system is always the one that you will use. Taming the Paper Monster As your genealogy project progresses youll find that you have numerous paper documents to file for each individual that you research birth records, census records, newspaper articles, wills, correspondence with fellow researchers, Web site printouts, etc. The trick is to develop a filing system that will enable to easily lay your fingers on any of these documents at any time. Commonly used genealogical filing systems include: By Surname:  All papers for an individual surname are filed together.By Couple or Family:  All papers related to a husband and wife or family unit are filed together.By Family Line:  All papers related to a specific family line are filed together. Many genealogists begin by starting with four such ancestral lines one for each of their grandparents.By Event:  All papers related to a specific event type (i.e. birth, marriage, census, etc.) are filed together. Beginning with any of the four systems mentioned above, you could then further organize your papers into the following categories: By Location:  Papers are first grouped by one of the four genealogy filing systems listed above, and then further broken down by country, state, county, or town to reflect your ancestors migration. For example, if you chose the Surname Method, you would first group all CRISP ancestors together, and then further break the piles down into the England CRISPs, the North Carolina CRISPs, and the Tennessee CRISPs.By Record Type:  Papers are first grouped by one of the four genealogy filing systems listed above, and then further broken down by record type (i.e. birth records, census records, wills, etc.). Binders, Folders, Notebooks, or Computer The first step to starting an organizational system is to decide on the basic physical form for your filing (piles dont count!)   file folders, notebooks, binders, or computer disks. Filing Cabinet and File Folders:  File folders, probably the most popular organizational tool for genealogists, are inexpensive, very portable, and easily hold papers of different shapes and sizes. When dropped, however, file folders can become quite a mess with papers thrown out of order, and possibly misplaced. File folders make it easy to consult documents, but you have to be diligent about making sure the paper is put back where it came from. Once youve generated a lot of paper, however, the file folder system is the most flexible and expandable.Binders:  If youre someone who really likes to keep things together in one place, then organizing your printed genealogy data into binders may be a good option for you. This method standardizes your genealogical records into a regular size paper format. Documents that you dont wish to three-hole punch, can be added in polypropylene sleeves. Binders are portable and dont require a filing cabinet, however, if you do a lot of genealogic al research you may find that binders eventually become too cumbersome on their own.​ Computer Disks, CDs, and DVDs:  Transcribing  or scanning genealogical documents into the computer can save quite a bit of space, and computerized organizational systems can greatly speed up tedious tasks such as sorting and cross-referencing. CD-ROM quality has also greatly improved, supposedly lasting indefinitely under proper storage conditions. But, will your descendants 100 or more years from now have a computer that can read them? If you choose to use your computer as your primary organizational system, consider also making and preserving copies or printouts of important documents. Once you get started organizing your genealogical clutter, youll probably find that a combination of storage methods works best. Some people, for example, use binders to organize proven family and file folders for miscellaneous research on unproven connections, neighborhood or locality research, and correspondence. It is important to keep in mind that organization is and always will be a work in progress. Organizing Your Genealogy Using File Folders To set up and use file folders to organize your genealogy records you will need the following basic supplies: A filing cabinet or file boxes with lids. The boxes need to be strong, preferably plastic, with horizontal inner ridges or grooves for letter-size hanging files.Colored, letter-size hanging file folders  in blue, green, red, and yellow. Look for ones with large tabs. You can also save a bit of money here by purchasing standard green hanging file-folders instead and using colored labels for the color-coding.Manila folders. These should have slightly smaller tabs than the hanging file folders and should have reinforced tops to last through heavy use.Pens. For best results, use a pen with an ultra fine point, felt tip, and black, permanent, acid-free ink.Highlighters. Buy highlighters in light blue, light green, yellow, and pink (dont use red because it is too dark). Colored pencils also work.Labels for file folders. These labels should have blue, green, red and yellow strips along the top and permanent adhesive on the back. Once youve assembled your supplies, its time to get started with the file folders. Use different colored file folders for the lineages of each of your four grandparents in other words, all folders created for the ancestors of one grandparent will be marked with the same color. The colors you select are up to you, but the following color choices are the most common: BLUE - ancestors of your paternal grandfather (fathers father)GREEN - ancestors of your paternal grandmother (fathers mother)RED - ancestors of your maternal grandfather (mothers father)YELLOW - ancestors of your maternal grandmother (mothers mother) Using the colors as outlined above, create a separate folder for each surname, writing names on the hanging file tab insert with the black permanent marker (or printing inserts on your printer). Then hang the files in alphabetical order in your file box or cabinet by color (i.e. put the blues alphabetically in one group, the greens in another group, etc.). If youre new to genealogy research, this may be all you need to do. If you have accumulated a lot of notes and photocopies, however, it is now time to subdivide. Here is where you need to choose how you want to organize your files. The two most popular methods as discussed on page 1 of this article are: by  Surname  (further broken down as needed by Locality and/or Record Type)by  Couple or Family Group The basic filing instructions are the same for each, the difference is primarily in how they are organized. If you arent sure yet which method will work best for you, try using the Surname method for one surname and the Family Group method for one or two families. See which one suits you best, or develop your own combination of the two. Family Group Method Create a family group sheet for each married couple listed on your pedigree chart. Then set up manila folders for each of the families by putting a colored label on the file folder tab. Match the label color to the color of the appropriate family line. On each label, write the names of the couple (using the  maiden name  for the wife) and the numbers from your  pedigree chart  (most pedigree charts use the  ahnentafel numbering system). Example: James OWENS and Mary CRISP, 4/5. Then place these manila family folders in the hanging folders for the appropriate surname and color, arranged in alphabetical order by the husbands first name or in numerical order by the numbers from your pedigree chart. In the front of each manila folder, attach the family group record of the family to serve as a table of contents. If there was more than one marriage, make a separate folder with a family group record for each other marriage. Each family folder should include all documents and notes from the time of a couples marriage. Documents which pertain to events prior to their marriage should be filed in the folders of their parents, such as birth certificates and family census records. Surname and Record Type Method First, sort your files by surname, and then create manila folders for each of the record types for which you have paperwork by putting a colored label on the file folder tab, matching the label color to the surname. On each label, write the name of the surname, followed by the record type. Example: CRISP: Census, CRISP: Land Records. Then place these manila family folders in the hanging folders for the appropriate surname and color, arranged in alphabetical order by the type of record. In the front of each manila folder, create and attach a table of contents that indexes the contents of the folder. Then add all documents and notes which correspond to the surname and type of record.

Case Study analysis (Operations Management) Essay

Case Study analysis (Operations Management) - Essay Example This paper provides answers to two questions from the Bruynzeel Keukens: Mastering Complexity case study. After reading the case study my recommendation for the company is to redesign its supply chain. The problems start with the company’s logistics. There is poor synchronization between up and downstream supply chains. Supplier lead time is twice as long as the optimal point needed to achieve efficiency. Bruynzeel Keukens has communication issues between the sales department and the inventory warehouse department. The company has problems keeping adequate inventory levels. Due to an inability to adequately estimate the demand for retail kitchen customer the enterprise keeps high inventory levels. All the problems the company faces with its supply chain is hurting the ability of the company to satisfy the customer needs. This can lead to lower customer retention rates. Companies that are unable to master their supply chain suffer from operating inefficiencies that hurt their profitability. Despite the fact the company currently holds an industry leading 23% market share the limit ations of the company’s supply chain are a risk factor that can cause the business to lose market share points. Bruynzeel Keukens must implement changes in its supply chain practices in order to become a more flexible and efficient enterprise. A simple solution that can help minimize the bottlenecks and complexities of the system is reducing the kitchen combination alternatives by 50%. The firm would still offer 20 million potential combination of product variety which is still very impressive. In reality having such a high product variety does not add any value to the business. This simple solution will reduce the firm’s inventory costs. Another solution that can help the supply chain system is adaption of just-in-time (JIT) inventory system for the retail kitchen business segment. It would take between three to six months to switch to

Skin Cancer Essay Example | Topics and Well Written Essays - 500 words - 1

Skin Cancer - Essay Example Skin cancer is a term used to defined carcinomas which rise from the skin and can invade different parts of the body. These include squamous cell cancer, melanoma and basal cell cancer. A culmination of factors have led to an increase in the prevalence of skin cancer and these include damage to the ozone layer by industrial activity and the new methods that have been created for tanning such as tan salons or even spending excessive amounts of time under the sun (Zhang et al., 1588-1593). There should be studies that are aimed towards the regulation of events that are damaging to the ozone layer and the different methods that are used to improving tanning in the community to ensure that these methods are either eliminated or minimized. Tanning has become a summer fashion and many people use tanning salons which predisposes them to many types of skin cancer. However, many studies have found that spending long hours under these lamps predisposes individuals to squamous cell cancer which is one of the deadliest forms of skin cancer. Tanning beds are machines that utilize 3% UVB and 97% UVA to artificially produce sun tans for cosmetic purposes (Dore et al., 30-37). There are many different variants of these machines and can also be in the form of high pressure beds. The cultural history of tanning is something that has changed throughout the years and in the early 1900s when the benefits of sunlight were documented, sun bathing can back into fashion and was considered an upper class activity (Dore et al., 30-37). It was further popularized by Coco Chanel 1920s after a vacation. The tanning beds entered the American community in 1979. However, the World Health Organization and other health institutions have labeled these beds a health risk and have included it among other dangerous radiation substances such as plutonium. According to

The Brutal Realities of War Expressed in Poetry Essay Example for Free

The Brutal Realities of War Expressed in Poetry Essay The poet’s confronts a very poetic perception of life and death by which he incorporated a very distinct mood in his poetry. He particularly engrosses himself to make a point of comparison between the life of those free animals and the soldiers. The speaker is English soldier, perhaps Isaac Rosenberg himself. The poetry has a touch of humor from the speaker’s observation towards the rat and the poppy in the first half of the poem. A rat in the trenches has caught the poet’s eye. He was amused with the fact that this animal is equally at home and comfortable to leap in both German and British trenches. ‘Now you have touched this English hand/ You will do the same to a German’ (Line 9-10) that says that the rat can freely pass between the English and German lines and is more likely to survive than those strong soldiers. In war, the soldiers’ life is of little value compared to the insects and animals roaming around. The speaker assumed that the rat as it passes both the German and English trenches wonders of what is happening to human beings specially of those soldiers who have ‘Strong eyes, fine limbs†¦Ã¢â‚¬â„¢ and those ‘haughty athletes,’ (Line 14). The Rear-Guard by Siegfried Sassoon The Rear Guard gives a realistic approach of the experience of being in war through a soldier’s perspective. The poem is a piece of description that concentrates towards the horror of war. It aims to give information regarding the realities of war from a soldier who descends from Hell. The poet in this masterpiece uses figurative language to convey war’s horror, complexities and confusion. In the fourth and fifth line ‘Tins, boxes, bottles, shapes to vague to know/ A mirror smashed, the mattress from a bed’, the writer provides many figurative objects to illustrate the busy and confused nature of war. The following lines illustrate the painful agony of the soldiers. The ‘Unloading hell behind him step by step’, mentioned in the last line says that on earth through war there is also hell, that even after war the ending point is still hell in eternity. Strange Meeting by Wilfred Owen The narrator of this poem is a soldier found himself in hell. Throughout the poetry, he is conversing with another soldier who distinguished himself as the narrator’s enemy, ‘I am the enemy you killed, my friend. / I knew you in this dark: for you frowned/ Yesterday through me as you jabbed and killed’ (Line 36-39). The narrator refers to the other soldier as a ‘Strange friend†¦Ã¢â‚¬â„¢ (Line 14) which means both were from opposing parties and therefore were strangers to each other. But in hell, they were able to call themselves friends by which they can freely reveal their emotions and thoughts without fear. What common theme is present in all three of these poems and what common message do the poems convey? War is often associated with the physical imagery of violence and political conflict. History itself says that the intentions of war trail into the purpose of acquiring a greater power in terms of position, territory, resources, rights and rewards. Conflict of interest in any form if it will not be settled diplomatically may result to violence and hostility. There is always a participation of military and soldiers to show and define who the stronger party is. Soldiers as land forces play an important role in providing honor and success in one political party. Soldiers with their capability, bravery, sense of commitment and the things they carry defines a group’s strength. Since there is always an involvement of armed conflict between military forces, non participant of warfare which means those who are not engage in the actual combat simply perceive war as brutal and fierce, a battle of life and death that ends either in victory or lost. When the war ends, they perceive that everything is over. However for those who experience it, there is a greater battle that not everybody understands. To truly define war, it is significant to acquire the perspective of those who are mostly affected and those who are mostly involve. The three poems apparently illustrate the brutal realities of war especially for those participants. The writers of the poems were literally participants of war or combat. They show war ugly truths which are often in contrast to the ideas of glory, courage and heroism associated with war. War is ambiguous and illogical because it forces human beings into extreme situations that give no choice in the process. Both the narrator of the â€Å"Strange Meeting† and â€Å"The Rear-Guard† poetry found themselves in Hell which suggests that war not only destroys physical life and property nor ruin the psychological aspects of those participants, but war steals one’s opportunity to possibly experience eternal life in heaven. The fact that both narrators indulge Hell in their poetry demonstrates their belief in religion. In war, there is always a distorted line about religious concept of humanity and duty. The concept of right and wrong, guilt and emotions does not matter in the middle of combat because what matters most is personal survival. The brutalities of war are not so much about the glory and victory of the political party the soldiers’ represent but it is more on personal survival. How does the text of each manifest that message and what significance does this message hold about war in general? The three poetry used powerful language and figures of speech to make a point of comparison. For example, the used of Hell as the main setting of the poem ‘Strange Meeting’ and ‘The Rear-Guard’ suggest that war is man’s product of wickedness. ‘Break of Day in the Trenches’ on the other hand used animals as a powerful imagery to illustrate that man’s life in the middle of combat is of little value compared to any other living animals or insects that enjoy freedom. War in this poetry suggests that those participants in combat have no choice but to fight for their survival. They are prison literally. The poets also used powerful language to evoke the reader’s emotions. The used of ambiguity, irony, wits and symbolism leave the poems the possibility of multiple interpretation. The emotions however are almost common which makes the poems more realistic. In these poems, it can be realized that to really know the real concept of war, one must relate and accumulate the truths from experience of those soldiers. They are the one who can completely and truly define the irrationality and irony of war. Reference: Rosenberg, Isaac (1916). Break of Day in the Trenches. Harrison and Stuart Clark (Ed. ) Peace and War (p. 102). Berlin. (Reprinted from New York, 1989, Oxford University Press) Sasoon, Siegfried (1918). The Rear Guard. Parini (Ed. ). The Wadsworth Anthology of Poetry (p. 1126). Canada. (Reprinted from Canada, 2005, Thomson Wadsworth). Owen, Wilfred (1920). Strange Meeting. Parini (Ed. ). The Wadsworth Anthology of Poetry (p. 776). Canada. (Reprinted from Canada, 2005, Thomson Wadsworth).

Working At Starbucks Essay -- Personal Narrative Job essays

I was making a grande vanilla bean frappiccino while other customers were waiting in line to have their order taken. Business was slow that day, but heck, everyday at my job was a slow one. I would think to myself, Why the hell am I still working here? when this place gets no business at all. Of course, I work at Starbucks, not the ones that you see on the corner of the streets, but I worked at the one in Target. At my Starbucks, we would have one person working each shift. We had three shifts per day, the opening shift, the midday, and the closing shift. With all my luck I got to either open the store, or close the store. I really didn’t like opening or closing, but I said to myself, money is money, and I can’t go wrong with making money. Another thing that bothered me about my job was the money. My starting salary was only $6.50 per hour, while other Starbucks salaries started at $8.00 an hour. I didn’t apply anywhere else, so I guess I was stuck with the job I had for now. It was the first Monday of the week, and I had to open with my boss Tenesha. She was my boss at Starbucks, but had the same duties as everyone else that worked at Starbucks. On Mondays, we usually had a rush of customers, rushing to get a hot cup of coffee for the road to work, or just morning moms wanting our new brew of coffee for the week. But Tenesha had inventory that week, so I was stuck making coffee all day till Andrew, another employee came in around 1 p.m. It was around 10:00 a.m., ju...

Fixed Assets

Accounting for Fixed Assets Accounting for Fixed Assets Second Edition Raymond H. Peterson John Wiley & Sons, Inc. Copyright  © 2002 by John Wiley and Sons, Inc. , New York. All rights reserved.No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 750-4744.Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc. , 605 Third Avenue, New York, NY 10158-0012, (212) 850-6011, fax (212) 850-6008, E-Mail: PERMREQ @ WILEY. COM. This publication is designed to provide accurate and authori tative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional services.If legal advice or other expert assistance is required, the services of a competent professional person should be sought. This title is also available in print as ISBN 0-471-09210-X. Some content that appears in the print version of this book may not be available in this electronic edition. For more information about Wiley products, visit our web site at www. Wiley. com To a number of people who influenced my life and prepared me for the job of creating this book: First, my mother, who not only taught me to read, but allowed me to experience the enjoyment of reading.She opened up for me the vast knowledge available in libraries. Dr. Wade Moorehouse, retired Professor of Accounting and former Chairman of the Department of Business and Economics at California State University, Hayward, who many ye ars ago, when I was an undergraduate student in his accounting course, stimulated my excitement about the accounting function. Blessed with classes of fewer than six students in a new university, we spent many class hours discussing the theory of accounting.These discussions had a large impact on my career direction. Earl Malone, a District Accounting Manager, who early in my career forced me to develop my own thoughts and not just rely on past practice. He also forced me to aquire the skill of dictation, which made the creation of this book a possibility. Dodie Peterson, world’s best secretary, who converted my ramblings into a manuscript. Contents About the Author Preface Chapter 1 What Is Accounting for Fixed Assets?Introduction Consumption of Benefits Characteristics of Assets Need to Change Chapter 2 What Is an Asset? Introduction Historical Cost Matching Principle Fixed Assets Property Plant Equipment Defining Assets Government Accounting User Fees Not-for-Profit Accoun ting xv xvii 1 1 3 4 9 11 11 12 13 14 16 17 18 20 22 24 24 vii viii Contents Chapter 3 Classifications of Asset Transactions Introduction Classification Systems Accounting Policy Decisions Coding of Transactions Property Record Coding System 7 27 28 31 33 34 39 39 39 40 44 47 48 49 49 52 52 54 54 55 55 56 57 58 58 59 59 Chapter 4 Determining Base Unit Introduction Definition of Base Unit Purpose of a Base Unit Establishing Base Units Decision Rules Difficulties in Establishment Land Buildings Equipment Criteria for Establishing Base Units Examples Spare Parts Chapter 5 Control of Property, Plant, and Equipment Introduction Asset Accountant Asset Custodian Inventories Property Record System Identification of Assets Farm Owner Applied Numbers Contents ixIdentification of Specific Asset Items to Be Tagged Bar Coded Tags Security Chapter 6 Asset Policies Manual Introduction Purpose Creating the Manual Partial Sample Manual Use of the Manual Property, Plant, and Equipment Custodianâ€⠄¢s Responsibilities Responsibilities of Asset Accountant Procedures for Purchase of Physical Assets Approval Limits Minimum Capitalization Level Items Always Charged to Expense Account Transaction Reports Data Definitions Chapter 7 Establishing Value Introduction Historical Cost Other Values Uses of Values Insurance Collateral for a Loan Purchase or Sale of a Complete Business First Creation of Property Record 0 61 64 65 67 67 67 69 69 72 72 73 75 75 75 76 76 77 83 83 84 84 85 86 86 87 87 x ContentsValuation Techniques Management Information Periodic Assessment of Value Chapter 8 Allocation of Costs to Accounting Periods Introduction Costs of Using up Assets Depreciation Estimated Life Cost Basis Allocation Methods Accelerated Depreciation Other Depreciation Concerns Tax versus Book Depreciation Balance Sheet Disclosure Not-for-Profit Organizations Chapter 9 Regulated Utilities Introduction Differences in GAAP Telecommunications Accounting Basic Property Record Telecommunications P lant in Service Chart of Accounts Railroads Property Accounts Cost of Construction Units of Property List of Units of Property Accounting for Engineering Costs 88 89 90 93 93 94 95 95 96 97 98 99 100 101 101 105 105 106 106 107 109 110 111 111 114 114 115 Contents xiCommon and Contract Motor Carriers of Passengers Carrier Operating Property Depreciation Minor Items Uniform System of Accounts—Tangible Accounts Account Definitions Chapter 10 Government Accounting Introduction Measurement Focus Fund Accounting Funding for Government Assets Accounting Standard Setting Measuring Service Efforts and Accomplishments Current Government GAAP Property Records Infrastructure Assets Measurement of Utilization Establishing Property Record Establishing Property Record Units Infrastructure Property Units Planning Accounting Policies Software Selection Off-the-Shelf Software Chapter 11 Not-for-Profit Accounting Introduction Accounting Definition of Not-for-Profit Organizations 117 117 117 11 9 119 119 123 123 124 125 126 126 127 128 128 129 130 131 131 131 132 133 134 135 135 136 xii ContentsAccounting Problems of Not-for-Profit Organizations Formal Accounting Standards Need for Change in Not-for-Profit Accounting Accounting for Property, Plant, and Equipment Creating Property Records Property Record System Documentation Chapter 12 Creation and Verification of Property Records Introduction Purpose of Property Record New Concept Requirements for a Physical Asset Database Property Record Units Coding Systems Property Record Codes for Motor Vehicles Other Codes Required Property Record ID Number Maintenance of the Property Record Database Responsibilities of Asset Manager Updating Records Recording Maintenance Costs Verification of Physical Existence Military Commander Approach Foreign Corrupt Practices Act Fully Depreciated Assets Reports from the Property Record System Chapter 13 Computer Programs Introduction Asset Database Software 138 139 140 141 143 145 147 149 149 1 50 151 152 155 155 156 156 157 158 158 159 160 161 161 163 164 165 167 167 167One-Write Systems Existing Database Programs Software Selection Off-the-Shelf Property Record Database Packages Review Copies of Software Evaluation of Software Packages Program Review Checklist for Program Review Database Fields Bibliography Index 168 169 169 170 170 171 172 175 176 179 185 xiii About the Author Raymond (Ray) H. Peterson is currently the senior partner of Ray Peterson & Associates, a consulting firm offering business assistance in establishing and changing accounting systems. He has served as the treasurer of a number of nonprofit organizations. He has over thirty years experience as a management accountant with the Bell System. He retired as Director of Financial Accounting with Pacific Bell. Mr. Peterson has managed the design of Pacific Telephone and Telegraph Companies detail property records.During the three-year breakup of the Bell System, he was appointed to a Federal Communication s Commission task force to create a new uniform system of accounts for telephone companies. The proposed system was adopted by the FCC and was installed in all telephone companies. Mr. Peterson served for 12 years on the Institute of Management Accountants Financial Accounting Standards Committee and its predecessor Subcommittee on Management Accounting Statement Promulgation. He received a BS from California State University at Hayward and an MBA from Golden Gate University in San Francisco. He also taught accounting and management information systems at Golden Gate University. xv PrefaceSince the first edition of this book in 1994, not much change has occurred to accounting standards for Property, Plant, and Equipment in business. The GAAP promulgated by the Financial Accounting, FASB, has been to further the concept of identifying the cost of an asset and spreading that cost over the accounting periods that benefit. Accounting for contributions, impairments, and financing of asse ts have been addressed by the FASB. In contrast, much has happened in the areas of Not-for-Profit and Government accounting for fixed assets. FASB ordered the capitalization of assets and charging of depreciation by Not-for-Profits. The government Accounting standards Board was created as an equal to the FASB with the authority and responsibility to promulgate GAAP for governments.They replaced the Government Finance Officers Association and its â€Å"Blue Book†, Governmental Accounting, Auditing, and Financial Reporting as the â€Å"official† accounting rules for State and Local government. An early step by the new GASB was to suspend depreciation for â€Å"government† not-for-profit accounting. There was a determination of jurisdiction between FASB and GASB which are outlined in Chapter 10, â€Å"Government Accounting† and Chapter 11, â€Å"Not-For-Profit Accounting. † Then the GASB issued concept papers that moved government accounting toward th e practices long held as appropriate for businesses. These concept papers state that assets should be placed on the books at acquisition cost and that cost spread over the accounting periods they benefit. This is a major change in accounting for these groups.Past practice was for assets to be purchased and expensed in the current period, if purchased with general revenue, or not even recorded if purchased with bonds or other special revenue sources. There was considerable argument that these changes were not appropriate for governments. Implementation of GASB statement 33 and xvii xviii Preface 34 were delayed, but are now being implemented. The accounting for governments is not the subject of this book and government accountants are referred to GASB and GFOA publications in the bibliography for the details. However, some discussion is included because it will be of interest to the business accountant that is establishing accounting policy for business and not-for-profit organizatio ns.There has been considerable argument that fixed assets of businesses should be recorded on the books at something different than depreciated original cost, that adjustments should be made to reflect the market value up as well as down, and that book asset accounting should be changed from cost allocation to reflect some measurement of value. The public review and promulgation process of the GASB provide rebuttals to all of those arguments. I urge any accountant that holds those views to research the process that GASB statements 33 and 34 followed, much of which is available on the web site at http://www. gasb. org. This book is designed for accountants and managers who want to get the most from the physical assets of their organizations. Most readers are already familiar with the oncepts and practical application of total quality management (TQM) zero defects, and the other procedures that describe a continued process of improvement. Having made the process and management changes that brought about easy improvements in quality and cost reduction they are ready to answer the following questions: How are you applying the principles of continuous improvement to the management of property, plant, and equipment? Do you have a process in place that allows you to monitor the status of maintenance (or deferred maintenance) on your property, plant, and equipment? What is the age of the oldest piece of your production equipment? Do you have a plan in place for replacement of production facilities?Are there any quality problems in your production or service delivery system caused by property, plant, and equipment failures? What is the utilization percentage of the property, plant, and equipment? Can you determine the utilization of your most expensive piece of equipment? Do you have service or production problems attributable to equipment not being available at the place needed? Are all of your property, plant, and equipment being utilized to their fullest? Preface xi x Do you have in place a process that monitors the current condition, evaluates the future need for replacement, and brings to your attention needs to modify that plan? Do you manage your physical assets or do you put them in place, use them, and replace them when they are worn out?Do your plans include having the necessary cash to purchase replacement physical assets or will you have to do an extraordinary financing or fund-raising when you are surprised by their failure? Is there a plan in place for overall management or do you simply hope your assets will continue to allow you to produce your product or provide your service? The purpose of providing this book on accounting for property, plant, and equipment, is to provide the framework for you to install in your organization accounting processes and procedures that will allow you to manage long-term physical assets. How can a book on assets help answer these questions? All accounting students learn the basics bout assets within v arious accounting courses, however, there really is not much definitive information available on fixed assets in the accounting literature. The Accounting Principles Board and the Financial Accounting Standards Board are both silent on the subject of accounting standards for fixed assets. Lacking a primary source for accounting standards, it is necessary to look to secondary sources, which also contain very little information on the handling of assets. Most accounting textbooks devote only a single chapter to capitalization of assets, and do not cover the subject in depth. Accounting periodicals have focused on valuation of assets, but offer little on specific concepts of capitalization.The issue of valuing at historical cost versus current market price has received considerable interest over the years. Now the FASB has issued statement 93 requiring not-for-profits to use historical cost less depreciation asset accounting. GASB has issued statements 33 and 34 that require that accou nting for all but a few assets. It is even more important to have this single reference to bring all these prospectives together. A number of organizations including the American Institute of Certified Public Accountants, the Institute of Management Accountants, and the Government Finance Officers Association offer courses on capitalization of assets. Most of these courses, however, cover either the tax implications of assets or the valuation question.Little in these courses describes how to establish asset policies, document them in a manual, and apply them within the company. xx Preface During 1989-1990, the National Association of Accountants (now the Institute of Management Accountants) replaced their original Statement on Management Accounting (SMA) on Fixed Assets with two statements relating to accounting for property, plant, and equipment. SMA 4J, published in 1989, described the accounting for property, plant, and equipment, and SMA 4L, published in 1990, covers control of property, plant, and equipment. A research issues publication called the Reporting, Control, and Analysis of Property, Plant, and Equipment was published in 1990.This collection of publications represents the majority of the available information on accounting for fixed assets. As a part of the IMA team coordinating those projects, I became convinced this book was needed. There is a need to emphasize that assets must be managed, not just purchased, used up, and replaced. The objective is to provide not only accounting for assets, but include that accounting in a process that will allow management to get the most out of the company’s investment. It is not always possible to create more debt in order to acquire assets. Therefore, some of our consumption must be sacrificed today in order to provide quality assets for tomorrow.In today’s complex business best quality and maximum utilization are going to give the best return on investment. Accounting for Fixed Assets contai ns more than the routine accounting processes. It also has the management framework that must surround the accounting process. The United States economy has been built since World War II as â€Å"a paper plate society. † We rapidly built our economy based on the philosophy of quick production without much concern for quality. We built automobiles that only lasted a few years, and, in fact, are still building houses in the same way that we did in the early 1950s. They require major renovation every fifteen or twenty years.Many of the houses of the early 1950s are currently the subject of redevelopment districts: they either require major repair or must be ripped out and replaced. We have built a tremendous economy and brought the majority of citizens to the highest standard of living of any culture with this â€Å"doit-quick† philosophy. It created many jobs, especially at the unskilled and semiskilled level, and brought the pleasure of accomplishment and the fruits of labor to the largest segment of U. S. citizens quickly. We have done so, however, for the sake of today and at the expense of tomorrow. But tomorrow has arrived, and we cannot continue to use up our assets. Those assets capable of bringing future benefits must be managed in a way that will allow those future benefits to occur. Preface xxiThe European and Japanese economies have grown much more slowly; jobs and the rewards that come from labors are just now reaching many segments of those cultures. However, the infrastructure base there, the assets like roads, houses, and other buildings, constructed in the 1950s is still in use and not in need of major repairs. A complete difference in philosophical approach was used in building the base for their economies. They have not sacrificed tomorrow for today, but in fact sacrificed yesterday for today—and today has arrived. Assets are those things we purchase today that will bring future benefits. But those assets must be managed to get those future benefits.To compete in a level playing field across the world, instead of in one where we make all the rules, we in the United States must evaluate our present practices. We can no longer afford to put two or three times the percentage of our gross national product into the nation’s dumps each year than competing countries do. We can no longer approach the building and operating of our businesses as we did during World War II. We learned there that we can build things quickly if they are only needed for a few years or are abandoned on the battlefield. Much of our managerial approach to business assets is alarmingly similar: build it, use it, and throw it away.To many, it is even worse than that; we buy it and don’t think about it again until it is worn out or disrupts the production line. Accounting managers must rethink their accounting processes for assets. To be value-added, accounting information must be simple and understandable, and must provide relevant, timely information to those who make decisions based on it. My goal in producing this book is not just to provide a comprehensive treatment of the details of accounting for fixed assets, but also to provide the management accountant with the processes to provide good relevant decision-making information for the officers of the company. Also, I provide the processes that are necessary to manage those assets.The book is organized to allow you to skip over the initial processes necessary to the system, and understand the principles and philosophy that are necessary in managing assets. I will also suggest a different approach to management of assets. An asset is current production that is not used up, and instead provides the means for future productivity. A hundred years ago, assets were known by business people as capital goods. Capital goods are something that must be managed for the future, not just to benefit current quarter earnings. Accounting for Fixed Assets 1 What I s Accounting for Fixed Assets? INTRODUCTION Most accounting professionals believe that all there is to be learned about asset accounting occurred in the introductory course on principles of accounting.Therefore, although this subject can become quite complex, it has not been explored in the accounting literature. In 1984 when the Federal Communications Commission (FCC) called for the rewriting of the uniform system of accounts for telephone companies, public utilities had not been following generally accepted accounting principles (GAAP) as outlined by the Financial Accounting Standards Board (FASB) and its predecessors, but instead used procedures that had been outlined in 1934 by the FCC. The team responsible for making recommendations on the rewriting of the system of accounts established a basic policy that what was to be recommended would comply with current GAAP.The subcommittee responsible for reviewing and recommending procedures for property, plant, and equipment was frustr ated by the lack of definitive information on accounting for assets. The primary sources are very limited. The Accounting Principles Board (APB) and the later FASB have been nearly silent on the subject beyond defining depreciation and historical costs. Accounting Research Bulletin (ARB) 43 was issued in 1953 to summarize all previous GAAP. It requires that depreciation be calculated 1 2 What Is Accounting for Fixed Assets? and disclosed. Most of the additional discussion on tangible assets involved explaining why depreciation is appropriately calculated using historical costs.It is true that management must take into consideration the probability that plant and machinery will have to be replaced at cost much greater than those of the facilities now in use; however, depreciation must not be calculated on the basis of this expected inflation. ARB 43 in paragraph C5 goes on to state: The cost of a reproductive facility is one of the costs of the services it renders during its useful e conomic life. Generally accepted accounting principles require that this cost be spread over the expected useful life of the facility in such a way as to allocate it as equitably as possible to the periods during which services are obtained from the use of the facility.This procedure is known as depreciation accounting, a system of accounting which aims to distribute the cost or other basic value of tangible capital assets, less salvage (if any), over the estimated useful life of the unit (which may be a group of assets) in a systematic and rational matter. It is a process of allocation, not of valuation. After formation of the Accounting Principles Board, APB 6 was issued in 1964 continuing the authority outlined in ARB 43. The Board continued to support the use of historical cost as opposed to inflation accounting: The Board is of the opinion that property, plant, and equipment should not be written up by an entity to reflect appraisal, market or current values which are above cos t to the entity. APB 12, issued in 1967, requires the disclosure of depreciable assets and depreciation.In addition to total depreciation expense and the major classes of depreciable assets, it also requires disclosure of: †¢ Depreciation expense for the period. †¢ Balances of major classes of depreciable assets by nature of function, at the balance sheet date. †¢ Accumulated depreciation, either by major classes of depreciable assets or in total, at the balance sheet date. Consumption of Benefits †¢ A general description of the method or methods used in computing depreciation with respect to major classes of depreciable assets. CONSUMPTION OF BENEFITS 3 In 1984, the FASB issued Concept Statement 5, which included additional discussion of assets. However, it was also limited in scope, as one would expect in a concept statement.The discussion emphasized the recognition assumption of assets, clearly indicating that assets are consumed by their use and the cost shou ld be recognized in the accounting periods of their life. Consumption of economic benefits during a period may be recognized either directly or by relating it to revenues recognized during the period. Some expenses such as depreciation and insurance are allocated by systematic and rational procedures to the period during which the related assets are expected to provide benefits. â€Å"Any expense or loss (in future benefits) is recognized if it becomes evident that previously recognized future economic benefits of an asset have been reduced or eliminated. Since its creation, the FASB has entertained considerable discussion about assets, but the only statements issued cover specific assets: †¢ †¢ †¢ †¢ †¢ Expensing versus capitalizing research and development The accounting for software Depreciation in not-for-profit organization financial statements Impairment of Assets Involuntary Conversions FASB Concept Statement 6, Elements of Financial Statements, has more material than any other on the accounting for long-term tangible assets. However, it addresses itself primarily to the definition, the purpose of accrual accounting, and the characteristics of an asset. In 1985, Concept Statement 6 added a definition of assets: Assets are probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events. 4 What Is Accounting for Fixed Assets?CHARACTERISTICS OF ASSETS Concept Statement 6 continues, enumerating the three essential characteristics of an asset: †¢ It embodies a probable future benefit that involves a capacity, singly or in combination with other assets, to combine directly or indirectly to future net cash in flows. †¢ A particular entity can obtain the benefit and control others’ access to it. †¢ The transaction or other event giving rise to the entity’s right to or control of the benefit has already occurred. This is the first discussion in promu lgated accounting rules discussing the definition and characteristics of an asset. The major thrust is that probable future benefit is the definition of an asset.To reflect it on the balance sheet, the entity must be able to obtain benefit from the asset and control others’ access to the asset. This statement also reviews the concept of future economic benefit and service potential as it relates to not-for-profit organizations. It states: In a not-for-profit organization, the service potential or future economic benefit is used to provide desired or needed goods or services to beneficiaries or other constituents, which may or may not directly result in net cash inflows to the organizations. Some not-for-profit organizations rely significantly on contributions or donations of cash to supplement selling prices. . . This discussion introduces the argument that depreciation of tangible assets is an appropriate expense of not-for-profit organizations. In a discussion of accrual ac counting, Concept Statement 6 discusses assets under a heading â€Å"Recognition, Matching, and Allocation. † In paragraph 145, it states: Accrual accounting uses accrual, deferral, and allocation procedures whose goal is to relate revenues, expenses, gains, and losses to periods to reflect an entity’s performance during a period instead of merely listing its cash receipts and outlays . . . the goal of accrual accounting is to account in the periods in which they occur for the effects on an entity of transactions andCharacteristics of Assets other events and circumstances, to the extent that those financial effects are recognizable and measurable. 5 There is a discussion of costs and revenues to determine profits for periods. Depreciation and assets are excluded from the matching concept. Paragraph 149 of Concept Statement 6 explains: However, many assets yield their benefit to an entity over several periods, for example, prepaid insurance, buildings, and various kinds of equipment. Expenses resulting from their use are normally allocated to the periods of the estimated useful lives (the periods over which they are expected to provide benefits) by a rational allocation procedure, for example, by recognizing depreciation or other amortization.Although the purpose of expense allocation is the same as that of other expense recognition—to reflect the using up of assets as a result of transactions or other events or circumstances affecting an entity—allocation is applied if causal relations are generally, but not specifically, identified. For example, wear and tear from use is known to be a major cause of the expense called depreciation, but the amount of depreciation caused by wear and tear in a period normally cannot be measured. This discussion appears to make the distinction between the matching principle for revenues and expenses and the allocation of the cost of using up future benefits. Although this distinction is subtle, it is t he point of basic disagreement between those who argue for inflation accounting and the depreciating of assets based on current market value and those who argue for depreciating using a lesser historical cost.Appendix B of Concept Statement 6 further discusses characteristics of assets, defining assets as â€Å"probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events. † Most of this discussion relates to intangible or nonphysical assets. The FASB, in issuing its Statement 2, Accounting for Research and Development Costs, also gives us some information on what makes up tangible physical assets. In their concern for the appropriate accounting for research and development costs, they conclude that all should be charged to expense accounts. However, they do give us their thoughts 6 What Is Accounting for Fixed Assets? bout which tangible assets should and should not be included in research and development costs. A prime consideration is that materials, equipment, and facilities that have an alternative future use (in research and development projects or otherwise) shall be capitalized as tangible assets when acquired or constructed. However, the costs of such materials, equipment, or facilities that are acquired or constructed for a particular research and development project and have no alternative future uses and therefore no separate economic values are research and development costs at the time the costs are incurred. All research and development costs encompassed by the statement are charged to expense when incurred.This reflects the concept that research and development costs will be used up during the span of the research project. Tangible assets that have a life beyond the current project, however, should be capitalized and depreciated over their useful lives. The preceding paragraphs summarize the present state of GAAP relating to property, plant, and equipment. Many subjects in acco unting have not been covered at length within the promulgated statements. Most with the significance of longterm tangible assets have been covered in more detail in secondary accounting material, but few secondary publications provide any indepth discussion on fixed assets.Research bulletins and disclosure drafts having to do with inflation accounting have not been allowed to creep into generally accepted accounting principles. Therefore, in determining the details of an accounting system for property, plant, and equipment with the FCC study in 1984 and 1985, the committee felt it necessary to use the secondary documents on assets. The documents were used to establish current practice and to form a model that telecommunications companies should use instead of the 1934 FCC regulations. The only additional definitive document discussing accounting for property, plant, and equipment was issued by the Institute of Management Accountants (IMA, formerly the National Association of Account ants) as Statement on Management Accounting (SMA) 4.SMA 4 was issued in October 1972 with the title, Fixed Asset Accounting: The Capitalization of Cost. Several concepts outlined in the twenty-four-page statement include the following: Costs through preparation for use Extraordinary repairs Base unit Characteristics of Assets Extended life or increased capacity Written policies Capitalization policy Life greater than one year Self-constructed assets that include direct overhead No initial development cost Depreciation 7 The SMA 4 discusses a number of concepts which were then, and still are, common practice. All Costs to Prepare Item for Use All costs in addition to the invoice price to make an item of property, plant, and equipment ready for use should be capitalized in its historical cost.Extraordinary Repairs Normal repairs are charged to expense when incurred; however, extraordinary repairs that extend the life, increase the capability, or increase efficiency of the item should be capitalized during its life, the historical cost increased, and depreciation recalculated from that date forward. Base Unit The base unit concept is not dealt with in any other document. It outlines the concept that property units should have a policy determination as to what constitutes the property record entity that is capitalized. The base unit might be a complete machine or the individual components of that machine. This concept is important when establishing a usable property record system for a particular company. For example, entities that use light trucks as maintenance vehicles may wear out a number of trucks during the lives of hydraulic lifts, welding equipment, and utility beds.Written Policies It is important for each company to have an asset manual with written policies. Determinations of appropriate base units and other policies unique to a company must be described and documented. Without written policies, asset accounting will not be consistent over a period of time. 8 What Is Accounting for Fixed Assets? Capitalization Policy A minimum level of capitalization should be identified. Accounting records that cost more than the items are worth are not cost effective. Life Greater than One Year Policy should emphasize that items with a life restricted to one accounting period should be expensed no matter what their cost.Self-Constructed Assets All costs of preparing assets for use should be capitalized; however, only directly attributable or traceable overhead costs should be included. General and administrative overhead costs should not be capitalized. If a company is not in the business of constructing assets, overhead costs are not likely to be increased by an individual construction project. Therefore, if those costs were capitalized, expenses in the accounting period that the asset was being constructed would be improperly reduced. Additionally, the initial development cost of making a decision on which project to construct should not be i ncluded in capitalizable costs. Subsequent costs for a specific project, once the decision has been made, are capitalized.Depreciation The idea of the relative permanence of assets that are â€Å"fixed† is questioned by SMA 4. The statement notes that periods of nonuse should be excluded from the depreciation schedule: â€Å"Until these assets can be said to have completely satisfied the purpose for which they are intended— normal or acceptable production capability—they are, for the time being, suspended accounting-wise in a sort of hiatus, not producing income, hence not triggering depreciation against which it is to be set. † SMA 4 was replaced in 1989 and 1990 by Statements 4J, Accounting for Property, Plant, and Equipment, and 4L, Control of Property, Plant, and Equipment.These two documents were prepared from a research project published by the IMA Research Committee, reporting control and analysis of property, plant, and equipment. In other documen ts the discussion of accounting for fixed or physical assets is limited to a chapter, or a few paragraphs in accounting textbooks. No lengthy document has been published that brings all the concepts of accounting for property, plant, and equipment together. Need to Change 9 There are many articles on fixed assets in accounting magazines such as Strategic Finance, published by the Institute of Management Accountants (IMA) and the Journal of Accountancy, published by the American Institute of Certified Public Accountants (AICPA). Most of these articles discuss theoretical issues of inflation accounting and depreciation.There are a number of accounting courses offered by such organizations as the IMA, AICPA, and the American Management Association, as well as by a number of accounting and appraisal firms. However, these courses are mostly directed toward the tax requirements of accounting for depreciation. Similarly, there are numerous off-the-shelf personal computer programs aimed at fixed asset accounting. Again, the primary purpose is to fulfill tax requirements and generate depreciation entries. Only a few provide for comprehensive property records. NEED TO CHANGE It has become obvious that management must change the manner in which they approach long-term tangible assets. The many production facilities built in the United States are wearing out.Government infrastructures of roads, sewers, sidewalks, and utilities are all suffering from the concept of â€Å"put it in place and forget about it. † The need is to get the most use out of these tangible assets. Much of the discussion having to do with inflation accounting for assets revolves around the problem that depreciation is not sufficient to cover the replacement costs of assets. The high cost of replacements, the dwindling supply of capital available, and high interest rates all require that new management control systems be put into place. With adequate control, management, and measurement of asset utilization, organizations can maximize the benefits from their investment in long-lived, tangible assets. 2 What Is an Asset?INTRODUCTION According to the Financial Accounting Standards Board Concepts Statement 6, assets are â€Å"probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events. † The Institute of Management Accountants’ Accounting Glossary adds a second definition as â€Å"any owned physical object (tangible) or right (intangible) having economic value to its owners; an item or source of wealth with continuing benefits for future periods, expressed, for accounting purposes, in terms of its cost, or other value, such as current replacement cost. Future periods refers to the following year or years. † (SMA 2A) In its broadest sense, an asset is anything that will probably bring future economic benefit.In looking at assets, the focus will be on longlived tangible assets, sometimes referre d to as fixed assets or property, plant, and equipment. Assets are classified into two categories: tangible and intangible. Tangible assets are assets that one can touch, hold, or feel. Typically called fixed assets in accounting literature, tangible assets are the physical things that a business uses in the production of goods and services. They constitute the production facilities, buildings, equipment, and vehicles. These operational assets of a business include furniture, computers, and similar items not used up within a year. Intangible assets are primarily financing items: stocks, bonds, mortgages, etc.These assets are outside the scope of this book. 11 12 What Is an Asset? Assets that are converted into cash during the normal production cycle are current. Current physical assets are referred to as financial assets. These are physical assets such as raw materials, work-in-progress inventories, finished goods, and goods held for resale. Physical items can be financial assets, h eld in inventory, in one business, whereas in other businesses or applications they may be fixed assets. An example of such a financial asset would be real estate held in inventory by a real estate investment and sales organization or builder, which would be a fixed asset for everyone else.Equipment manufacturers have financial assets in finished goods or inventory held for sale, as well as plant and equipment that will be sold to other businesses. The inventory is a financial asset; when sold for use in a production line it becomes a fixed asset to the purchaser. HISTORICAL COST Historically, asset accounting has not stimulated the interest of accountants and managers in the United States. Assets have been analyzed in depth in terms of alternatives and appropriateness of the investment prior to purchase. However, once acquired and put in place, assets such as buildings, furniture, production equipment, and motor vehicles are given little attention.Where management attention has bee n focused, it has been in terms of return on investment and major tax benefits, such as investment tax credits and accelerated depreciation expense allowed on tax returns. In fact, these government tax incentives to buy new equipment in order to stimulate the economy have influenced management to replace still-useful assets that have been depreciated on the tax records. But there is a new perspective emerging on the part of managers and accountants with respect to fixed assets. The high initial cost to purchase, as well as the high carrying costs of debt, require a rethinking of the management of fixed assets.Many of the same factors that are bringing about just-in-time accounting philosophies and zerodefect quality control within the manufacturing process are also influencing managers’ perspectives on asset management. Zero defects and quality circles of employees are aimed to reduce the high cost of lessthan-perfect products and reflect today’s need for greater preci sion. To accomplish this higher quality production, it is necessary to have highquality production equipment. This requires preventative maintenance to keep closer tolerances and less downtime. Equipment that Matching Principle 13 fails during a production run leads to extremely high cost when the line stops.Preventative maintenance is being regularly scheduled on either an hours-of-use or calendar basis. This approach has begun to replace the attitude of put it in, use it, if it breaks repair it; if it breaks too many times, discard it and replace it. In addition to the requirements of modern processing, a new perspective on the need to manage assets—those things that you have saved and paid for which will bring future benefits to the business— has come about as a result of the significant debt held by many businesses. The public’s attention has been caught by the high government deficit, which must be financed by acquiring increasingly more debt.Large existing debt and the threat of higher interest rates on new debt due to the lower financial ratings are causing many managers to reconsider how to manage the assets they already have. Getting the maximum future value out of existing buildings and production equipment has become a more important aspect of management. In addition to process requirements and debt concerns, the cost of disposal is also growing at an alarming rate. Replacing individual parts instead of entire machines will reduce the production of refuse. In the past, accounting records of assets have been kept primarily for the purpose of establishing balance sheet amounts. The historical cost of purchasing or constructing the physical asset is included in the accounting property record.This amount, less depreciation, provides the basis for a return on investment calculation, the division of net assets (original cost less book depreciation) by net income. MATCHING PRINCIPLE The matching principle of accounting calls for the ma tching of costs with the accounting period those costs benefit. The purpose of the historical cost record is to ensure that the costs incurred in the purchase of assets in a past accounting period will be spread over the future accounting periods that benefit. The costs recorded for each asset acquired include the purchase price and anything necessary to make it ready for production. All expenditures involved in the acquisition of an asset and getting it ready for use are capitalized as part of original cost.Included are the invoice price for the asset, transportation charges, and installation costs, including any construction or changes to the building necessary to house it. Other incidental costs are sales or use tax, duties on imported items, 14 What Is an Asset? and testing and initial setup costs. The total costs of acquiring and putting the asset into actual production use should be capitalized. The use in production at a reasonable production rate (as opposed to limited use d uring testing) is also the point where capitalization stops on the new asset and depreciation begins. The cost of an asset must be spread on a rational, systematic basis over the periods of its useful life. This limited accounting application of historical cost records has led to many incorrect decisions regarding asset management.Recognizing this limitation, however, does not mean historical costs records are not necessary. Records must be established to provide information on location, maintenance history, and future usefulness of assets. Today’s high costs of debt and the need to safeguard physical assets requires going beyond the matching principle in creating property records. FIXED ASSETS Historically, even the term that accountants use for the long-lived tangible assets of business, that is, fixed assets, expressed the opinion that once purchased it is fixed, long term, and does not require management attention. In the last few years, the more common â€Å"property, p lant, and equipment† has been used to describe the operational assets of a business.Managers have found it necessary to provide additional information about property, plant, and equipment and created records separate from the accounting property record. Additional information includes current market value for insurance and security purposes, and utilization and maintenance records. A single accounting record of tangible assets with normal accounting controls is far superior to multiple records. This integrated record with accounting controls has been made much simpler with the advent and widespread use of small computers. For example, recording maintenance expenses for large equipment items is now easy. In a motor vehicle fleet, actual maintenance costs can be recorded in the property record of each vehicle.This allows review to ensure preventative maintenance is scheduled and also to establish criteria for disposing of older motor vehicles when they are no longer economical t o maintain. It then becomes possible to evaluate motor vehicles based on their entire maintenance record, rather than retiring vehicles based on age or mileage alone. What are assets fixed in? Are they fixed in time, space, or value? It is doubtful that they are fixed at all. IMA defines fixed assets as Fixed Assets 15 â€Å"noncurrent, nonmonetary tangible assets used in normal operations of a business. † See property, plant, and equipment in SMA 2A. Past practice has been to handle fixed assets as a â€Å"sunk cost,† a past cost which cannot now be reversed and, hence, should not enter into current decisions.Differential cost is â€Å"the cost that is expected to be different if one course of action is adopted as compared with the costs of an alternative course of action; used in decision making. Contrast with sunk costs. † (SMA 2A) If it is a fixed cost, then it is also a sunk cost. Is it really an asset if you cannot sell it? If you cannot move it, modify it , or maintain it? Those are alternative actions; therefore, historical cost of property, plant, and equipment are differential costs, not sunk costs. The term â€Å"fixed† cost implies a sunk cost. This management treatment of fixed costs as sunk costs may encourage hostile takeovers using junk bonds.If the current management and stockholders ignore the alternative uses of their long-term tangible assets, an outsider may see a much greater short-term value. In a case like this the current managers and owners are treating the fixed assets as a sunk cost instead of a differential cost. Few assets are fixed in any way. Most are mobile, and will disappear if not accounted for or deteriorate if not maintained. Many increase in value just because of inflation. If they do not increase in value, their replacement cost certainly increases. Typically, insurance policies require that coverage be at least 80 percent of replacement cost or recovery is limited to market value prior to the loss.Even the government is learning that their fixed asset theory for infrastructure assets needs amendment. Roads, bridges, sewer plants, and buildings seem to be in need of replacement at the same time, because they were put in place and ignored. No plan was prepared to manage them, to determine the best maintenance practice. Now they are not assets, but sources of liability. While government has a limited liability from suits due to personal injury resulting from improper maintenance of roads, etc. , businesses do not enjoy this limitation. If an employee or customer is injured by one of your bridges, roads, or other holdings, you are responsible for the costs.Is that driveway or parking lot really a fixed asset? Or one to be managed so it will not become a liability? It is difficult to imagine something that should be called a fixed asset. Assets are not fixed in any way—not in place, time, or future income 16 What Is an Asset? or expense. The exception might be a work o f art or historical treasure; however, even these items, if not protected, will deteriorate. In defining assets, therefore, we shall use the terms property, plant, and equipment and avoid future use of the term fixed assets, which is in reality an obsolete term for property, plant, and equipment. PROPERTY Property includes lands and improvements thereon.Land is not depreciated and its cost lasts in our theoretical business model forever. The cost of land includes its acquisition cost—costs of appraising, recording, and obtaining title. It also includes the initial costs of making changes to it so that it can be used for the purpose intended. This cost includes removing old buildings, leveling, and perhaps cleaning up any toxic residue. When land is acquired together with buildings, the cost will be apportioned between the land and the buildings in proportion to their appraised value. If the acquisition plan contemplates the removal of the buildings, then the total cost includ ing removal is accounted for as cost of land. Any salvage value of the emoved buildings, when disposed of, is deducted from the cost of the land. Toxic residue cleanup provides a particular problem in accounting for land. If the extent of the toxic cleanup costs are known prior to purchase, it is assumed that the purchase price has been reduced accordingly. Then it is correct to include those cleanup costs in the cost of the land. However, where land is owned and toxic residues from past practice are discovered, the cleanup of these items provides no future value. Cleaning up these toxic wastes is similar to washing a rental car or limousine. You may not be able to generate any rental revenue without a clean and polished automobile, but it does not provide future value beyond that.Cleaning up toxic wastes makes the property usable; however, it does not provide future benefit: It can only restore the usefulness of the property to its level of use prior to recognizing the toxic proble m. Improvements that theoretically have an indefinite life are also added to the cost of land. Grading, drainage, sewers, and utilities are examples. These items are put in once and unless damaged by force or disrupted by plans for new uses of the land, they do not require maintenance. Therefore, their life is assumed to be that of land forever in the accepted business model. The proper treatment of property costs is an area that must be spelled out in the accounting manual for the firm so that all similar Plant 17 transactions are handled in the same way.The manual should translate these principles into specific accounting practices for the firm. For example, electric and gas utility installation to the meter or distribution point are usually a part of the land cost. Beyond this, location utilities and part of the individual building investment are to be included in the plant category. The acquisition of property may bring about other expenditures which should be added to its histo rical cost. Some of these are as follows: Contract price Real estate broker commissions Legal fees involved in the transaction Cost of title guaranty insurance policies Cost of real estate surveys Cost of an option that has been exercised Special government assessments Fees harged by government for changes in land use or zoning Cost of removing buildings Cost of cancellation of unexpired lease Cost to move tenant if payable by purchaser Payment of past due taxes if payable by purchaser Cost of easements or rights of way Assessments for the construction of public improvements Deduction of salvage value from buildings removed and sold Toxic waste cleanup Grading land and providing drainage Placing utilities PLANT The term plant has its origin in manufacturing, where the plant is literally used to house the production equipment. This includes buildings and other structures or improvements that have a limited life. Paved parking lots and sprinkler systems, as well as recreational and la ndscaping improvements, are included.Also included in plant are fences, roads, and grading and excavation costs necessary to construction of the buildings. The distinction between property (land) and plant is the 18 What Is an Asset? duration of usefulness. Improvements to the property that will have a measurable or estimated life should be depreciated over that life. Therefore, they are charged to the plant account. If they are of indefinite life, they are treated as property. All expenditures directly related to the purchase or construction of buildings or other physical plant are included in plant cost. Land includes the cost of preparation of a construction site. All costs for a specific construction are included in the cost of the product.Some of the other expenditures that should be added to the capitalized cost of the asset acquired are as follows: Contract price or cost of construction Cost of grading and excavation for the specific building Expenses incurred in removing tre es and other foliage for the specific building Costs of remodeling or altering a purchased building to make it ready for use Costs for architect’s fees, plans, and other planning events Cost of government fees and building permits Payment of prior year taxes accrued on the building if payable by purchaser Other costs such as security or temporary fencing, temporary buildings used during construction, or other costs directly attributable to the construction or purchase of the specific building Capitalized interest EQUIPMENT Equipment includes the machinery, computers, office equipment, and all other long-lived items necessary for the operation of the business.These items require more managerial control because of their portability and general usefulness for other than the purpose intended when acquired. They range in price from a minimum capitalization level to many millions of dollars for complex production machinery. Because of the wide variety of requirements for different items of equipment, we shall discuss them in several categories, including: Tools Building systems (heating, cooling, elevators) Equipment Irrigation equipment Furniture and office equipment Computers Printing presses Automobiles Tractors Trucks Trailers Aircraft Livestock Furniture and Office Equipment 19 Furniture and office fixtures are long-lived assets needed to run a business.In the service industries, except for buildings, these will be the major tangible assets of the business. The establishment of a reasonable minimum capitalization level has to be weighed against the other factors of managing this class of equipment. Office desks and chairs that are personally used by one manager will receive the attention necessary to safeguard and ensure proper maintenance as required. Many companies establish a $5,000 minimum capitalization level for these items. However, telephone equipment purchased may become obsolete or require significant maintenance after a short period of time. A lso, office copiers, fax machines, and computers have a need for greater management and future planning.It is important that these items not all have a requirement for replacement in the same future year. Inclusion in the property record, which subjects such items to the controls provided in that system, may in fact reduce the dollar value at which it is desirable to maintain capitalization. These items should be included in a detailed policy and outlined in the handbook on asset capitalization or its chapter in the accounting policy manual of the business. When the decision is made to capitalize a particular item of equipment, all costs involved in putting it into a condition ready for use should be included in the asset value. Some of the costs that may be incurred are: Contract price Commissions paid 20 What Is an Asset?Legal fees and other contract costs Cost of title guaranty insurance policies Cost of transferring title Freight, handling, and storage costs Sales or use tax and other taxes or fees assessed Costs of preparation of the space for installation (foundations, special walls, removal of windows) Use of cranes or other means of installation Installation charges Cost of testing and preparation for use Costs of reconditioning used equipment purchased DEFINING ASSETS Assets are not always easily defined. For example, a Berkeley, California, producer of â€Å"baby† vegetables for New York City upscale restaurants could not function without the regular and dependable inexpensive air shuttle of the crop each morning.The New York restaurants pay a premium for the product, but it must be picked that morning and delivered to New York City by noon for serving in restaurants that evening. Is the transportation link from San Francisco airport to New York an asset of this Berkeley producer? From an accounting sense, it is not; however, it continues to deliver future benefits to the company. Without that transportation link being available, there would b e no business; but it would be impossible to establish any value to that transportation link without a sale. If the business were to be sold, it is likely to command as an operating business more than the value of its individual components. This additional value will be included on the purchaser’s balance sheet as goodwill.Much of that goodwill can be a result of an existing working transportation system from the producer’s garden to the upscale restaurants. Goodwill is an intangible asset. Accounting recognizes it only because there has been an actual payment for it. It must be recognized somehow as its usefulness is used up over future periods. The asset exists whether it is recognized in the book of accounts as goodwill or not. However, this emphasizes the accounting concept of recognizing asset value in accounting systems for the purpose of measuring the decrease in its future usefulness in relationship to its original cost. In this Defining Assets 21 case, it is n ot a problem in defining the asset, but in establishing the asset’s value. There are other difficulties in defining an asset.In industries where investment in property, plant, and equipment is low in comparison to return on products, there has been no need to closely manage the investment in assets. Examples are restaurants where investment is limited to leasehold improvements. The concern of restaurant managers is keeping their lease and labor costs down. The investment in fixed assets required to run a substantial restaurant is small in comparison to its gross sales. The investment in leasehold improvements for a restaurant many times are sunk costs. They have value only to the end of the lease. It may also be desirable for marketing purposes to substantially alter them prior to the end of their useful life.Here the value is easily established based on what they cost to install. However, they might not be providing future benefits and therefore require replacement before th eir costs have been recognized. A different management problem exists when investment in capital items is large relative to the cost of production or when there are few other opportunities to use the assets for different purposes. Examples are oil refineries and pharmaceutical laboratories. Once the refinery or drug production facilities are constructed, they are not readily usable for any other purpose. There is also little opportunity to make decisions relative to alternative use of these assets.A grocery store location could be altered to become a restaurant or a hardware store, but an oil refinery would cost more to dismantle than it originally cost to construct. These cases raise the question of the value of alternative uses. The accounting principle of recognizing decline in service value through depreciation takes this into account in the concept of salvage value. Salvage value is the value which the asset has at the end of its useful life. The oil refinery would have a nega