The Graduate Labour Market in Sydney Essay Example for Free

The Graduate Labour Market in Sydney Essay 1. Introduction to Professional Competences – BKEY401 One of the key modules of level four was Professional Competences (BKEY401) which took place over two semesters. The aim of the module was to help identify and analyse professional and personal skills. Also, a further purpose was to use those skills and to develop them to enhance our career prospects. The next paragraphs show an insight of the different skills we have focused on during the module and how it was useful to the individual. The key skills we have concentrated on were communication, team working and presentation and research skills. 2.1. Communication Skills According to the Dearing Report (1997) employers are seeking following ‘key skills’ in graduates: * Communication; * Numeracy; * The use of information technology; * Learning to learn. The Compact Oxford English Dictionary for Students (2006) defines the word ‘skill’ as ‘the ability to do something well’. To be successful in the job you have to be able to combine knowledge with skills. During the module Professional Competences (BKEY401) students got prepared to identify their skills by using a Skills Tracker. This method allowed students to rate their competences in certain areas and to evaluate the need as to where improvement is needed. Communication is one of the ‘key skills’ and therefore has been an important element during the module Professional Competences. Already 40 years ago studies have shown the massive impact of communication (Mintzberg 1973). It has found that managers are spending up to 80 per cent of their time in communicating in one way or another. Based on a research study by Ofcom (2010) consumers are spending 45 per cent of their waking hours with various of communication devices. To improve communication skills numerous techniques, such as role plays can be used. Good communication skills are leading to lots of personal benefits as it helps to build confidence. During last year’s module we have practiced and developed our communication skills by debating or self-reflecting on our communication skills. The self-reflection was very useful to determine in which areas improvement is needed. I had used a SWOT analysis to reflect on my own communication skills. Looking at last year’s Skills Tracker I have rated myself overall with 6.25 points out of 10 points for my communication skills. As English is not my first language my biggest weakness was to speak out loud during classes as I was afraid to make any mistakes. I certainly have improved in this area by preparing myself for classes in advance and by doing further reading within a subject. Receiving feedback from our seminar leader on our reflection on the debate and our skills during the debate was very useful. It helped to ascertain which arguments have been powerful and which ones  should have been researched better. Also, the importance of supporting arguments with statistics and facts has been emphasized. 2.2. Team Work Skills Another focus was put on team working skills. According to Stevens and Campion (1994, 1999) there are five key areas required for team skills at work: * Collaborative problem solving, * Communication – listening effectively, * Conflict resolution, * Goal setting and performance management and * Planning and task coordination. During the module we have been put into teams but were also able to select our own teams. The aim was to prepare us for the future as in any job it is important to work well within a team. Also, it gave us the possibility to share ideas and have access to a wider range of knowledge. Furthermore it helped us to learn how to deal with a conflict that may have occurred and together agree on a strategy on how to proceed. Being part of a team has definitely helped me to develop and strengthen my ability to listen to what other team members had to say, also to be diplomatic if I did not agree with another opinion. I was able to use my own communication skills to make my own voice heard. Working at team projects was a good starting point to prepare us for future working environments. Yet, more guidance on how to deal with conflicts or difficult situations would have been helpful. 2.3. Presentation and Research Skills In the course of BKEY401 focus was also put on developing presentation and research skills. Our task was to compare and analyse four UK supermarket chains by using secondary data. To complement the analyses we had to convert the collected data into Excel graphs and import those into a PowerPoint presentation. Exploring different research sources and methods were a good  starting point for this year’s module Business Research and Professional Practice (BKEY501) which builds up to BEKY401. However, it would have been more beneficial to learn more about the advanced use of Excel as the exercises we had to complete were very basic. Receiving feedback after the task has been positive as it showed you where an improvement was needed. Nevertheless, it would have been helpful to receive more assistance in interpreting the collected data before having to present it. 2. Research into the graduate labour market This section will focus on the research into the graduate labour market especially concentrating on the labour market in Sydney, Australia. Furthermore the regulations in regards to migration to Australia are listed. Additionally the current job market has been investigated. 3.4. The chosen sector My plans for after graduating from University of Westminster are pretty clear and I had already decided them at the time of the application process for university. The sector I would like to enter after finishing my BA Business Management with Human Resource Management bachelor degree will be a combination of HRM and tourism and hospitality. In 2004 I have gained a diploma in Tourism and Management at the College of Tourism and Management in Semmering, Austria. During and after my time at the College I have worked in several hospitality industries and were able to gain lots of knowledge in this field. Unfortunately, the experience has not always been positive, especially when it came to managing staff. The lack of functioning HR departments within the hospitality industry has inspired me to choose the pathway â€Å"Human Resource Management† at University of Westminster. 3.5. Australia’s labour market This report aims to analyse the graduate labour market of Australia, with the  main focus on the labour market in Sydney. Based on the outcome of the Australian Graduate Survey (AGS) (2010) which is released annually by the Graduate Careers Australia (GCA) it shows that after four months of completing a bachelor degree 91.3 per cent are employed either in a full time or part time position. Comparing it with the outcome of the AGS (2009) it is a slight decrease of 1.3 per cent. However it is expected that the graduate labour market will start increasing again over the next few years. Australia’s graduate labour market is more stable compared to the UK graduate labour market. According to a survey from the UK Graduate Careers (2010) due to the high number of graduates only 36 per cent of undergraduates can be expected to find a job after leaving University. This number hasn’t been that low since 1995. Enclosed is a table to give a wider insight into the bachelor graduates market for business studies in Australia. The data has been collected by the GCA (2010) and shows that 75.1 per cent of bachelor graduates who were available for full time employment are working in a full time job. Due to missing sex data percentages of males and females might not add up exactly to 100 per cent. The median salary for a business bachelor graduate is 46 000 AUD (Australian Dollar) which is about 29 200 GBP (Great Britain Pound). Table 1: Grad, Jobs and Dollars Source: Graduate Careers Australia (2010) According to the Australian Labour Market Update (2010) there is a trend in employment increase by 2.9 per cent and this trend has been positive since 2009. Also, the Australian Labour Market Update (ALMU) states that employment will continue to grow in the periods ahead. This statistics are also supported by the Australian Bureau of Statistics (ABS) which can be seen in Figure 1 that shows the full time and total employment trend from August 2001 to August 2011. Figure 1: Full time and total employment Source: Labour Force Survey, ABS (2011) Looking at Figure 1 it can clearly be seen that there has been a positive trend in the full time and employment market within the last 10 years. A brief decrease can be seen in the years between 2008 and 2009 during the recession but the market has recovered since then and is continually growing. 3.6. Sydney’s labour market – tourism and hospitality Chosen Australia and especially Sydney being the market I would like to enter these are a very reassuring. Looking at the long term this supports my decision to seek a job in Australia after graduating. Also, taking a closer look at the tourism sector it can be seen that over 220 million people worldwide or 7.6 per cent of the total global workforce is employed within that sector (World Travel and Tourism Council [WTTC], 2009). Regarding Inner Sydney which is the commercial and political heart of Sydney but also the home of one of the best hospitality sectors in the country, it shows that this industry contribute a noteworthy part to Sydney’s economy given the data by Australian Bureau of Statistics. ABS (2011) also states that the hospitality sector counts to the five top industries in Sydney. Based on a study by ABS (2006) it shows that human resource professionals count to the 20 top occupations within Inner Sydney. As I am focusing on a specific sector within the human resource profession I rate my chances to get a job as high as it is still a niche market. Research on various recruiting websites has shown that there is a high demand within the hospitality industry and especially in HRM. As almost in all job announces a membership at the Chartered Institute of Personnel and Development (CIPD) is required I have done some further reading into it. According to their brochure a professional membership of the CIPD can help to * Open doors to new career opportunities, * Raise your profile, * Increase your earning potential, * Connect with the very best in the profession and * Access and influence the latest thinking on the future of HR. Even though CIPD is Europe’s largest HR and development professional body it is an internationally recognised brand. Therefore it is committed to develop HR globally by driving HR capability within organisations. Global companies such as Qantas Airlines are offering graduate programmes. Qantas human resources graduate programme is specially designed for graduates with a HR-related degree and takes place over two years. It allows the participant to get a broad exposure to the business and most of the graduate roles are located in Sydney. Areas that would be covered during the training are * Generalist HR * Project Management * Corporate HR Applications for the 2013 graduate programme will be open early 2012 and I have already registered my interest in the programme for their HR department. After completing the two year training staying with the company for a couple of years is compulsory. By doing well during the programme a managerial position is secure and a lucrative salary and benefit packages is included. Getting into this graduate programme would be a great opportunity for me and would also secure a long term contract with the company. 3.7. Migration and the labour market To be able to work in Australia a working visa will be required. There are a few options available to get a working visa. The easiest way would be on a â€Å"Business People† visa and to work for an international company which has a branch based e.g. in Sydney which is my chosen city. This would allow me to work there for a limited period of time. A second option would be to apply for an â€Å"Employer Sponsored Workers† which means, according to the Department of Immigration and Citizenship; applicants must be sponsored by their employer and will be able to either receive a temporary or permanent working visa. The third way would be to apply for The General Skilled Migration Program (GSM) which can be done by professionals and other skilled migrants. People can only apply for it if their skills are particular required in Australia  and who are not sponsored by an employer. Based on statistics published by the Australian Labour Market Update (2010) 33.9 per cent of the working visas granted by the state and territory governments were for the permanent GSM working visa. Taking the last two recent years into account this has been an increase of more than 34 per cent for visas sponsored by the state and territory governments. Furthermore my research has shown that human resource managers are part of the Skilled Occupation List (SOL) 2011 – Schedule 2 and the Australian Institute of Management (AIM) will be the assessing authority for the visa application. 3.8. Skills needed to enter Australia’s labour market The Department of Education, Employment and Workplace Relations (DEEWR) is in charge to analyse the skills and education needed in regards to the labour market issues, including their relationship with migration policy settings. Recent studies conducted by the National Resources Sector Employment Taskforce’s Resourcing the Future: Report 6, have shown that Australia is selecting highly skilled migrants to fill vacant positions for medium and long term needs. Based on the information given on their website professionals holding a degree in human resource management are part of the people taking in consideration for recruitment. Given my double-education, by already holding a degree in Tourism and Management and graduating from the University of Westminster in 2013 with a bachelor degree in Business Management and Human Resource Management it shows that I have excellent chances to enter the market. Being fluent in two languages (German and English) and also having basic knowledge in French and Spanish are prosperous aspects for getting a job. My position as supervisor at my current job at The Medical Chambers Kensington (TMCK) and being in charge of a five man reception team is of great avail. Within the last two years of working for TMCK I was assisting in recruiting new staff and in charge of the training programme. 3.9. Level of education within the hospitality industry According to a survey which has been conducted by Griffith Business School in Australia the hospitality industry is ranked as well qualified, with over 64 per cent of operational staff holding some form of post-secondary education level qualification. Research on LinkedIn on people who are working in the positions I am interested in was very helpful. It has shown that it is important to have not only a good education but also having work experience. During an interview for the Sunday Times with the HR Manager Joanne Wright at The Cavendish Hotel, she stated that internships are very important. In her view student placements help to fill real job vacancies as the student gets a chance to apply subject knowledge and skills in a real working environment. Furthermore it helps for the personal development and allows exploring different career paths and helps to build confidence. Joanne Wright also made clear that nowadays work experience is valued more and more and cannot be replaced with any theoretical knowledge. A personal recommendation to me would be to sign up for a course in Australian Employment Law as it will be necessary to have complete understanding in this subject in order to work there. Also, within the field of human resources on-going trainings are compulsory to keep up with the constant changes within this industry. 3.10. Analysis of Feedback Receiving feedback from my group members during the seminar sessions for Business Research and Professional Practice (BKEY501) has helped me to get a wider understanding of the labour market. It has shown me that I had to include more statistics to support my arguments. Also, the information I had found in the first place were not detailed enough and it was clear that more sources were needed. Constructive Feedback should always be seen as something positive as it helps to improve and to do better the next time.  Giving feedback to the other has been very helpful to get a wider understanding of the task. Caution has to be paid when giving feedback as it should never be meant personally. It is important to only criticise the information provided and not the informer. 3. Conclusion Overall the University of Westminster is doing an excellent job in preparing us for the real world. During the module Professional Competences we have been made aware of the importance of skills and to make sure to continually develop those. Feedback we have received throughout the module helped us to identify our weaknesses and turn those into strengths. The graduate labour market is very competitive but it shows that the economy in Australia is very stable. Also, analyses have shown that the employment market in Sydney is increasing at the moment and that the positive trend will not be stopping any time soon. Even though working visa regulations seem very strict for Australia researches into requirements for the highly skilled visa have shown that with my education so far it should be no problem to enter the job market over there. One of the arrangements I have to do though is to complete a course within Australian Employment Law before applying for the visa. Research has also shown that there is an increase in visas granted for GSM by the state and territory governments. The importance of work experience has clearly been stated in the report. In addition I have to bear in mind to constantly push myself and developing myself to be able to work in the top of my field. 4. List of References AG (2010), RESOURCING THE FUTURE National Resources Sector Employment Taskforce, Report 6, DEEWR, Canberra. AG. (2011). Visas, Immigration and Refugees. Available: http://www.immi.gov.au/skilled/. [Accessed 9 November 2011]. Australian Bureau of Statistics (2010c), Labour force, Australia, detailed, quarterly, May 2010, cat. no. 6291.0.55.003. ABS, Canberra. Australian Bureau of Statistics. (2009). Australian and New Zealand Standard Classification of Occupations, 1st Edition, Revision 1, Cat. No. 1220.0 ANZSCO. Australian Government Printing Office, Canberra. Australian Bureau of Statistics. (2011). Australian Labour Market Statistics, October Quarter, Cat. No. 6105.0. Australian Government Printing Office, Canberra. CIPD (2011). Experience Assessment: A new route to professional membership. Brighton: Mosaic. Compact Oxford English Dictionary for Students (2006) Oxford: Oxford University Press. Dearing, R. (1997) The Dearing Report (series of reports by The National Committee of Inquirq into Higher Education. Available at http://www.leeds.ac.uk/educol/ncihe/docsinde.htm. [Accessed 5 November 2011]. Department of Education, Employment and Workplace Relations (2010d), Workforce characteristics, Skills Info, DEEWR, Canberra. Gilleard, C. (2006) Graduate careers: Bridging the gap between graduates and employers. Independent [online], 13 October. Available at http://education.independent.co.uk/magazines/article1869024.ece [Accessed 7 November 2011]. Graduate Careers Australia (2010), GradStats: Employment and Salary Outcomes of Recent Higher Education Graduates, 15,.2-9, GCA, Canberra. International Labour Organization. 2001.Human Resources Development, Employment and Globalisation in the Hotel. Catering and Tourism Sector, ILO, Geneva, 2001. Mintzberg, H. (1973) The Nature of Managerial Work. New York: Harper Row. Ofcom. (2010).The Communications Market August 2010. Available: http://stakeholders.ofcom.org.uk/market-data-research/market-data/communications-market-reports/cmr10/. [Accessed 9 November 2011]. Paskin, B. (2011). The Cavendish Hotel named as best small hotel employer. Available: http://www.bighospitality.co.uk/Events-Awards/Sunday-Times-names-The-Cavendish-Hotel-as-best-small-hotel-employer. [Accessed 8 November 2011]. Qantas. (2011).Human Resources. Available: http://www.careers.qantas.com.au/Graduates/Human-Resources.aspx. [Accessed 7 November 2011]. Stevens, M. J. and Campion, M. A. (1994) The knowledge, skill, and ability requirements for teamwork: Implications for human resource management, Journal of Management, 20, 2: 503-30. Stevens, M. J. and Campion, M. A. (1999) Staffing work teams: Development and validation of a selection test for teamwork settings, Journal of Management, 25, 2: 207-28. Taylor J (2005) Recruiting University graduates for the public sector: An Australian case study. International Journal of Public Sector Management 18(6): 514–533. UKCGE. (2010). The UK Graduate Careers Survey 2010. Available: http://www.ukcge.ac.uk/news/archive/April+-+June+2010/Careers+Survey. [Accessed 7 November 2011]. World Travel and Tourism Council (2009). Travel and tourism economic impact. London, England: World Travel and Tourism Council.

Angela’s Ashes by Frank McCourt :: English Literature

Book Review Angela’s Ashes by Frank McCourt I read the book Angela's Ashes and I was truly amazed that it was true. I love reading about the old days and this is a book about Frank McCourt (the author) misfortunes during his childhood in Limerick, Ireland. It is sad at times and you can’t think "this is only a book" but still the best read in a long time. Angela's Ashes is written from the perspective of Angela's first-born son, Francis McCourt, the author of the novel. Angela and her husband, Malachy, are both born and raised in Ireland and emmigrate to America where they meet and marry. Angela gives birth to four sons, Francis, Malachy Jr. and twins, Eugene and Oliver. Angela also has a daughter, Margaret. The McCourts return to Ireland with their children after the grief they are struck by when young Margaret dies from malnutrition and tuberculosis. When in Limerick, the McCourts are welcomed by neither family nor the neighbours. Angela's insensitive mother tosses them out on the streets declaring she has no room for them in her house. They were forced to find a poor shack where fleas feasted on their skin while sleeping at night. Being from the despised Northern Ireland, Malachy finds it hard to find a job and when he does he drinks away his wages leaving the family destitute. After finally settling into the neighbourhood in Ireland, Angela loses Oliver and Eugene to tuberculosis and the fever. Unable to cope, Angela forces Malachy Jr. and Francis to spend much of their time outdoors while she rests. Angela has two more boys, Michael and Alfie. Malachy is unable to support his family and Angela is often left to beg from charities in order to keep her family alive. Francis is neglected by his parents and many of the Irish people. As he grows older he deepens his understanding of sex and involves himself in sexual acts, which he later regrets. His religion makes him feel extremely guilty for these "dirty" acts. He begins to take on many more responsibilities such as living with his uncle away from his family and finding work in order to support himself. This novel grabs a hold of you and pulls you into the story, forcing you to feel what it's like to live in the slums. Although McCourt lived a very rough life he managed to pull out a few humorous scenes in his story.

First Motor Case

Global Perspectives on Accounting Education Volume 5, 2008, 17-25 FIRST MOTORS CORPORATION: A CLASSROOM CASE ON IMPAIRMENTS Tim Krumwiede College of Business Bryant University Smithfield, Rhode Island USA Emily Giannini Graduate Student, College of Business Bryant University Smithfield, Rhode Island USA ABSTRACT This case requires a detailed analysis of impairments of both long-lived assets and goodwill for First Motors Corporation, a fictitious automobile company. By integrating multiple issues into this case, students are presented with some of the complexities and interrelationships that are seen in practice.To properly prepare solutions to this case, students must successfully read, interpret, and apply both accounting standards and concept statements. The use of judgment in choosing a discount rate for present value computations is an important component of this case. In fact, an earnings management issue and resulting conflict between First Motors Management and the companyâ₠¬â„¢s auditor revolves around the discount rate choice. Additionally, the suggested questions provided with the case require that students address components of the conceptual framework in the context of the impairment standards.This case can be used in upper division financial reporting classes at either the undergraduate or graduate level. Key words: Impairment, goodwill, long-lived assets, discount rate BACKGROUND t is currently 2013 and you are a member of the engagement team assigned to audit First Motors Corporation for the year ending 12/31/2012. First Motors Corporation is a car manufacturing company focused on moving from the production of gasoline-based cars to the production of cars I 17 18 Krumwiede and Giannini based on alternative fuel sources.It was one of the first car companies to successfully produce hybrid-based vehicles in the United States. First Motors has successfully maintained car sales and retained valuable employees while creating modern, efficient cars. B y 2008, First Motors was manufacturing two vehicles, both of which are still being manufactured today. One model is a hybrid-powered vehicle that can be customized in style and features for any purchaser around the globe. This model, called the Passaic, is manufactured in Detroit, Michigan, close to the company’s corporate headquarters.First Motors also manufactures a gasoline-powered model, the Mendoza, at its plant in Lorain, Ohio. In 2008, to take advantage of its alternative fuel source expertise, First Motors purchased a large competitor, Macinaw Motors Corporation, which had made significant progress with hydrogen-powered cars. As the United States is moving toward alternative energy sources, hydrogen is increasingly being used as a fuel source to replace gasoline. To achieve such progress, several processes can be used to make hydrogen. According to the National Hydrogen Association (2006), hydrogen can be made from water, biomass, coal, and natural gas.Much of the hyd rogen produced today comes from steam reforming natural gas. Alternatively, an electrolyzer can be used to separate water into its components, oxygen and hydrogen. The hydrogen can then be cooled down to form liquid hydrogen which can be stored at hydrogen fuel stations. Macinaw Motors had experimented with several hydrogen technologies but eventually settled on the use of liquid hydrogen in an internal combustion engine as the most effective way to make substantial progress with hydrogen as an alternative fuel.Due to Macinaw Motors’ valuable research and development program, operating efficiencies, and exceptional reputation, part of the purchase price was allocated to goodwill. The amount recorded as goodwill was $1. 3 billion, or the difference between the $5 billion purchase price (fair value) of Macinaw Motors as a whole and the $3. 7 billion fair value of its identifiable net assets. When First Motors purchased Macinaw Motors, the combined company retained the name Firs t Motors Corporation.Although First Motors and Macinaw Motors merged, the former First Motors is operated as the First Motors Division and the former Macinaw Motors is operated as the Macinaw Motors Division. Each division acts as a component of the enterprise that earns revenues and incurs expenses from engaging in its own business activity. Additionally, each division is reviewed by the enterprise’s chief operating decision maker to assess its performance and each division has its own discrete set of financial information. At the time of the purchase, Macinaw Motors had three manufacturing plants, all of which are still operating today.Each plant is used to produce one car model. Plant 1 is located in Irvine, California, where the hydrogen-powered Mankato is produced. Plant 2 is located in Mishawaka, Indiana, where the hydrogen-powered Sheboygan is produced. Plant 3 is located in Braselton, Georgia, where the gasoline-powered Spokane is produced. When Macinaw Motors was pur chased in 2008, executives at First Motors believed that consumers were still purchasing gasoline-powered vehicles because their purchase price was still less than that of similarly equipped hybrid-based or hydrogen-based vehicles.Management of First Motors plans to convert Plant 3 to manufacture a hydrogen-based vehicle at some point in the future. However, for the next several years, First Motors wants to capitalize on the market for gasolinepowered vehicles and Plant 3 will continue to be used in the production of gasoline-powered cars. In late 2008, management began retooling Plant 3 of the Macinaw Division to create a new, efficient, and highly desirable gasoline-powered model of the Spokane. To retool Plant 3, the First Motors Corporation: A Classroom Case on Impairments 19 ivision incurred substantial equipment costs including the costs of body assembly jigs, welding equipment, conveyors, robots, and a new platform. Management decided to retool the plant and continue with a n ew model Spokane under the assumption that there was going to be a significant increase in oil supply from expected oil reserves in the Arctic National Wildlife Refuge of Alaska (ANWR). It was believed that these oil reserves would help keep the price of gasoline down which, in turn, would continue to stimulate demand for gasoline-powered cars. The retooling process was completed during 2009.THE CASE In 2012, First Motors management was surprised to learn that oil reserve estimates were inaccurate for the ANWR. After debate over this controversial drilling location, legislation was finally passed in 2010 that included approval for ANWR oil drilling. Some citizens of Alaska and other states were angered by the new law and protested the approval of oil drilling. Nevertheless, in 2012, drilling proceeded in one small select and authorized area. Results of the initial drilling revealed that the expected oil reserves in that location were not nearly as large as projected.Due to the ANWR finding and turmoil in the Middle East, there was a spike in gasoline prices during 2012 and the sales of the Spokane model did not meet expectations. Closure of Plant 3 was considered; however, for four reasons, management decided to keep Plant 3 open. First, management believed the spike in gasoline prices was not permanent and that other oil reserves would help to moderate future oil prices. Second, significant expenditures had already been made on the plant, and it would not require large amounts of additional capital in the near future.Third, consumers were still purchasing gasoline-powered vehicles because of the continued price differential between these vehicles and vehicles using alternative energy sources. Finally, because of union contracts, any assembly line workers laid off would be paid wages by the Macinaw Division at 75 percent of straight-time pay. Thus, management determined that it was not the appropriate time to convert Plant 3 to a hydrogen-based plant. Impairme nt Despite these reasons to keep Plant 3 open, its long-lived assets will not generate the net cash flows originally anticipated when the plant was retooled.In fact, as the result of very deep discounting of the Spokane’s retail price during the year, it is possible that the final numbers for 2012 may show negative operating cash flows related to Plant 3. Accordingly, management determined that an impairment test must be performed for the Plant 3 long-lived assets. To determine if the assets are impaired, management compares the future undiscounted cash flows of Plant 3 to the book value of the plant’s long-lived assets. As of 12/31/2012, the net book value of Plant 3’s property, plant, and equipment is $1. 4 billion, before any write-down from impairment is recorded.Additional relevant information is as follows: †¢ †¢ †¢ †¢ The estimated remaining life of the assembly line equipment is 11 years. Yearly anticipated net cash flows for each of the next 11 years is $62,504,377. It is assumed that the land, buildings, and equipment for Plant 3 can be sold for $30 million at the end of this 11-year period. The total estimated undiscounted net cash flows related to Plant 3 over the next 11 years are $717,548,147 (($62,504,377 x 11) + $30,000,000). 20 Krumwiede and Giannini The assembly-line and related equipment are considered the primary assets of Plant 3.In measuring the impairment loss for Plant 3, management considers various valuation methods for this equipment. It is determined that most of the equipment has no alternative use and that a sales value is not readily available. Accordingly, following the guidance of Statement of Financial Accounting Standards (SFAS) No. 157 (FASB, 2006), management determines that the fair value of the Plant 3 long-lived assets is best measured by the present value of its future net cash flows. The company’s management measures the present value of future cash flows using a riskfree discount rate of 3 percent.Because expected net cash flows are not adjusted for inflation, management does not incorporate an inflation factor into the discount rate. Using the 3 percent rate, the present value of the net cash flows is $600 million, resulting in an impairment loss of $800 million (book value of long-lived assets of $1. 4 billion less $600 million fair value as determined by discounted future cash flows). Once the impairment loss is determined, management is not sure how to allocate it and decides to wait for its auditors to assist in the allocation.The property, plant, and equipment of Plant 3 can be divided into four primary categories: land; buildings; robots and related equipment; and all other equipment. In anticipation of the audit, the following information is compiled regarding these Plant 3 assets: TABLE 1 Plant 3: Property, Plant, and Equipment Land Buildings Robots and Related Equipment Other Equipment Total Net Book Value $500,000 20,000,000 140,000,000 1,239,500,000 $1,400,000,000 Fair Value $1,000,000* 20,000,000* Not Available Not Available $21,000,000 Without undue costs, the fair value of the land and buildings are obtained from an outside appraisal. The 2012 Audit In early 2013, you go with your audit team to the First Motors headquarters in Detroit, Michigan for the audit, for the year ending December 31, 2012. Your team gets a quick tour of the factory, and you learn about various changes in the car industry, including the lack of oil reserves in the ANWR. You know that an impairment loss was recorded for the Plant 3 assets, and you are impressed with management’s initiative in measuring, recording, and disclosing the loss.However, you wonder if an impairment loss should have been recorded for the Mendoza, the other gasolinepowered car produced by First Motors. Fortunately, First Motors maintains cash flow and sales information on a plant by plant basis and you quickly learn that during 2012, sales of the Mendoza rem ained strong because of its compact size and excellent gas mileage. After reviewing the documentation supporting the impairment charge, you note that future cash flows are discounted at a risk-free rate of 3 percent and that this rate does not incorporate an First Motors Corporation: A Classroom Case on Impairments 1 inflation factor because the cash flow estimates were not adjusted for inflation. You vaguely recall from a college class that a discount rate should incorporate a risk premium and although you are relatively new to auditing, you know that 3 percent is a rather low discount rate. You approach management questioning this low discount rate and they become very defensive in explaining that 3 percent is the rate for all the Plant 3 assets and that no other rate would be appropriate. Upon inquiry about risk being considered in such a rate, management stubbornly states that the 3 percent rate is fine.When asked for justification, management reasons that they reached this conc lusion due to the fact that a risk premium could not be adequately measured. Additionally, they refer to Statement of Financial Accounting Concepts No. 7 (FASB 2000), which suggests that in such a situation a risk-free rate can be used. In re-evaluating the net cash flows, and after discussions with management, you agree that the cash flows are in fact the single, most-likely amount in a range of possible estimated amounts or the best estimate for the next 11 years (the expected life of the primary assets of Plant 3).However, you believe risk is not factored into these cash flow estimates. You suggest adding a risk premium to the discount rate, to incorporate fully the risk inherent in the cash flows. After consultation with the firm’s valuation experts, you are told that a risk premium is appropriate. Also, based on their experience in the auto industry and review of First Motors and Plant 3, the valuation experts suggest that an appropriate risk premium is 6 percent. From t heir advice, you conclude that 9 percent (3 percent risk-free rate + 6 percent risk premium) is a much more reasonable rate to use in discounting the cash flows.You are very proud of your findings and hope to make a good impression on your audit manager, Mr. Bother. Although you had briefly discussed with him the magnitude of the impairment loss and the discount rate used, he left the calculations and details up to you. When you approach him, however, he appears extremely frustrated and explains that First Motors never even complied with the yearly test for goodwill impairment, as specified in SFAS No. 142 (FASB 2001). You suggest that the goodwill impairment test may be unnecessary because an impairment loss for the plant assets has already been recorded by management.Mr. Bother shakes his head at you, grumbles, and tells you in a very stern manner that impairment of long-lived assets and goodwill often go hand in hand. He explains that upon acquisition of Macinaw Motors, $1. 3 bil lion was recorded as goodwill (the excess of the purchase price over the fair value of the identifiable net assets of Macinaw Motors). Mr. Bother explains to you that the fair value must be re-evaluated and compared to the book value. Furthermore, you heard some members of management grumbling about losing their bonuses if â€Å"these auditors keep coming up with more impairment charges. You realize management has significant bonuses tied to the 2012 target profits, and a large impairment loss will cause them to lose the expected bonuses. A quick review shows that the largest total impairment losses that can be recorded before the target profit will be missed and the management bonuses lost is $1. 75 billion. Your calculation is based on two facts: (a) 2012 unaudited net income before impairment charges is $2. 25 billion and (b) the management bonus arrangement states that bonuses will only be paid if 2012 net income exceeds $. 5 billion.You go home that evening and realize that yo u do not really understand what Mr. Bother said to you about goodwill impairment. For one thing, you do not know if Mr. Bother was referring to the fair value and book value of the entire company or just the Macinaw Division. You print out the firm’s training material on impairments and spend the rest of the evening reading about SFAS No. 142. 22 Krumwiede and Giannini The next day, you attend a meeting with management and Mr. Bother. During the meeting, you are first excited when you hear management indicate that they made an error in the recorded impairment charge for long-lived assets.You think that management finally realizes the necessity of incorporating a risk factor into the discount rate. However, your jubilation is quickly deflated when management indicates that the impairment testing for long-lived assets should have been done at a different level. In particular, management states that impairment testing of long-lived assets should have been for the company as a wh ole (Plant 1, Plant 2, and Plant 3 of the Macinaw Division, plus the two plants from the First Motors Division) and that the result is the impairment charge should not have been recorded.Management claims this result would hold because the decline in the value of the Plant 3 long-lived assets could be offset by the increase in the value of the longlived assets at the other plants. It is further explained that the individual who made the error is no longer with the company. Mr. Bother explains to management that the issue will be examined more closely. Before any further explanation can be provided, members of management are called away for another meeting.As you leave the meeting you realize that you do not know whether management is correct about combining long-lived assets for all plants of First Motors to perform the impairment test. Furthermore, you wonder if impairment testing is done for both plant assets and goodwill, if it can be a combined test, and if it needs to be done i n a specific order. After reviewing your notes and the company records, you also begin to wonder if a mistake was made in the original calculation of the impairment loss related to long-lived assets.In particular, for purposes of the present value calculations, you note that the land and buildings are assumed to be sold at the end of 11 years. However, you recall from discussions with management that manufacturing plants are used for many years and are retooled over and over. Accordingly, it does not seem appropriate to assume the sale of the land and buildings after 11 years. After all, according to the accounting records, the buildings have a remaining useful life of 25 years and the land has an unlimited useful life. A couple of days earlier, the valuation method for any possible goodwill impairment testing was discussed.It was determined that no fair value was readily available for First Motors or its divisions. Additionally, because the stock price of First Motors was so volati le over the past year, the market capitalization was not a good indicator of the fair value of First Motors. You, Mr. Bother, and management came to an agreement that discounted future cash flows was the appropriate valuation technique to use. However, the calculations provided by management incorporated a riskfree discount rate of 3 percent. You took the initiative to do your own calculations based on an 8 percent discount rate, which includes a 5 percent risk premium.The 5 percent risk premium was recommended by the same valuation experts from the firm who recommended a 6 percent risk premium for use in the Plant 3 long-lived asset impairment. Management calculations and your calculations are summarized below in Tables 2 and 3. The information in the first portion of Table 2 represents the total fair value of First Motors and its divisions based on discount rates of 3 percent and 8 percent, respectively. Presented in the second portion of Table 2 is the estimated fair value of ide ntifiable net assets based on discount rates of 3 percent and 8 percent, respectively.Finally, presented in Table 3 is a summary of the book value of identifiable net assets and the book value of net assets before recording any impairment for long-lived assets (the difference represents the book value of goodwill). First Motors Corporation: A Classroom Case on Impairments TABLE 2 Fair Value Information 3% Discount Rate Total Fair Value: First Motors Division Macinaw Division Total (First Motors) Fair Value of Identifiable Net Assets: First Motors Division Macinaw Division Total (First Motors) $2,600,000,000 3,200,000,000* $5,800,000,000 8% Discount Rate $2,045,000,000 2,550,000,000* $4,595,000,000 23 2,500,000,000 2,800,000,000 $5,300,000,000 $2,010,000,000 2,200,000,000 $4,210,000,000 * Please note that the total fair value for the Macinaw Division includes the combined net assets of Plants 1, 2, and 3. TABLE 3 Book Value First Motors Division Macinaw Division Total (First Motors) Identifiable Net Assets $2,000,000,000 3,000,000,000 $5,000,000,000 Goodwill $0 1,300,000,000 $1,300,000,000 Net Assets $2,000,000,000 4,300,000,000 $6,300,000,000 QUESTIONS (Assume that currently enacted GAAP is still applicable in the year 2012) Part 1 Please provide detailed explanations in answering each of the following questions.For questions 2a, 3a, 4a and 5, provide a citation to the appropriate accounting standard that supports your discussion. 1. Diagram the organizational structure of First Motors Corporation. 2. a. Under what circumstances is a company required to perform impairment testing for long-lived assets? b. Was impairment testing of long-lived assets required for First Motors? Why or why not? 3. a. At what level is impairment testing done for long-lived assets? b.Are the executives of First Motors correct in suggesting that the impairment of longlived assets at Plant 3 is not needed because the decline in the value of the Plant 3 assets can be offset by the incr ease in the fair value of long-lived assets at other plants? 4. a. At what level is impairment testing done for goodwill? 24 b. 5. Krumwiede and Giannini For First Motors, at what level should this testing be done (i. e. , should it be done for the company as a whole or just for the Macinaw Division)? If impairment testing of both goodwill and long-lived assets is required, in what order is it done?Part 2 Please provide detailed explanations in answering each of the following questions. Provide citations to the standards for each of the following: questions 6a, 7a, 8a, and 10a. Additionally, it is suggested that you provide citations to SFAC Number 2 (FASB 1980) when answering questions 10b, 11, and 12. 6. a. Prepare a schedule showing the computation of the long-lived asset impairment loss at both the 3 percent discount rate and the 9 percent discount rate. In the information provided in the case, it was assumed that the land and buildings for Plant 3 were sold at the end of 11 yea rs.Be sure to consider and discuss if the land and buildings’ â€Å"assumed sale† after 11 years is appropriate or if the â€Å"assumed sale† should be at the end of the buildings’ useful life. b. Do you think that management is correct in using the 3 percent rate, or are the auditors correct in suggesting the 9 percent rate, or can either interest rate be justified? Provide a detailed answer to this question including a discussion about a risk premium. Be sure to consider the type of cash flow information provided by management. 7. a. Once an impairment of long-lived assets is determined, how is the write-down allocated among multiple assets?Prepare a schedule showing this allocation for Plant 3 (use the impairment loss determined based on the discount rate you chose in question 6b). b. Refer to your answer for part a. After the allocation is completed, will each longlived asset (or asset category) that First Motors wrote down be stated at fair value? Wh y or why not? c. How will the impairment loss and the corresponding reduction of book value to the long-lived assets affect future depreciation expense to be recorded, (potential) future impairment charges and/or future gains or losses on the sale of the long-lived assets? 8. . Determine the implied goodwill value and the goodwill impairment loss, if any, using both a 3 percent and an 8 percent discount rate. Which rate should be used and why? b. The valuation experts suggested that the risk premium (6 percent) in discounting the free cash flows from Plant 3, for purposes of the long-lived asset impairment, should exceed the risk premium (5 percent) in discounting the cash flows for the Macinaw Division. Why is this difference in a risk premium justified? 9. a. Will management still receive bonuses if the 3 percent discount rate is used in the calculations?If the 9 percent and 8 percent discount rates are used? b. What is earnings management? c. Discuss the relationship between earn ings management and the choice of discount rate to be used in discounting future cash flows for the long-lived asset impairment of Plant 3 and the goodwill impairment of the Macinaw Division. First Motors Corporation: A Classroom Case on Impairments 10. 25 11. 12. Once written down because of impairment, can long-lived asset write-downs or goodwill write-downs be recovered if predictions change (i. e. , the fair value subsequently increases)?Is there such a thing as a write-up for either long-lived assets or goodwill? a. Regarding reliability of financial information, comment on the verifiability and representational faithfulness characteristics of the conceptual framework as they relate to accounting for impairments. Be sure to incorporate First Motors into your discussion. b. Discuss the trade-off between the relevance and reliability of reporting long-lived assets and goodwill at fair value. How does the principle of conservatism apply to this trade-off? Consider the case of Firs t Motors in your discussion.Find a real-world company that has taken an impairment charge (either for goodwill or longlived assets) and discuss how the relevant information was disclosed in the notes to the financial statements and the affect the charge had on net income or net loss of the company. TEACHING NOTES Teaching notes are available from the editor. Send a request from the â€Å"For Contributors† page of the journal website, http://gpae. bryant. edu. REFERENCES Financial Accounting Standards Board. 1980. Qualitative Characteristics of Accounting Information. Concepts Statement No. . (Norwalk, CT: FASB). _______, 2000, Using Cash Flow Information and Present Value in Accounting Measurements, Concepts Statement No. 7. (Norwalk, CT: FASB). _______, 2001. Goodwill and Other Intangible Assets. Statement of Financial Accounting Standards No. 142. (Norwalk, CT: FASB). _______, 2006. Fair Value Measurements. Statement of Financial Accounting Standards No. 157. (Norwalk, CT: FASB). The National Hydrogen Association. Frequently Asked Questions. Retrieved July 12, 2006, from http://www. hydrogenassociation. org/general/faqs. asp.

Characters of The Tell-Tale Heart Essay - 1184 Words

The Tell-Tale Heart by Edgar Allen Poe is a short story that dives into the mind of an insane man. The story only features five characters. There is an old man with a blue eye, the crazed killer, and three police. The story is narrated by the nameless murderer. It is his attempt to justify his behavior and to prove to the reader that he is not crazy. As the story goes on you come to the realization that he is actually insane. The characters in this story are complex, interesting, and elaborate. The first character to be introduced is the old man. Just like every other character, the old man does not receive a name. He has a blue eye that appears to have a film over it. According to the story he has quite a bit of gold in his house. The†¦show more content†¦Ã¢â‚¬Å"TRUE! --nervous --very, very dreadfully nervous I had been and am; but why will you say that I am mad? The disease had sharpened my senses --not destroyed --not dulled them. Above all was the sense of hearing acute . I heard all things in the heaven and in the earth. I heard many things in hell. How, then, am I mad? Hearken! and observe how healthily --how calmly I can tell you the whole story.† (Poe 1). Shortly after the narrator decides he is going to kill the old man, he starts to watch him sleep. For a week he comes into the old man’s room at night and watches him. He makes sure to open the door just a crack so that he can slip his head into the room. When he does get his head into the room he takes his lantern and shines a tiny beam to the old man’s eye. He comments that the eye is never looking back at him. This makes sense since the old man is sleeping. The narrator ensures you that all of his precaution means that he is not crazy. â€Å"Now this is the point. You fancy me mad. Madmen know nothing. But you should have seen me. You should have seen how wisely I proceeded --with what caution --with what foresight --with what dissimulation I went to work† (Poe 1) . The only reason that the old man was not killed during the narrators midnight visits into the old man’s room was because he could not see the eye. Since the old man himself did not bother the narrator he would not haveShow MoreRelatedThe Characters Of Nervousness In The Tell Tale Heart By Edgar Allan Poe761 Words   |  4 PagesIn Tell Tale Heart by Edgar Allan Poe, the main character changed as a person through the duration of the poem due to the terrible crime he commited. Before our main character killed the old man he was living with, the character is seen as nervous, but also very gentle and loving. We start off the whole story with the main character saying, â€Å"TRUE! nervous, very, very dreadfully nervous I had been and am; but why WILL you say that I am mad† (Poe 1)? This proves that the main character was nervousRead More Madness in The Yellow Wallpaper and The Tell-Tale Heart1679 Words   |  7 PagesMadness in The Yellow Wallpaper and The Tell-Tale Heart Compare the portrayal and use of madness in The Yellow Wallpaper by Charlotte Perkins Gilman and The Tell-Tale Heart by Edgar Allan Poe. Which story did you prefer and why? The Yellow Wallpaper by Charlotte Perkins Gilman and the Tell-Tale Heart by Edgar Allen Poe both describe characters who in the opinion of other people are insane. The characters hysterical behaviour due to their insanity is depicted as the stories progress. TheRead MorePre 1914 Gothic Horror Stories: Techniques Used in Writing The Tell Tale Heart and The Red Room867 Words   |  4 PagesThe Tell Tale Heart and The Red Room are two short stories that share the genre of a gothic horror story. They are both based in the nineteenth century but the plots are very diverse from one another. The Tale Tell Heart tells the story of a man driven to insanity by his landlord’s eye whereas The Red Room is a story about an ignorant man whose disbelief in ghosts leads to him spending the entire night in a haunted room with ominous consequences. With both stories set pre 1914, the writers couldRead MoreThe Tell Tale Heart Essay1427 Words   |  6 PagesThe Tell Tale Heart The Tell Tale Heart is a story about a man who killed an old man just because he didnt like the way his eyes looked like. The main character speaks about madness as being a gift and not a kid of disability for example in paragraph one on page 93 he says: but why would you say that I am mad? The disease had sharpened my senses-not destroyed-not dulled them. The mad man killed the old man and then cut him up and put him under the floorboards ofRead MoreRole of Realism in Edagar Allan Poe ´s The Tell Tale Heart and The Cask of Amortillado1014 Words   |  5 Pagesâ€Å"The Tell Tale Heart† and â€Å"The Cask of Amontillado† written by Edgar Allan Poe are dark short stories relevant to murder, revenge, and mystery. Poe writes both stories in a Gothic style in order to deal with ideas of realism. One may ask were the murders and punishments justifiable in either short story? One may also ask did Poe accurately depict realism in each story? Realism, defined as a technique in literature that accurately represents everyday life, is questioned in Poe’s works: â€Å"The Tell TaleRead MoreThe Importance Of Suspense In The Tell Tale Heart By Edgar Allen Poe800 Words   |  4 Pagesthe importance of the readers imagination in creating a scary tale. Another well known author, Edgar Allan Poe, mastered this technique by creating story’s that draw the rea der into his freighting world in one of his famous stories. In the The Tell-Tale Heart. The Tell-Tale Heart by Edgar Allen Poe is horror story because it has suspense, an internal monster, and the plot is more important than the character. One reason The Tell Tale Heart by Edgar Allan Poe is a horror story because of the suspenseRead MoreThe Gothic Theme of Edgar Allen Poes Work1357 Words   |  6 PagesGothic genre, literary devices and his own auteur, Edgar Allan Poe’s texts are considered sublime examples of Gothic fiction. The Gothic genre within Poe’s work such as The Tell-Tale Heart, The Black Cat, and The Raven, arouse the pervasive nature of the dark side of individualism and the resulting encroachment of insanity. Gothic tales are dominated by fear and terror and explore the themes of death and decay. The Gothic crosses boundaries into the realm of the unknown, arousing extremes of emotion throughRead More The Tell Tale Heart by Edgar Allen Poe and Eveline by James Joyce1525 Words   |  7 PagesThe Tell Tale Heart by Edgar Allen Poe and Eveline by James Joyce The Tell Tale Heart and Eveline are stories based around the circumstances, which surround a central character. Both protagonists are portrayed in totally different ways. The characters in both stories are quite different. Eveline is the image of a girls failure to become a woman. She tells herself that she would not be treated as her mother had been, but she isnt aware that such treatment offers her the only kindRead MoreMadness of Tell-Tale Heart1287 Words   |  6 Pagesonce said, â€Å"Words have no power to impress the mind without the exquisite horror of their reality.† There are many breathtaking horror stories, but none of them influenced literature as much as â€Å"The Tell-Tale Heart.† Poe uses the character and theme to make â€Å"The Tell-Tale Heart† one of his near perfect tales. His works often explored the inner workings of the human mind; in particular its dark side (Bouchard). This story shows the terrible war of superego upon the id, the endless battle between conscienceRead MoreEdgar All Poes Style901 Words   |  4 PagesEdgar Allen Poe’s style in The Black Cat and Tell-Tale Heart In many of Edgar Allen Poe’s short stories, a reader can encounter with many similarities of style and technique. In this paper, I am going to state the similarities of The Black Cat and Tell-Tale Heart to understand Poe style in short stories. To start with, in both of the stories, the setting is jail because the main characters of two stories are criminals. Such an entrance to the stories enables the reader’s attention to be more