Financial Accounting Essay Example | Topics and Well Written Essays - 1250 words

Financial Accounting - Essay Example Turnover 21,134 Cost of sales 15,345 Gross profit 5,735 Distribution costs 2,520 Administrative expenses 1,417 Operating profit 1,798 Investment income 80 Finance costs 11 Profit before taxation 1,867 Taxation 581 Profit after taxation 1,286 Â   Â   Profit attributable to: Â   Parent 1,206 Non-controlling interest 80 Â   1,286 Â   Â   A consolidation schedule is provided Appendix 1. It shows how the figures for turnover, cost of sales and gross profit were arrived at. The Statement below represents the Consolidated Statement of Financial Position of Chambers and Subsidiary for the period ending 2012. The relevant calculations are shown. ... In fact, internally generated goodwill cannot be recognised as an asset while goodwill that has been acquired is recognised as an asset (IFRS.org 2012a). If a self constructed asset is constructed to be used in the business it is treated in the same manner as an acquired asset. However, self constructed assets which are produced for sale as part of the normal activities of a business are dealt with under IAS 2 Inventories. The two assets are not quite comparable as one set is something you can see and touch physically while the other is not. However, there is no reason why goodwill that is internally generated should not be recognised as an asset. Goodwill is something that a business generates internally, although it can only be recognised when someone acquires it. We are all aware that when a business is sold goodwill is the excess over the fair value of the separable assets that the buyer/acquirer is willing to pay. The fact that someone is willing to pay for it means that they ha ve placed a value on it. That value could be anything and the fact that someone places a value on it and is willing to pay means that it is measurable – whether objectively or subjectively. Casta et al (2011) indicates that some of the models that have been created to value internally generated goodwill cannot explain how goodwill was created. However, the fact that we know from the definition that goodwill arises from the reputation that has been built up a business over time means that the creation of goodwill can be explained. There are also other factors such as the area in which the business is located; the employees as it relates to their experience, competence, efficiency and reliability; and a host of other factors (Wood and Sangster

How far Has the Modern Conservative Party Departed from the Coursework

How far Has the Modern Conservative Party Departed from the Thatcherite Agenda - Coursework Example The departure of Cameron’s â€Å"Big Society† from Thatcher’s â€Å"New Right† is more on the semantics but many of the principles of its predecessor remain the same. First, Thatcher’s â€Å"there is no such thing as society† did not mean the dissolution of social ties that composed society. She herself clarified that the original intent of the statement was distorted beyond recognition. What she meant by â€Å"there is no such thing as society† is to diminish dependency on welfare and to encourage individual members of society to help themselves. In effect, it lessens the burden on public expenditures which contributed to the inflation that beset UK’s economy. Thatcher may have just put it in the wrong way but the intent and purpose of her statement was to strengthen industry by enabling society’s individual members. In effect, Cameron’s â€Å"Big Society† is just the same with Thatcherism when it intends c ut back public expenditures (though explaining that he is just returning it to 2007 level). It only differs in a way that it encouraged public engagement and volunteerism and by putting up a Big Society fund of ?200M to enhance societal capability (Channel4.com 2011). With regard to the economy, Cameron also adopts the free market system which is precisely what Thatcher asserted despite public criticism during her time. Cameron’s economic policy pronouncements also do not subscribe to Keynesian inflationary measure of pump priming the economy through increased public expenditure. It is only his method that differs from Thatcher because he intends to cut public expenditure which Thatcher was opulent during her term. II. The Conservative party and its ideology The Conservative Party used to be known as Tories that dated back in 1678. It only assumed its present name Conservative Unionist Party in 1912 after it allied with the Liberal Party. Its dominant ideology in the early 20 th century was One Nation Conservatism, which was to unite the varying sectors of society (Heywood 2007). Among the esteemed ideologues of the Party was Edmund Burke. Burke was a follower of Adam Smith and his market economy whom Thatcher herself acknowledged to have influenced her liberal economic policy. During the late 19th century, the Conservative Party agreed for a greater representation of the middle class in the parliament. This was contained in the Tamworth Manifesto which was the fundamental political belief of the new Conservative Party. Business also supported the Conservative Party with its coalition with the Liberal Party which made the Party of industry and commerce (Ingle 2008). III. The Thatcherite Agenda: The New Right (1979-1990) Before Margaret Thatcher assumed as the Prime Minister of UK in 1979, UK had been experiencing high unemployment rate under a series of trade union strikes which the media dubbed the â€Å"Winter of Discontent† because the Labour l ed government implemented a freeze on the pay increase of the workers to control the lingering inflation of 20% (Hall and Jacques 1983). Upon assumption of office, Margaret Thatcher implemented her policy programs which are popularly known as â€Å"The New Right†. The Thatcherite Agenda was characterised by neo-liberal policy of a market oriented economy and neoconservative policy which emphasises the traditional Tory values of One Nation Conser