'In company reporting, the measurement of the amount of impairment of Essay - 1

'In company reporting, the measurement of the amount of impairment of many types of assets is so subjective as to be meaningless - Essay Example Some assets can't be reported simply, so the subjectivity arises from the choice of impairment modeling and accounting presentation: Like trying to map a 3-dimensional sphere on a 2-dimensional plane, inevitable distortions crop up no matter what approach one takes to presenting the data. Yet other assets, while objectively declining in value, do so at a rate that is impossible to determine, so any presentation is subjective because it is a choice as to what data to include and what not to, what prediction to make. Yet even this incomplete, subjective picture is far from meaningless for investors, auditors and stakeholders. Asset impairment is defined as, â€Å"An unexpected or sudden decline in the service utility of a capital asset, such as a factory, property or vehicle. This could be the result of physical damage to the asset, obsolescence due to technological innovation, or changes to the legal code. Impairments can be written off† (InvestorWords, 2011). Assets can declin e for a variety of reasons. Simple wear and tear can make an asset less than its expected new or even used value: For example, a vehicle that operated in difficult conditions such as snow or sand could be below the expected market value for a vehicle of that age. In this sense, asset depreciation is a subset of asset impairment. But this determination can be subjective: It requires guessing the cost of the additional damage which could vary from potential buyer to potential buyer. Technological innovation can make some objects obsolete: Certainly, computers have obsolescence and an incredibly high rate of turnover. But anticipating that requires expecting Moore's Law to continue operating, as well as treating the computer as a unified asset, yet different parts of the computer depreciate at different rates and accounting standards are always changing to reflect that for different electronics (Ward, 2011). A legal change could make a piece of machinery become illegal in a particular country, but then the asset could be sold elsewhere, which could require a degree of subjective currency anticipation and assessment of liquidation risk and benefit. This is why goodwill is recognized as the standard for impairment of many assets, and it is commonly accepted that there is a great degree of subjectivity in making this determination. â€Å"We are facing a new era of economic development with a growing significance of intangible assets. Goodwill constitutes a significant asset for numerous companies, especially those which are operating in high technology industries. According to the growing importance of intangibles there has also been a significant change in standards associated with accounting for goodwill† (Jerman and Manzin, 2006). In particular, using fair value accounting for goodwill and for determining the need for disclosures leads to inherent subjectivity: â€Å"The fair value may be determined by using different approaches such as using available ma rket prices, present value techniques, prices for similar assets and other valuation techniques. Users of financial information should consider that market values are not always on disposal. Consequently fair value estimates are based on subjective judgment† (Jerman and Manzin, 2006, 222-223). One of the reasons why there is so much subjectivity is because investors rightly demand disclosures of

Right-to-die Essay Example | Topics and Well Written Essays - 750 words

Right-to-die - Essay Example Some of the ways through which this can be achieved is by assisted suicide. This is the main focus of this research. This entire issue of ending one’s life is one that has elicited a lot of debate in the modern times. The major reason that has sparked this debate is just because at the center of this issue is that it is a person’s life that is in question. There are proponents of both sides. There are the individuals who are for the idea with the thought that issue of mercy-killing is morally acceptable. In fact what is being said is that there is a right to death. The example of such proponents might be seen in the members of Voluntary Euthanasia Society of Scotland. At the same time there are those proponents who are totally against this whole issue of this type of life termination. These individuals are of the opinion that the taking of a person’s life is unacceptable under any circumstance. In some cases, it can be said that suicide is acceptable, only that i t has not been put up in the books of law. However, the issue of doctors assisting the patient to commit suicide is a whole story altogether (Whiting, n.p.). One of the major opponents of the whole euthanasia issue since time immemorial has been the Catholic Church. There are some very few countries which permit euthanasia. However, this is under very specific circumstances. An example of such a circumstance is when a person is in excruciating pain. However, even though these few circumstances may allow for mercy-killing, there has to be sufficient evidence to furnish this sort of action (Manoj, n.p.). It is also important to note that there are those countries that are adamant in acceptance of this issue, regardless of the state of the patient. An example of such a country is Japan or even Columbia. What happens in these countries is that the patient is just left to be in the state in which he or she is in until his or her body eventually gives in. On critical examination of the po sition that is held in this case is that there will be the questioning of whether the right action has been taken. Would it be right to kill the person with the intention of helping them avert the pain that is associated with their current state or would it be logical and in order to let the person be in that state of pain in their deathbed (Whiting, n.p.). These and many others are some of the questions that leave people at crossroads when the issue of euthanasia pops up in forums and discussions. In the United States for example Euthanasia is not acceptable in all the states. This is under the homicide law. According to Wisconsin Laws, the act of mercy-killing is not acceptable in any way. So despite of all these arguments are there any good things or benefits that are associated with the act of euthanasia? Well the so-called benefits that are associated with this practice are also under question. The first benefit that is brought forth in this connection is that it alleviates the sick individual from the pains and troubles that are associated with his or her ailment (Manoj, n.p.). Another benefit that may be seen in this case will be realized by the family and friends of the patient. This is because it will save them on the health costs that they have been incurring for the purpose of taking care of the sick individual. In this same relation it is argued that the resources that are used on the person who is terminally ill could