Sunday, February 16, 2020

Mark-to-market accounting Assignment Example | Topics and Well Written Essays - 250 words - 1

Mark-to-market accounting - Assignment Example Another benefit for companies of using such accounting treatment is the recording of unrealized gain on mark to market of financial assets e.g. in the case of investment in shares, the unrealized gain would be the difference between the cost price of those shares and the market price of those shares on which it is currently being traded in the stock market. Mark to market accounting is criticized now and then based on the fact that at times it is quite complicated to accurately determine the fair value of a particular asset or liability. The fair value of financial assets is liabilities are based on the expected income or expense in future periods. Uncertain and volatile economic condition can be major hindrance in forecasting such values. 2) For mark to market accounting it is very essential for trading to be in practice as the buyers and sellers are the two factors who determine the fair value of the assets and liabilities. In times financial crises trading is minimal and the markets are destabilized. The companies, during financial crises, have losses to report on in their P&L statements as the fair value of their assets has decreased below their cost price. Recording of such losses erodes the equity of companies which significantly reduces their asset holding capacity. Since every company in the economy practices mark to market accounting, the affect of economic downturn prevails throughout and the business cycle takes a down turn which causes further exacerbation. The banks and financial institution are affected the most as their balance sheet comprises mostly of financial assets. As a result, bankruptcy, large- scale fire-sale of assets and layoffs takes place. 3) During financial turmoil, relaxation in the requirement of mark to market by the regulators can certainly be a boost for the companies facing financial difficulties. Instead of valuing the assets based on the fair value in the market, the company should be allowed to use

Sunday, February 2, 2020

Monsters Essay Example | Topics and Well Written Essays - 750 words

Monsters - Essay Example As history depicts, monsters were separated from the society of humans since the ancient times. However, other people have described monsters as being fictitious and nonexistent. This is where by; monsters were described in accordance to the characteristic of a person. For instance; most were described from words such as horrible, weird, wild and inhuman. Still, some people believe that monsters are real and present in the society. However, it has been noted that it is rare to see a gigantic, hideous creature manifesting itself as a monster (Williams, 13). This is because; monsters are believed to take different forms. For instance; some wild cats have been taken to be monsters in some societies due to their ugly features. Other societies associate bats with monsters and hence are put at the edge of the society. In addition, different people have been heard say that they have seen evil spirits, which appear as shadows or appear in dreams and nightmares. Therefore, indeed monsters hav e a meaning and an implication in the society since; human beings have believed that they are there, and they have obtained different translations of them. Function Most of the theories and manifestations of monsters appear in cinemas, horror movies, and fictitious stories. In these movies, monsters usually appear as being very real and very present among humans. Some of the movies also show monsters as helpful creatures that notify human of any unforeseen dangers. In addition, the movies also give a notation of existence of communication between human and the monsters. However, in the real world there is very limited interaction between monsters and human beings. In the real world, humans are very scared and afraid of monsters and cannot even stand them. In addition, monsters are believed to be carnivores in the real world and thus they cannot interact with them since, humans are afraid of the fact that they might be harmed by these creatures (Williams, 34). In addition, in the real world monsters are also destructive. They function by getting everything they desire by use of force and fight. Monsters also destroy property and interfere with th e peace of humans. In the real world, monsters are also associated with appearing in the night or in dark places. They are believed to avoid light or overcrowded places where they might be spotted by humans. Humans also associate monsters with supernatural powers, such as ability to appear and disappear in a place, or ability to deform or change their shapes. They are also believed to possess a lot of strength and might that can destroy a whole building. Example Different scholars have researched on the true existence of monsters in the real world and have come up with results showing that monsters indeed exist and live among human (Scott, 34). The studies also show that for the past ninety years zombies existed among humans. These creatures were found to be the animated dead representing greater danger to the survival of humans, than a mere corpse. The research also provides that zombies show no favoritism and exercise no judgment (Scott, 35). Mason asserts that monsters came about through the belief by the ancient people that during their long distance trade journeys, they would meet terrifying and mysterious creatures. Therefore, people started imagining creatures such as giants, vampires and ghosts. Since the people were completely convinced that the creatures would try to destroy them, they brought in the idea that monsters were scary creatures that were to be feared (Mason, 7). Negation Although some scholars assert that monsters indeed exist, other scholars have noted that monsters don’t really exist (Mason, 4). They assert that monst