Solutions to Supplementary Problems from Scott Textbook 6th Edition Essay Example for Free

Solutions to Supplementary Problems from Scott Textbook 6th Edition Essay Several reasons can be suggested why oil company managers have reservations about RRA: †¢ The discount rate of 10% might not reflect the firm’s cost of capital. †¢ Low reliability. RRA involves making a large number of assumptions and estimates. While SFAS 69 deals with low reliability in part by requiring end-of-period oil and gas prices to be used (rather than prices anticipated when the reserves are expected to be sold), management may feel that end-of-year prices bear little relationship to the actual net revenue the company will receive in the future. Furthermore, management may be concerned about low reliability of other estimates, such as reserve quantities. †¢ Frequent changes in estimates. Conditions in the oil and gas market can change rapidly, making it necessary for the firm to make frequent changes in estimates. †¢ Investors may ignore. Investors may not understand the RRA information. Even if they do, management may believe the RRA information is so unreliable that investors will ignore it. If so, why prepare it? †¢ Legal liability. Management may be concerned that if the RRA estimates are not realized, the firm will be subject to lawsuits from investors. Management’s reservations may be an attempt to limit or avoid liability. 12. a. Most industrial and retail firms regard revenue as earned at the point of sale. Since sale implies a contract with the buyer and change of ownership, this is usually the earliest point at which significant risks and rewards of ownership pass to the buyer, the seller loses control of the items sold (e. g.. , title passes to buyer) and at which the amount of revenue to be received can be determined with reasonable reliability. b. Under RRA, revenue is recognized when oil and gas reserves are proven. This point in the operating cycle does not meet the IAS 18 criteria for revenue recognition. Since the oil and gas are still in the ground and the reserves are not sold, the significant risks and rewards of ownership have not been passed on and control remains with the producer. Also, the large number of revisions to estimates under RRA casts doubt on the reliability of the amount of revenue recognized. Presumably, this is why RRA is presented as supplementary information only. Presumably, however, collection is reasonably assured since oil and gas have ready markets. Note: This question illustrates that the tradeoff between relevance and reliability can be equivalently framed in terms of revenue recognition as well as balance sheet valuation. In effect, balance sheet valuation is in terms of the debit side of asset valuation whereas criteria for revenue recognition are in terms of the credit side. The basic tradeoff is the same, however. In particular, it should be noted that early revenue recognition increases relevance, even though it may lose reliability. 13. a. From a balance sheet perspective under ideal conditions, inventory is valued at current value. This could be the present value of expected future cash receipts from sale, that is, value-in-use. Alternatively, if market value of the inventory is available, it could be valued at its market value, that is, its fair value (the 2 values would be the same if markets work reasonably well, as is the case under ideal conditions). From a revenue recognition perspective, revenue is recognized as the inventory is manufactured or acquired. b. Cost basis accounting for inventory is due to lack of ideal conditions. Then, inventory markets may not work well. If so, Samuelson’s (1965) demonstration does not apply. As a result, market value requires estimation, opening up inventory valuation to error and possible manager bias. Accountants must feel that this reduction in reliability outweighs the greater relevance of current inventory value. Historical cost accounting for inventories is not completely reliable, since firm managers still have some room to manage (i. e. , bias) their reported profitability through their choice of cost methods (FIFO, LIFO, etc. ). Also, historical cost accounting for inventories is accompanied by the lower-of-cost-or-market rule. Then, reliability issues of current valuation re-arise. Furthermore, even the cost of inventories is not always reliable. For example, overhead costs are usually allocated to the cost of manufactured inventory. These costs are affected by manager decisions about allocation rates and production volumes. 14. 25. a. Relevant information is information that enables the prediction of future firm performance, such as future cash flows. Early revenue recognition anticipates these future cash flows, hence it is relevant. Thus, Qwest’s revenue recognition policy provided relevant information.b. Reliable information is information that faithfully represents the firm’s financial position and results of operations. When significant risks and rewards of ownership are transferred to the buyer and the seller loses control over the items transferred, the amount of future cash flows is determined with reasonable representational faithfulness and verifiability, since the purchaser has an obligation to pay. Also, if the amount of cash to be received is determined in an arms-length transaction, the amount of sale is reliable due to lack of possible manager bias. It seems that Qwest’s revenue recognition policy met none of these reliability criteria. The future cash flows were not representationally faithful since there appeared to be no provision for returns, obsolescence, or unforeseen service costs. Furthermore, as evidenced by the later SEC settlements, substantial manager bias is apparent. Obviously, amounts ultimately collectible were not reasonably assured, since the SEC came up with materially different valuations. c. Under ideal conditions, revenue is recognized as production capacity is acquired, since future revenues, or expected revenues, are inputs into the present value calculations. For an oil and gas company, revenue recognition is analogous—revenue is recognized as reserves are discovered or purchased. The reason is that under ideal conditions, future cash flows, or expected future cash flows, are perfectly reliable. There is thus no sacrifice of usefulness in recognizing revenue as early as possible. Note: A superior answer will point out that under ideal conditions net income consists of interest on opening present value (i. e. , accretion of discount), plus or minus abnormal earnings under ideal conditions of uncertainty). These are not operating revenues, however, but simply an effect of the passing of time.

Honest Iago of Shakespeares Othello Essay -- Othello essays

Honest Iago of Othello   Ã‚  Ã‚   To most of the world William Shakespeare is recognized as the greatest dramatist in history.   His plays have been performed for centuries through various interpretations.   Shakespeare's vast knowledge, and writing style made his works interesting for both the intellectual, and the illiterate.   One of these styles is the use of motifs, which is seen extensively in Othello.   An important example that runs throughout Othello, is Iago's honesty.   This motif gave existence to Shakespeare's perfect villain.    The most interesting character in the play Othello is the villain, Iago, commonly referred to as "Honest Iago".   Iago is smart, and well tuned to human behavior, and uses this knowledge to his advantage.   He manipulates others to do things to help him reach his final goal; revenge on Othello and Cassio.   His greatest tool in doing so is his reputation as an honest and trustworthy person.   Othello believes Iago is a person "of exceeding honesty, and knows all qualities, with the learned spirit of human dealings." [Act III, Scene iii].   The other characters believe this as well, and Iago becomes a confidant for most of them.    The reputation Iago has, is encouraged by the other characters as well as himself.   After Cassio and Roderigo fight, Othello arrives and Iago is the first that he asks an explanation from; " Honest Iago, that looks dead with grieving, speak.   Who began this?" [Act II, scene iii].   Even after Iago would not answer, Montano tells Othello to ask Iago again; "Your officer, Iago, can inform you" [Act II, scene iii], knowing that Iago would speak the truth.   Both Othello and Montano are intensifying Iago's integrity here.  Ã‚  Ã‚  Ã‚      Othello'... ...aintain it, and encourage its existence.    In most stories, especially during Shakespeare's time, the villain is openly deceitful, and evil.   Moreover, they are usually unattractive, and automatically disliked by the other characters.   Shakespeare, in his brilliance, made Iago to be a charming, witty person, who is a friend to all.   This was something unknown to the audience of his time.   Shakespeare used this as a way of expressing an idea that anyone could have ulterior motives with their actions, and not to trust people with ease.   He addressed the difference between reputation and a person's true character, and how they are rarely the same.   In doing so, he created the most perfect villain of all of his works.    Work Cited Shakespeare, William. Othello. Ed. Kenneth Muir. The New Penguin Shakespeare. London: Penguin Books, 1996.   

Associate Nurse VS. Baccalaureate Nurse Essay

There has been much debate over the years about the differences in competenciesbetween Associates Degree nurses (ADN) versus Baccalaureate Degree (BSN) nurses. In thispaper I will discuss my findings and also give a patient care situation in which I describe hownursing care or approaches to decision-making may differ based upon the educationalpreparation of the nurse BSN versus a diploma or ADN degree. Besides the difference in time,credits and money studies are showing a significant difference in ADN nursing versus BSN.â€Å"Research has shown that lower mortality rates, fewer medication errors, and positive outcomesare all linked to nurses prepared at the baccalaureate and graduate degree levels.† (AACN, 2013) An ADN program is a two-year program in which students learn the basics of nursing such as care plans and performing every day nursing skills, they offer courses that are more affordable and accessible which in this day and age can be a blessing and in the end they produce competent bedside nurses  who can sit for the NCLEX. We can thank Mildred Montag for founding the ADN program back in 1956 due to a major nurse shortage after the war (Friberg, 2011, p. 87-88). But some downfalls are â€Å"when combined with practical nurses, the total number of technical nurse types being produced is excessive given current and future market demands (Benner et al, 2000). As for jobs they are limited to hospitals, skilled nursing, long-term care facilities, clinics and physicians offices. A Bachelor of Science in Nursing (BSN) degree is a four-year degree that is focused on theory and research. The American Association of Colleges of Nursing (AACN) states that education â€Å"enhances both clinical competency and care delivery.† (Rosseter, 2013) Due to more formal education the BSN nurse is more of a critical thinker advancing in daily nursing tasks and avoiding deadly errors. They tend to look farther into the disease process and critical thinking behind it rather then just being a task oriented ADN. â€Å"Programs provide a solid liberal education and substantive upper division nursing major. Both components are combined in ways that prepare a nurse generalist who is able to provide professional nursing services in beginning leadership positions in a variety of settings† (Friberg, 2011, p. 87-88). Obtaining a BSN can open up more job opportunities for a person and in most cases makes you more desirable to employers. Many nurses get burnt out from being floor nurses so if you have your BSN you have the option to move into management or many other areas like insurance companies, pharmaceutical companies, research jobs or even a clinical instructor. â€Å"Research shows they use evidence based practice for better patient outcomes.† (Moore, n.d.) â€Å" As also stated in the same article â€Å"numerous research studies have demonstrated that the ADN and BSN nurses are not different in skill competency when they graduate, but within a year, the BSN nurses show greater critical thinking skills better problem solving, and the development of clinical judgment; three skills of increasing importance for the increase in acuity of patients in hospitals and other health care settings.† (Moore, n.d.) In the February 2013 issue of the Journal of Nursing Administration, Mary  Blegen and colleagues published findings from a cross-sectional study of 21 University Healthsystem Consortium hospitals which found that hospitals with a higher percentage of RNs with baccalaureate or higher degrees had lower congestive heart failure mortality, decubitus ulcers, failure to rescue, and postoperative deep vein thrombosis or pulmonary embolism and shorter length of stay. By having the added knowledge from school, it shows in studies that BSN’s have better outcomes with less patient complications, which is good for everyone. PATIENT CARE SCENARIO A patient care scenario that comes to mind for me would be a patient in Labor and Delivery that has had slightly elevated blood pressures prior to the pregnancy, but with diet and exercise was able to avoid medication. But on admission an order for a blood pressure medication was ordered as a PRN in case it was needed. As the patient progresses into labor, her pressures start to rise slightly. The ADN nurse comes in see’s the reading looks at her orders and dispenses the medication, because that is what she is trained to do. Whereas the BSN nurse comes in to the patient’s room and see’s the same reading, notices the patient seems more uncomfortable and is a little upset. So as the BSN nurse I would ask if she was having increased pain and if she was offer her something for pain relief because that may help decrease the blood pressure. I would also ask her if something else was bothering her because she seemed agitated and the patient stated that her and her boyfr iend had just had a huge argument and she was upset over that. So with some pain relief and quiet environment the BSN nurse was able to avoid giving the patient an extra medication for her blood pressure. References Blegen, M.A., Goode, C.J., Park, S.H., Vaughn, T. & Spetz, J. (2013, February). Baccalaureate education in nursing and patient outcomes. Journal of Nursing Administration, 43(2), 89-94. Creasia, Friberg, Joan L. Elizabeth E. Conceptual Foundations: The Bridge to Professional Nursing Practice. 5th Edition. Mosby, 2011. VitalBook file. Pageburst online. Pages 87-88. Moore, D.S. (February 2009). The Difference Between Associate Degree Nurses and the Baccalaureate Degree Nurses. West Coast University: Dean’s Corner. Retrieved from www.westcoastuniversity.net/deanscorner. Rosseter, R. J. (2013) American Association of Colleges of Nursing. Creating a More Highly Qualified Nursing. Retrieved from http://www.aacn.nche.edu/media-relations/NursingWorkforce.pdf

Christmas Quotes From the Bible

From a religious perspective, Christmas is the celebration of the birth of Jesus Christ in Bethlehem. Quotes from the Bible are staples at many holiday plays and pageants as young children are taught the story of baby Jesus. Bethlehem. Quotes from the Bible are staples at many holiday plays and pageants as young children are taught the story of baby Jesus. Biblical Christmas Quotes   Matthew 1:18-21This is how the birth of Jesus the Messiah came about: His mother Mary was pledged to be married to Joseph, but before they came together, she was found to be pregnant through the Holy Spirit. Because Joseph, her husband, was faithful to the law and yet  did not want to expose her to public disgrace, he had in mind to divorce her quietly. But after he had considered this, an angel of the Lord appeared to him in a dream and said, Joseph son of David, do not be afraid to take Mary home as your wife, because what is conceived in her is from the Holy Spirit. She will give birth to a son, and you are to give him the name Jesus  because he will save his people from their sins. Luke 2:4-7Joseph went up from the town of Nazareth in Galilee to Judea, to Bethlehem the town of David because he belonged to the house and line of David. He went there to register with Mary, who was pledged to be married to him and was expecting a child. While they were there, the time came for the baby to be born, and she gave birth to her firstborn, a son. She wrapped him in cloths and placed him in a manger  because there was no guest room available for them. Luke 1:35And the angel answered her, The Holy Spirit will come upon you, and the power of the Most High will overshadow you; therefore the child to be born will be called holy—the Son of God. Isaiah 7:14Therefore the Lord himself will give you a sign: The virgin will be with child and will give birth to a son, and will call him Immanuel. Isaiah 9:6For to us a child is born, to us a son is given, and the government will be on his shoulders. And he will be called Wonderful Counsellor, Mighty God, Everlasting Father, Prince of Peace. Micah 5:2But you, Bethlehem Ephrathah, though you are small among the clans of Judah, out of you will come for me one who will be ruler over Israel, whose origins are from of old, from ancient times. Matthew 2:2-3The Magi from the east came to Jerusalem and asked, Where is the one who has been born king of the Jews? We saw his star in the east and have come to worship him. When King Herod heard this he was disturbed, and all Jerusalem with him. Luke 2:13-14And suddenly there was with the angel a multitude of the heavenly host praising God and saying, Glory to God in the highest, and on earth peace among those with whom he is pleased!