The International Labour Organization Ilo

The International Labour Organization Ilo The International Labour Organization is a United Nations agency dealing with labour issues, particularly international labour standards and decent for all. There are 185 countries that are member states of International Labour Organization. The ILO aims to ensure that it serves the needs of working women and men by bringing together governments, employers and workers to set labour standards, develop policies and devise programmes. The very structure of the ILO, where workers and employers together have an equal voice with governments in its deliberations, shows social dialogue in action. It ensures that the views of the social partners are closely reflected in ILO labour standards, policies and programmes. They have concern about many issues which are happening in world. In this essay I selected child labour for further discussion. Child labour is a complex problem and numerous factors influence whether children work or not. Poverty emerges as the most compelling reason why children work. Poor households spend the bulk of their income on food and the income provided by working children is often critical to their survival. However, poverty is not the only factor in child labour and cannot justify all types of employment and servitude. Countries may be equally poor and yet have relatively high or relatively low levels of child labour. Child labour is clearly detrimental to individual children, preventing them from enjoying their childhood, hampering their development and sometimes causing lifelong physical or psychological damage; it is also detrimental to families, to communities and to society as a whole. As both a result and a cause of poverty, child labour perpetuates disadvantage and social exclusion. It undermines national development by keeping children out of school, preventing them from gaining the education and skills that would enable them as adults to contribute to economic growth and prosperity. As long as child labour continues, the ILOs goal of decent work can never be achieved. Discussion Millions of children worldwide are engaged in labour that is hindering their education, development and future livelihoods. A lot of of them are involved in the worst forms of child labour that because irreversible physical or psychological damage, or that even threaten their lives. This situation represents an intolerable violation of the rights of individual children, it perpetuates poverty and it compromises economic growth and equitable development. There are plenty of things can be happened to occur child labour. Factors include for Child labour: Barriers to education basic education is not free in all countries and is not always available for all children, especially in remote rural areas. Where schools are available, the quality of education can be poor and the content not relevant. In situations where education is not affordable or parents see no value in education, children are sent to work, rather than to school. Culture and tradition with few opportunities open to children with more education, parents are likely to share a cultural norm in which labour is seen as the most productive use of a childs time. Children are often expected to follow in their parents footsteps and are frequently summoned to help other members of the family, often at a young age. Market demand child labour is not accidental. Employers may prefer to hire children because they are cheaper than their adult counterparts, can be dispensed of easily if labour demands fluctuate and also form a docile, obedient work-force that will not seek to organize itself for protection and support. The effects of income shocks on households households that do not have the means to deal with income shocks, such as natural disasters, economic or agricultural crises Taking into consideration above factors the child labour will occur. This is a massive issue in modern world. Hence there are so many organizations and governments are consider this issue. Hence The ILO has given a priority to wipe out this issue. The International Labour Organization, from its setting up, has made child labour one of its central concerns. ILO work on child labour over the decades has mainly taken its indication from the phrase protection of children in the Preamble to its Constitution. The ILOs prime tool in pursuing the elimination of child labour has always been, and remains to this day, the labour standards that embody the concept of a minimum age to enter into employment. This approach responds to two concerns: to protect children from work that interferes with their full development and to pursue economic efficiency through well-functioning adult labour markets. Some child laborers are highly visible, such as street children working in the urban informal economy. Others, such as child domestic workers, are effectively hidden from public view and are thus particularly vulnerable, including to physical, emotional and sexual abuse. Rather than working in formal sector establishments that produce for export, the majority of child labourers in manufacturing toil in supply chains producing for the domestic market, for example, in the production of fireworks, matches or incense sticks. A reported increase in home-based production of these and other goods, in response to heightened competitive pressures, brings with it an increased potential for exploitation of child labour. Such hidden groups of children present particular challenges for research and effective action. A future without child labour traces the ILOs historical concern with the abolition of child labour. At its very first session, the International Labour Conference adopted the Minimum Age (Industry) Convention, 1919 . Over the years that followed, the concept of minimum age for entry into employment was extended to different economic sectors, culminating with the adoption of the comprehensive Minimum Age Convention, 1973. The inclusion of the effective abolition of child labour in the ILO Declaration on Fundamental Principles and Rights at Work and its Follow-up, adopted in 1988, highlighted the growing consensus across the world that child labour represents a serious threat to sustainable economic and social development everywhere. The unanimous adoption, the following year, of the Worst Forms of Child Labour Convention, 1999 , and its subsequent unprecedented rate of ratification, attest to the strength of the political will among ILO member States to tackle, with employers and wor kers organizations and all partners in civil society, these most extreme forms of child labour as a matter of the greatest urgency. Convention No. 182 has served to consolidate resolve on the need for immediate action to combat the worst forms of child labour, accompanied by measures to eliminate and prevent all child labour in the longer term. Drawing on the provisions of Conventions Nos. 138 and 182, they identify three categories of child labour to be eliminated: Labour performed by a child who is under a minimum age specified in national legislation for that kind of work. Labour that jeopardizes the physical, mental or moral well-being of a child, known as hazardous work The unconditional worst forms of child labour, which are internationally defined as slavery, trafficking, debt bondage and other forms of forced labour, forced recruitment for use in armed conflict, prostitution and pornography, and illicit activities. Furthermore they have taken several objectives to eliminate this child labor issue. Key objectives in the fight against child labour the long tradition of ILO standard setting and supervision in the field of child labour, dating from the very first session of the International Labour Conference in 1919 and leading up to the adoption of the umbrella Minimum Age Convention, 1973 (No. 138); The impetus given by the adoption of the United Nations Convention on the Rights of the Child (CRC) in 1989; The experience gained by national governments working with IPEC; increased activism on child labour by employers and workers organizations and non-governmental organizations (NGOs); The unanimous adoption of the Worst Forms of Child Labour Convention, 1999 (No. 182), and the subsequent campaign for its universal ratification and implementation; Research and action that have provided new insights into the causes, dimensions and means of reducing both poverty and child labour. According to the on top of objective the ILO have planned to eliminate child labor in every country. Although, when they erect new objectives and procedures they will have to concern countries policies. So that is a huge difficulty that they are appearance currently. Conclusion Childrens participation in the labour force at the start of the twenty-first century is continuously varied and infinitely volatile, responding to changing market and social conditions. This circumstance is matched by the flexibility of the large, unprotected, potential child labour force. Poverty and social exclusion, labour mobility, discrimination on the basis of sex and other grounds, and lack of adequate social protection and educational opportunity all come into play in influencing child labour outcomes. The ILO calls on all partners in this undertaking to redouble their efforts, to give all children, everywhere, the childhood and the future that they deserve.universal education and social protection, together with a better understanding of the needs and rights of children, can bring about a significant reduction in child labour. Recommendation Working closely with governments are the social partners employers and workers organizations who are uniquely placed to understand and to change the realities of the workplace so that child labour simply has no part to play. Partnerships operate horizontally at national level and also vertically between national, regional and international players. A worldwide movement, involving the ILOs constituents governments and employers and workers organizations and many other partners working together at international, national and local levels, has altered that irrevocably. Improve education system in every country. .

Why Kellogg

Why have you elected to apply to the Kellogg School Executive MBA Program My ambition is to enhance my knowledge in global strategy, eEntrepreneurship, and marketing, and buildwhile building strong relationships with successful leaders and innovative thinkers worldwide. and I want truly wish to learn from the school that has been consistently ranked No. 1#1 in for Executive MBA programs due to for the quality of its faculty members, students and teaching methods.Kellogg is my first choice because it uncompromisingly addresses real life aspects of business. The way the learning model is organized through (interactive means as study groups, analysis of actual real- life business cases, classes and workshops) provides the ideal learning environment for people those who may havewith an experience to share. At Kellogg, the emphasis is put on the team work.Curriculums, a perfect combination of theory and practice, are is updated with current techniques and technologies, and moreover, can r eceive inputs from studentsinput from students is welcome. I value the fact that Nnearly every single professor in Kellogg’s EMBA program is the author of the famous bookshas authored a book, among and they are all being a true pioneers in their field.The current EMBA curriculum emphasis on gGeneral mManagement and along with an excellent choiceexcellent options for of global electives (such as gGlobal initiatives in mManagement) will enhance my knowledge in global markets. All these things will help me formulateing an effective global sStrategy for the product development at SyncadaXXXXX. My long- term career goals and establishing my own in Ccompany in eE-commerce requires me to sell my ideas effectively to the prospective customers.Marketing, Kellogg’s best-known strength, will put me at aon a fast track to achieve my these goals. Kellogg’s worldwide nNetwork is huge and nearly one third of its alumni reside outside North America and I want exploit it one I w ish to to build upon . I would like to and grow relationships with influential leaders across the world. Finally, the city of Chicago is a serious plus that will put me in the heart of one of the world's business capital. The proximity to the Minneapolis is always plus for me to reduce my travel time to Kellogg.

Computer Evolution Essay

?Explain the evolution of computer describing the technologies used in different generations. The evolution of computers started way back in the late 1930s. Binary arithmetic is at the core of the computers of all times. History of computers dates back to the invention of a mechanical adding machine in 1642. Abacus, an early computing tool, invention of logarithm by John Napier and the invention of slide rules by William Oughtred were significant events in the evolution of computers. Evolution of computer technology can be divided into five generations. First generation computer consisted of vacuum tubes and they were used from 1943-1958. ENIAC (Electronic Numerical Integrator and Calculator) computer is an example of first generation computer. Second generation (1959-1965) computer consisted of transistors i. e. vacuum tubes were replaced by transistors. Thus the size of the computer got reduced considerably. Third generation (1966-1973) computer consisted of integrated circuits (IC) i. e. many transistors in single silicon chip. A single IC has many transistors, registers and capacitors built on a single thin slice of silicon. With the invention of microprocessor (1971), fourth generation of computer evolution started and present day computers are also categorized in the fourth generation. The fifth generation computers are under development. They are going to be based on principles of artificial intelligence and natural language recognition. Developers are aiming at computers capable of organizing themselves. The evolution of computer continues. Generation Duration Memory device First (1943-1958) Vacuum tubes Second (1959-1965) Transistor Third (1966-1973) LSI (Large Scale Integration) IC Fourth (1974-1990) VLSI (Very large Scale Integration) Microprocessor. Fifth (1990 onwards) Biochips (concept of AI) Table: Time period and its device used in evolution of computer.

The Classroom Case Study Ad / Hd Twelfth Grade ...

Classroom Case Study: AD/HD Eleventh-Grade: Language Arts 1. Characteristics For my case study, I intend to research ADD and ADHD in eleventh-grade students in English and language arts classes. Normally eleventh-graders are around 16 and 17 years old. As most cases of AD/HD are diagnosed while children are young, most students in high school would have already known how to work with their disabilities for many years. However, they might still need help from their IEP team, which includes their teachers, family, counselor, and any other people the student wants to include. In both eleventh and twelfth grade, the state standards in reading advance to include more analysis. Attention Deficit Disorder, otherwise known as ADD, usually deals†¦show more content†¦Sometimes they may have a quick temper. Students who are impulsive often act without thinking. They can blurt out answers without being called on. They cannot wait for their turn in line. They often interrupt others. They sometimes intrude into other people’s conversations. There is also a combined disorder that features symptoms similar to both ADD and ADHD. Students can also be inattentive. They usually do not pay attention to detail. They often make careless mistakes. They have trouble staying focused. They appear not to listen when spoken to because their attention is focused elsewhere. They also have problems staying organized. 2. Academic Context According to the Arizona Department of Education, there are several standards that students in eleventh-grade are expected to be able to do. Students in eleventh-grade have to â€Å"cite strong and thorough textual evidence to support analysis of what the text says explicitly as well as inferences drawn from the text† (â€Å"9-12 English Language Arts,† 2013). This is important because it is a skill need in several standardized writing tests. It shows that the student can comprehend texts to their class group. They are also expected to â€Å"determine two or more themes or central ideas of a text and analyze their development over the course of the text† (â€Å"9-12 English Language Arts,† 2013). They also have to â€Å"determine the meaning of words and phrases as they are

Content and Function Words in English

Each word in English belongs to one of the eight parts of speech. Each word is also either a content word  or a function word. Lets think about what these two types mean: Content Words vs. Function Words Content information, meaningFunction necessary words for grammar In other words, content words give us the most important information while function words are used to stitch those words together. Content Word Types Content words are usually nouns, verbs, adjectives, and adverbs. A noun tells us which object, a verb tells us about the action happening, or the state. Adjectives give us details about objects and people and adverbs tell us how, when or where something is done. Nouns, verbs, adjectives and adverbs give us important information required for understanding. Noun person, place or thingVerb action, stateAdjective describes an object, person, place or thingAdverb tells us how, where or when something happens Examples: Nouns Verbs house enjoy computer purchase student visit lake understand Peter believe science look forward to Adjectives Adverbs heavy slowly difficult carefully careful sometimes expensive thoughtfully soft often fast suddenly Other Content Words While nouns, verbs, adjectives and adverbs are the most important content words, there are a few other words that are also key to understanding. These include negatives like no, not and never; demonstrative pronouns including this, that, these and those;  and question words like what, where, when, how and why. Function Word Types Function words help us connect important information. Function words are important for understanding, but they add little meaning beyond defining the relationship between two words. Function words include auxiliary verbs, prepositions, articles, conjunctions, and pronouns. Auxiliary verbs are used to establish the tense, prepositions show relationships in time and space, articles show us something that is specific or one of many, and pronouns refer to other nouns. Auxiliary verbs do, be, have (help with conjugation of tense)Prepositions show relationships in time and spaceArticles used to indicate specific or non-specific nounsConjunctions words that connectPronouns refer to other nouns Examples: Auxiliary Verbs Prepositions do in has at will though is over has been between did under    Articles Conjunctions Pronouns a and I an but you the for him so us since ours as she Knowing the difference between content and functions words is important because content words are stressed in conversation in English. Function words are non-stressed. In other words, function words are not emphasized in speech, while content words are highlighted. Knowing the difference between content and function words can help you in understanding, and, most importantly, in pronunciation skills. Exercise Decide which words are function and content words in the following sentences. Mary has lived in England for ten years.Hes going to fly to Chicago next week.I dont understand this chapter of the book.The children will be swimming in the ocean this time next week.John had eaten lunch before his colleague arrived.The best time to study is early in the morning or late in the evening.The trees along the river are beginning to blossom.Our friends called us yesterday and asked if wed like to visit them next month.Youll be happy to know that shes decided to take the position.I wont give away your secret. Check your answers below: Exercise Answers Content words are in bold. Mary has lived in England for ten years.Hes going to fly to Chicago next week.I dont understand this chapter of the book.The children will be swimming in the ocean at five oclock.John had eaten lunch before his colleague arrived.The best time to study is early in the morning or late in the evening.The trees along the river are beginning to blossom.Our friends called us yesterday and asked if wed like to visit them next month.Youll be happy to know that shes decided to take the position.I wont give away your secret.

Utilitarianism and Happiness - 945 Words

Utilitarianism In his book, J.S. Mill attempts to build on Jeremy Benthams original idea of Utilitarianism. His definition of the moral theory is one that is grounded in Benthams original work but also extends to include remarks to criticisms of Utilitarianism. Mill believes that, like Bentham, utility is what is valuable to society. Utility, according to Mill, is the promotion of pleasure or the absence of pain. He defines this as happiness, which is why he refers to utility as the Greatest Happiness Principle (Mill 55). Thus, pleasure (or painlessness) is what society finds valuable. Because society finds happiness valuable, it must attempt to maximize total happiness. Mill describes that the presence of pleasure and the absence†¦show more content†¦Furthermore, what is necessary to contemplate is not the utility of the action worth praising but the praise itself. This means that praise is its own action and not a remark on a previous action. The idea that praising actions that one may not approve may not sit well with dissenters of utilitarianism immediately. One might find that immoral and wrong. However, in the case of a utilitarian, whose moral actions are based the fact that the overall happiness of society is valuable and one must do all they can to maximize it, one can see that if an action goes against your ideals, but can bring about the greatest happiness, one must, according to Utilitarianism, commit that action. For instance, in Smarts article, he tells of a story where the initial actions of a blacksmith incorrectly mounting a horseshoe led to the loss of the horse that led to the loss of a knight and ultimately the loss of the kingdom. The question here is who to blame? The knight? The blacksmith? The horse? In response, Smart said: Whose was the responsibility? The act-utilitarian will quite consistently reply that the notion of the responsibility is a piece of metaphysical nonsense and should be replaced by ‘Whom would it be useful to blame? (Smart 54) Essentially, Utilitarianism states that who to blame does not matter because it does nothing to promote pleasure or demote pain. However, what does matter who could be blamed that would lead to moreShow MoreRelatedUtilitarianism : The Pursuit Of Happiness1566 Words   |  7 PagesUtilitarianism according to mill is the pursuit of happiness in addition to the â€Å"prevention or mitigation of unhappiness (930). Utilitarianism is focused on maximizing happiness, in the greatest quality and quantity, of all sentient creation. What is ethical is thus determined by the end result towards self and society (amount of happiness) rather than the motive or action. Mill describes that actions are right if they â€Å"tend to produce happiness† (intended pleasure) and wrong if they â€Å"tend to produceRead MoreUtilitarianism, Or The Greatest Happiness Principle1407 Words   |  6 PagesUtilitarianism, or the Greatest Happiness Principle, states that the morality of an action should be judged based on the extent to which it produces happiness, or the opposite of happiness—an action is good as long as the result is happiness, and deemed bad if it results in pain. A clearer understanding of what Utilitarianism is can be gained by John Stuart Mill’s characterization of what it is not. He states, â€Å"I believe that the very imperfect notion ordinarily formed of its meaning, is the chiefRead MoreEssay about Utilitarianism and Happiness845 Words   |  4 Pagesactions worth is determined by maximizing utility (pleasure or happiness).it looks at the consequence of an action as to whether the outcome is good to the majority of people affected by it. According to Bentham, utilitarianism is the greatest happiness or greatest felicity principle. There are many types of this theory which include act vs. rule, two level, motive, negative and average vs. total. (Clifford G., John C. 2009) In act utilitarianism, when people have to make choices, they should co nsider theRead MoreUtilitarianism : The Greatest Happiness Principle1176 Words   |  5 PagesUtilitarianism John S. Mill describes utilitarianism, also known as â€Å"The greatest happiness principle†, as a philosophical theory of morality. This theory is focused on the end result (a consequential theory) rather than the motive behind it. It argues that the morality of the action is solely dependent on the action’s results. The action is morally ethical as long as it produces the greatest happiness for the majority of people involved. Mill mentions, â€Å"†¦ the greatest happiness principle holdsRead MoreUtilitarianism : The Greatest Happiness Principle1574 Words   |  7 PagesUtilitarianism is best referred to as the â€Å"Greatest Happiness Principle.† This means that when one considers himself as a utilitarian, he believes it is only right to judge the rightness or wrongness of an action based on the consequences. In other words, â€Å"actions are considered moral when they promote utility and immoral when they promote the reverse† (Nubcaek 2011). T he principle of utility helps to capture an idea of the good is that which produces the greatest benefit, greatest advantage, orRead MoreEssay about Utilitarianism: The Greatest Happiness Principle528 Words   |  3 PagesUtilitarianism was first brought up along the nourishing of â€Å"The Greatest Happiness Principle† introduced by Jeremy Bentham and further developed by John Stuart Mill, who was a follower of Bentham (Sweet, 2013). Based upon its principle, Utilitarianism states that to be good is to generate the greatest possible amount of happiness for the greatest number. In contrast with rational egoism, Utilitarianism focuses more on maximizing the overall net happiness of the majority. When facing a decision toRead MoreUtilitarianism Essays : The Happiest And Pleasure Of The Most People Not Included The Personal Happiness1398 Words   |  6 PagesThe unsound of utilitarianism The utilitarianism theory is described as the happiest and pleasure of the most people not included the personal happiness. Jeremy Bentham believes there were two masters in this world that are pleasure and pain. On utilitarianism, we should reject pain and found a way to make more people happy no matter what the outcome. Utilitarianism is unsound because of events in history, life conflict, and animal cruelty that occurs in our everyday. All thru history, it has shownRead MoreThe Pros And Cons Of Utilitarianism954 Words   |  4 PagesThe Pros and Cons of Utilitarianism Utilitarianism is the ethical belief that the happiness of the greatest number of people is the greatest good. Jeremy Betham and John Stuart Mill are two philosophers that were leading advocates for the utilitarianism that we study today. In order to understand the basis of utilitarianism, one must know what happiness is. John Stuart Mill defines happiness as the intended pleasure and absence of pain while unhappiness is pain and the privation of pleasure. UtilitariansRead MoreUtilitarianism Essay529 Words   |  3 PagesUtilitarianism Utilitarianism is a consequentialist ethical theory. An action is right or wrong based on its consequences. John Stuart Mill was an important philosopher in developing the idea of utilitarianism. Utilitarianism holds that any action that results in a greater amount of happiness in the world is a right action and any action that results in pain or less happiness is wrong. Utilitarianism can be divided into different versions. Act utilitarianism is one of the versions ofRead MoreUtilitarianism : Bentham And Mill766 Words   |  4 PagesUtilitarianism: Bentham VS. Mill Utilitarianism is a normative ethical theory that holds the morally right course of action in any given situation is the course of which yields the greatest balance of benefits over harms. More specifically, utilitarianism’s core idea is that the effects of an action determine whether actions are morally right or wrong. Created with philosophies of Jeremy Bentham (1748–1832) and John Stuart Mill (1806–1873), Utilitarianism began in England in the 19th Century.

Financial Report Analysis free essay sample

Incitec Pivot Limited (IPL), is leading global chemical manufacturer supplying agricultural fertilisers and industrial chemicals to the Australian and overseas markets. The objective of this report was to analyse and understand how the accounting policies and strategies implemented by IPL impacted their financial performance. The analysis is based on IPL’s annual report which outlines the selected accounting policies, business strategy and performance. Firstly, the report summarises IPL’s activities and strategies during the financial years ending 30th September 2009 and 2010. Secondly, the report identifies the key accounting policies and assesses management’s flexibility in selecting them. Also, the report evaluates the quality of disclosure in IPL’s annual report, identifies potential questionable numbers and attempts to undo any possible distortions in the numbers. Finally, the report examines the financial press discussion of IPL’s performance and accounting numbers. The absence of any impairment [write-down] of intangible assets [13 per cent of Goodmans total asset base, and included in the covenant gearing calculation] was a surprise, Deutsche Bank said. Read more: http://www. smh. com. au/business/writedown-is-not-a-dirty-wordjust-look-at-goodman-group-20090227-8kb1. html#ixzz1YvZOrW5P 1. Summary of IPL’s activities and strategies Incitec Pivot Limited is a leading global chemicals company which has nitrogen-based manufacturing as its core activity. (Incitec Pivot Limited, 2009) The company is involved in the manufacture, trading and distribution of fertilisers, industrial explosives and chemicals. It was formed as a result of the merger between Incitec Fertilizers and Pivot in 2003 and 2006 and expanded by purchasing Southern Cross Fertilizers. IPL owns a portfolio of recognised and trusted brands and is the number one supplier for fertilizers and the number three supplier of explosives in Australia as well as being the prime supplier of explosive products and services in North America. (Incitec Pivot Limited, 2009) The company operates in Canada, USA, Mexico and Australia and has 4500 employees worldwide. The company has grown due to international demand for the four F`s: food, feed, fibre and fuel. IPL supplies 50% of Australia’s agricultural nutrient needs and also assisted Australian farmers to develop sustainable farming. The volatility of the market during the global financial crisis had an adverse impact on IPL. NPAT (excluding individually material items) decreased by 46% from $647. 5m in 2008 to $347. 8m in 2009. IPL’s Velocity efficiency program enabled it to make a significant return to the market in 2010 with a NPAT of $442. 8m (excluding individually material items), which was an increase of $95m. (IPL, Annual report, 2010). 2. Key accounting policies and Accounting Standards 2. 1 Revenue Recognition – AASB 118 Revenue is measured at the fair value of the consideration received or receivable. Trade allowances, amounts collected on behalf of third parties and net of returns comprise the revenue. Revenue is recognised as sales revenue, interest income and dividend receivable. Sales revenue is recognised when the considerable risks and rewards of the ownership have been transferred to the buyer. Interest income is recognised on an accrual basis, while dividend receivable recognition occurs when it is declared or received. 2. 2 Foreign Currency Translation – AASB 121 Items presented in the financial statements of each of the Group`s entities are measured using the functional currency. IPL’s presentation currency is the Australian dollar, the currency used to present its consolidated financial statements. Foreign currency transactions are translated into the functional currency at the exchange rate on the day the transaction occurs. Foreign exchange gains and losses are recognised in the statement of comprehensive income, except when they are `deferred in equity as qualifying cash flow hedges`. These have been calculated following the AASB 121 `The effects of changes in Foreign exchange rates` and AASB 139 `Financial instruments – recognition and measurement`. 2. 3 Income Taxes – AASB 112 The current and deferred tax constitutes the income tax expense which is shown in the statement of comprehensive income. The current tax comprises tax that has to be paid on the taxable income for that period at tax rates as of the reporting date. It also includes adjustments of the past period’s tax payable relating to deferred tax assets and liabilities. The balance sheet method is used to calculate deferred tax. . 4 Consolidation – AASB 127 According to AASB 127, â€Å"consolidated financial statements shall include all subsidiaries of the parent† the financial statements of IPL adhere to this. Furthermore, all inter-company transactions, unrealised gains and losses (unless they occurred as a result of impairment of assets) and balances are eliminated. Investments in subsidiaries are recorded at cost. 2. 5 Impairment of Assets – AASB 136 The impairment test of goodwill is conducted annually or more frequently, if events or changes in circumstances indicate that it might be impaired. Assets subject to amortisation are tested for impairment when events demonstrate that the carrying amount cannot be recovered. Where the asset’s carrying amount exceeds its recoverable amount, an impairment loss would be recognised. 3. Management’s flexibility in selecting key accounting policies If management can be flexible in selecting accounting policies, they can significantly influence financial performance. As per the 2010 Annual Report, the managers of IPL had various levels of flexibility with the items below: 3. 1 Foreign currency transactions – Low Flexibility Foreign currency transactions are a crucial element in the development of IPL as a multinational company, because every movement in the exchange rate has an impact on its performance. As stated in the Annual report 2010, any gains or losses from the settlement of the transactions and the translation of the exchange rates of the assets and liabilities denominated in foreign currency are recognized in the income statement. The flexibility of management regarding this accounting policy is low, because the transactions are translated at a functional currency using the exchange rates valid at the date of the transaction. . 2 Derivative financial instruments – Low Flexibility Derivative instruments have been used by the Group in order to hedge its exposure to foreign exchange, commodity price and interest rate risks occurring as a result of the operational, investment and financing activities. While hedging motivates management’s flexibility to lock in company profits and pro tect them from the volatile exchange rates, it subtracts the profits made under the falling exchange rates. 3. 3 Interest Bearing Liabilities – Medium Flexibility The current interest bearing liabilities decreased significantly from $432. m in 2009 to $108. 5m in 2010. This was a consequence of the company’s issue of the US$800m 144A Bond in December 2009, which increased the diversity and tenor of their debt. During the year ended 30 September 2010 interest of $25. 2m was capitalised relating to interest bearing liabilities used specifically to fund qualifying assets as defined in AASB 123 Borrowing costs. 3. 4 Intangible Assets – Goodwill – High Flexibility As per the 2010 Annual Report, intangible assets represent the largest item of IPL’s total assets at 56%. They consist predominantly of Goodwill at 85%. Adjustments made to goodwill include additions, acquisition of business, impairment of assets and foreign exchange movement. IPL does not amortise goodwill but impairs it annually and as a result in 2010, the company recognised a non-cash impairment charge of $nil compared to $490. 6m in 2009. 4. Accounting strategy employed by management and incentives The accounting strategy management chooses will have a positive or negative impact on financial performance and business operations. The managers at IPL implemented accounting policies that enhanced financial performance in the long term. . 1Evaluation of accounting strategy employed by management Management implemented a strategy to reduce debt levels and improve the gearing ratio of Net Debt/EBITDA by issuing a 10 year bond worth $800m in December 2009. The proceeds from this bond issue were used to repay and cancel the Working Capital Facility with the remaining proceeds used to partially repay the Syndicated Facility. (IPL, Annual report, 2010). The gearing ratio was 1. 39 in 2010 and 1. 97 in 2009. As per the 2010 Statement of Financial Position, Net debt decreased by $366. 3m from $1,463. m in 2009 to $1,097. 1m in 2010. This was as a result of improved operating cash flows and the benefit of carrying the debt in US dollars rather than the Australian dollar which appreciated during 2010. 4. 2 Evaluation of incentives strategy employed by management IPL’s aim is to generate competitive returns for its shareholders through its strategy, and their philosophy is that the remuneration strategy should support the objectives of the business. The majority of the Executives remuneration is â€Å"at risk† and linked to performance and the creation of sustained shareholder value. For example, the Long Term Incentive Plan measured in 2010 Plan was established in 2007 and the Plan required IPL’s total shareholder returns (TSR), measured over the three year period to 30 September 2010, to be greater than 10% per annum compounded over the period. The Company’s TSR was 2. 64% per annum and, accordingly, no awards were made to Executives under the 2007/10 LTI Plan. (Annual Report , 2010) Refer Appendix 1 for table of % of Total Remuneration Annualised. This incentive is related to the strategy to improve financial performance. 5. The quality of the disclosure made in the accounts IPL Limited is listed on the Australian Securities Exchange (ASX) and is therefore subject to continuous disclosure obligations (corporate governance statement, remuneration report, shares, etc) under the ASX Listing rules and Corporations Act 2001. IPL’s Board has implemented the proper and timely disclosure of information to shareholders and the market. IPL uses its website (as well as) other sources to communicate via annual/half yearly reports, share price movements, sensitive and other relevant announcements to ASX. The financial report of IPL Limited highlights its business strategy. It is well structured and informative and in accordance with AASB 101 â€Å"Presentation of Financial Statements†, International Financial Reporting Standards and the Corporation Act 2001. The disclosure quality in the IPL annual report was adequate and informative and complied with ASX, the Corporation Act 2001, IFRSs, IASB and AASB. Table 1: Examples of IPL’s high and low quality disclosures Quality| Disclosure| High| â€Å"Restatement of prior year tax benefit† clearly describes the reason for the change and varied result in terms of Net Profit After Tax for 2009. Refer Appendix 2. High| Operating Segments AASB 8 replaces Segment Reporting AASB 114; this disclosure clearly outlines the change of IPL’s composition from 2 main businesses to four segments. Refer appendix 5. | Low| Deferred Tax Assets and Liabilities Notes 19 and 24 are circular and less than transparent. As these numbers are not explained, it is very difficult to understand how the numbers were calculated. | 6. Potential questionable numbers 6. 1Deferred Tax Assets amp; Liabilities In 2010 financial report both deferred tax assets and liabilities decreased by 80% and 65% respectively. The quality of the disclosure is low and questionable. (see table above) Like other companies listed on ASX, IPL could have an exclusive arrangement with the ATO that they are unable to disclose. As a result, DTA and DTL balances would be questionable in almost all annual reports. Refer appendix 3. 6. 2 Cash and cash equivalents In the year from September 2009 to 2010, the amount of cash and cash equivalents decreased 157% which is significant. Currently, the company has $48. 7m which represents 39% of the cash and cash equivalents in 2009. For a company whose business strategy focuses on growth, financing the acquisition of Nitromak with cash is a questionable decision. An alternative strategy could have been to finance the acquisition with debt, preserving cash resources. 7. Undoing distortions in the numbers On thorough review of 2010 annual report, IPL did not have any obvious areas of distortion. However, the acquisition of Nitromak is a possible area of distortion with regard intangible assets. When reviewing the stated fair value of the 50% equity interest held before acquisition, the consideration amount paid of $97. 1m is $22. m higher than the fair value amount of $74. 8m. Refer appendix 5. Considering IPL held the original 50% interest at fair value it is interesting that the remaining 50% would attract such a premium, hence intangible assets could be overstated. As per note 18, goodwill allocated to Nitromak is $142. 9m, considering the total consideration was $171. 9m, it is very high at 83% and it may have been fair to recognise an impairment loss in 2010. We can support this assumption that asset values may be distorted in the reports due to the write down in 2009 in the carrying value of the Dyno Nobel goodwill of $490. m, the year after acquisition. Table 2: Possible distorted items and adjustments | +/- adjustment| Notes| Intangible Assets| -$22. 3m (overstated)| | Cash amp; Cash Equivalents| +$22. 3m (understated)| The amount IPL paid for the remaining 50% should have equalled the fair value being 74. 8m. | 8. Summary of financial press discussion of IPL’s performance and accounting numbers During the GFC, IPL reported a full-year loss of $179. 9m to September 30, 2009 compared with a profit of $604. 6m in the prior year. IPL wrote down $490. 6m in the non-cash mark to market carrying value of Dyno Nobel goodwill. In 2009, net profit excluding material items slumped 46% to $347. 8m, as sales from the fertiliser business fell 32% to $1. 59 billion due to the challenging conditions in Australia and seasonal conditions in North America. The company is quoted as stating it would also benefit from its Velocity program, with $US60m ($A65. 05m) of savings targeted for fiscal 2010. (SMH, 2009) In 2010, IPL bounced back into profit despite the surging Australian dollar. The company announced a $412m profit compared with a loss of $179. 9m that was restated upwards to $221m in 2009.