Writing Tips Metaphors and Similes - Get Writing Tips with Proofed!

Writing Tips Metaphors and Similes - Get Writing Tips with Proofed! Writing Tips: Metaphors and Similes Metaphors and similes are common in creative writing, and both use comparisons to tell us something about the world. However, there are some important distinctions between the two. So, before you dive into the seas of literature, let us offer the life jacket of knowledge as we explain the differences between metaphors and similes. We will apologize in advance for all the nautical imagery, but we do enjoy a theme. What Are Metaphors? Metaphors are words or phrases applied in a non-literal way to make a comparison. For example: The winter sea was a dark blue wasteland stretching to the horizon. Here, the metaphor is calling the sea a â€Å"dark blue wasteland.† The sea is not literally a wasteland; if it were, it would be considerably drier. However, by making this comparison, we can suggest that the winter sea shares qualities with a wasteland (e.g., being inhospitable and empty). The essence of a metaphor is that, even though it is not literal, it is stated as if it were. It is not just a comparison: We are saying that the sea is a wasteland, which looks like a literal statement on the surface, so we have to know that it is a metaphor before we can understand it. Metaphors are common in poetry and literature, but they’re also in some everyday phrases. If we say we are â€Å"all at sea,† for instance, we mean that we’re confused, not literally that we are lost on the ocean! Even the term â€Å"table leg† is technically a metaphor, since â€Å"leg† originally applied to limbs only, but it so common now we don’t even notice it. It is therefore known as a dead metaphor. What Are Similes? While metaphors involve suggesting that something is something else, similes are more modest. If we use a simile, we are only saying that something is like something else. For example: The sky rumbled like an argument in the heavens. Here, we’re not suggesting that there was actually an argument going on; we are simply saying that the thunder reminds us of an argument. Similes therefore use terms such as â€Å"like† or â€Å"as if† to indicate they are not literal (e.g., â€Å"the wind seemed angry† or â€Å"we ate as if we were starving†). Metaphors vs. Similes Ultimately, you don’t need to know the differences between metaphors and similes to use them. However, knowing this is essential if you’re writing about literature for a college paper! Remember: A metaphor involves claiming that something is something else to make a comparison A simile only involves claiming that something is like something else

Emperor Montezuma Before the Spanish Arrived

Emperor Montezuma Before the Spanish Arrived Emperor Montezuma Xocoyotzà ­n (other spellings include Motecuzoma and Moctezuma) is remembered by history as the indecisive leader of the Mexica Empire who let Hernan Cortes and his conquistadors into the magnificent city of Tenochtitlan virtually unopposed. Although it is true that Montezuma was unsure of how to deal with the Spaniards and that his indecision led in no small measure to the downfall of the Aztec Empire, this is only part of the story. Before the arrival of the Spanish conquistadors, Montezuma was a renowned war leader, skilled diplomat and an able leader of his people who oversaw the consolidation of the Mexica Empire. A Prince of the Mexica Montezuma was born in 1467, a prince of the royal family of the Mexica Empire. Not one hundred years before Montezumas birth, the Mexica had been an outsider tribe in the Valley of Mexico, vassals of the mighty Tepanecs. During the reign of Mexica leader Itzcotl, however, the Triple Alliance of Tenochtitlan, Texcoco and Tacuba was formed and together they overthrew the Tepanecs. Successive emperors had expanded the empire, and by 1467 the Mexica were the unquestioned leaders of the Valley of Mexico and beyond. Montezuma was born for greatness: he was named after his grandfather Moctezuma Ilhuicamina, one of the greatest Tlatoanis or Emperors of the Mexica. Montezumas Father Axaycatl and his uncles Tà ­zoc and Ahuà ­tzotl had also been tlatoque (emperors). His name Montezuma meant he who makes himself angry, and Xocoyotzà ­n meant the younger to distinguish him from his grandfather. The Mexica Empire in 1502 In 1502, Montezumas uncle Ahuitzotl, who had served as emperor since 1486, died. He left an organized, massive Empire which stretched from the Atlantic to the Pacific and covered most of present-day Central Mexico. Ahuitzotl had roughly doubled the area controlled by the Aztecs, launching conquests to the north, northeast, west and south. The conquered tribes were made vassals of the mighty Mexica and forced to send quantities of food, goods, slaves and sacrifices to Tenochtitlan. Succession of Montezuma as Tlatoani The ruler of the Mexica was called the Tlatoani, which means speaker or he who commands. When it came time to select a new ruler, the Mexica did not automatically select the previous rulers eldest son like they did in Europe. When the old Tlatoani died, a council of elders of the royal family came together to select the next one. The candidates could include all male, high-born relatives of the previous Tlatoani, but since the elders were looking for a younger man with proven battlefield and diplomatic experience, in reality they were choosing from a limited pool of several candidates. As a young prince of the royal family, Montezuma had been trained for warfare, politics, religion and diplomacy from an early age. When his uncle died in 1502, Montezuma was thirty-five years old and had distinguished himself as a warrior, general and diplomat. He had also served as a high priest. He was active in the various conquests undertaken by his uncle Ahuitzotl. Montezuma was a strong candidate, but was by no means his uncles undlisputed successor. He was elected by the elders, however, and became Tlatoani in 1502. Coronation of Montezuma A Mexica coronation was a drawn-out, splendid affair. Montezuma first went into a spiritual retreat for a few days, fasting and praying. Once that was done, there was music, dancing, festivals, feasts and the arrival of visiting nobility from allied and vassal cities. On the day of the coronation, the lords of Tacuba and Tezcoco, the most important allies of the Mexica, crowned Montezuma, because only a reigning sovereign could crown another. Once he had been crowned, Montezuma had to be confirmed. The first major step was to carry out a military campaign for the purposes of acquiring sacrificial victims for the ceremonies. Montezuma chose to war against Nopallan and Icpatepec, vassals of the Mexica who were currently in rebellion. These were in the present-day Mexican State of Oaxaca. The campaigns went smoothly; many captives were brought back to Tenochtitlan and the two rebellious city-states began paying tribute to the Aztecs.   With the sacrifices ready, it was time to confirm Montezuma as tlatoani. Great lords came from all over the Empire once again, and at a great dance led by the rulers of Tezcoco and Tacuba, Montezuma appeared in a wreath of incense smoke. Now it was official: Montezuma was the ninth tlatoani of the mighty Mexica Empire. After this appearance, Montezuma formally handed out offices to his highest ranking officials. Finally, the captives taken in battle were sacrificed. As tlatoani, he was the maximum political, military and religious figure in the land: like a king, general and pope all rolled into one. Montezuma Tlatoani The new Tlatoani had a completely different style from his predecessor, his uncle Ahuitzotl. Montezuma was an elitist: he abolished the title of quauhpilli, which meant Eagle Lord and was awarded to soldiers of common birth who had shown great courage and aptitude in battle and warfare. Instead, he filled all military and civil positions with members of the noble class. He removed or killed many of Ahutzotls top officials. The policy of reserving important posts for the nobility strengthened the Mexica hold on allied states, however. The royal court at Tenochtitlan was home to many princes of allies, who were there as hostages against the good behavior of their city-states, but they were also educated and had many opportunities in the Aztec army. Montezuma allowed them to rise in military ranks, binding them - and their families - to the tlatoani. As tlatoani, Montezuma lived a luxurious life. He had one main wife named Teotlalco, a princess from Tula of Toltec descent, and several other wives, most of them princesses of important families of allied or subjugated city-states. He also had countless concubines and he had many children by these different women. He lived in his own palace in Tenochtitlan, where he ate off of plates reserved for only him, waited on by a legion of servant boys. He changed clothes frequently and never wore the same tunic twice. He enjoyed music and there were many musicians and their instruments at his palace. War and Conquest Under Montezuma During Montezuma Xocoyotzà ­ns reign, the Mexica were in a near-constant state of war. Like his predecessors, Montezuma was charged with preserving the lands he inherited and expanding the empire. Because he inherited a large empire, much of which had been added by his predecessor Ahuitzotl, Montezuma primarily concerned himself with maintaining the empire and defeating those isolated holdout states within the Aztec sphere of influence. In addition, Montezumas armies fought frequent Flower Wars against other city states: the main purpose of these wars was not subjugation and conquest, but rather a chance for both sides to take prisoners for sacrifice in a limited military engagement.   Montezuma enjoyed mostly successes in his wars of conquest. Much of the fiercest fighting took place to the south and east of Tenochtitlan, where the various city-states of the Huaxyacac resisted Aztec rule. Montezuma was eventually victorious in bringing the region to heel. Once the troublesome peoples of the Huaxyacac tribes had been subjugated, Montezuma turned his attention to the north, where warlike Chichimec tribes still ruled, defeating the cities of Mollanco and Tlachinolticpac. Meanwhile, the stubborn region of Tlaxcala remained defiant. It was a region made up of some 200 smallish city-states led by the Tlaxcalan people united in their hatred of the Aztecs, and none of Montezumas predecessors had been able to defeat it. Montezuma tried several times to defeat the Tlaxcalans, launching large campaigns in 1503 and again in 1515. Each attempt to subjugate the fierce Tlaxcalans ended in defeat for the Mexica. This failure to neutralize their traditional enemies would come back to haunt Montezuma: in 1519, Hernan Cortes and the Spanish conquistadors befriended the Tlaxcalans, who proved to be invaluable allies against the Mexica, their most hated foe. Montezuma in 1519 In 1519, when Hernan Cortes and the Spanish conquistadors invaded, Montezuma was at the height of his power. He ruled an empire which stretched from the Atlantic to the Pacific and could summon more than a million warriors. Although he was firm and decisive in dealing with his empire, he was weak when faced with the unknown invaders, which in part led to his downfall. Resources and Further Reading Berdan, Frances: Moctezuma II: la Expansion del Imperio Mexica. Arqueologà ­a Mexicana XVII - 98 (July-August 2009) 47-53.Hassig, Ross. Aztec Warfare: Imperial Expansion and Political Control. Norman and London: University of Oklahoma Press, 1988.Levy, Buddy. . New York: Bantam, 2008.Matos Moctezuma, Eduardo. Moctezuma II: la Gloria del Imperio. Arqueologà ­a Mexicana XVII - 98 (July-August 2009) 54-60.Smith, Michael. The Aztecs. 1988. Chichester: Wiley, Blackwell. Third Edition, 2012.Thomas, Hugh. . New York: Touchstone, 1993.Townsend, Richard F. The Aztecs. 1992, London: Thames and Hudson. Third Edition, 2009Vela, Enrique. Moctezuma Xocoyotzin, El que se muestra enojado, el joven. Arqueologia Mexicana Ed. Especial 40 (Oct 2011), 66-73.

Commentary on quotations Essay Example | Topics and Well Written Essays - 1750 words

Commentary on quotations - Essay Example Unfortunately, greed and ambition got the better of the European colonizers treating Indians, along with other â€Å"inferior† races as indentured servants. The process of colonization was necessary to give the ideas freedom, prosperity, and identity a potent reality in America as a civilization of peoples evolved. Immigration of new settlers coming from various parts of the world and migration to the west enabled cultural interactions which resulted to the conscious awareness of cultural differences. As history begins to unfold, the definition between savagery and civilization has become clear. As people of different backgrounds emerged, their motives which were easily characterized by their actions, defines what the word civilize truly means. "Twenty years ago, half our continent was an unknown land, and the Rocky Mountains were our pillars of Hercules. Five years hence, the Orient will be our next door neighbor. We shall hold the worlds granary, the worlds treasury, the worlds highway. But we shall have no West, no border, no Civilization, in line of battle, pressing back hostile savages, and conquering hostile nature.† (p.10) Richard White wrote about the frontier in American culture based on Frederick Jackson Turners academic paper entitled The Significance of the Frontier in American History. The quote is a reminiscence of the past and the prediction of what was to come in the future, seeing the how things have been going at present and for the last quarter of a century, the end of the frontier is very imminent. Immigrants have suppressed the pioneers, referred to as savages, so that the land could be theirs. As a civilization of peoples evolved, a strong, rich, and progressive America was born. Yet, being civilized ended on a superficial level because overcoming of mans hostile nature proved to be a never ending struggle. A speech by Captain Pipe, Hopocan, in 1781, a

What causes wars Essay Example | Topics and Well Written Essays - 1750 words

What causes wars - Essay Example Second reason for failure to bargain is that resources that parties can take over through a war have higher benefits than the benefits that may be obtained from reaching an agreement (Schultz, 2001, p.55). Thirdly, there may be a difference between the benefits that the leaders foresee and the benefits that the population foresees. Fourthly, information about the advantages and disadvantages of having a war are unclear to both the parties and, lastly, agreement cannot be practiced because other parties involved are against all agreements. A war may end up lasting longer if both the sides fail to reach an agreement or if the sides keep realizing that the cost of war is lower than its benefit. While on the other hand, if a war starts as there is little or unclear information of the strength of the parties, and as the war continues and information becomes clearer, the possibility of reaching an agreement becomes higher and the chances of the war ending soon even increases. Reasons that lead to failure to bargain between two parties are considered as rational reasons for war, but in general there are various irrational causes of war (Levy, 2010, p.67). These causes have certain amount of rationality as these causes are related to bargaining failures. Religion has been a cause of war for several years, two countries or states having different religious believes fight against each other on the basis of war (Salter, 1932, p.21). In this cause of war, it is thought that there is no material involvement, while the idea behind this cause of war may be to eradicate the existence of the population of one religion or increasing the population of one of the religious party at war. In this cause of war, parties fail to reach an agreement as they believe that they are being directed to fight this war by a higher authority. Leaders in this kind of war fail to reach an agreement as

Diminishing American Pride Essay Example for Free

Diminishing American Pride Essay The book Zeitoun basically talks about a Syrian American family’s experience in the time of Hurricane Katrina. It was mainly divided into two story lines, one of Abdulrahman Zeitoun, the main character, a Syrian American contractor; and one of Kathy, his wife, a white woman converted Muslim. Zeitoun had an extraordinary life, also an extraordinary experience in the time of Hurricane Katrina. He was a successful well-known businessman in local area. When everyone else was fleeing their hometown before Katrina came, Zeitoun chose to stay to protect his house and business. Later then when the city was flooded, he travelled around with his small canoe, delivering help and resources. However, he was wrong arrested as a looting suspect then and was sent into jail. He was treated as a terrorist and taken away the right of fair trial, forced to confine in a maximum security prison for a crime he didn’t commit. At the end, Zeitoun was released and able to unite with his family again, but he was not compensated in any ways for his misfortune. As this book describes, everything in the time of Hurricane Katrina had gone crazy, including the American criminal justice system. The main objection of this book is to criticize racism phenomenon in America and the rotten criminal justice system. Racism is a main subject in this book. It was first mentioned in this book in Kathy’s story line about her past life experience. â€Å"Years earlier, Kathy and her mother had gone to the DMV together to have Kathy’s license renewed. Kathy was wearing her hijab, and had already received a healthy number of suspicious looks from DMV customers and staff by the time she sat down to have her picture taken. The employee behind the camera did not disguise her contempt. ‘Take that thing off,’ the woman said. † (Zeitoun page 58) From the mentioning of these kinds of past experience seemed irrelevant to Hurricane Katrina, we can see the author’s desire to insert the topic of racism into this book. Kathy’s case shrinks small comparing to Zeitoun’s case in his arrest. â€Å"‘You guys are al Qaeda,’ the soldier said. Todd laughed derisively, but Zeitoun was startled. He could not have heard right. Zeitoun had long feared this day would come. Each of the few times he had been pulled over for a traffic violation, he knew the possibility existed that he would be harassed, misunderstood, suspected of shadowy dealing that might bloom in the imagination of any given police officer. After 9/11, he and Kathy knew that many imaginations had run amok, that the introduction of the idea of ‘sleeper cells’- groups of would-be terrorists living in the U. S. and waiting, for years or decades, to strike- meant that everyone at their mosque, or the entire mosque itself, might be waiting for instructions from their presumed leaders in the hills of Afghanistan or Pakistan. (Zeitoun page 212) It didn’t surprise me at all that Zeitoun have those thoughts that might seem over-worried in some people’s eyes.. Indeed, another author Maysan Haydar had mentioned similar thoughts in her essay â€Å"Veiled Intentions: Don’t Judge a Muslim Girl by Her Covering. † â€Å"Now some people hold their breath a bit longer, assuming I’m a fundamentalist or wondering if I’m there to cause them harm. I sense people studying me on the trains, reading the cover of the book in my hand and trying to gauge if I am one of ‘us’ or one of ‘them’. I grapple with the frustration that I can’t reassure everyone individually that my goals have everything to do with social justice and nothing to do with holy war. But I have seen suspicious fade in the eyes of the pregnant woman to whom I’ve given my subway seat or the Hasidic man whose elbow I’ve taken to help him up the stairs. † (Haydar pg 406) I feel very sorry for Haydar and Zeitoun’s experiences. Muslim people are always feared to be presumed as terrorist. American frightened by the traumatic event of 9-11 developed a stereotype against people from Middle East. The fear of being attack also again drove American crazy on national security. However, for whatever reason, racism has put upon so much harm on people we discriminate against. Muslim people like Zeitoun, hard working and honest people, are forced to live under the fear of being prosecuted for his race someday, taken away from his family, locked up in somewhere nobody would know he’s died or not. Those fears have made them coward under a lowly skin, live like second-class citizens. â€Å"In the weeks after the attacks on the Twin Towers, Kathy saw very few Muslim women in public. She was certain they were hiding, leaving home only when necessary. In Late September, she was in Walgreens when she finally saw a woman in a hijab. She ran to her. ‘Salaam alaikum! ’ she said, taking the woman’s hands. The woman, a doctor studying at Tulane, had been feeling the same way, like an exile in her own country, and they laughed at how delirious they were to see each other. † (Zeitoun page 46) Indeed, as part of international society, American allowed people to be exiled from their own country. In Edward Said’s essay, â€Å"States†, he escribed how they, Palestinian people was exiled from their own country and forced to scatter around the world, be denied of personal identity everywhere. †Some Israeli settlers on the West Bank say: ‘The Palestinians can stay here, with no rights, as resident aliens. ’ Other Israelis are less kind. † (Said pg 546) â€Å"The fact is that today I can neither return to the places of my youth, nor voyage freely in the countries and places that mean the most to me, nor feel safe from arrest or violence even in the countries I used to frequent but whose governments and policies have changed radically in recent times. (Said pg 547) In a documentary I have watched, in some cases, if a Palestinian wants to travel from points to points, they have to go through checkpoints set up by local military. They would be asked to show their prove of identity and relevant documents which sources were mostly denied. Nobody tell them what to do then, no laws protect them, some of them can’t even go to hospitals and schools like every other human being in the course that they don’t have a legal identity. We as adults, teach our kids not to bully in school, that it’s wrong to do so. In contrast, as a human, we allow our country, ourselves to bully on people with a different skin tone. Isn’t this hilarious? Another main subject posted in this book is the criminal justice system in America. Zeitoun was initially arrested in his house, then taken to the bus station, naked searched and put in jail. Throughout the whole process, he had never been told of his charges, no phone calls granted, no one had ever given him a chance to defend himself or to find a lawyer. He was treated as terrorist. In the course of his Middle-Eastern accent, everything about him seemed suspicious to the guards. He was kept in inhumane confinement, was given pork for food despite his religion. He had a deep wound in his feet but was never treated nor given any medical attention. There were basically no laws in effect, Zeitoun was treated as if he wasn’t an American citizen anymore, constitutions and laws don’t protect him. â€Å"Watching the evidence on the table mount, Zeitoun’s shoulders slackened. Most municipal systems were not functioning. There were no lawyers in the station, no judges. They would not talk their way out of this. The police and soldiers in the room were too worked up, and the evidence was too intriguing. (Zeitoun 215) But the most disappointing fact about this is what t I found out later in the book, that all of this happened to Zeitoun was not special cases happened once or twice, it was somehow permitted. â€Å"But knowing that Zeitoun’s ordeal was caused instead by systemic ignorance and malfunction- and perhaps long-festering paranoia on the part of the National Guard and whatever other agencies were involved-was unsettling. It said, quite clearly, that this wasn’t a case of a bad apple or two in the barrel. The barrel itself was rotten. (Zeitoun 307) This is totally different from what I learnt from my administration of justice class. The whole process is wrong. How could an innocent person be justified this way? Not even a phone call allowed. It is nothing better than abduction. Who gave government the right to treat people like this? I guess under the name of National Security, there’s nothing government can’t do, all laws and constitutions could be undermined. James Bamford, author of essay â€Å"Wired† pointed out the same point, says in his essay, â€Å"’They violated the Constitution setting it up. He says bluntly. â€Å"But they d idn’t care. They were going to do it anyway, and they were going to crucify anyone who stood in the way. ’† â€Å"Basically all rules were thrown out the window, and they would use any excuse to justify a waiver to spy on Americans. † (Wired pg 0843,, 084) National Security, initially served the principle of protecting Americans has become a tool to against Americans. â€Å"The NSA has turned its surveillance apparatus on the US and its citizens. It has established listening posts throughout the nation to collect and sift through billions of email messages and phone calls, whether they originate within the country or overseas. It has created a supercomputer of almost unimaginable speed to look for patterns and unscramble codes. Finally, the agency has begun building a place to store all the trillions of words and thoughts and whispers captured in its electronic net. † (Wired pg 81) Isn’t it scary to know our government has already gone this far for â€Å"National Security†? Anyone is a target of NSA. But who is more prone to be checked on? I believe this could be linked again to the topic of racism. Look back to Zeitoun and his fellows’ arrest; I believe they would never have been presumed as terrorists, despite the same context and evidence, if all four of them are white. The book Zeitoun serves more than a journalism. Dave Egger cleverly brought out these two important topics to us through the book. Could we still call our country States of freedom and equality after learning all these previously unknown facts? It’s time for people to stand up to protect the prides of America, fix our criminal justice system, drive racism into history and look forward to a better, true States of freedom and equality.

Mirror for Man - People are the way that they are Raised :: Mirror for Man Essays

  Ã‚  Ã‚  Ã‚  Ã‚   Kluckhohn explained the differences and similarities among the world's peoples by taking different life examples of different cultured people and compared them to another person who was raised up in a different lifestyle. At first, he brought up several questions, asking why certain people do or don't do certain things. These questions were served as guides, which led on to the examples. They also served as attraction to the readers who are curious about different people from another culture. Then he went on to compare people from different cultures in his examples. He compared an American woman, who restricts her husband to only one mate, with a Koryak woman, who shares her husband with another woman; an American raised in China with the Americans raised here in the United States; and lastly, he compared people's reactions from eating the meat of chicken or tuna fish to that of a rattlesnake. Kluckhohn has a strong point in viewing human's culture. I agree with his definition of culture -- "the part of the environment that is the creation of human beings." People react to things differently because they were raised up in different environments with different cultures. No matter who the person is, or where he (or she) was born, his behavior and his personality traits developments would depend on the environment that he is living in. The way people think, feel, react, and behave also are depended upon life experiences. They feel different emotions because they have felt this emotional happiness or sadness before. They think what is right and what is wrong because they have learned from past experiences. They react to different things because they experienced things that please them and the things that displease them. They behave in certain ways because they want to design their way of living into what they have admired from other people's lives. I was born in Hong Kong, the school systems and the people living there are very strict in comparing with the United States. Over in Hong Kong, students go to school for seven hours and then they would go home and spend another seven or eight hours on homework. The school system really forces you to study and do your homework to stay up with the rest of the class. But yet, the students would accept the homework assignments without complaining because they are use to doing so much homework and taking the pressure.

Hypocrisy in Democracy Essay

Freedom of Speech Silence What is democracy? Democracy is a form of government where the people rule, not a dictator, a king or aristocrats. Democracy means that people have a say in law and state. This is impossible to do without a voice. How are people supposed to run the government if they aren’t allowed to speak their mind? This is hypocrisy. That is like telling someone they can travel where ever they want as long as it is in this little box. Our voice is the most important tool and weapon that we have possession of. Without our voice, we are nothing. American is â€Å"the land of the free and the home of the brave† or at least it is supposed to be. Certain people, like college presidents and other leaders are trying to take away the freedom that Americans have. If they succeed in taking away our rights and freedoms, America will no longer be a democracy. America will turn into a dictatorship. This is unacceptable. It is written in the constitution that Americans h ave freedom of speech. Freedom of expression and speech is the First Amendment, the first. It is the first because it is the most important. Without freedom of speech; people are unable to learn and grow, unable to find themselves and stand out, and unable to stand up for what they believe in. If universities get rid of freedom of speech, people will be incapable of learning and developing into the person they should be. Mistakes teach people more than anything else could. Mistakes might not be made if freedom of speech is taken away; if they are made others would be unable to tell them for fear they might embarrass them. Even worse than that, people would be unable to learn and discuss about history for fear of hurting other people. Keith John Sampson was said to be guilty for public racial harassment for reading a history book. This book was about the KKK and how the Irish defeated them. It was a complete anti-Klan book and a history book, but the university didn’t care. Sampson was just trying to expand his knowledge, but he was to be punished. They claimed that he was guilty of reading a book that has a lot of bad feelings behind it in public. However, it is a history book. It is something people learn about in school. The only way to prevent the past from happening again is to learn about it, no matter how bad it is. If the universities take away the right to learn and discuss about the past, we are doomed to repeat it. Besides learning about mistakes, freedom of speech also allows people to discover themselves. College is the first time that people are able to do what they want. They decided what times they want to go to school and what classes they want to take. College is when people find themselves. They find out what they want to do, what the love and who they are. One of the ways people do this is by expression, which falls under the freedom of speech. How can people grow if they are confined in a small box? They can’t grow; they can’t become the people they are supposed to be. College is about exploring, making mistakes, and discovering their life path. College is supposed to be freeing. One of the biggest reason people go to college, besides getting a degree for a better futu re, is to discover themselves. If universities ban self expression people will stop going to college. People will start dropping out and unemployment will sky rocket. The main reason people go to college on campus is for all the experience. If people will still get a college education, they will take online courses and there will be no need for campuses or presidents or staff. They will all lose their jobs. However, the most important thing that will be lost without freedom of speech is the right to stand up for what we believe in. Without freedom of speech, people will not be able to stand up for they believe in. without peoples powerful voices, the world wouldn’t be where it is today. This is why the First Amendment was made, to make sure that people would always be able to speak out and stand up. Unfortunately, people are trying to take that right away. Hayden Barnes, a former Valdosta student, was almost expelled for standing up for what he believes in. The University was planning to spend forty million dollars to build a parking garage. Barnes didn’t like this. He believed that all the money would be better off going to something different. He started protesting the building of the garage. The president of the University was extremely mad. He was the one who wanted to make the garage and he didn’t want someone to stop him. He started going out of his way to get Barnes expelled from school. He looked into Barnes’s background and even looked into his social networks to see what he put on there. Barnes was almost kicked out of school for what he stood up for. No one should ever be afraid to say what they believe and what they stand for. People have the desire to be in control and take rights away from people. Thankfully we have rights and regulations that don’t let them take away what is ours. The First Amendment was made to make sure that everyone in America has the right to express themselves through words and actions. Also, thankfully, there are people who fight for our rights when people try to take them away. FIRE is there to help anyone who needs it. When there are people trying to take away rights, it is wonderful to know that someone will be there to help.

Weighted Average Cost of Capital and Midland Energy

Executive Summary: Midland Energy Resources, Inc. is a global energy company with a broad array of products and services. The company operates within three different operations including oil and gas exploration and production (E&P), refining and marketing (R&M), and petrochemicals. Midland has proven to be a very profitable company, with reported operating revenue of $248. 5 billion and operating income of $42. 2 billion. The company has been in business for over 120 years and employed more than 80,000 individuals.Janet Mortensen, the senior vice president of project finance for Midland Energy Resources, has been asked to calculate the weighted average cost of capital (WACC) for the company as a whole, as well as each of its three divisions as part of an annual budgeting process. Midland’s Three Divisions: Exploration & Production Oil exploration and production (E&P) is Midland’s most profitable business, and its net margin over the previous five years was among the hig hest in the industry.With oil prices at historic highs in early 2007, Midland anticipated heavy investment in acquisitions of promising properties, in development of its proved undeveloped reserves, and in expanding production. They also needed to account for competition from areas such as the Middle East, Central Asia, Russia, and West Africa. Refining and Marketing Midland had ownership interests in forty refineries around the world with distillation capacity of five million barrels a day. Measured by revenue, this side of the business was Midland’s largest. The relatively small margin was consistent with a long-term trend in the industry.Margins had declined steadily over the previous twenty years. Petrochemicals Petrochemicals is Midland’s smallest but most promising and undervalued division. Midland owned twenty-five manufacturing facilities and five research centers in eight countries around the world. Capital spending in petrochemicals was expected to grow in th e near term. [Midland Energy Case Analysis] Managerial Finance 1 In order to find the cost of capital for Midland Energy Resources and each of the three divisions within the company, we will need to use the formula or weighted average cost of capital (WACC) which is: ( )( rd= Cost of debt re= Cost of equity D= Market value of debt E= Market value of equity V= D+E= Value of the company (or division) T= Tax rate First, we can calculate â€Å"rd† for each division as it is outlined in the case by adding a premium/spread over US Treasury securities of a similar maturity. In other words: ( The two tables in the case are as follows: Table 1 Business Segment Consolidated E&P R&M Petrochemicals Credit Rating A+ A+ BBB AATable 2 Maturity 1-Year 10-Year 30-Year Rate 4. 54% 4. 66% 4. 8% Debt/Value 42. 2% 46. 0% 31. 0% 40. 0% Spread to Treasury 1. 62% 1. 60% 1. 80% 1. 35% ) ) ( ) *For my calculation, I used the 30-year maturity for E&P, R&M, and Midland as a whole as they take on longer term projects. I used the 1-year for petrochemicals as they tend to take on short term projects. [Midland Energy Case Analysis] Managerial Finance 2 Calculations are as follows: rd for Exploration & Production: rd for Refining & Marketing: rd for Petrochemicals: rd for Midland: Second, we need to calculate â€Å"re† for the three divisions as well as Midland as a whole.To find â€Å"re†, we will use the CAPM model outlined in the case: ( ) In order to solve this equation, we need to find beta for the three divisions. The case already outlines Midland’s overall beta at 1. 25. However, the case does not state the beta for the three divisions. We can calculate this using beta for publicly traded companied outlined in the case. Using the following formula, as well as exhibit 5 in the case, we can calculate beta for the three divisions: * ( ) ( )+ [Midland Energy Case Analysis] Managerial Finance 3 Exhibit 5(from case) Exploration & Production: Jackson Energy, Inc.Wi de Plain Petroleum Corsicana Energy Corp Worthington Petroleum Average Refining & Marketing: Bexar Energy, Inc. Kirk Corp. White Point Energy Petrarch Fuel Services Arkana Petroleum Corp. Beaumont Energy, Inc. Dameron Fuel Services Average Midland Energy Resources Equity Market Value 57,931 46,089 42,263 27,591 Net Debt 6,480 39,375 6,442 13,098 D/E 11. 20% 85. 40% 15. 20% 47. 50% 39. 80% Equity Beta 0. 89 1. 21 1. 11 1. 39 1. 15 LTM Revenue 18,512 17,827 14,505 12,820 LTM Earnings 4,981 8,495 4,467 3,506 60,356 15,567 9,204 2,460 18,363 32,662 48,796 6,200 3,017 1,925 -296 5,931 6,743 24,525 0. 30% 19. 40% 20. 90% 12. 00% 32. 30% 20. 60% 50. 30% 20. 30% 1. 7 0. 94 1. 78 0. 24 1. 25 1. 04 1. 42 1. 2 160,708 67,751 31,682 18,874 49,117 59,989 58,750 9,560 1,713 1,402 112 3,353 1,467 4,646 134,114 79,508 59. 30% 1. 25 251,003 18,888 Again the calculation to find Asset ? is: * Equity ? for Midland= 1. 25 ( ) ( )+ Equity ? for E&P= 0. 93*[1+ (1-39. 73%)*85. 19%] =1. 41 Equity? for R&M= 1. 05*[1+ (1-39. 73%)*44. 93%] = 1. 33 *85. 19% and 44. 93% come from Exhibit 1 in the case In order to get Equity ? for Petrochemicals, we will need to take a weighted average of the three divisions.The equation would be as follows: (w1, w2, w3 are based on the total assets of a division divided by Midland’s total assets). To find this, we will use the numbers from Exhibit 3 in the case: [Midland Energy Case Analysis] Managerial Finance 4 2004 E&P 76,866 R&M 60,688 Petro 19,943 Midland 157,497 2005 125,042 2006 140,100 Avg 114,002. 67 91,629 93,829 82,048. 67 28,000 28,450 25,464. 33 244,671 262,378 221,515. 33 Calculation for w1-3: W1= 114,002. 67/221,515. 33= 0. 51 W2= 82,048. 67/221525. 33= 0. 37 W3= 25,464. 33/221,515. 33= 0. 2 Now we can use the formula from before to find the ? for Petrochemicals: Lastly, we need to find EMRP to find â€Å"re† for Midland and the three divisions. We can find our EMRP number by looking at exhibit 6 in the case: Period 1987-2006 1 967-2006 1926-2006 1900-2006 1872-2006 1798-2006 Average excess return US Equities – T-Bonds 6. 4% 4. 8% 7. 1% 6. 8% 5. 9% 5. 1% Standard Error 3. 7% 2. 6% 2. 2% 1. 9% 1. 6% 1. 2% I will choose to use the average return from the time period of 1798-2006. That is the longest sample size in regards to time, as well as having the lowest standard of error.I will round down to 5% for ease of calculation: [Midland Energy Case Analysis] Managerial Finance 5 ( â€Å"re† for Midland= 4. 98%+5%*1. 25= 11. 23% â€Å"re† for E&P= 4. 98%+5%*1. 41= 12. 03% â€Å"re† for R&M= 4. 98%+5%*1. 33= 11. 63% â€Å"re† for Petrochemicals= 4. 54%+5%*0. 32= 6. 14% ) With this information, we are able to finally calculate the weighted average cost of capital (WACC) for Midland and the 3 divisions of the company. The formula and calculations are as follows: ( )( ) ( ) *D/V are provided in Table 1 for Midland, E&P, R&M, and Petrochemicals. They are 42. 2%, 46. %, 31. 0%, 40. 0 % respectively. WACC-cost of capital we need: WACC for E&P: ( =8. 32% WACC for R&M: ( =9. 29% WACC for Petrochemicals: ( =5. 10% WACC for Midland: ( =9. 17% [Midland Energy Case Analysis] Managerial Finance 6 ) ) ) ) The cost of capital (as shown above) will differ for the three divisions because the business operates in different industries. By being in different industries, the companies have different risk exposure and betas, while also having different credit ratings. All of these components will affect a company’s cost of capital differently.Further Analysis: Mortensen’s estimates were used for many things including performance assessments, mergers and acquisition proposals, stock repurchases, asset appraisals, and financial accounting. As stated in the case, cost of capital is a very important component in WACC calculations. These calculations were being used to evaluate at a divisional level as well as at a corporate level as a whole. In my calculations for the case, I solved for both levels. In regards to Midland’s corporate WACC, Mortensen computed the cost of debt for each division by adding a premium (or â€Å"spread†) over U.S. Treasury securities with an appropriate maturity depending on the division. For Exploration and Production (E&P), Refining and Marketing (R&M), as well as Midland as a corporation, Mortensen used a 30 year maturity TBond assumption as those divisions tended to focus on longer term projects. She decided on a 1 year T-Bond maturity assumption for Petrochemicals as they tended to focus on shorter term projects. Another assumption was that the tax rate (39. 73%) remained constant throughout the case as well as an EMRP of 5%.The EMRP was based on exhibit 6 of the case which examined TBonds during a certain period of time and with a certain standard of error. With a very low standard of error (based on the chart) and advisors, bankers, and investors covering the industry agreeing with 5% as an estimate, I believe the estimate to be appropriate. Analysts on the industry, bankers, and investors tend to have a broader look on companies within an industry as a whole. Lastly, Midland should not use a single corporate hurdle rate for evaluating investment opportunities in all of its divisions because each division is different.Midland is too large of a corporation, with different divisions, each containing its own unique set of risks. Due to the fact that the risk for each division will be different, I believe the corporate hurdle rates for those divisions should also be different to reflect a more accurate corporate assessment. I believe Mortensen did a great job with the information she was presented with in the case and I believe Midland Energy will continue to be a prominent company within the industry. [Midland Energy Case Analysis] Managerial Finance 7

Accounting Standard 7 Essay Example

Accounting Standard 7 Essay Example Accounting Standard 7 Essay Accounting Standard 7 Essay Accounting Standard (AS) 7* (revised 2002) Construction Contracts (This Accounting Standard includes paragraphs set in bold italic type and plain type, which have equal authority. Paragraphs in bold italic type indicate the main principles. This Accounting Standard should be read in the context of its objective and the Preface to the Statements of Accounting Standards 1 . Accounting Standard (AS) 7, Construction Contracts (revised 2002), issued by the Council of the Institute of Chartered Accountants of India, comes into effect in respect of all contracts entered into during accounting periods commencing on or after 1-4-2003 and is mandatory in nature2 from that date. Accordingly, Accounting Standard (AS) 7, ‘Accounting for Construction Contracts’, issued by the Institute in December 1983, is not applicable in respect of such contracts. Early application of this Standard is, however, encouraged. The following is the text of the revised Accounting Standard. Objective The objective of this Statement is to prescribe the accounting treatment of revenue and costs associated with construction contracts. Because of the nature of the activity undertaken in construction contracts, the date at which the contract activity is entered into and the date when the activity is completed usually fall into different accounting periods. Therefore, the primary issue in accounting for construction contracts is the allocation of contract revenue and contract costs to the accounting periods in which construction work is * Originally issued in December 1983 and titled as ‘Accounting for Construction Contracts’. Attention is specifically drawn to paragraph 4. 3 of the Preface, according to which Accounting Standards are intended to apply only to items which are material. 1 Reference may be made to the section titled ‘Announcements of the Council regarding status of various documents issued by the Institute of Chartered Accountants of India’ appearing at the beginning of this Compendium for a detailed discussion on the implications of the mandatory status of an accounting standard. 2 110 AS 7 (revised 2002) performed. This Statement uses the recognition criteria established in the Framework for the Preparation and Presentation of Financial Statements to determine when contract revenue and contract costs should be recognised as revenue and expenses in the statement of profit and loss. It also provides practical guidance on the application of these criteria. Scope 1. This Statement should be applied in accounting for construction contracts in the financial statements of contractors. Definitions 2. The following terms are used in this Statement with the meanings specified: A construction contract is a contract specifically negotiated for the construction of an asset or a combination of assets that are closely interrelated or interdependent in terms of their design, technology and function or their ultimate purpose or use. A fixed price contract is a construction contract in which the contractor agrees to a fixed contract price, or a fixed rate per unit of output, which in some cases is subject to cost escalation clauses. A cost plus contract is a construction contract in which the contractor is reimbursed for allowable or otherwise defined costs, plus percentage of these costs or a fixed fee. 3. A construction contract may be negotiated for the construction of a single asset such as a bridge, building, dam, pipeline, road, ship or tunnel. A construction contract may also deal with the construction of a number of assets which are closely interrelated or interdependent in terms of their design, technology and function or their ultimate purpose or use; examples of such contracts include those for the construction of refineries and other complex pieces of plant or equipment. 4. For the purposes of this Statement, construction contracts include: (a) contracts for the rendering of services which are directly related Construction Contracts 111 o the construction of the asset, for example, those for the services of project managers and architects; and (b) contracts for destruction or restoration of assets, and the restoration of the environment following the demolition of assets. 5. Construction contracts are formulated in a number of ways which, for the purposes of this Statement, are classified as fixed price contracts and cost plus contracts. Some construction contracts may contain characteristics of both a fixed price con tract and a cost plus contract, for example, in the case of a cost plus contract with an agreed maximum price. In such circumstances, a contractor needs to consider all the conditions in paragraphs 22 and 23 in order to determine when to recognise contract revenue and expenses. Combining and Segmenting Construction Contracts 6. The requirements of this Statement are usually applied separately to each construction contract. However, in certain circumstances, it is necessary to apply the Statement to the separately identifiable components of a single contract or to a group of contracts together in order to reflect the substance of a contract or a group of contracts. . When a contract covers a number of assets, the construction of each asset should be treated as a separate construction contract when: (a) separate proposals have been submitted for each asset; (b) each asset has been subject to separate negotiation and the contractor and customer have been able to accept or reject that part of the contract relating to each asset; and (c) the costs and revenues of each asset can be identified. 8. A group of contracts, whether with a single customer or with several customers, should be treated as a single construction contract when: (a) the group of contracts is negotiated as a single package; (b) the contracts are so closely interrelated that they are, in effect, part of a single project with an overall profit margin; and 112 AS 7 (revised 2002) (c) the contracts are performed concurrently or in a continuous sequence. 9. A contract may provide for the construction of an additional asset at the option of the customer or may be amended to include the construction of an additional asset. The construction of the additional asset should be treated as a separate construction contract when: (a) the asset differs significantly in design, technology or function from the asset or assets covered by the original contract; or (b) the price of the asset is negotiated without regard to the original contract price. Contract Revenue 10. Contract revenue3 should comprise: (a) the initial amount of revenue agreed in the contract; and (b) variations in contract work, claims and incentive payments: (i) to the extent that it is probable that they will result in revenue; and (ii) they are capable of being reliably measured. 1. Contract revenue is measured at the consideration received or receivable. The measurement of contract revenue is affected by a variety of uncertainties that depend on the outcome of future events. The estimates often need to be revised as events occur and uncertainties are resolved. Therefore, the amount of contract revenue may increase or decrease from one period to the next. For example: (a) a contractor and a customer may agree to variations or claims that increase or decrease contract revenue in a period subsequent to that in which the contract was initially agreed; b) the amount of revenue agreed in a fixed price contract may increase as a result of cost escalation clauses; (c) 3 the amount of contract revenue may decrease as a result of See also Accounting Standards Interpretation (ASI) 29 published elsewhere in this Compendium. Construction Contracts 113 penalties arising from delays caused by the contractor in the completion of the contract; or (d) when a fixed price contract involves a fixed price per unit of output, contract revenue increases as the number of units is increased. 2. A variation is an instruction by the customer for a change in the scope of the work to be performed under the contract. A variation may lead to an increase or a decrease in contract revenue. Examples of variations are changes in the specifications or des ign of the asset and changes in the duration of the contract. A variation is included in contract revenue when: (a) it is probable that the customer will approve the variation and the amount of revenue arising from the variation; and b) the amount of revenue can be reliably measured. 13. A claim is an amount that the contractor seeks to collect from the customer or another party as reimbursement for costs not included in the contract price. A claim may arise from, for example, customer caused delays, errors in specifications or design, and disputed variations in contract work. The measurement of the amounts of revenue arising from claims is subject to a high level of uncertainty and often depends on the outcome of negotiations. Therefore, claims are only included in contract revenue when: (a) negotiations have reached an advanced stage such that it is probable that the customer will accept the claim; and (b) the amount that it is probable will be accepted by the customer can be measured reliably. 14. Incentive payments are additional amounts payable to the contractor if specified performance standards are met or exceeded. For example, a contract may allow for an incentive payment to the contractor for early completion of the contract. Incentive payments are included in contract revenue when: (a) the contract is sufficiently advanced that it is probable that the specified performance standards will be met or exceeded; and (b) the amount of the incentive payment can be measured reliably. 114 AS 7 (revised 2002) Contract Costs 15. Contract costs should comprise: (a) costs that relate directly to the specific contract; (b) costs that are attributable to contract activity in general and can be allocated to the contract; and (c) such other costs as are specifically chargeable to the customer under the terms of the contract. 6. Costs that relate directly to a specific contract include: (a) site labour costs, including site supervision; (b) costs of materials used in construction; (c) depreciation of plant and equipment used on the contract; (d) costs of moving plant, equipment and materials to and from the contract site; (e) costs of hiring plant and equipment; (f) costs of design and technical assistance that is directl y related to the contract; the estimated costs of rectification and guarantee work, including expected warranty costs; and g) (h) claims from third parties. These costs may be reduced by any incidental income that is not included in contract revenue, for example income from the sale of surplus materials and the disposal of plant and equipment at the end of the contract. 17. Costs that may be attributable to contract activity in general and can be allocated to specific contracts include: (a) insurance; Construction Contracts 115 b) costs of design and technical assistance that is not directly related to a specific contract; and (c) construction overheads. Such costs are allocated using methods that are systematic and rational and are applied consistently to all costs having similar characteristics. The allocation is based on the normal level of construction activity. Construction overheads include costs such as the preparation and processing of construction personnel payroll. Costs that may be attributable to contract activity in general and can be allocated to specific contracts also include borrowing costs as per Accounting Standard (AS) 16, Borrowing Costs. 18. Costs that are specifically chargeable to the customer under the terms of the contract may include some general administration costs and development costs for which reimbursement is specified in the terms of the contract. 19. Costs that cannot be attributed to contract activity or cannot be allocated to a contract are excluded from the costs of a construction contract. Such costs include: (a) general administration costs for which reimbursement is not specified in the contract; (b) selling costs; (c) research and development costs for which reimbursement is not specified in the contract; and (d) depreciation of idle plant and equipment that is not used on a particular contract. 20. Contract costs include the costs attributable to a contract for the period from the date of securing the contract to the final completion of the contract. However, costs that relate directly to a contract and which are incurred in securing the contract are also included as part of the contract costs if they can be separately identified and measured reliably and it is probable that the contract will be obtained. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs when the contract is obtained in a subsequent period. 116 AS 7 (revised 2002) Recognition of Contract Revenue and Expenses 21. When the outcome of a construction contract can be estimated reliably, contract revenue and contract costs associated with the construction contract should be recognised as revenue and expenses respectively by reference to the stage of completion of the contract activity at the reporting date. An expected loss on the construction contract should be recognised as an expense immediately in accordance with paragraph 35. 22. In the case of a fixed price contract, the outcome of a construction contract can be estimated reliably when all the following conditions are satisfied: (a) total contract revenue can be measured reliably; (b) it is probable that the economic benefits associated with the contract will flow to the enterprise; (c) both the contract costs to complete the contract and the stage of contract completion at the reporting date can be measured reliably; and (d) the contract costs attributable to the contract can be clearly identified and measured reliably so that actual contract costs incurred can be compared with prior estimates. 3. In the case of a cost plus contract, the outcome of a construction contract can be estimated reliably when all the following conditions are satisfied: (a) it is probable that the economic benefits associated with the contract will flow to the enterprise; and (b) the contract costs attributable to the contract, whether or not specifically reimbursable, can be clear ly identified and measured reliably. 24. The recognition of revenue and expenses by reference to the stage of completion of a contract is often referred to as the percentage of completion method. Under this method, contract revenue is matched with the contract Construction Contracts 117 costs incurred in reaching the stage of completion, resulting in the reporting of revenue, expenses and profit which can be attributed to the proportion of work completed. This method provides useful information on the extent of contract activity and performance during a period. 25. Under the percentage of completion method, contract revenue is recognised as revenue in the statement of profit and loss in the accounting periods in which the work is performed. Contract costs are usually recognised as an expense in the statement of profit and loss in the accounting periods in which the work to which they relate is performed. However, any expected excess of total contract costs over total contract revenue for the contract is recognised as an expense immediately in accordance with paragraph 35. 26. A contractor may have incurred contract costs that relate to future activity on the contract. Such contract costs are recognised as an asset provided it is probable that they will be recovered. Such costs represent an amount due from the customer and are often classified as contract work in progress. 7. When an uncertainty arises about the collectability of an amount already included in contract revenue, and already recognised in the statement of profit and loss, the uncollectable amount or the amount in respect of which recovery has ceased to be probable is recognised as an expense rather than as an adjustment of the amount of contract revenue. 28 . An enterprise is generally able to make reliable estimates after it has agreed to a contract which establishes: (a) each party’s enforceable rights regarding the asset to be constructed; (b) the consideration to be exchanged; and (c) the manner and terms of settlement. It is also usually necessary for the enterprise to have an effective internal financial budgeting and reporting system. The enterprise reviews and, when necessary, revises the estimates of contract revenue and contract costs as the contract progresses. The need for such revisions does not necessarily indicate that the outcome of the contract cannot be estimated reliably. 29. The stage of completion of a contract may be determined in a variety 118 AS 7 (revised 2002) of ways. The enterprise uses the method that measures reliably the work performed. Depending on the nature of the contract, the methods may include: (a) the proportion that contract costs incurred for work performed upto the reporting date bear to the estimated total contract costs; or (b) surveys of work performed; or (c) completion of a physical proportion of the contract work. Progress payments and advances received from customers may not necessarily reflect the work performed. 30. When the stage of completion is determined by reference to the contract costs incurred upto the reporting date, only those contract costs that reflect work performed are included in costs incurred upto the reporting date. Examples of contract costs which are excluded are: (a) contract costs that relate to future activity on the contract, such as costs of materials that have been delivered to a contract site or set aside for use in a contract but not yet installed, used or applied during contract performance, unless the materials have been made specially for the contract; and (b) payments made to subcontractors in advance of work performed under the subcontract. 31. When the outcome of a construction contract cannot be estimated reliably: (a) revenue should be recognised only to the extent of contract costs incurred of which recovery is probable; and (b) contract costs should be recognised as an expense in the period in which they are incurred. An expected loss on the construction contract should be recognised as an expense immediately in accordance with paragraph 35. 32. During the early stages of a contract it is often the case that the outcome of the contract cannot be estimated reliably. Nevertheless, it may be probable that the enterprise will recover the contract costs incurred. Therefore, contract Construction Contracts 119 revenue is recognised only to the extent of costs incurred that are expected to be recovered. As the outcome of the contract cannot be estimated reliably, no profit is recognised. However, even though the outcome of the contract cannot be estimated reliably, it may be probable that total contract costs will exceed total contract revenue. In such cases, any expected excess of total contract costs over total contract revenue for the contract is recognised as an expense immediately in accordance with paragraph 35. 33. Contract costs recovery of which is not probable are recognised as an expense immediately. Examples of circumstances in which the recoverability of contract costs incurred may not be probable and in which contract costs may, therefore, need to be recognised as an expense immediately include contracts: (a) which are not fully enforceable, that is, their validity is seriously in question; (b) the completion of which is subject to the outcome of pending litigation or legislation; (c) relating to properties that are likely to be condemned or expropriated; (d) where the customer is unable to meet its obligations; or (e) where the contractor is unable to complete the contract or otherwise meet its obligations under the contract. 4. When the uncertainties that prevented the outcome of the contract being estimated reliably no longer exist, revenue and expenses associated with the construction contract should be recognised in accordance with paragraph 21 rather than in accordance with paragraph 31. Recognition of Expected Losses 35. When it is probable that total contract costs wil l exceed total contract revenue, the expected loss should be recognised as an expense immediately. 36. The amount of such a loss is determined irrespective of: (a) whether or not work has commenced on the contract; 120 AS 7 (revised 2002) (b) the stage of completion of contract activity; or (c) the amount of profits expected to arise on other contracts which are not treated as a single construction contract in accordance with paragraph 8. Changes in Estimates 37. The percentage of completion method is applied on a cumulative basis in each accounting period to the current estimates of contract revenue and contract costs. Therefore, the effect of a change in the estimate of contract revenue or contract costs, or the effect of a change in the estimate of the outcome of a contract, is accounted for as a change in accounting estimate (see Accounting Standard (AS) 5, Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies). The changed estimates are used in determination of the amount of revenue and expenses recognised in the statement of profit and loss in the period in which the change is made and in subsequent periods. Disclosure 38. An enterprise should disclose: (a) the amount of contract revenue recognised as revenue in the period; (b) the methods used to determine the contract revenue recognised in the period; and (c) the methods used to determine the stage of completion of contracts in progress. 39. An enterprise should disclose the following for contracts in progress at the reporting date: (a) the aggregate amount of costs incurred and recognised profits (less recognised losses) upto the reporting date; (b) the amount of advances received; and (c) the amount of retentions. 40. Retentions are amounts of progress billings which are not paid until the satisfaction of conditions specified in the contract for the payment of such Construction Contracts 121 amounts or until defects have been rectified. Progress billings are amounts billed for work performed on a contract whether or not they have been paid by the customer. Advances are amounts received by the contractor before the related work is performed. 41. An enterprise should present: (a) the gross amount due from customers for contract work as an asset; and (b) the gross amount due to customers for contract work as a liability. 42. The gross amount due from customers for contract work is the net amount of: (a) costs incurred plus recognised profits; less (b) the sum of recognised losses and progress billings for all contracts in progress for which costs incurred plus recognised profits (less recognised losses) exceeds progress billings. 43. The gross amount due to customers for contract work is the net amount of: (a) the sum of recognised losses and progress billings; less (b) costs incurred plus recognised profits for all contracts in progress for which progress billings exceed costs incurred plus recognised profits (less recognised losses). 4. An enterprise discloses any contingencies in accordance with Accounting Standard (AS) 4, Contingencies and Events Occurring After the Balance Sheet Date4 . Contingencies may arise from such items as warranty costs, penalties or possible losses. Pursuant to AS 29, Provisions, Contingent Liabilities and Contingent Assets, becoming mandatory in respect of accounting period s commencing on or after 1-42004, all paragraphs of AS 4 that deal with contingencies stand withdrawn except to the extent they deal with impairment of assets not covered by other Indian Accounting Standards. Reference may be made to Announcement XX under the section titled Announcements of the Council regarding status of various documents issued by the Institute of Chartered Accountants of India appearing at the beginning of this Compendium. 4 122 AS 7 (revised 2002) Appendix The appendix is illustrative only and does not form part of the Accounting Standard. The purpose of the appendix is to illustrate the application of the Accounting Standard to assist in clarifying its meaning. Disclosure of Accounting Policies The following are examples of accounting policy disclosures: Revenue from fixed price construction contracts is recognised on the percentage of completion method, measured by reference to the percentage of labour hours incurred upto the reporting date to estimated total labour hours for each contract. Revenue from cost plus contracts is recognised by reference to the recoverable costs incurred during the period plus the fee earned, measured by the proportion that costs incurred upto the reporting date bear to the estimated total costs of the contract. The Determination of Contract Revenue and Expenses The following example illustrates one method of determining the stage of completion of a contract and the timing of the recognition of contract revenue and expenses (see paragraphs 21 to 34 of the Standard). (Amounts shown hereinbelow are in Rs. lakhs) A construction contractor has a fixed price contract for Rs. 9,000 to build a bridge. The initial amount of revenue agreed in the contract is Rs. 9,000. The contractor’s initial estimate of contract costs is Rs. 8,000. It will take 3 years to build the bridge. By the end of year 1, the contractor’s estimate of contract costs has increased to Rs. 8,050. In year 2, the customer approves a variation resulting in an increase in contract revenue of Rs. 200 and estimated additional contract costs of Rs. 150. At the end of year 2, costs incurred include Rs. 100 for standard materials stored at the site to be used in year 3 to complete the project. The contractor determines the stage of completion of the contract by Construction Contracts 123 alculating the proportion that contract costs incurred for work performed upto the reporting date bear to the latest estimated total contract costs. A summary of the financial data during the construction period is as follows: (amount in Rs. lakhs) Year 1 Year 2 Year 3 Initial amount of revenue agreed in contract Variation Total contract revenue 9,000 - - 9,000 9,000 200 9,200 6,168 2,032 8,200 1,000 74% 9,000 200 9,200 8,200 - - 8,200 1,000 100% Contract cos ts incurred upto the reporting date 2,093 Contract costs to complete Total estimated contract costs Estimated Profit Stage of completion 5,957 8,050 950 26% The stage of completion for year 2 (74%) is determined by excluding from contract costs incurred for work performed upto the reporting date, Rs. 100 of standard materials stored at the site for use in year 3. The amounts of revenue, expenses and profit recognised in the statement of profit and loss in the three years are as follows: Upto the Reporting Date Year 1 Revenue (9,000x . 26) Expenses (8,050x . 26) Profit 2,340 2,093 247 2,340 2,093 247 Recognised in Recognised in Prior years current year 124 AS 7 (revised 2002) Year 2 Revenue (9,200x . 74) Expenses (8,200x . 4) Profit Year 3 Revenue (9,200x 1. 00) Expenses Profit 9,200 8,200 1,000 6,808 6,068 740 2,392 2,132 260 6,808 6,068 740 2,340 2,093 247 4,468 3,975 493 Contract Disclosures A contractor has reached the end of its first year of operations. All its contract costs incurred have been paid for in cash and all its progress billings and advances have been received in cash. Contract costs incurred for contracts B, C and E inc lude the cost of materials that have been purchased for the contract but which have not been used in contract performance upto the reporting date. For contracts B, C and E, the customers have made advances to the contractor for work not yet performed. Construction Contracts 125 The status of its five contracts in progress at the end of year 1 is as follows: Contract (amount in Rs. lakhs) A Contract Revenue recognised in accordance with paragraph 21 Contract Expenses recognised in accordance with paragraph 21 Expected Losses recognised in accordance with paragraph 35 Recognised profits less recognised losses Contract Costs incurred in the period B C D E 55 55 30 (30) 100 Total 1,300 1,215 70 15 1,420 45 520 380 200 110 - 35 450 350 250 - 70 - 40 30 (90) 110 510 450 250 Contract Costs incurred recognised as contract expenses in the period in accordance with paragraph 21 110 Contract Costs that relate to future activity recognised as an asset in accordance with paragraph 26 Contract Revenue (see above) Progress Billings (paragraph 40) Unbilled Contract Revenue Advances (paragraph 40) 450 350 250 55 1,215 - 60 100 - 45 55 55 - 25 205 1,300 1,235 65 125 145 520 380 200 100 520 380 180 45 - - 80 - 20 20 - 126 AS 7 (revised 2002) The amounts to be disclosed in accordance with the Standard are as follows: Contract revenue recognised as revenue in the period (paragraph 38(a)) Contract costs incurred and recognised profits (less recognised losses) upto the reporting date (paragraph 39(a)) Advances received (paragraph 39(b)) Gross amount due from customers for contract work- presented as an asset in accordance with paragraph 41(a) Gross amount due to customers for contract work- presented as a liability in accordance with paragraph 41(b) 1,300 1,435 125 220 (20) The amounts to be disclosed in accordance with paragraphs 39(a), 41(a) and 41(b) are calculated as follows: (amount in Rs. lakhs) A Contract Costs incurred Recognised profits less recognised losses 110 35 145 Progress billings Due from customers Due to customers 100 45 - B 510 70 580 520 60 - C 450 30 480 380 100 - D 250 (90) 160 180 - (20) E 100 (30) 70 55 15 - Total 1,420 15 1,435 1,235 220 (20) The amount disclosed in accordance with paragraph 39(a) is the same as the amount for the current period because the disclosures relate to the first year of operation.

Questions Left byThe Boston Massacre

Questions Left byThe Boston Massacre The Boston Massacre occurred on March 5, 1770, and is considered one of the main events leading to the American Revolution. Historic records of the skirmish include well-documented records of events and often conflicting testimony of supposed eyewitnesses. As a British sentry was being heckled by an angry and growing crowd of colonists, a nearby squad of British soldiers fired a volley of musket shots killing three colonists immediately and mortally wounding two others. Among the victims was Crispus Attucks, a 47-year old man of mixed African and Native American descent, and now widely regarded as the first American killed in the American Revolution. The British officer in charge, Captain Thomas Preston, along with eight of his men, were arrested and made to stand trial for manslaughter. While they were all acquitted, their actions in the Boston Massacre is regarded today as one of most significant acts of British abuse that rallied colonial Americans to the Patriot cause. Boston in 1770 Throughout the 1760s, Boston had been a very uneasy place. Colonists had increasingly been harassing British customs officials who were attempting to enforce the so-called Intolerable Acts. In October 1768, Britain began housing troops in Boston to protect the customs officials. Angry but largely non-violent clashes between the soldiers and the colonists had become commonplace. On March 5, 1770, however, the clashes became deadly. Promptly deemed a â€Å"massacre† by Patriot leaders, word of the day’s events quickly spread throughout the 13 colonies in a famous engraving by Paul Revere.   The Events of the Boston Massacre On the morning of  March 5, 1770,  a small group of colonists was up to their usual sport of tormenting British soldiers. By many accounts, there was a great deal of taunting that eventually lead to an escalation of hostilities. The sentry in front of the Custom House eventually lashed out at the colonists which brought more colonists to the scene. In fact, someone began ringing the church bells which usually signified a fire. The sentry called for help, setting up the clash which we now call the Boston Massacre. A group of soldiers led by Captain Thomas Preston came to the rescue of the lone sentry. Captain Preston and his detachment of seven or eight men were quickly surrounded. All attempts to calm the crowd proved useless. At this point, the accounts of the event vary drastically. Apparently, a soldier fired a musket into the crowd, immediately followed by more shots. This action left several wounded  and five dead including an African-American named Crispus Attucks. The crowd quickly dispersed, and the soldiers went back to their barracks. These are the facts we do know. However, many uncertainties surround this important historical event: Did the soldiers fire with provocation?Did they fire on their own?Was Captain Preston guilty of ordering his men to fire into a crowd of civilians?Was he innocent and being used by men like Samuel Adams to confirm the oft-claimed tyranny of England? The only evidence historians have to try and determine Captain Prestons guilt or innocence is the testimony of the eyewitnesses. Unfortunately, many of the statements conflict with each other and with Captain Prestons own account. We must try to piece together a hypothesis from these conflicting sources. Captain Preston's Account Captain Preston claimed he ordered his men to load their weapons.Captain Preston claimed he heard the crowd yelling fire.Captain Preston claimed they were attacked by heavy clubs and snowballs.Captain Preston claimed a soldier was hit by a stick and then fired.Captain Preston claimed the other soldiers fired in response to the colonist attack.Captain Preston claimed he reprimanded his men for firing into the crowd without orders. Eyewitness Statements in Support of Captain Preston's Statement Witnesses including Peter Cunningham claimed they heard Captain Preston order his men to load their weapons.Witnesses including Richard Palmes claimed they asked Captain Preston if he intended to fire and he said no.Witnesses including William Wyatt claimed the crowd was calling for the soldiers to fire.Witnesses including James Woodall claimed they saw a stick thrown and hit a soldier, which prompted him to fire, quickly followed by several other soldiers.Witnesses including Peter Cunningham claimed an officer other than Preston was behind the men and that he ordered the soldiers to fire.Witnesses including William Sawyer claimed the crowd threw snowballs at the soldiers.Witnesses including Matthew Murray claimed they did not hear Captain Preston order his men to fire.William Wyatt claimed that Captain Preston reprimanded his men for firing into the crowd.Edward Hill claimed that Captain Preston made a soldier put away his weapon instead of allowing him to continue to shoot. Eyewitness Statements Opposed to Captain Preston's Statement Witnesses including Daniel Calef claimed that Captain Preston ordered his men to fire.Henry Knox claimed the soldiers were hitting and pushing with their muskets.Joseph Petty claimed he did not see any sticks thrown at the soldiers until after the firing.Robert Goddard claimed he heard Captain Preston curse his men for not firing when ordered.Several soldiers including Hugh White claimed they heard the order to fire and believed they were obeying his commands. The facts are unclear. There is some evidence that seems to point to Captain Prestons innocence. Many people close to him did not hear him give the order to fire despite his order to load the muskets. In the confusion of a crowd throwing snowballs, sticks, and insults at the soldiers, it would be easy for them to think they received an order to fire. In fact, as noted in the testimony, many in the crowd were calling them to fire.   The Trial and Acquittal of Captain Preston Hoping to show Britain the impartiality of colonial courts, patriot leaders John Adams and Josiah Quincy volunteered to defend Captain Preston and his soldiers. Based on a lack of substantiated evidence, Preston and six of his men were acquitted. Two others were found guilty of manslaughter and were released after being branded on the hand. Because of the lack of evidence, it is not hard to see why the jury found Captain Preston innocent. The effect of this verdict was much greater than the Crown could ever have guessed. The leaders of the rebellion were able to use it as proof of Britains tyranny. While it was not the only instance of unrest and violence before the revolution, the Boston Massacre is often pointed to as the event that presaged the Revolutionary War. Like the Maine, Lusitania, Pearl Harbor, and September 11, 2001, Terror Attacks, the Boston Massacre became the rallying cry for the Patriots.

The Legalization Of The Same-Sex Marriages Essay

The Legalization Of The Same-Sex Marriages - Essay Example The issue of same-sex marriage is a topic that will always garner controversies and it is hardly possible to establish any single perspective considering the myriad social, ethical, philosophical, religious and political aspects. According to a national study conducted by the University of Queensland, given the choice, 54 percent of same-sex partners are prepared to get married while 80 percent of Australians who are maintaining the same-sex relationship will advocate such marriages even if they do not wish to marry. There are many legal benefits for married couples and it is even more important for same-sex couples since they experience denial of legal rights because of social prejudices (12 Reasons Why Marriage Equality Matters, n.d.). There are other cultural benefits like each partner will feel more responsible towards the other. Moreover, it has been seen that if legal recognition is not given to same-sex marriages then it can have the adverse impact on the physical and mental h ealth of the partners involved. Social discrimination can lead to severe depression and lower self-esteem among these people. Such cases are more common among the young LGBTs who become prone towards running away from home, substance abuse, and suicidal tendencies (Renzetti & Edleson, 2008, p.337). If I am to consider my own opinion on this topic I will say homosexuals need not be subjected to any kind of discriminations and should be accepted with open arms within the society because being a homosexual is completely natural and harmless. There are a number of arguments against same-sex marriage. Children adopted by these couples are brought up away from one parent like lesbian couples will raise their children apart from fathers and vice versa. Thus the individual role of each parent like social security from fathers and emotional security from mothers will be absent for these children.

Operation Research Paper Example | Topics and Well Written Essays - 750 words

Operation - Research Paper Example As part of building value, the customer has to have knowledge of the services offered at the tanning salon. As a result, taking the customer through the various service, products and treatments in the tanning salon assists in educating the customer. Once the customer feels educated then he/she cane make a choice on the type of treatment or tanning process that he/she will undergo. The choice that the customer makes is a process that will determine which treatment the staff will prepare for the customer (Blais 211). Once the customer is ready for tanning, he/she will sign a form to authorize staff to go on with the tanning process. In the service industry such as tanning it is important for the client to give consent since tanning is process that affects the skin appearance. Depending on the choice undertaken by the customer, tanning will proceed in a room through use of equipments and tanning oils/treatments. Once the tanning process is complete the customer will assess the service u ndertaken on his/her body and deem the service as satisfactory or not (Blais 141). In case the customer is not satisfied with the service then the tanning process will be undertaken or re-scheduled for another day. ... Customer feedback is important in the sense that it aids in improving the services and products offered at the tanning salon. If customer overall feedback is positive then employees feel motivated and this assists in building value and brand of the tanning salon. Most of the processes undertaken in a tanning salon are repetitive but not in a sequential order. For instance, sometimes a customer booking takes precedence over walk in customers especially in case of many customers at the salon (Barnes 174). The last process to be undertaken in a day is to clean equipments such as the tanning spray, HVLP spray system and taking stock of all essential that are needed for the coming days. After this, staffs prepare for the next customer day and all processes are measured in days. The success or failure of any process depends on the processes undertaken during that specific day and all changes that occurred during the day (Blais 112). Works Cited Barnes, David. Understanding Business: Proces ses. Boston, MA: Routledge, 2009. Print. Blais, Steven. Business Process Transformation. Pittsburgh, PA: Pelshiver Publishing, 2010.