What Entrepreneurship Is And The Advantages Of Being Or...

Introduction This assessment will be concentrating on what entrepreneurship is and the advantages and disadvantages of being or becoming an entrepreneur. Despite having many definitions in literature, the core elements of the entrepreneurship can be underlined as risk and profit. The entrepreneur is an agent who needs to measure and tackle the risks; in return the entrepreneur gets the profit or has to face failure. The success of the entrepreneur depends heavily on the way he plans the business. The outcome can be rewarding as well as failure. Everyone desires to become an entrepreneur, but unfortunately not every one is and there are many reasons for this, which you will find in the following discussions. Being an entrepreneur in basic terms is making more capital then for what was initially paid for, but of course there are many drawbacks to this for example, the amount of research required, the amount of capital is required, management and many other point to look at before the business has began, this will allow you to understand why it is not possible for every individual to become an entrepreneur. The concept of entrepreneurship is a long time in business and economics appears to be used. French economist J. B Say entrepreneurship was recognized as the fourth factor of production. Thus classic production factors of labour, capital and natural factors have been included to entrepreneurship (Mà ¼ftà ¼oÄŸlu ve Durukan, 2004). Definition of entrepreneurship EntrepreneurshipShow MoreRelatedThe Potential Drawbacks Of Entrepreneurship1404 Words   |  6 Pagescollectively corroborate the claim that owning a business has many advantages but has an equal amount of drawbacks which prospective entrepreneurs should be aware of before deciding to own a business. The aim of this research is to depict the potential drawbacks of entrepreneurship. These drawbacks are rarely known or considered by individuals wanting to own a business (Kirby, 2003). They therefore blindly step into the world of entrepreneurship and suffer from the effects of these drawbacks which they didRead MoreEnterprise, Entrepreneurship And Intrapreneurship. Enterprise1638 Words   |  7 PagesIntroduction Entrepreneur came from the French word called ‘Enteprendre’, which means ‘to undertake’ when translated into English and that is what entrepreneurs basically do. 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Essay on Social Constructionism and the Message of Feminism

In this essay I will define social constructionism and how the theories of social construction altered feminism’s message during its second wave. The second wave of the feminist movement started during the 1950’s and is thought to have ended with the failure of the equal rights amendment. The amendment was only three votes shy of being ratified. Prior to this era the first wave of feminism seem to focus mainly on suffrage, a women right to vote and own property. During the second wave era, feminist incorporated the theories of social construction in their message. Social construction is the theory based on the idea that things that are present in our society were created by said society. As it relates to the message of second wave†¦show more content†¦To quote The Simone De Beauvoir, â€Å"Every female human is not necessarily a woman. To be so considered such she must share in that mysterious and threatened reality known as femininity.â€Å" Women who had once dreamed of attending school and had dreams of their own were now striving for this model of what women should want, of things that made them better women. Betty Friedan used the example of a young woman that was offered a science fellowship at Johns Hopkins. This young woman turned down the opportunity so that she could continue her quest to find a husband and start a family. Science wasn’t â€Å"feminine.† In reality, what is femininity? To quote De Beauvoir, â€Å"What is woman?† What was femininity and masculinity in truth? Many feminist of the second wave began to define femininity as a social construct. They used the theory that women’s role in our society was created by said society. Susan Bartky said, â€Å"A Culture has a global character, hence, the limits of my culture are the limits of my world.† Women were victims of a society, of a culture that was primarily constructed by men. De Beauvoir said, â€Å"They (women) have no past, no history, no religion of their own.† Women had no culture of their own. Everything that had been written, the stereotypes held toward women, the entire culture surrounding them had beenShow MoreRelatedSocial Inequality in Society Essay2617 Words   |  11 PagesSocial Inequality in Society Social inequality influences all aspects of our lives. The following essay will look at evidence highlighting inequalities in society today. In particular it will focus upon inequalities found between men andRead MoreThe Between Female And Female Roles3586 Words   |  15 Pagesâ€Å"Boys will be boys†. The phrase is associated with â€Å"boyish† behavioural characteristics, which are understood to be essential and natural to a male. Social constructionism, on the other hand is the theory that social identifiers, like race, behaviour and gender are constructs of an individuals environment, not their biology. Although social constructionists do have differing opinions on the influence of society or biology over male/female characteristics, a popular opinion is that though thereRead MoreOrganisational Theory230255 Words   |  922 Pagesis it, and why does it matter? Introduction What is organization theory? Defining theory What are organizations? The relationship between organization theory and human activities The relationship between organization theory and management practice Social engineering and organization theory Critical alternatives to managerialism in organization theory Philosophical disputes and debates: explaining and understanding the diverse nature of organization theory Mapping some aspects of organization theory’s

Corporate Accounting AASB and Corporation Act

Question: Discuss about theCorporate Accountingfor AASB and Corporation Act. Answer: Introduction AAS applies to every entity which is required to report their financial statements under the conceptual framework of AASB and Corporation Act 2001 (Kung and et.al. 2013). The main objective of impairment is to ascertain whether the amount of which asset is recorded on the balance sheet is exceeding its fair value or not. Purpose of Impairment Test The provisions related to the impairment of assets are described in AASB 136. As per this standard, it is important for an entity to test its assets worth according to their useful lives. It is required for an entity to identify and recognise the indications which give a signal that the asset needs to be impaired (AASB. Impairment of Assets, 2016). The purpose of the impairment test is to measure that the item stated in the balance sheet in worth the total amount which is reflected thereon. For the same reason, the assets are valued as per the market value of the asset. The purpose of evaluating the assets on the basis of market price is to assess the worth of the asset for the money which is stated in the balance sheet. This assessment of assets is done on the basis of the useful life of the asset. For impairment of assets like goodwill, the carrying amount is adjusted by representing it to the lowest level in comparison with the recoverable amount. The impairment test is important for internal control purposes by management. An intangible asset with an indefinite life is compared on the basis of recoverable amount. Impact on Impairment due to Existence of Goodwill According to the Standard AASB 136 all the intangible assets of the entity which are not yet presented for use, are required to be tested annually for impairment. This type of impairment test is also conducted for goodwill which obtained as a result of the business combination and the intangibles which have indefinite useful lives. In cases where the goodwill is considered to be cash generating, the impairment is done through CGU (Andersson and Wenzel, 2014). Goodwill is always recognised as an asset that has lasting balance because it includes assets which cannot be recognised and accounted separately. Thus, it is impossible to estimate the fair value of goodwill or determining the exact amount of cash flow related to goodwill. Goodwill is assessed by the management of entity by allocating it to the lowest level. Thus, it is possible to test impairment of goodwill at the level of CGU only. Rules Relating to CGU Relating to Impairment Loss in Case Goodwill Exists: According to the provisions of the standard, the goodwills carrying amount must be decreased to zero. The method of Pro- Rata must be adopted for distributing the balance amount to the leftover asset. The losses are evaluated annually (Bonin, 2013). If the rules allow, individual assets can be reversed according to impairment loss. It is important to ensure that after considering the impairment loss on the asset, the new carrying value must be lower than the value on which impairment is done. Reversal of Impairment Loss: After the impairment loss, the loss which is allocated across the assets related to CGU is reversed on impairment loss. For impairment loss which is related to goodwill, no reversal can be applied to the assets (Bryer, 2013). The asset on which reversal is done, it is important to keep the indicators same as that were used at the time of application of impairment. Disclosure: The management has an obligation to disclose the amount of impairment loss accounted during the year in the profit and loss account. The amount which is related to the reversal of impairment loss also needs to be disclosed in the financial statements while revaluation of an asset in the total equity. Basic Steps to be Followed in Applying Impairment Test- Although it is not necessary for the organisations to conduct a test for impairment on an annual basis, however, apart from this provision of the standard, the organisation must consider the indicators which recommend that the assets need to be impaired (Glaum and et.al. 2013). There are many sources or evidence which are to be considered by the management for conducting impairment on assets. Some of them are- External sources/ Evidences Internal Sources/ Evidence A reduced market value of the entitys goodwill. Assets being physically damaged. Unreceptive changes in the macro environment of the entity Changes in the way an asset is being used. Increased rates of Interest on borrowing from external sources. A substantial decrease in the assets economic performance. Market Capitalization Steps in the Impairment Process Ascertaining Recoverable Amount Evaluation of recoverable amount of the asset is the first step in the process of the impairment test. An amount that is equivalent to greater than fair value less cost of value in use and disposal is known as the recoverable amount. The amount which can be received by the entity after the sale of that asset is termed as the fair value of that asset (Gaffikin and Aitken, 2014). The net value of the cash flows that is generated by a particular asset is referred to the value in use of that asset. The computation of fair value is easy in contrast to the amount of value in use. The recoverable amount will always be equivalent to higher of value in use. Comparison of the Recoverable Amount with Carrying Amount of that asset When the Recoverable amount of asset is less than the carrying amount, then the loss which is arising is debited to the revenue account (Ienciu and Matis, 2014). However, if the case is opposite, that is, when the recoverable amount is more than the carrying amount, no action is required by the management. Methods of Accounting for Impairment There are two methods by which impairment loss can be accounted- Cost model- Under this method, the impairment loss is documented in profit and loss account at the time when the impairment arises. Revaluation model- This method accounts for impairment loss by treating it as revaluation decrement (Kung and al. 2013). Further depreciation or amortisation is evaluated on the basis of new recoverable amount. Calculation of Impairment Loss Calculation of Impairment Loss Carrying amount of assets 1680000 Recoverable amount of assets 1420000 Impairment loss 260000 The amount of impairment loss is set off against the value of goodwill of $40000. The balance of loss will be i.e. $220000 will be allocated to other assets, except land and inventory. As the recoverable amount of land is provided and it is assumed that Inventory is recorded at lower of cost or NRV. Adjustment of Value of Goodwill Particular Carrying Amount Proportion Allocation of loss Net Carrying Amount Land $200000 29000 171000 Brand 'Crossbow Shoes' 160000 191000*160000/1260000 24254 135746 Shoe Factory 700000 191000*700000/1260000 106111 593889 Machinery 400000 191000*400000/1260000 60635 339365 Journal Entries for Impairment Loss Occurring on 30th June 2015 Journal Entries for impairment loss occurring on 30th June 2015 Sr. No. Date Particular Dr. Amount Cr. Amount 1 30.06.2015 Impairment loss Dr. 260000 To Goodwill 40000 To Accumulated amortisation and Impairment Losses (Land) 29000 To Accumulated amortisation and Impairment Losses (Brand 'Crossbow Shoes') To Accumulated amortisation and Impairment Losses (Shoe Factory) To Accumulated amortisation and Impairment Losses (Machinery) [Being impairment loss attributed to assets on pro-rata basis except for land, inventory and goodwill.] References Books and Journal Andersson, S. and Wenzel, F. 2014. Application of IAS 36Impairment of fixed assets-A qualitative study about the main challenges for companies regarding impairments. Bonin, H. 2013.Generational accounting: theory and application. Springer Science Business Media. Bryer, R. 2013. Americanism and financial accounting theoryPart 2: The modern business enterprise, America's transition to capitalism, and the genesis of management accounting.Critical Perspectives on Accounting. 24(4). Pp.273-318. Gaffikin, M. and Aitken, M. 2014.The Development of Accounting Theory (RLE Accounting): Significant Contributors to Accounting Thought in the 20th Century. Routledge. Glaum, M., and et.al. 2013. Compliance with IFRS 3-and IAS 36-required disclosures across 17 European countries: company-and country-level determinants.Accounting and business research. 43(3). Pp.163-204. Ienciu, N.M. and Matis, D. 2014. Inflection points in the development of IAS 38.Journal of Financial Reporting and Accounting.12(1). Pp.62-75. Kung, F.H. and et.al. 2013. The Association between Goodwill Amortisation and the Dividend Payout Ratio.Asian Journal of Business and Accounting.6(2). P.1. Online AASB. Impairment of Assets. 2016. [PDF]. Available through aasb.gov.au. [Accessed on 26th January 2017.]