HR Strategy Achieving Quality Essay Example | Topics and Well Written Essays - 250 words

HR Strategy Achieving Quality - Essay Example However, in order to make it more official, they will request the employers to consent to it in case of employee violation, or the labor unions could sue the employer. (Deming, 1986) In the event that the 14 principles are against the requirements of a given union, the unions can instigate the push for legal action in an area that concerns the interested parties. In the case of an employer, the trade union will not support that which is against the rights of the workers. Similarly, union can also hinder the principles if through them the employer will be violating the rights of the employee’s participation in a trade union. (Deming, 1986) To begin with, is if the union supports the principles intended to benefit both parties (employers and employees); second, are the principles opposed by the union positive or negative; third, are unions willing to deliberate on a matter to come to an agreement; fourth, does the union address the needs of the members; finally, does union negatively or positively affect the employers or employees. (Deming,

Gender attribution Essay Example | Topics and Well Written Essays - 750 words

Gender attribution - Essay Example The system is pretty straightforward, blue for boys and pink for girls. Even parents who opt to know their baby’s sex through ultrasound allows for an early determination of purchasing choices for the birth of their child. The moment the doctor informs them of the sex creates stability in their mind that will allow for easier choices in the things they will have to buy and the atmosphere they will have to create. It determined the color of the room, the crib, the clothes and the toys just to name a few. For those who wish to wait till actual birth, they will have to settle for neutral colors just to ensure they will not look foolish if they get the gender wrong. These practices of gender referencing through color is a major issue in stereotyping gender roles that start very early on in a person’s life. The young child’s life is bounded by specific categories pertaining to their gender that has consequent effects to their future. Katrin Bennhold’s â€Å"Toys Start the Gender Equality Rift† starts off with an anecdote that took place at Hamleys. A mother looks for a gift for her niece and specifically asks the attendant where the girls section is and even remarks on the need to categorize the store properly. This incident reflects how starting from toy stores, labeling is important to emphasize gender roles. The article cites Laura Nelson, a neuroscientist and head of Breakthrough which addresses stereotyping, who remarks that â€Å"Gender-specific-color-coding influences the activities children choose, the skills they build and ultimately the roles they take in society† (Bennhold par.7). ... This will be all well except that there also exists a pay gap where women earn approximately 16% less than their male counterparts from male-dominated industries. This also affects leadership as high positions are seen to be more appropriate for male employees. â€Å"Leadership is associated with ‘male’ qualities like aggressiveness and risk-taking† (Bennhold par.10). This can be seen even in politics and other areas of society where males usually take high positions faster than do women. To date, the country is yet to elect a female president. Nevertheless, there are toy stores and countries that aim to address the elimination of gender stereotyping through toys. Sweden has implemented governmental measures which foster neutrality in order to prevent gender stereotyping. Harrod’s toy department, Toy Kingdom, has also established â€Å"gender-nonspecific zones† that aims to deal with the issue. Apart from toy stores, another child-related business wh ich seems to propagate gender stereotyping is greeting cards. These cards given by friends and family when a child is born also specify gender roles. Though they are not accepted directly by the child, they demonstrate how parents play a vital role in their child’s future. Lynda Willer’s â€Å"Welcome to Your World, Baby† is a study of greeting cards and the greeting cards industry in the sale of cards that celebrate the arrival of a newborn. The study was conducted by visiting 10 greeting card stores and examining 30 cards from each to a total of 300. The 30 cards consist of 10 boy-identified, 10 girl-identified and 10 non-gender specific (338). The study focused on two research questions as follows: Research Question 1: What are the differences in language usage in boy-specified birth

Benefits of the International Reporting Standards

Benefits of the International Reporting Standards 2. 0 Literature review 2.1 Introduction Literature abounds in polarising this subject matter the benefits of the international reporting standards. Looking back at the last quarter of the 20th century it will no longer be seen as an evolutionary period global financial market in a bit to introduce a single set of standards that will be generally acceptable in financial reporting. International reporting standards have revolutionized the domestic accounting system to a more capital oriented system (Hope et al, d Archy 2001). Lantto (2007) states that the information provided by the IFRS is more reliable and relevant. Darke and Deske (2006) highlights that the disclosure quality has increased tremendously since the adoption of the IFRS. Furthermore, Ding et al (2006) states that the adoption of the IFRS has made a great impact in bridging the differences in the use of the domestic standards among the countries. In justifying the theories, there are opinions as well as oppositions on the advantages of the international reporting standards. What becomes evident although arguably is that the movement from the domestic standard of reporting to the international standard of reporting is of great benefit to financial reporting to the shareholders, firms ,organizations and also global economy as it will place the whole countries in the same reporting field. This chapter will review this report from the historical background of the international financial reporting standards, the Implementation and enforcement then to the benefits of the adoption of this standard. 2.2 Financial Reporting. In the beginning financial reporting can hardly be called external (Alexander, Britton and Jorissen, 2003: 22) rather it was a way by which the owners were informed on their income and capital. This is because the owners and managers of the company were not separated. Until in the 1800s when they started encountering the agency problems it becomes evident to separate ownership (management) from capital supply. Then external wreporting was introduced in order to provide information outside the borders of a specific country. Hence, financial reporting emanates from internal to external reporting. Financial reporting provides information to the users for making economic decisions (Iqbal 2002). Gilmore and Wilmot (1992) states that reporting has developed over time in a bid to stress the need for investment decision making and also to attract investors into the company. Hegarty (1997) opines that the range and varieties of this reporting regime is as a result of an evolution which shows the uniqueness in the economic, cultural and legal jurisdiction. As a part of the revolutionary process financial reporting has changed over time (Crowther 2000). The change is a result of a need for a good financial reporting system that will communicate real value an d risk to the users of the reports (Damant 2000) .Hence, the quality of a financial report is dependent on the reporting standards. 2.3 Why Standards? According to (Perks 1994,p.137),Accounting standards may be seen as the professions rules, which supplement companies Act requirements that are intended to restrict directors freedom of manovoevre and to ensure that the financial statements are presented on a more comparable, consistent and standard basis. Perks (1994) reporting standards is also important in order to prevent scandals, abuses, financial collapsing in the companies and creative accounting that may jeopardize the profession. Also, Elliot and Elliot (2008) highlight some reasons for standard this includes: Comparability: Financial statements should be able to allow users make predictions on future cash flows and also evaluate managements performance. Credibility: For financial information to disclose information that will give a true and fair view, uniformity is therefore essential. Influence: To be able to stimulate a development of the conceptual framework the process at which the standards are formulated should be able to give a constructive appraisal of the policies proposed for the individual financial reporting. Discipline: A mandatory standard is necessary as it structures a regulation that will be systematic and ongoing thereby enforcing a disciple in the financial markets for all organizations listed in the stock exchange. The usefulness of a reporting standard cannot be overemphasized although there are some arguments on this. Harvey and Keer (1983) argued that information produced using financial standards could be unreliable at times and the standards might be bureaucratic and inflexible. Also, there may be adverse allocative effects . Consequently, there might be consensus-seeking and standard overload . Lets take an illustration of a of two companies; Enron and Ahold to further explain why we need standards. Enron is the seventh largest US based company falling into bankruptcy as a result of an overstated profit of $500 million and the Ahold the third largest US grocer had their earnings overstated for the past two years by $500. 2.3 How National differences affects reporting. Given that the environment differ from country to country, the types of decisions to be taken and information needed in decision making differs from one country to another. Hence, accounting system is environment specific. (Iqbal 2002). Adhikari and Tondkar (1992) reported that financial accounting reporting and disclosure standards and practices do not develop in a vacuum but reflect the particular environment in which they are developed (p. 76). The culture of a country affects its method of accounting and financial reporting. For example, Gary (1988) in his books illustrated one of the ways by which cultural differences affects countries financial reporting; a country with a high uncertainty avoidance and low individualism will tend to be more conservative in their income measurement than in a country with low certainty avoidance and high individualism. Although the measures of cultural attributes may be indistinct and not direct in financial reporting compared with the other factors that affect financial reporting.Also, the nature of accounting regulations in a country is influenced by the general system of law applicable in that country. For example Jaggi and Low (2000), notes that companies in the common laws countries tends to have a high level of disclosures than countries in a codified Roman law system. La Porta et al. (1998) argues that common countries have investors with a strong legal protection than the Roman law countries do. Moreover, the differences in the types of business organization and ownership also affect financial reporting. Elliot and Elliot (2008) further explains this stating that in a country like the UK the business structure indicates a separation of the ownership and the management while in the French business the structure differentiates the ownership from the managers.. According to Nobes and Parker (1 998, p.21):The difference in the providers of finance (creditors/insiders) versus (equity/ outsiders) is the key cause of international differences in financial reporting. Although there is an increasing scale, companies firms had to find extra capital to finance growth. (Alexander, Britton and Jorrisen 2003). Roe (2003), further argues that political differences are the major cause of the differences in corporate structures in the developed western countries. Also the accountancy profession is another determinant of the differences in financial reporting. Nobes and Parker (2006:36) emphasizes that the strength, size, and competence of the accountancy profession in a country affect the type of financial reporting that will be obtained in that country. So with these differences the financial analyst cannot be able to make a headway there is therefore a need for a uniform reporting standards. 2.4 Why the call for international reporting standards Over the years it becomes apparent for an ever increasing worldwide competition. The globalization of the markets and companies increased as a result of the cross-border securities market listings and capital raising.. Thus, there was no cross-border investments, investors therefore prefer to invest in companies whereby there will are more comfortable with their system of accounting . 2.5 Background of the International Reporting Standards. Financial reporting standards for international applicability became prevalent in the 1970s. International Accounting Standards committee (IASC) was set up in the 1973 in order to standardize the reporting differences in international investment communities. The establishment of the International Accounting Standard committee is seen as a response to the call by the accounting profession for a greater co-ordination of accounting rules among the various nations of the world (Kraayenhof 1960).The need was expressed in the international congresses of Accountants held in September, 1972 in Sydney. Chetkovich (1979, p.13) emphasizes that at each of these congresses, there was a demand for a better communications and closer cooperation among accountants on a worldwide basis; and also for greater harmonization of accounting standards. This statement led to the establishment of the IASC on June 29, 1973. The objectives of IASC are: to formulate and publish in the public interest, international standards; also to promote their acceptance and observance world-wide, and to work generally for the improvement and harmonisation of regulations, accounting standards and procedures relating to the presentation of financial statements. (IASC, 1983, Preface to Statements of International Accounting Standards, p.1). This is the first step towards the achievement of a globally recognised standard .The members of the IASC accept that adopting of international accounting standards (IAS) will improve the quality of financial statements (IASC ,1995). How far did this go or were there criticisms to this standard? IASC helped in solving the problem of uniformity although the purpose of it enactment was far from being realised. One of the weaknesses is that the standard issued by IASC has many objectives thereby making it difficult to achieve the purpose of consistency in recognition, measurement and presentation of transactions (IASB section 4). The standard is also too broad and allowed the use of several alternative accounting treatments. Atiken and Wise (1984) emphasizes that the IASC gives more attention to the multinational companies and investors in the multinational businesses more than it emphasizes on the harmonization of all spheres of the organization globally. Therefore emphasizing that IAS C was set up for the harmonization of accounting on a worldwide basis in order to improve the financial reporting and decision-making capability of multinational businesses, and investors in multinational businesses.(p.176). The second criticism to the use of IASC is that of the mandate. The statement starts with the phrase to formulate and publish in the public interest international standards†¦. (IASC). Hence they act in the interest of the public by a way of enforcing the rules which may not be favourable to the public. This absence of democratic legitimacy has been the major reason by which the IASC standards have not been enforced. Besides , this the structure and the membership composition of the IASC lacked the requirements needed for a global standard setting organization which includes the independence of its members, technical expertise and the decision making bodies representatives. McKinnon and Janelle (1983, p.33) argued that IASC has only succeeded in codifying generally accepted practice, in serving as a neutral source of standards ,and in influencing groups with the enforcement powers. Consequently, the IASC was restructured from the year 1998 to 2000 to International Accounting Standards Board (IASB). IASB is an independent London-based standard accounting body privately funded. The first IFRS was issued in the year 2003 with a membership of 19 countries but it has tremendously grown to 70 countries now with the EU mandating that all listed companies should use the IFRS in their financial reporting effective from the year 2005 (EC,2002). IASB has two member bodies the standard setting board and the member board of trustees .The IASB establishment is allied to that of the international federation of Accountants worldwide (IFAC).. The International Accounting Standards Board is committed to developing, in the public interest, a single set of high quality, global accounting standards that require transparent and comparable information in general purpose financial statements in addition, the IASB co-operates with the national accounting standard-setters to achieve con vergence in accounting standards around the world. (IASB, 2002, p.1). IASB has taken corrective measures in removing the accounting alternatives thereby ensuring that firms give a report that will reflect a true position and economic performance of the firm. IASB also aims at promoting global consistency in application and enforcement. It has also met the requirement that the business which operates in multiple bodies have a uniform financial statement which will be understandable in the countries whereby they operate. 2.6 International Accounting Standard Board (IASB) versus FASB? Norwalk agreement in the year 2002 by the Financial accounting Standard Board (FASB) and the International Accounting Standards Board was signed by both bodies after the need for a high quality, consistent and a comparable information which will be applicable to both domestic and the cross border financial reporting was recognized. Jacob and Madu (2009, p.3) the cited that both FASB and the IASB has pledged to use their best efforts in making their existing financial reporting standards fully compatible as is practicable and to coordinate their future work programmes to ensure that once achieved compatibility is maintained. This was also confirmed in their meeting in October 2005 of the two bodies reaffirming their commitments to converge US GAAP to IFRS. In a Concept Release, the SEC(2000) notes, Establishing and maintaining high quality accounting standards are critical to the US approach to regulation of capital markets, which depends on providing high quality information to facilitate informed investment decisions. (Jacob and Madu 2009).SEC released a proposal on July 13 2007, which states that US should recognize financial statements prepared using the IFRS from the foreign private issuers without reconciling them back to GAAP [2].furthermore, SEC informs all the investors that IFRS is the only set of standards with a high quality accounting standards that is more informative, useful for preparing financial reports compared with the US GAAP. This recent move to IFRS suggest that ,IFRS is the only standard that is of high quality and globally recognized and also has a potential to improve comparability of the financial statements despite of the country whereby they are domiciled. Despite all these efforts to converge to IFRS some academic literature still opines this stating that there are still material differences between the IFRS and the US GAAP. More so, the information contained in reconciliation is evident in the investment decisions made by the US investors. for example ,Culter and Neidemeyer (2009) argues that the major challenge why US did not want to adopt the IFRS is that there are differences in regulation and the manner at which these rules are been interpreted. IFRS is principal based regulatory system; which means that the rules are already set. On the other hand US GAAP is ruled based, whereby a detailed guidelines and principles is already laid out. Delliot (2007) emphasized that the principle based rules focuses more on the objective not relying more on the detailed rules. Deming (2005,p.4) gives a conclusive report pointing out that IFRS has more of a common law approach, than the US GAAP which is more of a civil law approach Furthermore, in the number of standards, IFRS has forty nine sta ndards while and nineteen interpretations and this consist of an approximate of two hundred pages (Delliot 2009) while the US GAAP has twenty thousand page (Mitra 2009).Other notable differences are seen in the financial reporting using the US GAAP and the IFRS. This will be comprehensively reviewed in the subsequent chapter. 2.7 Implementation and Enforcement of Financial Reporting Standards The credibility of a standard relies on its smooth implementation by countries that adopts it. Enforcement is a difficult concept to quantify and measure (Nobes and Parker 2006). The enforcement process differs from one country to another. Even at the international level there is still no genuine enforcement process. Moreover, some accounting bodies set standards and leaves enforcement to other bodies while others do both. For example US Securities and Exchange Commission sets laws and enforces it while IASC, Accounting Standards board (ASB) sets and develops standards and do not have the power to enforce these standards For the set rule of IFRS to be achieved an enforcement body has to be set up with powers to enforce the standards (Lamfalussy, 2001; Committee of European Securities Regulators [CESR], 2003a). Nobes and Parker (2008) states that the most determining factor for a successful adoption of this standard as a global standard is in the approach taken by the financial regulating bodies in the countries that adopts it. Giner and Rees (2005), Brown and Tarca (2005 )and Ball(2006 ) affirms that the purpose of IFRS is to provide a high quality financial reporting which can only be achieved with vigorous enforcement by the regulatory bodies (Schipper 2005 and Ball et al. 2003.The enforcement has not been easy certain factor has affected the effective enforcement of the law. Some of them vary from the cost, regulators interest and whether the businesses or accountants really need them. Watts and Zimmerman (1986), opines that the value of regulation is an empirical question, more apprehensive of ho w the regulatory authorities can value the costs and benefits of regulation. For example in the EU countries the structure and the organization that is in charge of the oversight of the requirements in the financial reporting varies among the EU countries. Also some countries do not have institutional oversight of financial reporting (FEE, 2001a, p.10).The EU regulation therefore mandates that the member states are to take appropriate measures in order to ensure compliance with IFRS. (European Commission EC], 2002, n.16). As a result of this the need for a country to produce a multiple financial statements was eliminated. Lafferty (1981) noted that no enforcement mechanism ever existed in reality. Perks (1993), expressed in his opinion that, without a legal backing it is not easy for the reporting standards to be enforced. Enforcing of the accounting standards therefore may require statutory audit, an effective sanctions and monitoring by supervisory bodies and for it to be implemen ted. Thus, there will be continuous reformations and changes in these standards. IFRS AND EU The European Parliamentary on enacted a legislation 0n 14 March 2002 requiring all companies listed in the European stock exchange to publish their financial statements with in accordance with the International financial reporting standards. There is also an endorsement mechanism which ensures that IFRS meets the needs of the EU listed countries. 2.4 International Standardization, Harmonization and Uniformity. The move towards greater harmonization of professional accounting practices has been traced back 1904 and the first accounting congress in St Louis, Missouri (Samuels and Piper, 1985, p.59, Mueller, 1979, p.7). Samuels and Piper (1985 p.59) states that international issues were not important while Mueller (1979 p.7) states that there is a need to pay attention to International harmonization. Combarros (2000), also argues that there is a need for harmonization of the accounting. Harmonization and standardization are used synonymously by some authors (Tay and Parker, 1990). While other researchers has differentiated the two. Tay and Parker (1990, p.73) defined harmonization as a movement away from total diversity of practice and standardisation is seen as a process which involves a movement towards uniformity. Saudagaran (2001:32), futher emphasized that the rationale for harmonization is that it will enhance comparability of financial statements [therefore] making it easier to use acr oss countries While other proponents is of the school of thought that harmonization will is not be practicable or truly probable. Rudhede and Wahlberg (2003) emphasizes that the lack of accounting harmonization will give difficulties to the investors in understanding the accounting principles which varies among the countries. Walton. Moreover, harmonization is a way to put processes in place to be able to reduce the obstacles inherent in international comparability. Hulle (1993, p.73) stated that the objective of harmonization is the comparability of accounts. All the efforts of the EU towards harmonization of these accounting standards have been challenging and slow. 2.4.2 Merits of international harmonization. An argument in favour of international harmonization is, efficiency in trans-border transactions. (Walton, Haller, Raffournier, 1998, p.9). Although lack of uniformity in the reporting procedures and the comparability of the accounting information is another barrier to cross border investments. This comparability of the financial postions across national bodies is seen as one of the most important reason for harmonization (Cummins 1975). This will help to reduce lack of trust and non reliance on the financial statements. With this there will be a flow of international investment in the capital market. Turner (1983 p.58) in his studies affirms that the second advantage of harmonization is to consolidate divergent information when more than one set of report is required to comply with different national laws or practices; further stating that accounting diversity is the major cause why companies spend unnecessarily cost. According to Houston and Reinstein (2001), harmonization of the a ccounting standards will reduce the cost of business, more particularly across national borders, than it will contribute towards greater efficiency of the market regulations. Not only will that harmonization reduce the costs inherent in conducting financial statements analysis and investments in international context. Another advantage of international harmonization of the accounting standards is saving of resources (Muller 1961, Spacek 1971). Further arguments is that international harmonization of the accounting standards can advance capital market efficiency(Ramanna and Sletten 2009) while Ball et al., 2000; Ball Et al 2006 envisaged that if the international market does not go along with the associated capital market institutions can be expensive. Finally, harmonization of the international accounting standards will help in improving management decisions in the multinationals. (Hauworth 1973). 2.4.3 Demerits of international harmonization International harmonization if faced with some criticisms, Some of which are economic while others are political. One of the criticisms is that it cannot carter for a wide range of national circumstances, legal systems, stages of economic development, and cultural differences (Samuel and Piper, 1985, pp 100-109). Atiken and Islam refuted this stating that the nature of the economic transactions and the methods by which they are accounted for does not vary in essence. Walton, Haller, Raffournier, (1998) argued that harmonization distorts social balances that have not been tackled over a long period of time. In the readings of Blake and Hossain (1996) International harmonization of reporting standards especially IASC is less respectful of local particularities; in regards to this context options will be seen as to be bad ,methods are termed either good or bad and costly reconciliations is likely to be imposed. Kenny and Larson (1993) further argued that large professional organizations protect their selfish interest in the standard setting process. Also the absence of a strong professional accounting body is a major obstacle to harmonization of accounting standards. 2.10 Arguments for international reporting. The essence of international reporting standards is to give a universal reporting standard that will be comprehensive and transparent thereby improving investors confidence as well as also creating market integrity. (Hope et al., 2005; dArcy, 2001). In this section we looked at the benefits of international reporting standards to the investors, firms, and also to the global economy. Gordon (2008, p. 3) cited the speech of Levitt (1997) which stating that for international reporting standards to gain acceptance three key objectives must be in place: The standards should include a core set of accounting pronouncements that constitute a comprehensive, generally accepted basis of accounting. The standards must be of high quality – they must result in comparability and transparency and they must provide for full disclosure. The standards must be rigorously interpreted and applied. Financial Reporting quality and transparency under IFRS The question has been if the accounting figures reported under this standard will give of high quality compared to those under domestic standards?. Also will IFRS show transparency in disclosure for an informed decision for investment? Barth et al., (2007) states that this is an extremely intricate question to answer as the application of any given standard has exhibited the effects of the features of the financial reporting system, its standards, as well their interpretation, enforcement and litigation. As these affects the competence of the financial prepares and users. Tarca (2004) said that international accounting standards are one way of improving transparency in financial reporting. Ashbaugh and Pincus (2001) elaborate that since the adoption of IFRS there has been improvement in the forecast accuracy by the analyst. As a result of this analysts cost of information acquisition also reduces. Cuijpers and Buijink (2005) from his sample of firms domiciled in the European Union pr ovide evidence that the analyst following has increased. Also Barth et al (2003) and Barth et al (2007) reveal that higher value relevance for firms is higher since the adoption of the IFRS as compared with the pre adoption period. IFRS therefore reduces the estimation of risk in market returns. Hence we will say that the quality of the IFRS in financial reporting is therefore inestimable in countries that adopt IFRS than those that use the locally recognised standards. Although we have affirmed that IFRS is associated with a high accounting quality there may be oppositions to this. Firstly, where there is an intrinsic flexibility in the principles based standards; this may present opportunities for firms to manage their earning thereby reducing the accounting quality. Also, in a bit to limit the managerial discretion which relates to the accounting alternatives will also reduce the ability of the firm to report accounting measurements that will give a reflection of what the true po sition and economic performance of the company is. Thus, accounting regime affects the quality of the information thereby affecting the cost of capital. Cost of capital and IFRS Adoption There are various propositions on the whether the adoption of IFRS reduces liquidity and lower cost of capital. Before the adoption of IFRS investors have to spend some time and effort in translating the standards in a way they can to understand. This process wastes efforts time and incurs transaction cost. The cost of capital determines how risky an investment would be. The higher the cost of capital the more risky the investment will be. According to (Coffee 2002), findings on bonding theory there is a lowered cost of capital. Deske (2006) affirms that this associated reduction in information cost is the main benefits by which IFRS is being adopted. There will be a reduced cost since the same standard will be used by all countries not regarding where the countries are domiciled. Aras and Crowther (2008) argued that the reduction in the cost of information in the adoption of IFRS and an assured consequent reduction can only benefit the countries whose legal, cultural, and economic s ystem is the same with the nations which are involved in setting IFRS, hence other countries which are not beneficial to this may incur increased cost compliance. Although, Barth (2007); Marquez-Ramos (2008) emphasized that IFRS reduces information cost of an economy as capital flows and trade becomes globalised. Improved comparability of the accounting reports: The use of IFRS eliminates the lack of comparability of financial statements. Choi et al. 1999, p. 249 states that comparability eliminate the current misunderstandings of the investors on the reliability of foreign financial statements and this removes one of the most main impediments affecting the flow of international investment. It also makes it easier for companies to compare financial results of different reporting entities from different countries. Global recognition Globalization of the business activities has increased creating a need for comparability of financial information between firms of different countries .Most of the companies are going globalized therefore the use of national accounting rules is increasingly impairing effective communication both in internal and external reporting. In a recent study by the international federation of Accountants(IFAC) most accounting leaders all over the world has agreed that adopting IFRS will be vital for economic growth in their countries. It is also significant as it will make it easier to compare human capital needs of companys subsidiaries all over the world since professionals will be more mobile. IFRS improves profit figures: The movement from the domestically recognized standards to the internationally recognized standards has resulted to a tremendous increase in the net profit figures of top most countries financial reports although the balance sheets have deteriorated. It is noted already that IFRS requires a comprehensive reporting than the domestic standards. IFRS has determined the various accounting methods by which profit figures will be derived from and reported by the firms (Aras and Crowther 2008). Impact of IFRS on financial reporting Examining financial statement implications is important because, †¦ the only direct effects †¦ are changed financial statements †¦ (Hung and Subramanyan, 2004, p.4) Pijper (2009), further examines how IFRS has affected the reporting of financing on the balance sheet. In GAAP the put option were disclosed in a footnote as an off balance sheet figure, but with the IFRS the put options which is held by minorities are now treated as a financial liabilities. Prior to the adoption of IFRS most companies were very conservative in their depreciation rates and this was affecting the business profits in that some assets will still be in use and there is no report on the expense incurred against those assets in the income statements but now the IFRS has reduced the distortions b these excessive prudent nature of depreciation rates .From the studies of (Hung and Subramanyan 2004) IFRS emphasized that fair value should be used for balance sheet valuation. Barth et al (2005) from hi s studies discovered that companies that uses IFRS experienc Benefits of the International Reporting Standards Benefits of the International Reporting Standards 2. 0 Literature review 2.1 Introduction Literature abounds in polarising this subject matter the benefits of the international reporting standards. Looking back at the last quarter of the 20th century it will no longer be seen as an evolutionary period global financial market in a bit to introduce a single set of standards that will be generally acceptable in financial reporting. International reporting standards have revolutionized the domestic accounting system to a more capital oriented system (Hope et al, d Archy 2001). Lantto (2007) states that the information provided by the IFRS is more reliable and relevant. Darke and Deske (2006) highlights that the disclosure quality has increased tremendously since the adoption of the IFRS. Furthermore, Ding et al (2006) states that the adoption of the IFRS has made a great impact in bridging the differences in the use of the domestic standards among the countries. In justifying the theories, there are opinions as well as oppositions on the advantages of the international reporting standards. What becomes evident although arguably is that the movement from the domestic standard of reporting to the international standard of reporting is of great benefit to financial reporting to the shareholders, firms ,organizations and also global economy as it will place the whole countries in the same reporting field. This chapter will review this report from the historical background of the international financial reporting standards, the Implementation and enforcement then to the benefits of the adoption of this standard. 2.2 Financial Reporting. In the beginning financial reporting can hardly be called external (Alexander, Britton and Jorissen, 2003: 22) rather it was a way by which the owners were informed on their income and capital. This is because the owners and managers of the company were not separated. Until in the 1800s when they started encountering the agency problems it becomes evident to separate ownership (management) from capital supply. Then external wreporting was introduced in order to provide information outside the borders of a specific country. Hence, financial reporting emanates from internal to external reporting. Financial reporting provides information to the users for making economic decisions (Iqbal 2002). Gilmore and Wilmot (1992) states that reporting has developed over time in a bid to stress the need for investment decision making and also to attract investors into the company. Hegarty (1997) opines that the range and varieties of this reporting regime is as a result of an evolution which shows the uniqueness in the economic, cultural and legal jurisdiction. As a part of the revolutionary process financial reporting has changed over time (Crowther 2000). The change is a result of a need for a good financial reporting system that will communicate real value an d risk to the users of the reports (Damant 2000) .Hence, the quality of a financial report is dependent on the reporting standards. 2.3 Why Standards? According to (Perks 1994,p.137),Accounting standards may be seen as the professions rules, which supplement companies Act requirements that are intended to restrict directors freedom of manovoevre and to ensure that the financial statements are presented on a more comparable, consistent and standard basis. Perks (1994) reporting standards is also important in order to prevent scandals, abuses, financial collapsing in the companies and creative accounting that may jeopardize the profession. Also, Elliot and Elliot (2008) highlight some reasons for standard this includes: Comparability: Financial statements should be able to allow users make predictions on future cash flows and also evaluate managements performance. Credibility: For financial information to disclose information that will give a true and fair view, uniformity is therefore essential. Influence: To be able to stimulate a development of the conceptual framework the process at which the standards are formulated should be able to give a constructive appraisal of the policies proposed for the individual financial reporting. Discipline: A mandatory standard is necessary as it structures a regulation that will be systematic and ongoing thereby enforcing a disciple in the financial markets for all organizations listed in the stock exchange. The usefulness of a reporting standard cannot be overemphasized although there are some arguments on this. Harvey and Keer (1983) argued that information produced using financial standards could be unreliable at times and the standards might be bureaucratic and inflexible. Also, there may be adverse allocative effects . Consequently, there might be consensus-seeking and standard overload . Lets take an illustration of a of two companies; Enron and Ahold to further explain why we need standards. Enron is the seventh largest US based company falling into bankruptcy as a result of an overstated profit of $500 million and the Ahold the third largest US grocer had their earnings overstated for the past two years by $500. 2.3 How National differences affects reporting. Given that the environment differ from country to country, the types of decisions to be taken and information needed in decision making differs from one country to another. Hence, accounting system is environment specific. (Iqbal 2002). Adhikari and Tondkar (1992) reported that financial accounting reporting and disclosure standards and practices do not develop in a vacuum but reflect the particular environment in which they are developed (p. 76). The culture of a country affects its method of accounting and financial reporting. For example, Gary (1988) in his books illustrated one of the ways by which cultural differences affects countries financial reporting; a country with a high uncertainty avoidance and low individualism will tend to be more conservative in their income measurement than in a country with low certainty avoidance and high individualism. Although the measures of cultural attributes may be indistinct and not direct in financial reporting compared with the other factors that affect financial reporting.Also, the nature of accounting regulations in a country is influenced by the general system of law applicable in that country. For example Jaggi and Low (2000), notes that companies in the common laws countries tends to have a high level of disclosures than countries in a codified Roman law system. La Porta et al. (1998) argues that common countries have investors with a strong legal protection than the Roman law countries do. Moreover, the differences in the types of business organization and ownership also affect financial reporting. Elliot and Elliot (2008) further explains this stating that in a country like the UK the business structure indicates a separation of the ownership and the management while in the French business the structure differentiates the ownership from the managers.. According to Nobes and Parker (1 998, p.21):The difference in the providers of finance (creditors/insiders) versus (equity/ outsiders) is the key cause of international differences in financial reporting. Although there is an increasing scale, companies firms had to find extra capital to finance growth. (Alexander, Britton and Jorrisen 2003). Roe (2003), further argues that political differences are the major cause of the differences in corporate structures in the developed western countries. Also the accountancy profession is another determinant of the differences in financial reporting. Nobes and Parker (2006:36) emphasizes that the strength, size, and competence of the accountancy profession in a country affect the type of financial reporting that will be obtained in that country. So with these differences the financial analyst cannot be able to make a headway there is therefore a need for a uniform reporting standards. 2.4 Why the call for international reporting standards Over the years it becomes apparent for an ever increasing worldwide competition. The globalization of the markets and companies increased as a result of the cross-border securities market listings and capital raising.. Thus, there was no cross-border investments, investors therefore prefer to invest in companies whereby there will are more comfortable with their system of accounting . 2.5 Background of the International Reporting Standards. Financial reporting standards for international applicability became prevalent in the 1970s. International Accounting Standards committee (IASC) was set up in the 1973 in order to standardize the reporting differences in international investment communities. The establishment of the International Accounting Standard committee is seen as a response to the call by the accounting profession for a greater co-ordination of accounting rules among the various nations of the world (Kraayenhof 1960).The need was expressed in the international congresses of Accountants held in September, 1972 in Sydney. Chetkovich (1979, p.13) emphasizes that at each of these congresses, there was a demand for a better communications and closer cooperation among accountants on a worldwide basis; and also for greater harmonization of accounting standards. This statement led to the establishment of the IASC on June 29, 1973. The objectives of IASC are: to formulate and publish in the public interest, international standards; also to promote their acceptance and observance world-wide, and to work generally for the improvement and harmonisation of regulations, accounting standards and procedures relating to the presentation of financial statements. (IASC, 1983, Preface to Statements of International Accounting Standards, p.1). This is the first step towards the achievement of a globally recognised standard .The members of the IASC accept that adopting of international accounting standards (IAS) will improve the quality of financial statements (IASC ,1995). How far did this go or were there criticisms to this standard? IASC helped in solving the problem of uniformity although the purpose of it enactment was far from being realised. One of the weaknesses is that the standard issued by IASC has many objectives thereby making it difficult to achieve the purpose of consistency in recognition, measurement and presentation of transactions (IASB section 4). The standard is also too broad and allowed the use of several alternative accounting treatments. Atiken and Wise (1984) emphasizes that the IASC gives more attention to the multinational companies and investors in the multinational businesses more than it emphasizes on the harmonization of all spheres of the organization globally. Therefore emphasizing that IAS C was set up for the harmonization of accounting on a worldwide basis in order to improve the financial reporting and decision-making capability of multinational businesses, and investors in multinational businesses.(p.176). The second criticism to the use of IASC is that of the mandate. The statement starts with the phrase to formulate and publish in the public interest international standards†¦. (IASC). Hence they act in the interest of the public by a way of enforcing the rules which may not be favourable to the public. This absence of democratic legitimacy has been the major reason by which the IASC standards have not been enforced. Besides , this the structure and the membership composition of the IASC lacked the requirements needed for a global standard setting organization which includes the independence of its members, technical expertise and the decision making bodies representatives. McKinnon and Janelle (1983, p.33) argued that IASC has only succeeded in codifying generally accepted practice, in serving as a neutral source of standards ,and in influencing groups with the enforcement powers. Consequently, the IASC was restructured from the year 1998 to 2000 to International Accounting Standards Board (IASB). IASB is an independent London-based standard accounting body privately funded. The first IFRS was issued in the year 2003 with a membership of 19 countries but it has tremendously grown to 70 countries now with the EU mandating that all listed companies should use the IFRS in their financial reporting effective from the year 2005 (EC,2002). IASB has two member bodies the standard setting board and the member board of trustees .The IASB establishment is allied to that of the international federation of Accountants worldwide (IFAC).. The International Accounting Standards Board is committed to developing, in the public interest, a single set of high quality, global accounting standards that require transparent and comparable information in general purpose financial statements in addition, the IASB co-operates with the national accounting standard-setters to achieve con vergence in accounting standards around the world. (IASB, 2002, p.1). IASB has taken corrective measures in removing the accounting alternatives thereby ensuring that firms give a report that will reflect a true position and economic performance of the firm. IASB also aims at promoting global consistency in application and enforcement. It has also met the requirement that the business which operates in multiple bodies have a uniform financial statement which will be understandable in the countries whereby they operate. 2.6 International Accounting Standard Board (IASB) versus FASB? Norwalk agreement in the year 2002 by the Financial accounting Standard Board (FASB) and the International Accounting Standards Board was signed by both bodies after the need for a high quality, consistent and a comparable information which will be applicable to both domestic and the cross border financial reporting was recognized. Jacob and Madu (2009, p.3) the cited that both FASB and the IASB has pledged to use their best efforts in making their existing financial reporting standards fully compatible as is practicable and to coordinate their future work programmes to ensure that once achieved compatibility is maintained. This was also confirmed in their meeting in October 2005 of the two bodies reaffirming their commitments to converge US GAAP to IFRS. In a Concept Release, the SEC(2000) notes, Establishing and maintaining high quality accounting standards are critical to the US approach to regulation of capital markets, which depends on providing high quality information to facilitate informed investment decisions. (Jacob and Madu 2009).SEC released a proposal on July 13 2007, which states that US should recognize financial statements prepared using the IFRS from the foreign private issuers without reconciling them back to GAAP [2].furthermore, SEC informs all the investors that IFRS is the only set of standards with a high quality accounting standards that is more informative, useful for preparing financial reports compared with the US GAAP. This recent move to IFRS suggest that ,IFRS is the only standard that is of high quality and globally recognized and also has a potential to improve comparability of the financial statements despite of the country whereby they are domiciled. Despite all these efforts to converge to IFRS some academic literature still opines this stating that there are still material differences between the IFRS and the US GAAP. More so, the information contained in reconciliation is evident in the investment decisions made by the US investors. for example ,Culter and Neidemeyer (2009) argues that the major challenge why US did not want to adopt the IFRS is that there are differences in regulation and the manner at which these rules are been interpreted. IFRS is principal based regulatory system; which means that the rules are already set. On the other hand US GAAP is ruled based, whereby a detailed guidelines and principles is already laid out. Delliot (2007) emphasized that the principle based rules focuses more on the objective not relying more on the detailed rules. Deming (2005,p.4) gives a conclusive report pointing out that IFRS has more of a common law approach, than the US GAAP which is more of a civil law approach Furthermore, in the number of standards, IFRS has forty nine sta ndards while and nineteen interpretations and this consist of an approximate of two hundred pages (Delliot 2009) while the US GAAP has twenty thousand page (Mitra 2009).Other notable differences are seen in the financial reporting using the US GAAP and the IFRS. This will be comprehensively reviewed in the subsequent chapter. 2.7 Implementation and Enforcement of Financial Reporting Standards The credibility of a standard relies on its smooth implementation by countries that adopts it. Enforcement is a difficult concept to quantify and measure (Nobes and Parker 2006). The enforcement process differs from one country to another. Even at the international level there is still no genuine enforcement process. Moreover, some accounting bodies set standards and leaves enforcement to other bodies while others do both. For example US Securities and Exchange Commission sets laws and enforces it while IASC, Accounting Standards board (ASB) sets and develops standards and do not have the power to enforce these standards For the set rule of IFRS to be achieved an enforcement body has to be set up with powers to enforce the standards (Lamfalussy, 2001; Committee of European Securities Regulators [CESR], 2003a). Nobes and Parker (2008) states that the most determining factor for a successful adoption of this standard as a global standard is in the approach taken by the financial regulating bodies in the countries that adopts it. Giner and Rees (2005), Brown and Tarca (2005 )and Ball(2006 ) affirms that the purpose of IFRS is to provide a high quality financial reporting which can only be achieved with vigorous enforcement by the regulatory bodies (Schipper 2005 and Ball et al. 2003.The enforcement has not been easy certain factor has affected the effective enforcement of the law. Some of them vary from the cost, regulators interest and whether the businesses or accountants really need them. Watts and Zimmerman (1986), opines that the value of regulation is an empirical question, more apprehensive of ho w the regulatory authorities can value the costs and benefits of regulation. For example in the EU countries the structure and the organization that is in charge of the oversight of the requirements in the financial reporting varies among the EU countries. Also some countries do not have institutional oversight of financial reporting (FEE, 2001a, p.10).The EU regulation therefore mandates that the member states are to take appropriate measures in order to ensure compliance with IFRS. (European Commission EC], 2002, n.16). As a result of this the need for a country to produce a multiple financial statements was eliminated. Lafferty (1981) noted that no enforcement mechanism ever existed in reality. Perks (1993), expressed in his opinion that, without a legal backing it is not easy for the reporting standards to be enforced. Enforcing of the accounting standards therefore may require statutory audit, an effective sanctions and monitoring by supervisory bodies and for it to be implemen ted. Thus, there will be continuous reformations and changes in these standards. IFRS AND EU The European Parliamentary on enacted a legislation 0n 14 March 2002 requiring all companies listed in the European stock exchange to publish their financial statements with in accordance with the International financial reporting standards. There is also an endorsement mechanism which ensures that IFRS meets the needs of the EU listed countries. 2.4 International Standardization, Harmonization and Uniformity. The move towards greater harmonization of professional accounting practices has been traced back 1904 and the first accounting congress in St Louis, Missouri (Samuels and Piper, 1985, p.59, Mueller, 1979, p.7). Samuels and Piper (1985 p.59) states that international issues were not important while Mueller (1979 p.7) states that there is a need to pay attention to International harmonization. Combarros (2000), also argues that there is a need for harmonization of the accounting. Harmonization and standardization are used synonymously by some authors (Tay and Parker, 1990). While other researchers has differentiated the two. Tay and Parker (1990, p.73) defined harmonization as a movement away from total diversity of practice and standardisation is seen as a process which involves a movement towards uniformity. Saudagaran (2001:32), futher emphasized that the rationale for harmonization is that it will enhance comparability of financial statements [therefore] making it easier to use acr oss countries While other proponents is of the school of thought that harmonization will is not be practicable or truly probable. Rudhede and Wahlberg (2003) emphasizes that the lack of accounting harmonization will give difficulties to the investors in understanding the accounting principles which varies among the countries. Walton. Moreover, harmonization is a way to put processes in place to be able to reduce the obstacles inherent in international comparability. Hulle (1993, p.73) stated that the objective of harmonization is the comparability of accounts. All the efforts of the EU towards harmonization of these accounting standards have been challenging and slow. 2.4.2 Merits of international harmonization. An argument in favour of international harmonization is, efficiency in trans-border transactions. (Walton, Haller, Raffournier, 1998, p.9). Although lack of uniformity in the reporting procedures and the comparability of the accounting information is another barrier to cross border investments. This comparability of the financial postions across national bodies is seen as one of the most important reason for harmonization (Cummins 1975). This will help to reduce lack of trust and non reliance on the financial statements. With this there will be a flow of international investment in the capital market. Turner (1983 p.58) in his studies affirms that the second advantage of harmonization is to consolidate divergent information when more than one set of report is required to comply with different national laws or practices; further stating that accounting diversity is the major cause why companies spend unnecessarily cost. According to Houston and Reinstein (2001), harmonization of the a ccounting standards will reduce the cost of business, more particularly across national borders, than it will contribute towards greater efficiency of the market regulations. Not only will that harmonization reduce the costs inherent in conducting financial statements analysis and investments in international context. Another advantage of international harmonization of the accounting standards is saving of resources (Muller 1961, Spacek 1971). Further arguments is that international harmonization of the accounting standards can advance capital market efficiency(Ramanna and Sletten 2009) while Ball et al., 2000; Ball Et al 2006 envisaged that if the international market does not go along with the associated capital market institutions can be expensive. Finally, harmonization of the international accounting standards will help in improving management decisions in the multinationals. (Hauworth 1973). 2.4.3 Demerits of international harmonization International harmonization if faced with some criticisms, Some of which are economic while others are political. One of the criticisms is that it cannot carter for a wide range of national circumstances, legal systems, stages of economic development, and cultural differences (Samuel and Piper, 1985, pp 100-109). Atiken and Islam refuted this stating that the nature of the economic transactions and the methods by which they are accounted for does not vary in essence. Walton, Haller, Raffournier, (1998) argued that harmonization distorts social balances that have not been tackled over a long period of time. In the readings of Blake and Hossain (1996) International harmonization of reporting standards especially IASC is less respectful of local particularities; in regards to this context options will be seen as to be bad ,methods are termed either good or bad and costly reconciliations is likely to be imposed. Kenny and Larson (1993) further argued that large professional organizations protect their selfish interest in the standard setting process. Also the absence of a strong professional accounting body is a major obstacle to harmonization of accounting standards. 2.10 Arguments for international reporting. The essence of international reporting standards is to give a universal reporting standard that will be comprehensive and transparent thereby improving investors confidence as well as also creating market integrity. (Hope et al., 2005; dArcy, 2001). In this section we looked at the benefits of international reporting standards to the investors, firms, and also to the global economy. Gordon (2008, p. 3) cited the speech of Levitt (1997) which stating that for international reporting standards to gain acceptance three key objectives must be in place: The standards should include a core set of accounting pronouncements that constitute a comprehensive, generally accepted basis of accounting. The standards must be of high quality – they must result in comparability and transparency and they must provide for full disclosure. The standards must be rigorously interpreted and applied. Financial Reporting quality and transparency under IFRS The question has been if the accounting figures reported under this standard will give of high quality compared to those under domestic standards?. Also will IFRS show transparency in disclosure for an informed decision for investment? Barth et al., (2007) states that this is an extremely intricate question to answer as the application of any given standard has exhibited the effects of the features of the financial reporting system, its standards, as well their interpretation, enforcement and litigation. As these affects the competence of the financial prepares and users. Tarca (2004) said that international accounting standards are one way of improving transparency in financial reporting. Ashbaugh and Pincus (2001) elaborate that since the adoption of IFRS there has been improvement in the forecast accuracy by the analyst. As a result of this analysts cost of information acquisition also reduces. Cuijpers and Buijink (2005) from his sample of firms domiciled in the European Union pr ovide evidence that the analyst following has increased. Also Barth et al (2003) and Barth et al (2007) reveal that higher value relevance for firms is higher since the adoption of the IFRS as compared with the pre adoption period. IFRS therefore reduces the estimation of risk in market returns. Hence we will say that the quality of the IFRS in financial reporting is therefore inestimable in countries that adopt IFRS than those that use the locally recognised standards. Although we have affirmed that IFRS is associated with a high accounting quality there may be oppositions to this. Firstly, where there is an intrinsic flexibility in the principles based standards; this may present opportunities for firms to manage their earning thereby reducing the accounting quality. Also, in a bit to limit the managerial discretion which relates to the accounting alternatives will also reduce the ability of the firm to report accounting measurements that will give a reflection of what the true po sition and economic performance of the company is. Thus, accounting regime affects the quality of the information thereby affecting the cost of capital. Cost of capital and IFRS Adoption There are various propositions on the whether the adoption of IFRS reduces liquidity and lower cost of capital. Before the adoption of IFRS investors have to spend some time and effort in translating the standards in a way they can to understand. This process wastes efforts time and incurs transaction cost. The cost of capital determines how risky an investment would be. The higher the cost of capital the more risky the investment will be. According to (Coffee 2002), findings on bonding theory there is a lowered cost of capital. Deske (2006) affirms that this associated reduction in information cost is the main benefits by which IFRS is being adopted. There will be a reduced cost since the same standard will be used by all countries not regarding where the countries are domiciled. Aras and Crowther (2008) argued that the reduction in the cost of information in the adoption of IFRS and an assured consequent reduction can only benefit the countries whose legal, cultural, and economic s ystem is the same with the nations which are involved in setting IFRS, hence other countries which are not beneficial to this may incur increased cost compliance. Although, Barth (2007); Marquez-Ramos (2008) emphasized that IFRS reduces information cost of an economy as capital flows and trade becomes globalised. Improved comparability of the accounting reports: The use of IFRS eliminates the lack of comparability of financial statements. Choi et al. 1999, p. 249 states that comparability eliminate the current misunderstandings of the investors on the reliability of foreign financial statements and this removes one of the most main impediments affecting the flow of international investment. It also makes it easier for companies to compare financial results of different reporting entities from different countries. Global recognition Globalization of the business activities has increased creating a need for comparability of financial information between firms of different countries .Most of the companies are going globalized therefore the use of national accounting rules is increasingly impairing effective communication both in internal and external reporting. In a recent study by the international federation of Accountants(IFAC) most accounting leaders all over the world has agreed that adopting IFRS will be vital for economic growth in their countries. It is also significant as it will make it easier to compare human capital needs of companys subsidiaries all over the world since professionals will be more mobile. IFRS improves profit figures: The movement from the domestically recognized standards to the internationally recognized standards has resulted to a tremendous increase in the net profit figures of top most countries financial reports although the balance sheets have deteriorated. It is noted already that IFRS requires a comprehensive reporting than the domestic standards. IFRS has determined the various accounting methods by which profit figures will be derived from and reported by the firms (Aras and Crowther 2008). Impact of IFRS on financial reporting Examining financial statement implications is important because, †¦ the only direct effects †¦ are changed financial statements †¦ (Hung and Subramanyan, 2004, p.4) Pijper (2009), further examines how IFRS has affected the reporting of financing on the balance sheet. In GAAP the put option were disclosed in a footnote as an off balance sheet figure, but with the IFRS the put options which is held by minorities are now treated as a financial liabilities. Prior to the adoption of IFRS most companies were very conservative in their depreciation rates and this was affecting the business profits in that some assets will still be in use and there is no report on the expense incurred against those assets in the income statements but now the IFRS has reduced the distortions b these excessive prudent nature of depreciation rates .From the studies of (Hung and Subramanyan 2004) IFRS emphasized that fair value should be used for balance sheet valuation. Barth et al (2005) from hi s studies discovered that companies that uses IFRS experienc

How does the Relative Molecular Mass change in heat combustion of an alcohol? :: GCSE Chemistry Coursework Investigation

How does the Relative Molecular Mass change in heat combustion of an alcohol? Planning Introduction ============ As alcohol burns in air it gives out energy as heat and light. I am going to investigate how the energy output of an alcohol in combustion changes, with increased relative molecular mass, or RMM. RMM is the sum of the atomic masses of every atom in the molecule. Using the alcohols: Methanol, Ethanol, Propan-1-ol, Butan-1-ol and Pentan-1-ol, I will plan, and complete an experiment that tests the prediction below. ====================================================================== Prediction And Theory ===================== In the combustion of alcohols in air, the alcohol reacts with oxygen molecules, to create carbon dioxide and water. Many bonds are broken in the process using up energy. At the same time, the atoms reforming into the new molecules of carbon dioxide and water give out energy. In the combustion of alcohols, the energy created, when forming bonds will always be more that what is lost, when breaking bonds, this gives us excess energy. This energy is given out primarily as heat, but also as light and sound. As energy is given out it is called an exothermic reaction. If the opposite were true, it would be an endothermic reaction. It is never possible to calculate exact energy change by experimentation due to inaccuracies and energy waste, so we use bond energy calculations give the exact theoretical energy change. Bond energy calculations show that the higher the RMM the more energy will be produced for the same weight of fuel (RMM is the sum of the atomic masses of every atom in the molecule). This is because as the RMM increases there are more atoms and therefore, more bonds to be broken and then made. As, when burning alcohols, this process gives out energy, the more bonds go through this process, ie as the RMM increases the more energy should be released. The calculations also suggest that for every carbon atom you add to the chain of an alcohol the energy out should increase by 618 Kj/mol. I predict then, that as the RMM goes up then the energy change will get increasingly more negative i.e. more energy is given off. The RMM will be proportional to the final energy created as both should increase by the same number each time, (RMM by 14 as one C and 2 H atoms are added, and the energy out by 618KJ/mol). This will therefore result in a straight-line on the graph. The bond energy calculations show how much energy should be released, accounting for experimental inaccuracies however, I expect the experimental output to be considerably less. Proposed Method I am going to test how the energy output per mole in the combustion of

Blender Blade Component Analysis Engineering Essay

The blade constituent in the liquidizer is map to suppression and blending the ingredient with a really fast revolving velocity. First we need to understand the construction of the blade to enable the blade execute the procedure like sliting and softening. We know blade necessitate to be fixed under high rotational velocity operation, therefore the blade must hold the high modulus of rigidness to forestall any deformation during the operation. It is because the shearing force Acts of the Apostless on the blade is really high due to its velocity. Since it is rotate in high velocity when the nutrient are being dump into the nutrient container, it will do a impact acts on the blade that will do the blade to interrupt or check if the blade do non tough plenty. Besides that, the shaft will maintain in contact with the nutrient and ever expose to the nutrient chemical, therefore it must be entire chemical inert. The corroding procedure must non be occurred to forestall wellness risky incident. The high wear opposition is besides of import to the blade, as it will ever run for the interrupted procedure. The cyclic burden will do fatigue therefore we need difficult blade. Normally wear opposition can be increase by making a coating on the blade. Crisp borders with good strength is besides really of import to enable the blade execute the mincing or crunching procedure expeditiously. The blade is various plenty to cut about all the nutrient stuff that can be intermix if needed, strength once more is needed. Here is the drumhead degree Fahrenheit the liquidizer blade belongingss that we use as guideline in blade stuff choice. Hardness High strength Stainless steel High rigidness High wear opposition2.2 MATERIAL SELECTION2.2.1 BLENDER BLADE MATERIAL SELECTIONIn the choice stuff we must see many facets to guarantee the merchandise that we have made successful in overall facet. There some standards that must be see such as: Physical & A ; Mechanical Considerations Thermal Considerations Chemical Considerations Bearing and Wear Considerations Cost Type of utilizations and etc To get down the material choice of the constituent, we have to utilize the assorted comparing charts to compare diverse of stuff that available. In this clip about, we use the specific stiffness to specific strength, strength to cost, strength to toughness, and immature modulus to denseness. These are primary chart that we use to guarantee our choice. In the specific stiffness to specific strength chart, we can acquire the consequence of the stuff that has medium specific strength and high specific stiffness. This is an of import standard of stiffness in our merchandise. In the strength to be chart, we need to compromise the cost and the strength that we can keep competitory monetary value with the strength for safety. In the immature modulus to density chart, we need to hold the mid scope of denseness to forestall corpulence of merchandise with the high immature modulus. High immature modulus means that the emphasis that the, stuff can defy before it ‘s deform. In between strength and stamina, we need to hold both for the blades do non neglect prematurely particularly face the impact gesture of the nutrient encountered by blades.Figure 3: Strength AND TOUGHNESS COMPARISON CHARTFigure 4: Specific STIFFNESS AND SPECIFIC STRENGTH COMPARISON CHARTFigure 5: Young MODULUS AND DENSITY COMPARISONFigure 6: STRENGHT AND COST COMPARISON CHARTFrom the comparing we have made above, the suited stuff that we can take is chiefly metal stuff either alloyed or non. But we need to see corroding procedure that will that topographic point for ferric metal. Then we can take either alloyed metal or ferric alloyed metal like chromium steel steel. In the consequence we get, we besides found the stuff to applicable to our blade constituent production like ceramics. The ground we do non take it as comparing because of its crispness. We can non hold the toffee will do it crack when it is over it ‘s bound so will do the safety job. Based on the characteristic we found in the constituent, We have decide to compare two stuff in doing blade of liquidizer: Alloy steel Stainless steelAlloy Steel Properties[ 5 ] Alloy steel is the steel that contain some alloying elements like Mo, manganese, nickel, Cr, V, Si and B. Compare with C steel, the belongingss of Alloy steels have greater strength, hardness, hot hardness, wear opposition, hardenability, and Toughness. However, to obtain the require belongingss, they are needed to be heat treated.Stainless Steel Properties[ 6 ] Stainless steel differs from C steel by content of Cr in steel. The chief different belongings of the chromium steel steel is its corrosion opposition. Carbon steel rusts when exposed to air and wet. This Fe oxide movie is active and accelerates corrosion by organizing more Fe oxide. Stainless steels have sufficient sum of Cr nowadays so that a inactive movie of Cr oxide to forestall farther corrosionBlade stuff Comparison ChartSTAINLESS STEELParameterALLOY STEEL620 MPa.Ultimate tensile strength570 MPa. 240-290 MPa.Output strength440-500 MPa. 20-24 %Elongation15-18 % aˆ? High ultimate tensile strength. aˆ? Excellent corrosion and oxidization opposition. aˆ? High wear opposition aˆ? High weariness oppositionAdvantagesaˆ? High strength-to-weight ratio. aˆ? High emphasis opposition aˆ? Good corrosion opposition aˆ? High wear opposition aˆ? Expensive. aˆ? Can non be hardened by heat intervention. aˆ? Hard to organize compared to dramatis personae FeDisadvantagesaˆ? Poor in machinebility. Difficult to done by machining. aˆ? More brickle than chromium steel steel aˆ? Hi strength comparison to chromium steel steel but less ultimate tensile strength.Selected Blade Material – chromium steel steelIn doing blade, we have decided to utilize unstained steel because of some ground. The most of import is because we need the stuff that have excellent in corrosion and oxidization opposition. This is because we deal in doing nutrient processor. So that the quality of nutrient is chief thought to guarantee the user is safe to utilize is. Other than that, chromium steel steel has high wear immune. This belongings is good to hold in doing the blade because it ever crisp in cutting the nutrient. The impact stamina is besides the portion that we tend to take 304 steel since we have rotate in high velocity to cut or slit the nutrient. Stainless steel besides has a batch of categorization that we can take for the production of the blade. Therefore we have to take a specific category to guarantee the cost appraisal. After we did the research, we decide to take unstained steel category 304 to be our stuff for the p roduction.Stainless Steel – Grade 304Fe ; & lt ; 0.08 % C ; 17.5-20 % Cr ; 8-11 % Ni ; & lt ; 2 % Mn ; & lt ; 1 % Si ; & lt ; 0.045 % P ; & lt ; 0.03 % S [ 7 ] These are some of its features: – Forming and welding belongingss – Corrosion/ oxidization opposition – Deep drawing quality – Excellent stamina – Low temperature belongingss reacting good to indurating by cold working – Ease of cleansing, easiness of fiction, beauty of visual aspect. Table 1.A Physical belongingss of 304 class chromium steel steel in the annealed statusClassDensity ( kg/m3 )Elastic Modulus ( GPa )Average Coefficient of Thermal Expansion ( mm/m/A °C )Thermal Conductivity ( W/m.K )Specific Heat0-100A °C ( J/kg.K )0-100A °C0-315A °C0-538A °Cat 100A °Cat 500A °C304/L/H 8000 193 17.2 17.8 18.4 16.2 21.5 5002.3 PRODUCT SPECIFICATION AND TECHNICAL DRAWING2.3.1 BLENDER SPECIFICATIOND = 12cm Feature: Portable Rechargeable light weight Jar Capacity: up to 1.5 litres H = 30cm B = 16cm L = 18cm2.3.2 EXPLODED VIEW OF BLENDERFigure 2: Blender Exploded ViewPart Part name 1 Cap 2 Eyelid 3 Jar 4 Jar / blade seal 5 Blade set 6 Jar yoke 7 On-off button 8 Button spring 9 Upper lodging 10 Motor & A ; bushing 11 Motor saddle horse screw 12 Switch, on-off 13 Switch, interlock 14 Prison guard 15 Mini phone doodly-squat 16 Diode 17 Zener rectifying tube 18 Battery cell 19 Base screen 20 Screw, grip 21 Foot 22 Charger2.3.3 BLENDER BLADE SPECIFICATION3.0 STAGES OF THE PROCESS3.1 ALTERNATIVE PROCESS FOR EACH COMPONENT3.1.1 BLENDER BLADE ALTERNATIVE PROCESSThe suited procedure of blade production are projecting, stomping and hammering, we can still bring forth the blade even with different stuff. But every procedure must has it ‘s restrictions and ain advantages. The procedure selected is shown at table below:Figure 7: Blade Manufacturing Alternative ProcessesSince we have chosen the stuff, so we have look at the procedure to bring forth the merchandise. There are diverse of procedure of available outside, we need to take suitably to suite the stuff belongingss and the functionality of the constituent. There are several guidelines that we need to obey. The choice of a suited procedure is based on the undermentioned factors: Types of stuffs and its belongingss Expected quality and belongingss of the constituents Size, form, thickness and complexness in bring forthing the constituents Tolerances and surface coating Incoming procedures involves Design and tooling cost Volume of production Economy Now the chart above has shown 3 primary procedures that we will discourse further to take the best production procedure. Now we discuss the casting procedure. The procedure is a popular fabrication procedure that can hold many advantages. The grounds why we choose the investing casting procedure among assorted procedure of casting are because any stuff can project through this method. The investing casting procedure is economical even for rather low measure usually minimal measure is 1000. Furthermore, the complex form can be produced which meet the blade design. Heat intervention of the casting merchandise is non needed. Excellent surface coating and truth besides can be produced through this method. Again it suites the constituent demand that dimensional and surface coating. But the procedure has the disadvantages. We have the expensive dice tool and stuff cost, long lead clip to hold the concluding merchandise, labour cost is high. After we have seen the procedure we have the clea rer image of the procedure. The following procedure we will discourse the forging procedure. The blocker type of the forging will be used in this procedure. This is because this type has the low dice cost compared to other forging procedure. The production rate is high that will run into the company minimal production demand. Forging will hold the dice to use the compressive force on it in order produce the form we want. In the blocker forging, demand to make the machining to acquire the net form we want. The portion will non be a suited pick if the parts are thick webs and big filets. The chief cost is come from the dice cost which influenced by form and size of the constituent. The measure is besides the major concern in cost footing fabrication. Then we will make the stamping treatment. Stomping besides the sorts of sheet metal organizing utilizing the stamping dice and use the force on the sheet stuff. [ 18 ] The cost effectivity of the metal stomping procedure stems from its ability to bring forth material-intensive parts at production rates much higher than are possible utilizing other traditional methods. With stuff for stomping about bing use in another procedure, the premier country for nest eggs is in cutting production clip. From the above treatments, we can see that stomping will convey us the most economical procedure. Although we need to bear with the high start-up cost, but through the long term, the turnover is still good. The investing casting is excessively arduous and long lead clip which does non suite our selling policy ; the forging is more suited for big constituent.3.2 PROCESS SELECTED AND TOTAL PRODUCT STAGES3.2.1 BLENDER BLADE MANUFACTURING PROCESS3.2.1.1PROCESS SELECTED FOR BLENDER BLADEAfter weighing the pros and cons of procedure, we have chosen the stomping which derived procedures from progressive dice drawing. [ 22 ] By utilizing stomping procedure, there are some advantages compare with other procedure like hammering and die casting. First of wholly, the stomping dies can be well less than the tooling used in other procedures. Other than that, the Quality, truth, map, wear life and visual aspect can all be dramatically improved. By utilizing stomping procedure, the portion of stuff with tougher and harder belongingss can besides be made. Secondary operations like heat intervention and machining are needed to complete a portion. The figure of secondary operation is reduced and it can salvage the cost. To bring forth liquidizer blade by stomping procedure, there are some secondary procedure to be taken in. after the constituent is stamped out from the stamping machine, we need to bore a little hole on the constituent for the assembly intent. After that, flexing procedure will take in to obtain the functional form of liquidizer. Then, the constituent is so to be heat treated to better its mechanical belongingss like strength and stamina. Finally, a finishing procedure will take in to sharpen the blade border by machining procedure and better the wear opposition by add-on procedure like coating of blade with Ti.3.2.1.2 BLENDER BLADE STEPS FLOW CHARTThe phases for blade fabrication system are shown in the stairss flow chart below:Figure 8: Phase OF BLADE MANUFACTURING BY STAMPING3.2.1.3 BLENDER BLADE PROCESS STAGE AND MACHINE USEDStompingThe procedure is start by stomping of a big sheet of metal. We will utilize blanking procedure which is a cutting procedure by utilizing clout and di ce to bring forth the blade profile. For blanking procedure, the merchandise is the portion which is sheared out by clout. To transport out the blanking procedure, the stamping dice and stomping machine is needed. The blade merchandise by blanking procedure is shown at the figure below: Component ( merchandise ) Strip ( work stuff ) Scrap ( discard )Figure 9: blanking of bladeFeatures Of Stamped Parts[ 22 ] after stomping procedure, there are BURR-SIDE or CUT RADIUS feature on the stamped parts. There is a unsmooth border or breaking away burr around the side of the perforated holes. At The opposite side, there is a cut radius or â€Å" rollover † consequence where the blanking or piercing punch enters the metal surface. Both of these defects can be corrected if they affect the map ablility of the constituent. Deburring procedures can be used to take the burrs. Deburring procedure is done by utilizing deburring tool, toppling, or sanding. Drilling will do the holes straight through the full portion thickness. A shaving station in a progressive dice can cut down the demand for secondary handling operations. Besides, utilizing thicker stock than the concluding size called for and dual phonograph record grinding, or individual side grinding, as required will take burrs and rollover. After stomping procedure, the phenomena of CONCENTRICITY can be found on the merchandise itself. The contour of the interior and outside shows different belongingss and even thicknesses. the discrepancy can be cut down by excess allowance to the merchandises made. Besides the concentricity, the flatness/blanking deformations besides common phenomena that occur in the stamped merchandise after stomping procedure. There is the bowing rise in the merchandise due to periphery emphasis. The size of the obeisance varied with the stuff and type of dice used. The solution of the defects can be through the use of compound dice.Machine used for stomping procedure – Stamping MachineIn the stamping machine the major operation is where a metal sheet is being punched utilizing a imperativeness tool in order to give out into coveted form. Different stomping procedure necessitate different type of dice. Example of blanking dice is shown in figure 9Figure 10: Stamping MachineFigure 11: Stamping DieDrillingOnce the constituent is stamped out, the boring procedure will take in to bore a hole on the blade for the assembly intent. A boring machine is needed to bore the hole. The constituent after boring procedure is shown in the figure below: Drilling machine Component ( Merchandise )Figure: Drilling Of BladeMachine Used – Drilling Machine[ 23 ] A boring machine, called a drill imperativeness, is used to cut holes into or through metal, wood, or other stuffs. Boring machines use a boring tool that has cutting borders at its point. This cutting tool is held in the drill imperativeness by a chow or and is rotated and fed into the work at variable velocities. Boring machines may be used to execute other operations like countersinking, drilling, counterboring, topographic point facing, reaming, and tappingFigure 13: boring machineBendingTo obtain the better map ability of the liquidizer blade, the form of the blade should be flexing with certain angle as shown in the figure 9. This is a fictile deforming procedure to alter the form of metal blade. Note has to taken that the flexing portion of the constituent is under high emphasis after the bending procedure. To get the better of it, heat intervention will taking topographic point to hardening and reconstruct the emphasis. The constituent after flexing procedure is shown at below:Figure 14: Bending Of BladeMachine used: Bending Machine[ 24 ] Bending is a common fabrication method to treat sheet metal. It is normally done on a Press brake, but besides swing-bending-machines are used. With this machine a bending stuff is being bent by following the preset angle as a mention. The bending operation creates a consecutive line crook while form operation may make a curving crook.Fi gure 15: CNC Bending MachineHeat intervention[ 25 ] To reconstruct the residuary emphasis that trap in the stamped merchandise, heat intervention is normally carried out. Heat intervention can heat the metal to recrystallization temperature that will realine the grain in the metal. The heat intervention of the metal, the cleft can be reduced and it can be hardened as the finer grain can be obtained. The undermentioned describe the procedure heat intervention of the blade. The blade ballad on the ceramic tray so heat up to the specified temperature to indurate the portion. The oven normally is preheated to faster the procedure. The warming procedure last for 2 hours. After procedure the ceramic tray take out from the oven. The submergence of the merchandise into oil or H2O to execute slaking. This trap the intricate crystal in the metal construction. This procedure besides consequences in the metal going really brittle. After slaking, the blades are reheated to about 260A °C. Then the blades are allowed to chill easy in a procedure called annealing. This toughens the metal while retaining some of the crispness needed for all right sharpening. Further warming and chilling rhythms may be used to indurate other specialised metals.Machine Used: Heat Treating Oven[ 26 ] Heat handling oven is usage to heat the stuff up to 760A °C – 1370A °C It has the map to command the temperature and force per unit area of warming. The box furnace can manage exothermal, endothermal, and enriched ambiances including air, N, and Ar.Figure 16: heat handling ovenMachiningFinally, the blade will undergoes machining procedure as the coating procedure. [ 25 ] After the heat-treated blades are cool, they are polished and sharpened. Polishing is performed by machine in our instance. A level belt smoother is used to bring forth a smooth coating to the sides of the blade. This besides polishes out any Markss from the punch imperativeness operation and removes the surface residue from the heat-treat operation. Next the blade is placed into a grinding fixture that passes it through a series of crunching wheels. Each revolving wheel removes the right sum of metal to organize the border alleviation, point, rough border angle, and other characteristics of the working part of the blade. When the blade is finished with these stairss, it will be rather crisp and may look ready to utilize. However, the concluding sharpening stairs s are required to bring forth a durable border. Honing is the last procedure to take in. the crisp border of blade is produced by a all right grinding operation and called honing. The angle of the hone may be between 17 and 30 grades to the axis of the blade, depending upon the blade application. A smaller angle will bring forth a sharper border, but the border will have on and go dull more rapidly. A all right grinding hone, or â€Å" rock, † is oiled and gently rubbed on the knife border. This action produces the finest sharpened border.Machine Used: Belt Sander[ 27 ] A belt smoother is a machine used to sand down wood and other stuffs for finishing intents. It consists of an electrical motor that turns a brace of membranophones on which a seamless cringle of emery paper is mounted.Figure 17: Belt SanderConsequence on plagiarism checker on hypertext transfer protocol: //www.articlechecker.com/checker.phpMatched PhrasesGoogleA ResultsA Found:MATERIAL SELECTION 2 ( Set Alert ) Carbon steel rusts when exposed to air and wet ( Set Alert ) This Fe oxide movie is active and accelerates corrosion by organizing more Fe oxide ( Set Alert ) Ultimate tensile strength 570 MPa ( Set Alert ) aˆ? Excellent corrosion and oxidization opposition ( Set Alert ) aˆ? Can non be hardened by heat intervention ( Set Alert ) This procedure besides consequences in the metal going really brickle ( Set Alert ) Then the blades are allowed to chill easy in a procedure called annealing ( Set Alert ) This toughens the metal while retaining some of the crispness needed for all right sharpening ( Set Alert ) Further warming and chilling rhythms may be used to indurate other specialized metals ( Set Alert ) This besides polishes out any Markss from the punch imperativeness operation and removes the surface residue from the heat-treat operation ( Set Alert ) Next the blade is placed into a grinding fixture that passes it through a series of crunching wheels ( Set Alert ) Each revolving wheel removes the right sum of metal to or ganize the border alleviation, point, rough border angle, and other characteristics of the working part of the blade ( Set Alert ) When the blade is finished with these stairss, it will be rather crisp and may look ready to utilize ( Set Alert ) However, the concluding sharpening stairss are required to bring forth a durable border ( Set Alert ) The angle of the hone may be between 17 and 30 grades to the axis of the blade, depending upon the blade application ( Set Alert ) A smaller angle will bring forth a sharper border, but the border will have on and go dull more rapidly ( Set Alert ) A all right crunching hone, or † rock, † is oiled and gently rubbed on the knife border ( Set Alert ) This action produces the finest sharpened border ( Set Alert )Entire Matched Phrases / Total Submitted10 % ( 19/182 )

An Omnipotent Government: Utopia or Dystopia Essay

â€Å"Utopia: an idealized place of perfection or a visionary scheme for a perfect society† (Agnes). However, what if the ideals of utopia result in the seeds of dystopia? What if a government that is able to rule a perfect society, oversteps its bounds and causes destruction of freedom? In the dystopian novels 1984, A Brave New World, and The Giver, the government controls every thought, every fear, every story, and every emotion. These novels warn of the threat of a government that becomes too involved in its citizens’ lives. When citizens allow themselves to be uncaring and uninformed about their government, the ultimate price is freedom and liberty. These novels show that freedom is much to high a cost; momentary contentment should never come at the expense of liberty. Adolf Hitler once said, â€Å"If you tell a big enough lie and tell it frequently enough, it will be believed† (Huxley). Propaganda is a very powerful tool that can be used for good or evil. In 1984 the Party’s slogan, â€Å"WAR IS PEACE. FREEDOM IS SLAVERY. IGNORANCE IS STRENGTH,† convinces its citizens that they want what the government has given them: war, slavery, and ignorance (Orwell). They do not want freedom because it is slavery. They are made to believe that peace and serenity come only during war. They are uninformed about their world, and this gives them strength. This type of government propaganda controls what citizens think by controlling what is heard on the radio, the television, the newspaper, and all other forms of media. In A Brave New World, propaganda is not only forced on citizens through media, but also during sleep. At the time Huxley wrote his novel, a new technique of â€Å"sleep learning† had become popular. The technique hypnopaedia was an interesting concept but actually caused negative behavior. Huxley used this in his novel as a form of government brainwashing. In A Brave New World, those in power used â€Å"sleep lea rning† to instill their beliefs in the citizenry of London (Clareson). This â€Å"sleep learning† is a type of non-rational propaganda. Huxley compares the two kinds of propaganda, rational and non-rational. Rational propaganda appeals to a person’s own best interest. Rational propaganda can only be used in a society where people have reason and morals. They could use the propaganda to rationalize what is in their best interest. Nevertheless in a society without reason or morals, what kind of propaganda is effective? Non-rational propaganda appeals not to any person’s best interest, but to their emotions. â€Å"The power to respond to reason and truth exist in all of us. On the other hand, unfortunately, does the tendency to respond to unreason and falsehood—particularly in cases where the falsehood evokes some enjoyable emotion† (Huxley 265). Huxley applies Hitler’s rule that the behavior of the masses is not determined by knowledge, but by feelings and innate drives. The propaganda in A Brave New World appeals to passion instead of reason (Clareson). Punishment is a powerful method of controlling any person. The fear of something that causes pain or unhappiness is usually an effective way to keep a person from rebelling. In The Giver, the fear of â€Å"release† or death kept all the citizens from breaking any rules. Even a simple mistake could cost a life. When a pilot in training accidentally flew over the city, the elders comforted the citizens, â€Å"Needless to say, he will be released† (Lowery 21). The citizens in The Giver did not understand that â€Å"release† meant death, but they could comprehend that it was not a desirous thing. In Lowery’s novel, no one broke rules. When Jonas’ father looked at the name of a baby before the naming ceremony, Jonas was shocked. He could not believe his father had broken a rule. In 1984, many people were hanged for a crime. â€Å"Thought Crime† was punishable by death. The Thought Police could not watch everyone’s thoughts simultaneously, but if they came across a belief that did not align with the party, death was the result. However public execution is not the only form of death in 1984. â€Å"Disappearances† were a common occurrence throughout the novel. Often those guilty of â€Å"thought crimes† just disappeared. All records of their existence were erased, and the Party attempted to remove all memories of them through â€Å"double think† (Orwell). Huxley takes a completely different approach in his novel. Pleasure is the key to controlling the citizenry in A Brave New World. A review of the book states, â€Å"Pleasure is the most powerful motivator of man† (Clareson). Research has proven that rewarding good behavior is more effective than punishing wrong behavior. Where the citizens in 1984 are controlled by fear of punishment, the citizens in A Brave New World are controlled by reinforcing desirous behavior. The main tools used by the government to regulate society are sex and Soma, a drug used by all citizens in the novel. The people’s awareness is suppressed to th e point that the World Controller refers to them as â€Å"nice tame animals.† They sacrificed their entire future for the pleasure of the moment. If a citizen disagreed with the government in A Brave New World, they would be given soma and through â€Å"sleep learning† be retaught the importance of government and their place in society (Huxley). The government fundamentally brainwashes its citizens to keep them ignorant of anything other than what they need know. Knowledge is a valuable thing. â€Å" If a nation expects to be ignorant and free, it expects what never was and will never be†¦the people cannot be safe without information. Where the press is free, and everyone is able to read; all is safe† (Huxley). One important factor in controlling a large group of people is limiting his or her knowledge and resources. In 1984, the government uses a new form of speaking called â€Å"news speak.† Newspeak is a simplified version of the truth. The problem with this is when things are simplified we do not get the full version of the truth; instead we get a biased form of it. In 1984, the government controls information allowing only what reflects well on them to be released. â€Å"Don’t you see the whole aim of newspeak is to narrow the range of thought† (Orwell). Lowery also shows a limitation of knowledge in her novel. In The Giver, the elders censor their peoples’ language, emotions, and behaviors. Only the Giver and Receiver are allowed access to books and memories. The citizens in this novel are childlike in their understanding of things (Hanson). They literally have a limited vision and no way to think for themselves, or to make decisions without the Giver’s help. Taking away knowledge is a powerful thing and dangerous thing. â€Å"Who controls the past, controls the future: who controls the present controls the past† (Orwell 32). History and memories are essential to a society. When citizens forget the past; it numbs the entire citizenry. In 1984, the government constantly changes the past so it portrays them in a better light. â€Å"The party is at war with Eurasia therefore it always has been at war with Euras ia† (â€Å"Eternal Vigilance†). â€Å"Double think† is a form of thinking created by the government in Orwell’s novel. To â€Å"double think† is to have two contrary beliefs and believe both of them, while only expressing one. Orwell’s main character Winston knows when something is a lie, but has no evidence to controvert it. He says, â€Å" The past†¦had not merely been altered, it had been destroyed† (Orwell 33). In The Giver, only the Giver himself and Jonas the Receiver are allowed access to the history of their city. Upon discovering the outside world and time Jonas says, â€Å"I’m sorry sir. I don’t know what you mean when you say ‘the whole world’ or ‘generations before him.’ I thought there was only us. I thought there was only now.† Before becoming the Receiver, Jonas like all the others in his community only understood the here and now. To them everything outside of their own city simply was â€Å"elsewhere† (Low ery 56). When Jonas does discover his people’s past, he longs for a different future; knowing that there was more to life then what was offered by his elders. Emotion is an essential part of a human being. In these dystopian novels, emotion is either used as a tool for the government or completely eliminated from society. In 1984, negative emotions are used to create a common enemy among the people. Every day, all citizens were required to participate in the â€Å"two minutes hate.† During this time, they focused on an enemy of â€Å"The Party† and exhibited very animalistic behavior (Orwell 5). They also trained children from a very young age making Party minions. Winston describes his neighbor Parsons, â€Å"a man of paralyzing stupidity, a mass of imbecile enthusiasm- one of those completely unquestioning devoted drudges on whom†¦the stability of ‘The Party’ depended† (Orwell 22). Lowery instead of using emotions, tried to completely suppress them. In The Giver, there is no such thing as color, love, or joy. Jonas’ world is dependent of content people who ask few questions and see no need fo r change. Their lives are planned for them; spouses are picked out and children are applied for. All these monumental decisions are made by the council of elders. Jonas is accustomed to a life of â€Å"sameness.† Upon turning twelve and becoming the Receiver, Jonas’ lackluster world transforms into a vibrant new place. The memories given to him allow Jonas to experience love and warmth. â€Å"I like the feeling of love†¦but I can see that it was a dangerous way to live† (Lowery 126). In The Giver, â€Å"stirrings† are treated with a subduing drug. This represses any curiosity and imagination the young people have. Adults are also required to take medicine that eliminates their sexual desires (Henson). There is nothing beyond what is required and no desire for something more. In each of these cautionary novels, there are uneducated people who have no desire to become informed. Government has become so controlling that even history has been changed. Propaganda and emotions are only means to advance the government. Liberty is the price paid for stability, safety, and community. Their world did not become the desired utopia instead it became a dystopia. Webster’s dictionary defines dystopia as â€Å"a place where people lead dehumanized and often fearful lives† (Agnes). Liberty and freedom must be earned and guarded. Enlightened and empowered citizens must keep them alive. The dystopian life shown in these novels is only a threat if citizens allow their freedoms to be taken away. When citizens allow themselves to be uncaring and uninformed about their government, the ultimate price is freedom and liberty. These novels show that freedom is much to high a cost; momentary contentment should never come at the expense of liberty. Works Cited Agnes, Michael, ed. â€Å"Utopia.† Webster’s New Dictionary and Thesaurus. Cleveland, Ohio: Wiley Publishing Inc., 2002. Print. Clareson, Thomas P. â€Å"The Classic: Aldous Huxley’s Brave New World.† Extrapolation 3.1(Dec. 1961): 34-40. Rpt in Contemporary Literature Critisism. Ed. Carolyn Riley. Vol. 1. Detroit: Gale Research, 1973. Literature Resource Center. Web. 23 January 2013. â€Å"Eternal Vigilance.† New Statesman [1996] 1 June 2009: 41+. Literature Resource Center. Web. 29 Jan. 2013. Hanson, Carter F. â€Å"The Utopian function of memory in Lois Lowry’s The Giver.† Extrapolation 50.1 (2009): 45+ Literature Resource Center. Web. 23 January 2013. Huxley, Aldous. Brave New World and Brave New World Revisited. New York: Harper Collins Publishers Inc., 2004. Print. Lowry, Lois. The Giver. New York: Dell Laurel –Leaf, 2002. Print. Orwell, George. 1984. Austin, TX: Holt, Rinehart, and Winston, 1991. Print.