Nature and Regulation of Companies and Their Operations Essays

Nature and Regulation of Companies and Their Operations Essays Nature and Regulation of Companies and Their Operations Essay Nature and Regulation of Companies and Their Operations Essay Nature Regulation of Companies Company Operations Legal nature of company ? Separate legal identity, distinct from owners ? Companies act through agents’. eg. shareholders elect board of directors to act on their behalf Public Company (Ltd. ) ? Limited liability of owners Raises funds from public Types of companies Private Company (Pty. Ltd. ) Regulation of companies Corporations Law: Companies must keep proper accounting records; prepare yearly half-yearly FS; ensure FS comply with accting standards.Accounting Standards: Australian Accounting Standards Board (AASB) is responsible for issuing accounting standards which have backing of the Corporations Law. Australian Stock Exchange – listing rules require companies disclose certain info. s which are necessary to fully inform stock market. Australian Securities Investment Commission (ASIC): administers Corporations Law including compliance with Accounting Standards International Accting Standards Board (IASB): attempts to converge/harmonise acting standards throughout the world.Reasons for regulating financial reporting Reasons for preparing FS: Provides info. that is useful for making economic decisions to resource providers (eg. shareholders, lenders, employees), recipients of GS (eg. customers, taxpayers), oversight groups (eg. regulatory agencies, media, unions). Characteristics of useful accting info. : relevance (predictive, feedback, timely), faithful representation (verifiable, Gloria Ltd reliable, free from bias), comparability consistency, materiality.Relationship between FSs Revaluation of video library by $1500: DR Video Library Cr Revaluation surplus Revaluation of library is shown in other comprehensive income Gloria Ltd Statement of income and other comprehensive income For period ended 31 January 2012 Income Rental revenue 10600 Expenses (classified by function) Selling expenses -advertising 200 Administrative expenses -telephone 195 -electricity 185 -postage 165 -wages 5000 Financial expenses -interest Total expenses 5745 Profit before income tax 4855 Income tax expense (30%) (1457) Profit for the year 3398 Other comprehensive income Gain on revaluation of video library 1500 Total comprehensive income 4898 Gloria Ltd Statement of changes in equity For period ended 31 January 2012 Total comprehensive income for the year 4898 Share capital Balance at 1 January 2012 60000Balance at 31 January 2012 60000 Reserves General reserve Balance at 1 January 2012 0 Balance at 31 January 2012 0 Revaluation surplus Balance at 1 January 2012 0 Gain on revaluation video library 1500 Balance at 31 January 2012 1500 Retained earnings Balance at 1 January 20 12 0 Profit for period 3398 Dividend paid (800) Balance at 31 January 2012 2598 Balance changes in equity 68996 Separation of owner from manager Does not raise funds from public Managers acting as agents of owners /shareholders No separation of owner from manager existence of interested users Normally, smaller, closely held May be listed or unlisted no interested users E. g.Facebook’s IPO Not a reporting entity Is a reporting entity Keep records for business Req’ed to prepare financial reports Compliance with AASBs not normally necessary Financial reports prepared in accordance with External audit not necessary (usually) accounting stds Generally, less regulation Financial reports subject to audit Generally, more regulation Statement of financial position As at 31 January 2012 Current assets Cash 76655 Accounts receivable 0 Prepaid rent 14400 91055 Non-current assets Store fittings 8000 Video library 31500 Computer 4000 Total assets 134555 Current liabilities Unearned revenue Accounts payable Tax payable Non-current liabilities Loan Total liabilities Net assets Equity Share capital Reserves Retained earnings Revaluation surplus Total equity 9000 20000 1457 30457 40000 70457 64098 60000 2598 1500 64098An entity is affected by external (sales purchases, borrowings) and internal (use of supplies equipment) events which are only recorded if it affects the entity’s A, L or OE. Transactions involving capital contributions, revenues, exp. s, dividends affect OE as it dec. s their claim on entity. IASB’s The Framework: Asset: A resource controlled by the entity as a result of past transactions or events from which future economic benefits are expected to flow to the entity. Definition criterion: FEB, control of FEB, result of past event. Liability: Future sacrifices of economic benefits that the entity is presently obliged to make to other entities as a result of past transactions or other past events. Definition criterion: prese nt obligation, sacrifice/settlement of EB in future, result of past event.Equity: The residual interest in the assets of the entity after deduction of its liabilities. No definition criterion. Main components: issued capital, RE, reserves Income: Inflows or other enhancements, or savings in outflows, of future economic benefits in the form of increases in assets or reductions in liabilities other than those relating to contributions from owners, that result in an increase in equity during the reporting period. Includes both revenue and gains. Arises as a result of changes in A L (BS approach). AASB101 Presentation of FS requires disclosure of Total comprehensive income’ ? represents change in equity’ during period resulting from non-owner related transactions other events.Expense: Consumptions or losses of future economic benefits in the form of reductions in assets or increases in liabilities of the entity, other than those relating to distributions to owners, that result in a decrease in equity during the reporting period. Recognition criterion for A, L, OE, R, E: Probable that FEB associated with item will flow to/from entity + Iten has cost/other value that can be measured reliably. Contingent A L – additional recognition criteria: amount recognised should be best estimate of expenditure required to settle present obligation at reporting date. Such amounts are not recognised in FSs but are disclosed by way of notes. Measurement on A, L, OE, R, E Historical cost, current cost, replacement value, PV, fair value.Most liabilities are stated at face/nominal value except if settled 12months+, then can use PV. Classification of expenses is by function (eg. selling exp. , financial exp. ) or nature. Accounting Policies: principles, bases or rules adopted by company in preparing presenting financial reports. AASB 108 Accounting Policies, changes in Accounting estimates and error covers: setting, changing and disclosure of accounting policie s in FSs. When selecting accounting policies consider: ? Relevance – enables predictions/expectations about future performance, enables confirmation/refutation of past evaluations, enables assessment of accountability rendered by preparers of FSs ?Faithful representation – free from material error and can be depended upon by users to represent faithfully that which it purports to represent. Portrays economic substance over legal form. ? Accountability Accounting entries: ? Inc. in RE with profit: DR PL summary CR RE ? Loss on trading: DR RE CR PL summary ? Distribute dividend to shareholders: DR Dividend declared CR Cash DR Dividend declared CR dividend payable DR dividend payable CR Cash // Paid dividend: Dr Dividends Cr Cash ? Paying monthly wage: DR cash and CR wage exp. (NOT wage payable) ? Received $300 each from thirty customers to join the VIP Programme. The Programme allows them unlimited rentals for the next 12 months: DR Cash CR Unearned Revenue

Kings Landmark I Have a Dream Speech

Kings Landmark I Have a Dream Speech In 1957, the Rev. Dr. Martin Luther King Jr. founded the Southern Christian Leadership Conference, which organized civil rights activities throughout the United States. In August 1963, he led the great March on Washington, where he delivered this memorable speech in front of 250,000 people gathered at the Lincoln Memorial and millions more who watched on television. In the book The Dream: Martin Luther King Jr  and the Speech That Inspired a Nation (2003), Drew D. Hansen notes that the FBI responded to Kings speech with this disturbing report: We must mark him now, if we have not done so before, as the most dangerous Negro of the future in this Nation. Hansens own view of the speech is that it offered a vision of what a redeemed America might look like  and a hope that this redemption will one day come to pass. In addition to being a central text of the Civil Rights Movement, the I Have a Dream speech is a model of effective communication and a powerful example of the African-American jeremiad. (This version of the speech, transcribed from the original audio, differs in a number of ways from the now more familiar text that was distributed to journalists on Aug. 28, 1963, the date of the march.) I Have a Dream I am happy to join with you today in what will go down in history as the greatest demonstration for freedom in the history of our nation. Five score years ago, a great American, in whose symbolic shadow we stand today, signed the Emancipation Proclamation. This momentous decree came as a great beacon light of hope to millions of Negro slaves who had been seared in the flames of withering injustice. It came as a joyous daybreak to end the long night of their captivity. But one hundred years later, the Negro still is not free. One hundred years later, the life of the Negro is still sadly crippled by the manacles of segregation and the chains of discrimination. One hundred years later, the Negro lives on a lonely island of poverty in the midst of a vast ocean of material prosperity. One hundred years later, the Negro is still languishing in the corners of American society and finds himself an exile in his own land. And so weve come here today to dramatize a shameful condition. In a sense, weve come to our nations capital to cash a check. When the architects of our republic wrote the magnificent words of the Constitution and the Declaration of Independence, they were signing a promissory note to which every American was to fall heir. This note was a promise that all men, yes, black men as well as white men, would be guaranteed the unalienable Rights of Life, Liberty and the pursuit of Happiness. It is obvious today that America has defaulted on this promissory note, insofar as her citizens of color are concerned. Instead of honoring this sacred obligation, America has given the Negro people a bad check, a check which has come back marked insufficient funds. But we refuse to believe that the bank of justice is bankrupt. We refuse to believe that there are insufficient funds in the great vaults of opportunity of this nation. And so, weve come to cash this check, a check that will give us upon demand the riches of freedom and the security of justice. We have also come to this hallowed spot to remind America of the fierce urgency of now. This is no time to engage in the luxury of cooling off or to take the tranquilizing drug of gradualism. Now is the time to make real the promises of democracy. Now is the time to rise from the dark and desolate valley of segregation to the sunlit path of racial justice. Now is the time to lift our nation from the quicksands of racial injustice to the solid rock of brotherhood. Now is the time to make justice a reality for all of Gods children. It would be fatal for the nation to overlook the urgency of the moment. This sweltering summer of the Negros legitimate discontent will not pass until there is an invigorating autumn of freedom and equality. 1963 is not an end, but a beginning. And those who hope that the Negro needed to blow off steam and will now be content will have a rude awakening if the nation returns to business as usual. And there will be neither rest nor tranquility in America until the Negro is granted his citizenship rights. The whirlwinds of revolt will continue to shake the foundations of our nation until the bright day of justice emerges. But there is something that I must say to my people, who stand on the warm threshold which leads into the palace of justice. In the process of gaining our rightful place, we must not be guilty of wrongful deeds. Let us not seek to satisfy our thirst for freedom by drinking from the cup of bitterness and hatred. We must forever conduct our struggle on the high plane of dignity and discipline. We must not allow our creative protest to degenerate into physical violence. Again and again, we must rise to the majestic heights of meeting physical force with soul force. The marvelous new militancy which has engulfed the Negro community must not lead us to a distrust of all white people, for many of our white brothers, as evidenced by their presence here today, have come to realize that their destiny is tied up with our destiny. And they have come to realize that their freedom is inextricably bound to our freedom. We cannot walk alone. And as we walk, we must make the pledge that we shall always march ahead. We cannot turn back. There are those who are asking the devotees of civil rights, When will you be satisfied? We can never be satisfied as long as the Negro is the victim of the unspeakable horrors of police brutality. We can never be satisfied as long as our bodies, heavy with the fatigue of travel, cannot gain lodging in the motels of the highways and the hotels of the cities. We cannot be satisfied as long as the Negros basic mobility is from a smaller ghetto to a larger one. We can never be satisfied as long as our children are stripped of their self-hood and robbed of their dignity by a sign stating For Whites Only. We cannot be satisfied as long as a Negro in Mississippi cannot vote and a Negro in New York believes he has nothing for which to vote. No, no, we are not satisfied, and we will not be satisfied until justice rolls down like  waters and righteousness like a mighty stream. I am not unmindful that some of you have come here out of great trials and tribulations. Some of you have come fresh from narrow jail cells. And some of you have come from areas where your quest - quest for freedom left you battered by the storms of persecution and staggered by the winds of police brutality. You have been the veterans of creative suffering. Continue to work with the faith that unearned suffering is redemptive. Go back to Mississippi, go back to Alabama, go back to South Carolina, go back to Georgia, go back to Louisiana, go back to the slums and ghettos of our northern cities, knowing that somehow this situation can and will be changed. Let us not wallow in the valley of despair, I say to you today, my friends. And so even though we face the difficulties of today and tomorrow, I still have a dream. It is a dream deeply rooted in the American dream. I have a dream that one day this nation will rise up and live out the true meaning of its creed: We hold these truths to be self-evident, that  all  men are created equal. I have a dream that one day on the red hills of Georgia, the sons of former slaves and the sons of former slave owners will be able to sit down together at the table of brotherhood. I have a dream that one day even the state of Mississippi, a state sweltering with the heat of injustice, sweltering with the heat of oppression, will be transformed into an oasis of freedom and justice. I have a dream that my four little children will one day live in a nation where they will not be judged by the color of their skin but by the content of their character. I have a dream today! I have a dream that one day, down in Alabama, with its vicious racists, with its governor having his lips dripping with the words of interposition and nullification - one day right there in Alabama little black boys and black girls will be able to join hands with little white boys and white girls as sisters and brothers. I have a dream today! I have a dream that one day every valley shall be exalted, and every hill and mountain shall be made low, the rough places will be made plain, and the crooked places will be made  straight, and  the glory of the Lord shall be revealed and all flesh shall see it together. This is our hope, and this is the faith that I go back to the South with. With this faith, we will be able to hew out of the mountain of despair a stone of hope. With this faith, we will be able to transform the jangling discords of our nation into a beautiful symphony of brotherhood. With this faith, we will be able to work together, to pray together, to struggle together, to go to jail together, to stand up for freedom together, knowing that we will be free one day. And this will be the day -   this will be the day when all of Gods children will be able to sing with new meaning: My country tis of thee,Sweet land of liberty,Of thee I sing.Land where my fathers died,Land of the Pilgrims pride,From every mountainside,Let freedom ring! And if America is to be a great nation, this must become true. And so let freedom ring from the prodigious hilltops of New Hampshire. Let freedom ring from the mighty mountains of New York. Let freedom ring from the heightening Alleghenies of Pennsylvania! Let freedom ring from the snow-capped Rockies of Colorado! Let freedom ring from the curvaceous slopes of California! But not only that. Let freedom ring from Stone Mountain of Georgia! Let freedom ring from Lookout Mountain of Tennessee! Let freedom ring from every hill and molehill of Mississippi. From every mountainside, let freedom ring. And when this happens, when we allow freedom to ring, when we let it ring from every village and every hamlet, from every state and every city, we will be able to speed up that day when all of Gods children, black  men, and white men, Jews and Gentiles, Protestants and Catholics, will be able to join hands and sing in the words of the old Negro spiritual, Free at last! Free at last! Thank God Almighty, we are free at last!