Friday, November 29, 2019

100 Ways to Say I Love You in Italian

100 Ways to Say 'I Love You' in Italian Whether its an operatic aria, a love poem, or whispered sweet nothings, many think the phrase I love you is best said in Italian. There are many ways to express your true feelings in this ancient language. Some are simple and straightforward, others poetic and passionate. Either way, this list of 100 ways to say I love you in Italian is sure to help you find the right words. Say I Love You in Italian Ti amo: I love youTi voglio bene: I love you a lotTi voglio molto bene: I love you very muchMi piaci molto: I really like youTi adoro: I adore youTi ammiro: I admire youSei importante per me: You are important to meSei tutto per me: You are everything to meSono innamorato / innamorata di te: Im in love with youHo bisogno di te: I need youTi voglio: I love youTi desidero: I want youMi sento attratto / attratta da te: Im attracted  to youMi sono infatuato di te: Im infatuated with youHo un debole per te: Im weak for youSignifichi tutto per me: You mean everything to meMi sono affezionato / affezionata a te: Im fond of youSposami: Marry meVoglio essere sempre con te: I always want to be with youSenza di te non posso pià ¹ vivere: I cant live without youTi voglio baciare: I want to kiss youSono tuo / tua:  Im yoursSei la mia anima gemella: You’re my soul mateSenza di te non sono niente: Without you, I am nothingSei luomo / la donna dei miei sogni: Youre the man/woman of my dr eamsSei luomo / la donna della mia vita: Youre the man/woman of my life Per te farei di tutto: Id do anything for youSono pazzo / pazza di te: Im crazy about youSono abbagliato da te: Im dazzled by youSei il grande amore della mia vita: Youre the love of my lifeSenza di te la vita non ha pià ¹ senso: Without you, life has no meaningIl mio cuore à ¨ solo tuo / tua: My heart is yoursHai conquistato il mio cuore: Youve won my heartGiorno e notte sogno solo te: Day and night, I dream only of youMi hai incantato / incantata: Youve charmed/enchanted meSei il sole della mia vita: Youre the sunshine of my lifeSei tutto cià ² che voglio: Youre everything I wantTi voglio un mondo di bene: I want a world of good for youCon te voglio invecchiare: I want to grow old with youTi voglio sempre avere al mio fianco: I always want you by my sideSenza di te la vita à ¨ un inferno: Without you, life is hellDa quando ti conosco la mia vita à ¨ un paradiso: Since I met you, my life is  paradiseResta sempre con me: Stay with me alwaysMi hai stregato / stregata: Youve bew itched mePotrei guardarti tutto il giorno: I could watch you all day Solo tu mi capisci: Only you understand meSono ubriaco / ubriaca di te: Im drunk with youNei tuoi occhi cà ¨ il cielo: Heaven is in your eyesSe non ci fossi dovrei inventarti: If you werent (real), Id invent youTu sei un dono del cielo: Youre a gift from HeavenVoglio passare tutta la mia vita con te: I want to spend my entire life with youIl nostro amore à ¨ la cosa pià ¹ importante nella mia vita: Our love is the most important thing in my lifeQuando chiudo gli occhi vedo solo te: When I close my eyes. I see only youEntra nella mia vita: Come into my lifeLa tua bocca mi fa impazzire: Your mouth drives me crazyVorrei annegare nei tuoi occhi: I want to drown in your eyesTu sei la mia vita: Youre my lifeNessuno / nessuna à ¨ come te: No one is like youSei il mio tesoro: Youre my treasureArdo di amore per te: I burn with love for youTi ho chiuso nel mio cuore: Ive closed you in my heartIl mio cuore dipende da te: My heart depends on youHo preso una sbandata per te: I have a crush on youSono tutto tuo / tua: Im all yours Ti penso sempre: I always think of youMi manchi: I miss youCome sei bella: How beautiful you areVoglio vederti stasera: I want to see you tonightTu sei una stella...la mia stella: You are a star...my starCara mia, ti voglio bene: My darling, I love youMi hai fatto perdere la testa: You made me lose my mindBrucio per te: Im on fire for youTi ho regalato il mio cuore: I gave you my heartIl mio cuore batte solo per te: My heart beats only for youSei irresistibile: Youre irresistibleSei la mia Venere: Youre my VenusMi hai rubato il cuore: Youve stolen my heartSolo con te riesco ad essere felice: Only with you can I be happyMi hai conquistato / conquistata: Youve won meI miei sensi sono pieni di te: My senses are filled with youVoglio che tu sia solo mio / mia: I want you to be only mineDai un nuovo senso alla mia vita: You give new meaning to my lifeSei un gioello: Youre a jewelPer te faccio di tutto: Id do anything for youGiorno e notte penso solo a te: Day and night, I only think about you Mi accompagni ovunque io vada: Youre with me wherever I goSei la cosa pià ¹ cara che ho: Youre the dearest thing I haveSei tutto cià ² che desidero: Youre everything I wantMi fai sognare: You make me dreamEcciti i miei sensi: You excite my sensesSenza di te sono solo met: Without you, Im only halfSei il mio angelo: Youre my angelCon te dimentico il tempo: With you, I forget timeNon ho occhi che per te: I only have eyes for youSei il mio pensiero preferito: Youre my favorite thoughtSento qualcosa di forte per te: I have strong feelings for youNon voglio perderti: I dont want to lose youLa tua bellezza mi toglie il fiato: Your beauty takes my breath awayPotrei fissare i tuoi bellissimi occhi in eterno: I can gaze into your beautiful eyes foreverPer favore, ricordati di me: Please remember/think of me

Monday, November 25, 2019

Ethics in Healthcare Essay Essays

Ethics in Healthcare Essay Essays Ethics in Healthcare Essay Essay Ethics in Healthcare Essay Essay Healthcare is a diverse field with many fortes. but a commonalty in all facets is provider’s moralss. Ethical motives means following the criterions and guidelines set by establishments as it relates to occupation responsibilities. professional behaviour. and patients. The determinations made by healthcare professionals. be it physicians. nurses or medical staff. affect existent people and may intend the difference between life and decease. The wellness and public assistance of patients. along with the really serious facet of intervention facilitation. requires that ethical criterions be followed every measure of the manner for the wellness attention professional. Following ethic issues will give us a comprehensive position of what it means and how it applies to the health care industry. Healthcare professionals follow moralss from how medical guidelines are set. how moralss can go legal issues. and ethical effects on forbearance. Puting of Guidelines The scenes of guidelines differ from installation to installation. but the nucleus values are the same. â€Å"Guidelines are normally produced at national or international degrees by medical associations or governmental organic structures. such as the US Agency for Healthcare Research and Quality. Local health care suppliers may bring forth their ain set of guidelines or accommodate them from bing top-level guidelines. † ( Guidelines A ; recommendations. n. d. ) â€Å"Clinical pattern guidelines are consistently developed statements to help practician and patient determinations about appropriate wellness attention for specific clinical fortunes. † ( Institute of Medicine. 1990 ) . Such paperss have been in usage for 1000s of old ages during the full history of medical specialty. ( Wikipedia ) Clinical protocol is a predefined written procedural method in the design and execution of experiments. † Protocols are written whenever it is desirable to standardise a research lab method to guarantee successful reproduction of consequences by others in the same research lab or by other research labs. Detailed protocols besides facilitate the appraisal of consequences through equal reappraisal. In add-on to detailed processs and lists of needed equipment and instruments. protocols frequently include information on safety safeguards. the computation of consequences and coverage criterions. including statistical analysis and regulations for predefining and documenting excluded informations to avoid prejudice. † ( Wikipedia ) All facets of guidelines all have a signifier of moralss that follow. Ethical motives Groups There are many different moralss groups in health care. Ethical motives groups improve patient attention and the wellness of the populace by analyzing and advancing physician professionalism. The Ethics groups are organized into three parts: as stated by ( AMA ) Council on Ethical and Judicial Affairs ( CEJA ) . which promotes attachment to the professional ethical criterions set out in the Code through its judicial map. Ethical motives Resource Center. which provides pupils and doctors with the indispensable tools and accomplishments to turn to ethical challenges in a altering wellness attention environment. and the Institute for Ethics which is an academic research centre unambiguously situated in the nation’s largest professional association of doctors. All these different groups listed supra. advance moralss in health care. Another ethic that consequence patients is the Health Insurance Portability and Accountability Act ( HIPPA ) . As stated by ( AMA ) â€Å"Created in 1 996 ( HIPPA ) provides the ability to reassign and go on wellness insurance coverage for 1000000s of American workers and their households when they change or lose their occupations ; Reduces wellness attention fraud and maltreatment ; mandates industry-wide criterions for wellness attention information on electronic charge and other procedures ; and requires the protection and confidential handling of protected wellness information. † So many different parts of moralss that consequence patients seem ceaseless but all these things are set in topographic point to assist patients. but when do these moralss go excessively far? When do they go legal issues? Ethical motives codifications and policies of installations can turn incorrect fast and one person’s position alteration others as things go amiss and it becomes a legal issue. An illustration of moralss going a legal issue is a Texas jurisprudence that says vital intervention can non be withdrawn from a pregnant patient. regardless of her end-of-life wants. Recently there was a Texas adult female who was encephalon dead and pregnant. She and her hubby both paramedics. between each other. did non desire to be kept alive by machines in this type of state of affairs. The infirmary applied the jurisprudence cited above. but is this the right type of moralss regulating infirmaries? Larry Thompson. a state’s lawyer reasoning on behalf of the infirmary stated the infirmary was seeking to protect the rights of the foetus as it believed Texas jurisprudence instructed it to make. ( Urbanski. D. 2014 ) Keeping a dead organic structure alive with a foetus that had slim to no opportunity at life. where do moralss come in? Are moralss more of a personal belief or sentiment of some? Ethical Codes Ethical motives codifications help standardise the quality of moralss in healthcare field. The Code of Medical Ethical motives made by the American Medical Association ( AMA ) which was founded in 1847 nem con adopted the world’s first national codification of professional moralss in medical specialty. Since that clip it has been the important moralss usher for practising doctors. â€Å"The Code articulates the digesting values of medical specialty as a profession. As a statement of the values to which doctors commit themselves separately and jointly. the Code is a standard for medical specialty as a professional community. It defines medicine’s unity and the beginning of the profession’s authorization to self-regulate. † ( AMA ) This codification has set the guidelines for the medical industry. The Hippocratic Oath besides shows how guidelines are set in medical specialty. Hippocratic Oath is an curse historically taken by physicians and other health care professionals cursing to pattern medical specialty candidly. There have been ethical guidelines in medical specialty a long clip. the â€Å"Hippocratic curse was written in fifth century BC. † ( Tyson. 2001 ) Such paperss have been in usage for 1000s of old ages during the full history of medical specialty. Each medical installation has their ain ethical guidelines to follow and it plays an of import function in health care and plays a function on patients. The last codification is the National Association for Healthcare Quality ( NAHQ ) . NAHQ’s ( 2011 ) Maintains active personal and professional development plans in the field of healthcare quality and exhibits a wide scope of cognition creates and supports an environment that Fosters teamwork. emphasizes quality. recognizes the client. and promotes larning maintains a committedness to the betterment of the professional through engagement in. and active support of. the local. province. and national professional organisations references concerns and takes formal actions to decide or describe the unethical or questionable patterns to the appropriate channels. ( Code of Ethics for Healthcare Quality Professionals. n. d. ) Decision In drumhead. moralss have effects on how medical guidelines are set. how moralss can go legal issues. and ethical effects on patients. Every portion of health care moralss plays an of import function in the procedure. Decisions of installations. suppliers. and patients are all impacted by moralss. Medical professionals must follow ethical guidelines and be cognizant of legal issues. and ethical effects on forbearance. The determinations made by healthcare professionals. be it physicians. nurses or medical staff. affect existent people and may intend the difference between life and decease. The wellness and public assistance of patients. along with the really serious facet of intervention facilitation. requires that ethical criterions be followed every measure of the manner for the healthcare professional. Mentions ( AMA ) Code of medical moralss. ( n. d. ) . Retrieved fromhypertext transfer protocol: //www. ama-assn. org/ama/pub/physician-resources/medical-ethics/code-medical-ethics. page American medical association ( AMA ) -Council on ethical and judicial personal businesss. ( n. d. ) . Retrieved from hypertext transfer protocol: //www. ama-assn. org/ama/pub/about-ama/our-people/ama-councils/council-ethical-judicial-affairs. page ( AMA ) Ethics resource centre. ( n. d. ) . Retrieved from hypertext transfer protocol: //www. ama-assn. org/ama/pub/physician-resources/medical-ethics/about-ethics-group/ethics-resource-center. page ( AMA ) Health insurance portability and answerability act. ( n. d. ) . Retrieved from hypertext transfer protocol: //www. ama-assn. org/ama/pub/physician-resources/solutions-managing-your-practice/coding-billing-insurance/hipaahealth-insurance-portability-accountability-act. page Guidelines A ; recommendations. ( n. d. ) . Retrieved from hypertext transfer protocol: //www. ahrq. gov/professionals/clinicians-providers/guidelines-recommendations/index. hypertext markup language ( NAHQ ) Code of moralss and criterions of pattern for healthcare quality professionals. ( p. 3 n. d. ) . Retrieved from hypertext transfer protocol: //www. nahq. org/uploads/files/about/codestandards. pdf National institute of wellness -Clinical pattern guidelines. ( n. d. ) as cited by ( Institute for medical specialty. 1990 ) Retrieved from hypertext transfer protocol: //nccam. National Institutes of Health. gov/health/providers/clinicalpractice. hypertext markup language Protocol ( natural scientific disciplines ) . ( n. d. ) . Retrieved from hypertext transfer protocol: //en. wikipedia. org/wiki/Clinical_trial_protocol Tyson. P. ( n. d. ) . The Hippocratic Oath today. Retrieved from hypertext transfer protocol: //www. phosphate buffer solution. org/wgbh/nova/body/hippocratic-oath-today. hypertext markup language Urbanski. D. ( 2014. 01 26 ) . Family: Pregnant and brain-dead Texas adult female removed from life support. . Retrieved from hypertext transfer protocol: //www. theblaze. com/stories/2014/01/26/family-pregnant-and-brain-dead-texas-woman-removed-from-life-support/

Thursday, November 21, 2019

International Business Strategy Essay Example | Topics and Well Written Essays - 1250 words

International Business Strategy - Essay Example While smartphone brands are differentiated to some extent, majority of other smartphones that fall in the same price range possess similar functions (Ogunsanwo, 2013: p54). This makes the threat of substitute products high. In addition, now consumers can use 3rd party applications and internet based calls. The number of substitute products makes it easier for consumers to move to another product and get similar benefits. Concentration of smartphone customers is low, ensuring that they do not have much influence over smartphone prices, which, in turn, makes the buying power of consumers low. However, some rival producers like Apple have influences that extend to their channels of distribution (Ogunsanwo, 2013: p55). This threat is reduced somewhat since consumers have the ability to buy from other smartphone manufacturers even when they do not necessarily give them better prices or incentives. The high number of substitute products gives smartphone suppliers less leverage over them be cause of substitute competition. This increased competition has a positive effect on the smartphone manufacturers (Ogunsanwo, 2013: p56). In addition, the increased competition among the suppliers leads to a reduction in price. Finally, supplier bargaining power is reduced by the similarity of input products. Finally, smartphone manufacturers are not under threat when it comes to rival entrants since the smartphone market is difficult to enter. Rival entrants require proprietary knowledge, as well as many patent requirements that continue to embroil even the established smartphone manufacturers like BlackBerry (Ogunsanwo, 2013: p56). The new entrants will also lack brand power that is essential to sales. Strategic Analysis of BlackBerry Shareholder Value: Earnings per Share Year August 2013 2013 2012 2011 2010 2009 2008 BlackBerry -0.60 -0.60 4.20 6.34 4.37 3.43 2.26 Samsung 18.85 15.79 15.02 8.07 10.99 6.89 3.68 Apple 8.26 11.13 8.75 7.03 4.64 4.10 3.60 (BarChart, 2013: p1) From th e above figures, it seems that the EPS for BlackBerry has decreased consistently from 2010 to the present, indicating that their earning power is decreasing. This has been in sharp contrast to Samsung and Apple who’s EPS is rising consistently. Samsung’s earnings per share are relatively higher than for both Apple and BlackBerry, indicating that, among the three major smartphone makers, Samsung’s earning power is increasing mostly due to manufacturing the most new models of smartphones, as well as its more diverse electronics range. Price/Earnings Year August 2013 2013 2012 2011 2010 2009 2008 BlackBerry 0.00 -17.85 7.24 9.38 15.34 26.24 0.00 Samsung 7.453 10.39 9.10 8.60 16.10 23.3 8.8 Apple 13.12 11.16 14.61 15.35 21.63 31.73 26.39 (BarChart, 2013: p1) The P/E trend for BlackBerry and other smartphone industry players has been falling since 2009 because of the financial crisis. The current P/E ration level for BlackBerry shows that it is very easy to buy at th e moment unlike Apple and BlackBerry who have relatively high P/E ratios, making them more difficult to buy. However, there is a fluctuation of the ratios for both Apple and Samsung, which still seem to be feeling the effects of the financial crisis in 2008/2009 as well. However, it seems BlackBerry was unable to turn its decline around most likely because they failed to introduce any new brands in the period immediately after the crisis. Long

Wednesday, November 20, 2019

INTERNATIONAL PEOPLE MANAGEMENT Essay Example | Topics and Well Written Essays - 3500 words

INTERNATIONAL PEOPLE MANAGEMENT - Essay Example It becomes more complicated when the employees and the company are operating under different sets of culture and tradition. The obvious issue of cultural and institutional differences between the two countries (host and country of origin) creates a question primarily because it dictates the HRM practises and strategies that the MNC subsidiary will utilise, and the support that the host country will provide. Previous studies on HRM practises in the Asia Pacific region have documented that the culture of the origin country has been most influential in their HRM practises. While there are numerous studies outlining the impact of Western Multinationals on emerging economies, there is very little knowledge on the HRM practises among emerging economy MNCs in western economies. Therefore, it was this study’s purpose to examine the HRM practises of MNCs from emerging economies in western countries. Â   This study did not provide clearly stated objectives although it can be surmised from the discussion of the significance. This study aimed to (1) identify the HRM practises used by emerging economy MNCs in the UK, and (2) clarify the issue of the effects of cultural and institutional differences in MNC subsidiaries’ choice of HRM strategies and practises. The research questions are stated after the review of the literature and as follows: The review of available literature explored the home and host country influences in the Taiwanese companies’ UK subsidiary’s selection of HRM practises through a comparison of Taiwanese and British companies’ current HRM practises. The HRM practises that were compared were: recruitment and selection; training and development; pay and benefits, performance appraisal system; management promotion and reward; flexible working; organisational communication; and participatory management; and international relations. The most evident difference between the Taiwanese and British

Monday, November 18, 2019

Information Technology Essay Example | Topics and Well Written Essays - 1000 words

Information Technology - Essay Example Once a computer falls into the bonet, it tends to perform in a slower manner (Leigh 2006). Protocols and Systems that Attackers use today to Control and Update Botnets Communication Protocols of Botnets. A wide number of distinct system connections of protocols are controlled by botnets. These include HTTP, IM, IRC and P2P protocols. These procedures help in communication or avail the source of the botnet and as well as the software equipments that can be utilized in the botnet. Control and Command Techniques (C and C). Immediately the malware of the bot enters to the affected machines, the bot controller or master takes the initiative of discovering the given network of affected machinery; this happens by a given method of communique to perform the desired procedure. A solitary and straightforward process of conveying messages amongst the affected networks and their controllers is kept by powering an express communication connection. On the other hand, this nonstop connection is abl e to position the bot controller with much ease, hence that method of sending messages is neglected so much. In their place, a number of well thought-out control words as well as systematized procedure known as C and C (Command and Control) techniques are made to make the botnets active distantly. The contact connecting the C and C machinery and bots appears to be the feeblest linkage within the bonet but without it, the prey obscure doesn’t perform like a harmonized system (Song 2010). The two various categories of C and C used by attackers to control and update bonnets today include; Control technique and Centralized Command With the C and C method, it makes use of a high and essential bandwidth horde known as the Command and Control server for forwarding data among a variety of affected computers. The given Command and Control server in the specified botnet could be a negotiated machine which manages a given set of the services of the network like HTTP and IRC, and many mo re, further more, it assembles the instructions given from the bot controller or master to every horde within that botnet which connect the Command and Control server canal. The Botnets make use of a variety of devices to defend their connections. This involves the utilization of protected passwords which are made by the bot controllers. The centralized Command and Control server is mainly the principal Command and Control technique. Nowadays, the majority of attackers use the centralized Command and Control, due to its capability of great productivity and it’s simply reachable (Husain 2008). Peer 2 Peer Command and Control (C and C) Technique The peer to peer Command and Control system makes use of a Peer to Peer communication without a specific mid server to frontward the packet messages in between the botnets, this is as a result making the P2P technique more tough to any breakdown within the given system. However, this classification is fairly rough to establish as well a s terminate, even though one or more bots may be disengaged, it has no effect upon the functioning within a bonnet (Brian 2008). Q. 2 Secured Evidence of 3-DES and RSA 3-DES and RSA are mutually convention procedures which are applied in the encryption of data. Workstation set-ups function within such a manner that, data packets

Saturday, November 16, 2019

Defining And Evaluating Methods Of Measuring Performance Accounting Essay

Defining And Evaluating Methods Of Measuring Performance Accounting Essay Performance measurement is the performance-based management process which is flowing from the organizational mission and the strategic planning process. Performance measurement are includes the objective and subjective assessments of the performance of both individuals and subunits of an organization such as divisions or departments. Performance measurement are effective in ensure that a strategy of organisation is successfully implemented by monitor an organisations effectiveness in satisfying its own predetermined goals or stakeholder desires. Performance measures may be based on non-financial as well as on financial information. The Return on Investment (ROI) Two measures of divisional performance are commonly used is ROI and RI. ROI is the most common profitability ratio. Nowadays, most of companies concentrate on the return on investment (ROI) of a division that is profit as a percentage in direct relation to investment of division which instead of focusing on the size of a divisions profits. ROI addressed divisional profit as a percentage of the assets employed in the division. Assets employed can be defined as total divisional assets, assets controllable by the divisional manager, or net assets. The main advantage of using ROI is provides a valuable information about the overall approximation on the success of a firms past investment policy by providing a abstract of the ex post return on capital invested. According to Kaplan and Atkinson, they state that however, lack of some form of measurement of the ex post returns on capital, there is still useful for accurate estimates of future cash flows during the capital budgeting process. When ROI is used as a managerial performance measure, Measuring returns on invested capital also focuses managers attention on the impact of levels of working capital (in particular, stocks and debtors) on the ROI. It can lead to decisions making that are optimal for individual divisions but sub-optimal for the company. ROI focuses on short-term profitability, looking only at the last quarter or last year for performance evaluation. This time horizon may not be long enough for many projects to be evaluated. According to Daiva BurkÃ…Â ¡aitienÄ-, a further attraction of ROI is that it can compare the return of different businesses field for example division within the company or competitors by adopting it as a common denominator. Therefore, corporate managers want their divisional managers to focus on ROI so that their performance measure is congruent with outsiders measure of the companys overall economic performance. However, the used of ROI for evaluating the economic performance of a division is more appropriate than evaluating the managerial performance, since controllable profit and assets are not exposed in external published financial statements. For comparing the economic performance of a division, net income is likely to be the preferred profit measure to be used as the numerator to compute ROI in order to ensure consistency with the measures that are derived from the financial reports of similar companies outside of the group. ROI has been most widely used financial mea sure for many years in all types of companies. ROI is also a useful medium to communicate the ROI to those who have varying degrees of financial knowledge. The ROI concept allows managers to speak the same language when handle project goals in financial terms across several departments in a corporation as well Information Technology (IT) vendors use ROI as a sales tool to easily convey the economic value of their products. The residual income (RI) Residual income overcomes the dysfunctional aspect of ROI. It is because the use of ROI as a performance measurement can lead to under-investment. For example a manager currently achieving a high rate of return( say 30 percen) may not wish to pursue a project yielding a lower rate of return ( say 20 percen) even thought such as a project may be desirable to a company which can raise capital at an even lower rate ( say 15 percent) (David Otley, n.d). Thus, used RI is better than ROI. The purpose of evaluating the performance of divisional managers, RI is defined as controllable contribution less a cost of capital charge on the investment controllable by the divisional manager. For evaluating the economic performance of the division RI can be defined as divisional contribution less a cost of capital charge on the total investment in assets employed by the division. Besides, RI is favour than ROI and it more flexible because different cost of capital percentage rates can be applied to investments that have different levels of risk. There is not only will the cost of capital of divisions that have different levels of risk differ so may the risk and cost of capital of assets within the same division. The RI measure enables to calculate the different risk-adjusted in capital cost while ROI cannot incorporate these differences. The economic value added ROI and RI cannot stand alone as a financial measure of divisional performance. One of the factors contribute to a companys long-run objectives is short-run profit ability. ROI and RI are short-run concepts that deal only with the current reporting period whereas managerial performance measures should focus on future results that can be expected because of present actions. RI has been refined and re-named as economic value added (EVA) by the Stern Stewart Co. EVA is a financial performance measure based on operating income after taxes, the investment in assets required to generate that income and the cost of the investment in assets (or, weighted average cost of capital). The objective of EVA is to develop a performance measure that find the ways in which company value can be added or lost. The EVA concept extends the traditional residual income measure by incorporating adjustments to the divisional financial performance measure for distortions introduced by GAAP. Thus, by linking divisional performance to EVA, managers are motivated to focus on increasing shareholder value. The objective of developed EVA is producing an overall financial measure that encourages senior managers to focus on the delivery of shareholder value. According to Stern Stewart Co. the aim of companies managers whose shares are traded in the stock market should be to maximize shareholder value. Therefore, financial measurement is an important key used to measure divisional or company performance should be congruent with shareholder value. They claim that compared with other financial measures, EVA is more likely to meet this requirement and also to reduce dysfunctional behaviour. EVA is not just a performance measure but can be the major part of an integrated financial management system leading to decentralised decision making. . It leads the each different department managers to make the best decision lies to the companys goals. Thus adoption of EVA should indirectly bring changes in management which in turn can enhance company value (Stern, Stewart and Chew, 1991). It can be proved by an article in an issue of Fortune magazine (1993) described the apparent success that many companies had derived from using EVA to motivate and evaluate corporate and divisional managers. In fact, companies which have adopted EVA as the basis of management performance measurement have experienced a significant increase in their shareholders wealth. Limitations of financial performance measures Financial performance measures are generally based on short-term measurement periods and this can encourage managers to become short-term oriented. For example, relying on short-term measurement periods may encourage managers to reject positive NPV investments that have an initial adverse impact on the divisional performance measure but have high payoffs in later periods. Financial performance measures are as lagging indicators (Eccles and Pyburn, 1992) by time lag between actions and results. They state the outcomes of managements actions after a period of time, produce too late to influence current decisions. Therefore, its hard to understand or know what the manager did caused what to happen. Hard to know, what the manager did that makes the thing going well or bad as well. Financial performance measures are limited to current reporting period only and it needs to be supplemented by non financial information such as customer satisfaction and quality while Managerial performance measures focus and expect what will be the future result. The major problem is obtaining profit measures are based on the historical cost concept and thus tend to be poor estimates of economic performance. Companies tend to rely on financial accounting-based information for internal performance measurement (Johnson and Kaplan, 1987). This information may be appropriate for external reporting but it is doubtful for internal performance measurement and evaluation. In particular, using GAAP requires that discretionary expenses are treated as period costs, resulting in managers having to bear the full cost in the period in which they are incurred. Many traditional measurement and evaluation methods such as ROI, EVA, ROCE and so on have failed to yield an appropriate estimate of the pay back from these complex systems (Barua et al., 1996). Some claim these performance indicators have a high reliance on financial perspectives and thus portrait only one facet of the organisation. Balance scorecard (BSC) BSC was introduced by Kaplan and Norton (1992) to overcome the shortcomings of traditional management accounting and control which fails to signal changes in the companys economic value as an organization makes substantial investments or depletes past investments in intangible assets. The scorecard contains four different perspective which is financial performance, customers, internal business processes, and learning and growth. These perspectives reflect the interests of the key stakeholders of companies involving shareholders, customers and employees (Mooraj et al., 1999). There are several benefits of adoption the balanced scorecard highlight by Kaplan and Norton 1992. One of the benefits is focusing the entire company on the few key things needed to create breakthrough performance. A balanced scorecard might show that an organisation is only weak in a couple of areas but that these areas are impeding its overall success. By focusing everyone in the organisation on improving those areas, overall performance gets better. Next, it assists to integrate different company activities such as quality and customer service. By looking at different organisational programmes or units from different perspectives can be a way of getting everyone singing from the same song sheet. If the balanced scorecard shows customer service to be weak, focusing on everybodys customer service performance behaviours will lead to small improvements in each department or unit; the overall effect will be a bigger improvement in the organisations customer service performance across the board. Lastly, managers and employees both know what is required to achieve excellent overall performance by breaking down strategic measures to lower levels of the organisation. For example, an organisation might have overall goals to increase productivity by 5 per cent. By breaking down its productivity measures to granular levels of the organisation as part of a balanced scorecard, every member of the organisation will have clear targets that achieve their overall goals. Performance Prism The Performance Prism was developed by (Andy Neely and Adams, 2000) takes a drastically different look at performance measurement and sets out clearly to recognize how managers can use measurement data to improve business performance. It has a much more comprehensive view of different stakeholders for example investors, customers, employees, regulators and suppliers than other frameworks. It must be considering the wants and needs of stakeholders first before the strategies can be formulated (Neely et al., 2001). Thus, the stakeholders and their needs have been clearly identified, if not, it is impossible to form a proper strategy for company. According to Andy Neely, now lots of measurement frameworks for example like the balanced scorecard tends to take a fairly narrow view of stakeholders which refer to shareholders and customers. However, it ignores employees, suppliers, regulators and in todays society organisations cant afford to ignore those different pressure groups. Those di fferent groups of stakeholders that might be interested in the business. The strength of this conceptual framework is that it first questions the companys existing strategy before the process of selecting measures is started. In this way, the framework ensures that the performance measures have a strong foundation. The performance prism also considers new stakeholders (such as employees, suppliers, alliance partners or intermediaries) who are usually neglected when forming performance measures. It is structured to throw light on the complexity of an organisations relationships with its multiple stakeholders within the context of its particular operating environment. It provides an innovative and holistic framework that directs management attention to what is important for long term success and viability and helps organisations to design, build, operate and refresh their performance measurement systems in a way that is relevant to the specific conditions of their operating environment. (Andy Neely, Chris Adams, Mike Kennerley, 2002). Lastly, the performance Prism has considered the stakeholder satisfaction and stakeholder contribution compare to other performance measurement dont consider it. Now a way of thinking about this is that as a stakeholder in an organisation as a customer of an organisation, there are certain things I want from the organisation. Conclusion Divisional performance measurement should be based on a combination of financial and non-financial measures. Financial performance measures cannot stand alone as a measure of divisional performance. Profitability is only one of the factors contributing to a companys objectives. An incorporation of non-financial measures, such as competitiveness, product leadership, productivity, quality, innovation and flexibility in responding to changes in demand, creates the need to link financial and non-financial measures of performance.

Wednesday, November 13, 2019

Essay on Appearance vs Reality in Everyday Use and The Gilded Six-Bits

Appearance versus Reality in Alice Walker's and Zora Neale Hurston's Everyday Use and The Gilded Six-Bits  Ã‚     Ã‚  Ã‚   In "The Gilded Six-Bits" it appears that Otis D. Slemmons, the towns newest arrival, is rich, but by closer inspection by Joe Banks and Missie May, is found to be poor.   In "Everyday Use," Maggie doesn't appear to be smart enough to honor and appreciate her heritage, but she and not Dee/Wangero is really preserving the family traditions as well as heritage.   Both "The Gilded Six-Bits" by Zora Neale Hurston and "Everyday Use" by Alice Walker have the theme of appearance and reality.    Hurston and Walker use the theme of appearance versus reality to convey the message that things aren't always as simple as the outward appearances suggest.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  The theme of appearance and reality is seen in "The Gilded Six-Bits" upon our first meeting Joe Banks and Missie May.   Even out first glimpse into their lives, we don't know they are married. It seems they are only dating.   Lillie P. Howard, author of the book Zora Neale Hurston, states, "The Gilded Six-Bits is the story of a beautiful marriage beset by difficulties, of trials and successes, of appearances and reality" (151). Joe admired Slemmons.   He says, "Yeah, he's up to date.   He got de finest clothes Ah ever seen on a colored man's back" (2089). Joe also admired Slemmons coins "He's got a five-dollar gold piece for a stick pin and he got a ten-dollar gold piece on his watch chain and his mouf is jes' crammed full of gold teethes.   Sho wisht it wuz mine" (2089-90). Slemmons gave the impression to Joe and the rest of the town that he had lots of money and expensive jewelry. Joe wants the possessions that Slemmons has, and Mis sie wants him to have them too.   Ã‚  Ã‚  ... ...ity, v. XXI, no. 3, Summer, 1985.   Short Story Criticism. Ed. Thomas Votteler, v. 5.   Detroit, MI: Gale Research Co., 1990.   Baym, Nina, ed. The Norton Anthology of American Literature.   Shorter fifth edition.  New York: Norton, 1999.   Hurston, Zora Neale.   "The Gilded Six-Bits" Baym 2087-2095.   Walker, Alice.   "Everyday Use" Baym 2522-2528.   Bone, Robert.   "Three Versions of Pastoral" in his Down House: Origins of the Afro-American Short Story, Columbia University Press, 1988.   Short Story Criticism. Fowler, Carolyn. "Solid at the Core," in Freedom Ways, v 14, no. 1, first quarter, 1974.  Short Story Criticism. Ed. Thomas Votteler, v. 5.   Detroit, MI: Gale Research Co., 1990.    Howard, Lillie P.   Zora Neale Hurston.   New York: Twayne Publishers, 1980.    Winchell, Donna Haisty.   Alice Walker.   New York: Twayne Publishers, 1992.    Essay on Appearance vs Reality in Everyday Use and The Gilded Six-Bits Appearance versus Reality in Alice Walker's and Zora Neale Hurston's Everyday Use and The Gilded Six-Bits  Ã‚     Ã‚  Ã‚   In "The Gilded Six-Bits" it appears that Otis D. Slemmons, the towns newest arrival, is rich, but by closer inspection by Joe Banks and Missie May, is found to be poor.   In "Everyday Use," Maggie doesn't appear to be smart enough to honor and appreciate her heritage, but she and not Dee/Wangero is really preserving the family traditions as well as heritage.   Both "The Gilded Six-Bits" by Zora Neale Hurston and "Everyday Use" by Alice Walker have the theme of appearance and reality.    Hurston and Walker use the theme of appearance versus reality to convey the message that things aren't always as simple as the outward appearances suggest.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  The theme of appearance and reality is seen in "The Gilded Six-Bits" upon our first meeting Joe Banks and Missie May.   Even out first glimpse into their lives, we don't know they are married. It seems they are only dating.   Lillie P. Howard, author of the book Zora Neale Hurston, states, "The Gilded Six-Bits is the story of a beautiful marriage beset by difficulties, of trials and successes, of appearances and reality" (151). Joe admired Slemmons.   He says, "Yeah, he's up to date.   He got de finest clothes Ah ever seen on a colored man's back" (2089). Joe also admired Slemmons coins "He's got a five-dollar gold piece for a stick pin and he got a ten-dollar gold piece on his watch chain and his mouf is jes' crammed full of gold teethes.   Sho wisht it wuz mine" (2089-90). Slemmons gave the impression to Joe and the rest of the town that he had lots of money and expensive jewelry. Joe wants the possessions that Slemmons has, and Mis sie wants him to have them too.   Ã‚  Ã‚  ... ...ity, v. XXI, no. 3, Summer, 1985.   Short Story Criticism. Ed. Thomas Votteler, v. 5.   Detroit, MI: Gale Research Co., 1990.   Baym, Nina, ed. The Norton Anthology of American Literature.   Shorter fifth edition.  New York: Norton, 1999.   Hurston, Zora Neale.   "The Gilded Six-Bits" Baym 2087-2095.   Walker, Alice.   "Everyday Use" Baym 2522-2528.   Bone, Robert.   "Three Versions of Pastoral" in his Down House: Origins of the Afro-American Short Story, Columbia University Press, 1988.   Short Story Criticism. Fowler, Carolyn. "Solid at the Core," in Freedom Ways, v 14, no. 1, first quarter, 1974.  Short Story Criticism. Ed. Thomas Votteler, v. 5.   Detroit, MI: Gale Research Co., 1990.    Howard, Lillie P.   Zora Neale Hurston.   New York: Twayne Publishers, 1980.    Winchell, Donna Haisty.   Alice Walker.   New York: Twayne Publishers, 1992.   

Monday, November 11, 2019

Problems: Balance Sheet and Financial Statements

THE PROBLEM OF THE BEE: PROBLEMS IN FINANCIAL REPORTING OF JOLLIBEE FOODS CORPORATION’S 2005 FINANCIAL STATEMENTS A Paper Submitted In Partial Fulfillment of the Requirements for the Course ACT515M (Problems in Financial Reporting) MC REYNALD SIMBAJON BANDERLIPE II Candidate for the degree of MASTER OF SCIENCE IN ACCOUNTANCY Mr. WILFREDO BALTAZAR Professor De La Salle University – Manila Term 2, SY 2006-2007 THE PROBLEM OF THE BEE: PROBLEMS IN FINANCIAL REPORTING OF JOLLIBEE FOODS CORPORATION’S 2005 FINANCIAL STATEMENTS Mc Reynald S.Banderlipe II College of Business and Economics, De La Salle University Company Background This paper aims to perform an analysis of the 2005 financial statements of Jollibee Foods Corporation. Before such presentation, this chapter intended to present some information about the company, and how Jollibee became the leading company in the Philippine fast food industry. After graduating with a degree in Chemical Engineering, Tony Tan Ca ktiong decided not to compete with fellow new yuppies at his time searching for jobs after graduation.Having gained first-hand experience in managing a family eatery in Davao during his childhood years, he decided to pursue a food business that would be simple to operate. Thus, he borrowed P200,000 from his father to commence a Magnolia ice cream franchise beside Coronet Theater in 1975. With his ingenuity and passion to satisfy the cravings of his customers, the idea of serving American foods such as hamburgers and fries that is quick, tasty and affordable (Acuna, Bernardo, Dy, Malabanan, and Young. , 2004) became his vision that he never thought would be one of the entrepreneurial successes in the Philippines.In 1978, the vision became a reality when Tony and his family decided to incorporate and saw the birth of Jollibee Foods Corporation. One year after, the company posted P2 Million peso sales. It also marked the establishment of a first Jollibee franchise in Sta. Cruz, Manila and its first TV advertisement. Jollibee entered the list of the Top 1000 Corporations in 1981. Since then, the company continues its unprecedented growth as it enters the Top 500 in 1984, the Top 250 in 1986, and Top 100 in 1987. Meanwhile, in 1983, JFC launched flagship motto of JFC, known as the â€Å"Langhap Sarap. The year 1986 signaled the start of branching out in the international market by putting an international outlet in Taiwan and Brunei Darussalam. In 1989, the company posted very remarkable sales of P1. 3 Billion, while expansion efforts continued when they acquired 73% share in the Hamburger segment of the fast food industry in 1991. Jollibee became a public corporation in July 14, 1993 with its initial offering of P9. 00 per share. The expansion of JFC came when they acquired Greenwich Pizza Corporation in 1994 and Delifrance, a popular French patisserie shop, in 1995. This led to the increased variety of food items served by JFC.In 1996, the Far Eastern Economic R eview cited Jollibee as one of the leading companies in Asia. At the end of the year, more and more Filipinos abroad trooped down to their Jollibee stores in Guam, the Middle East, and Hong Kong. In 1997, Jollibee opened another branch in Xiamen, China. A year after, the company marked its 300th store in Balagtas, Bulacan, together with an international branch in Daly City, California. The following years thereafter saw the P20 Billion sales and recognition of Jollibee as the Most Admired Company in the Philippines and third overall in Asia.Jollibee opened its 400th store in Intramuros, Manila, while sales continuously shoot up to the P27 Billion mark. In the same year, Jollibee opened its 500th store in Basilan, Isabela Province. At present, Jollibee continues to expand its network of stores, after acquiring Chowking in 2000, an 85 percent share in Yonghe King in 2004, and Red Ribbon Bakeshop in 2005. Table 1 Timetable of Selected Jollibee Products from the Years 1978 – 2005 Jollibee Foods Corporation Timetable of Selected Products 1978 – 2005YEAR 1978 1979 1980 1982 1985 1986 1988 1990 1991 1992 1994 1995 1996 1999 2000 2001 2004 2005 PRODUCTS Regular Yum, Yum with Cheese Spaghetti Special Chickenjoy, French Fries Palabok Fiesta Breakfast Meals Chunky Chicken Sandwich Jollytwirl soft sundaes Coleslaw, Jolly Hotdog, Peach Mango Pie Pancakes Fruit-flavored ice cream sundaes Greenwich Pizzas and Pastas Delifrance French Pastries, Burger Steak Amazing Aloha, Chili Wings Cheezy Bacon Mushroom Burger Chowking Products, Pepper Crazy Burger, Shanghai Rolls, Pocket Pies, and Swirly Bitz Glazed Chicken Rice, Honey Beef Rice, Chicken Sotanghon Soup, Jolly Meat Pies, Yonghe King Products Super Meals, Jolly Chicken Tocino, Red Ribbon Cakes and Pastries As of 2005, the company’s store count estimated 552 Jollibee stores, 239 for Greenwich, 344 for Chowking, and 37 for Delifrance, 101 for Yonghe King, and 156 for Red Ribbon, the newest in the Jollibee family. Continuous expansion in terms of the number of food items and outlets is still underway. Table 1 below shows the timetable of elected Jollibee Products sold in the Philippine market starting from its inception in 1978. Standards Used by the Company Prior to analyzing the 2005 financial statements of Jollibee Foods Corporation, it is noteworthy to make a comparison of the standards to be adopted by the company as indicated in the 2004 financial statements in contrast with those standards actually applied in its preparation of the 2005 financial statements. Table 2 presents the comparison of accounting standards to be used in 2005 as per 2004 financial statements and the accounting standards actually used in 2005 per examination of the company’s 2005 financial statements.As can be seen, eight standards were not identified by the company in its 2004 financial statements that were actually adopted in 2005. Moreover, by looking at the 2004 financial statements, there has b een noted a difference in the presentation of the financial information. This was noted because although the year 2004 signifies the transition year towards adopting the Philippine Financial Reporting Standards and Philippine Accounting Standards, the 2004 financial statements still has presented the information in accordance with the superseded generally accepted accounting principles (GAAP). Table 2 Comparison of Standards to be used by JFC in 2005 as indicated in its 2004 Financial Statements and Standards actually used in 2005 Standard No. / NamePAS 1 â€Å" Presentation of Financial Statements† PAS 2 â€Å"Inventories† PAS 8 â€Å"Accounting Policies, Changes in Accounting Estimates and Errors† PAS 10 â€Å"Events After the Balance Sheet Date† PAS 14 â€Å"Segment Reporting† PAS 16 â€Å" Property, Plant and Equipment† PAS 17 â€Å"Leases† PAS 18 â€Å"Revenue† PAS 19 â€Å"Employee Benefits† PAS 21 â€Å" The Effe cts of Changes of Foreign Exchange Rates† PAS 24 â€Å"Related Party Disclosures† PAS 27 â€Å"Consolidated and Separate Financial Statements† PAS 31 â€Å"Interests in Joint Ventures† PAS 32 â€Å" Financial Instruments: Disclosure and Presentation† PAS 36 â€Å" Earnings per Share† PAS 36 â€Å" Impairment of Assets† PAS 37 â€Å"Provisions, Contingent Liabilities and Contingent Assets† PAS 39 â€Å"Financial Instruments: Recognition and Measurement† PAS 40 â€Å"Investment Property† PFRS 1 â€Å"First Time Adoption of International Financial Reporting Standards† PFRS 2 â€Å"Share-Based Payments† PFRS 3 â€Å"Business Combination† PFRS 5 â€Å"Noncurrent Assets Held for Sale and Discontinued Operations† PFRS 7 â€Å"Financial Instruments† 2004 * * * * * * * * * * * * 2005 * * * * * * * * * * * * * * * * * * * * * * * * * * * * This paper will elaborate the compliance of Jollibe e Foods Corporation in their adoption of the PFRS and PAS as indicated in their 2005 financial statements. It will also include a discussion of other problems in financial reporting noted in the analysis of the company’s financial statements.Discussion of Compliance with the Standards In analyzing the financial statements of Jollibee Foods Corporation for the year 2005, the researcher delved on the disclosure requirements of the Philippine Accounting Standards PAS and PFRS published by Philippine Institute of Certified Public Accountants (2005). These standards assess whether the company has complied with such requisites in preparing the PFRS financial statements for the year 2005, the year where PFRS formats became applicable in Philippine companies. In this case, the paper used the annual report released by the company in its corporate website in 2004 and in 2005. I. Philippine Financial Reporting Standards (PFRS) PFRS 1: First Time Adoption of Philippine Financial Reportin g Standards Paragraph 36 of PFRS 1 requires the inclusion of at least one year of comparative information under the IFRSs.JFC was able to follow such requirements since the financial statements presented 2005 data and 2004 restated data. The Note 2 of the company’s 2005 financial statements highlights such explanation. Paragraph 36A applies to entities that will choose to present comparative information that does not comply with IAS 32, IAS 39, and IFRS 4, which delves on financial instruments and insurance contracts, under certain conditions presented in the standard. In resolving the issue, Jollibee complied with the accounting policies set forth in IAS 32 and IAS 39. Nevertheless, the company applied for exemption in adopting the standards retroactively as permitted by SEC, applicable for the year ended 2004.Hence, the standards will be applied prospectively beginning January 1, 2005. Paragraph 37 presents the standards on historical summaries of selected data for periods before the first period for which they present full comparative information under the IFRSs. This is not applicable to JFC’s financial statements for the year ended December 31, 2005. Paragraphs 38 – 46 delve on the explanations regarding the transition to previous GAAP to IFRS financial statements. Accordingly, reconciliations of the company’s equity, profit and loss, and impairment losses should have appropriated disclosures. The company’s financial statements have presented supporting schedules for equity and profits and losses.With the adoption of PFRS 3 and PAS 36, JFC presented a disclosure under Section 2. 3. 1 (Reconciliation of Equity). Moreover, the same section also exhibited an expose on the designation of fair values on financial assets or liabilities and valuation of investment properties under paragraphs 43A – 44 of PFRS 1. Required disclosures such as the fair value of financial assets per category and the aggregate fair values and adjustment to carrying amounts under previous GAAP are also shown. The company has therefore complied with such requirements for first time adoption of Philippine Reporting Standards since it complied with its minimum requirements.PFRS 2: Share Based Payments Major provisions regarding disclosures in compliance with PFRS 2 necessitated information that enables users of the financial statements to understand the nature and extent of share-based payment arrangements that existed during the period. This includes disclosures such as description of each type of share-based payment arrangements; the number and weighted average exercises prices of share options and the weighted average share price at the date of exercise for options exercised during the period. Moreover, the range of exercise prices and weighted average remaining contractual life for share options outstanding at the end of the period, more than the option pricing model used.In addition, information should be accessible to enable users of financial statements understand the determination of fair values of goods or services received, and equity instruments granted. This includes disclosures such as weighted average fair value of share options granted and other equity instruments granted during the period and information on how the fair value was measured. Information on share-based payments that were modified during the period should also be disclosed, if any. Lastly, disclosures that enable users of financial statements to understand the effects of share-based payment transactions on the entity’s profit and loss and financial position should be provided.This includes disclosures on the total expenses recognized for the period arising from share-based payment transactions in which goods or services received but did not qualify for recognition as assets, and carrying and intrinsic value of liabilities arising from share-based payment transactions at the end of the period. JFC was able to comply w ith this standard, following the compliance of PFRS 2, including the provisions set forth in paragraphs 25B to 25C of IFRS 1. Required data to understand its effects are also indicated. Such indicators were presented in Note (b) of Section 2. 3. 1 and Section 2. 24. 2 of the company’s financial statements for the year ended December 31, 2005.A more detailed discussion about share-based payments is presented in Note 23. Here, the company disclosed basic information on each type of share-based payments such as Tandem Stock Purchase and Option Plans I and II, and Management Stock Option and Incentive Plans. It can be said that JFC has complied with the requirements on Share-Based Payments. PFRS 3: Business Combinations Required disclosures for PFRS 3 were information that enables users of financial statements to evaluate the nature and financial effect of business combinations that were effected during the period and after the balance sheet date but before the financial statemen ts are authorized for issue.It should also disclose, as in the case of the acquirer, information that enables users of financial statements to evaluate the financial effects of gains, losses, error corrections, and other adjustments recognized in the current period that relate to business combinations that were effected in the current year or in previous periods. In addition, data that will enable users to evaluate changes in the carrying amount of goodwill, if any, during the period should be disclosed. The company’s financial statements complied with the provisions of PFRS 3 for which the date is on or after March 31, 2004, the agreement date for all business combinations to be considered as stipulated in paragraph 78 of PFRS 3. Under Note (d) of Section 2. 3. 1 of JFC’s financial statements, the notes also depicted information about the financial effects of gains, losses, and other adjustments that were effected in current or previous periods.Moreover, the financial statements presented the changes in reversal of goodwill amortizations and recognition of goodwill in accordance with PAS 21. It included several notes in relation to the commencing testing for impairment losses, and reflected effects of changes of these policies to goodwill account of JFC. This can be best explained in Notes 8 to 10, where information regarding their investments in subsidiaries, interests in a joint venture, and goodwill arising from such transactions were designated. PFRS 5: Non-Current Assets Held for Sale and Discontinued Operations PFRS 5 specifies the accounting for assets held for sale and presentation and disclosure of discontinued operations.It requires assets that meet the criteria to be classified as held for sale to be measured at the lower carrying amount and fair value less costs to sell, and the depreciation on such assets to cease. Furthermore, assets that meet the criteria as held for sale should be presented separately on the face of the balance s heets and the results of discontinued operations to be presented separately in the income statement. Disclosure requirements include information that will enable users to evaluate the financial effects of discontinued operations and disposals of non-current assets (or disposal groups). Since the company believes that this will have no material effect on the company’s financial position and results of operations as indicated in the 2004 financial statements, this has never been an issue in the 2005 financial statements.PFRS 7: Financial Instruments Revised disclosures on financial instruments provided by the standard will be included in consolidated financial statements when the standard is adopted in 2007. II. Philippine Accounting Standards (PAS) PAS 1: Presentation of Financial Statements PAS 1 provides a framework within which an entity assesses how to present fairly the effects of transactions and other events; provides the basic criteria for classifying liabilities as cu rrent or non-current; and prohibits the presentation of income from operating activities and extraordinary items as separate line items in the income statement. Disclosure requirements include the measurement basis (or bases) used in preparing the financial statements and other accounting policies used that are relevant to an understanding of the financial statements.It also requires disclosures of judgments management has made in the process of applying the entity’s accounting policies that have the most significant effect on the amounts recognized in the financial statements. Additionally, it also requires disclosures as to key sources of estimation uncertainty and other disclosures if not disclosed elsewhere in information published with the financial statements. In 2004, JFC’s financial statements noted the probable change in the presentation of minority interest in the balance sheet and income statement will be effected in 2005 in addition of restating prior years ’ financial data to conform to the 2005 presentation.However, in 2005, the company believes that this standard will have no effect on equity on the reporting periods presented. In other aspects of the standard, the company’s financial statements also complied with the inclusion of significant accounting judgments and estimates made by the company’s management, in addition to the disclosure of key estimation uncertainties. The Note 2 of the financial statements indicates such compliance. Corporate information was also included in Note 1 of the Notes to Financial Statements (including the description of the entity’s operations and the name of the parent company), together with the basis of preparation and consolidation of the financial statements.Details of dividends are located in Note 15 and Note 17(b) of the financial statements. In general, the company’s financial statements complied with the requisites of PAS 1. However, the company should also include in Section 2. 3. 5 the additional disclosures regarding capital management that are not yet effected by the company until January 1, 2007. PAS 2: Inventories Disclosure requirements in PAS 2, as shown in paragraphs 36 to 39 are the accounting policies adopted in measuring inventories and cost formula used, the carrying amount of inventories carried at fair value less costs to sell, and the amount of inventories recognized as expense during the period, the amount of any write-downs.In addition, the notes should indicate reversal of inventory write-downs, circumstances that led to the write-downs and the amount of inventories held as security or pledge. In the adoption of PAS 2, the company has no foreseen significant changes in its accounting policies; thereby PAS 2 will not be an issue for JFC. As indicated in section 2. 11 in Note 2, the company disclosed the accounting policies and cost formula used in the inventory items of Jollibee, both food and non-food items. In Note 6 of the financial statements, the presentation of the carrying amount of inventories was in accordance with the lower of cost or net realizable values as indicated in the standard. Hence, the financial statements complied with the requirements of the standard.PAS 7: Cash Flow Statements As can be seen, the financial statements were presented classified by operating investing, and financing activities. While is it encouraged to adopt the direct method in accounting for cash flows from operating activities, JFC used indirect method, which is still acceptable in practice because of its easy application. On the other hand, almost all disclosure policies stated in PAS 7 have complied by Jollibee such as those regarding interest, income taxes, cash flows related to the acquisition of a subsidiary, and components/reconciliation of cash and cash equivalents in the financial statements and in the notes. This means that the company was able to meet the requirements of PAS 7.PAS 8: Accounting Policies, Changes in Accounting Estimates and Errors Under PAS 8, requisite disclosures as to changes in accounting standards or policies include the title of the standard or interpretation, the note that signifies that the change is in accordance with transitional provisions, its descriptions, the amount of adjustments, and certain conditional disclosures and how the standard addressed the disclosure, the nature of the changes in accounting policy, and reasons why this new policy will lead to a more reliable and relevant information. It should also divulge information when a voluntary change in accounting policy has an effect on the current period or any prior period that would have and effect on that period except that it is impracticable to determine the amount of the adjustment, or might affect future periods. Moreover, it should also present information as to the standards issued but not yet effective to the company. In terms of hanges in accounting estimates, the financial st atements must depict the nature and amount of change in accounting estimate and its effect on current and future periods when it is practicable to estimate the effect. If not possible, the fact should be disclosed. With regards to errors, disclosures should include the nature and amount of the errors, and the circumstances that led to the error and how it will be addressed by such correction. The company does not expect any significant changes in the accounting policies when it adopts PAS 8 and accordingly, in the 2005 financial statements, it also exhibited no effect on equity at January 1 and December 31, 2006. With regards to standards issued but not yet effective, section 2. 3. 5 of Note 2 depicted such disclosure.Still, the company should also have included the disclosures regarding capital management in compliance with PAS that will be applicable in 2007 to fully disclose all standards issued but not yet effective. PAS 10: Events after the Balance Sheet Date PAS 10 provides a limited clarification of the accounting for dividends declared after the balance sheet date. Disclosure requirements include the date when the financial statements were authorized for issue and who gave the authorization. It should also disclose the fact that the entity’s owners or others have the power to amend the financial statements after the issue. Moreover, if the entity receives information after the balance heet date about that conditions that existed at the balance sheet date, the entity should update disclosures in the light of new information. The company does expect any significant changes in the accounting policies when it adopts PAS 10 and accordingly, in the 2005 financial statements, it also exhibited no effect on equity at January 1 and December 31, 2004. Compliance with this standard is stated in Note 1 with regards to the date of authorization for issue of the financial statements and section 2. 30 of Note 2 and Note 29 regarding subsequent events. Furtherm ore, disclosure on dividends may not be an issue since the company annually declares and pays dividends to its stockholders, as evidenced by the cash flow statements for the years ended December 31, 2004 and 2005.For this reason, the company was able to comply with the disclosure requirements set forth in PAS 10. PAS 14: Segment Reporting This standard establishes the principles for reporting financial information by segments about the different types of products and services an enterprise produces and the different geographical areas in which they operate. Reportable segments should present the segment’s results of operations, carrying value of total assets and liabilities, contingencies, expenditures, depreciation, share in profits or losses, and other requirements mentioned in the standard. It also provides secondary reporting format requisite disclosures for segment revenues, expenses, results, assets, liabilities, and accounting policies.Accordingly, this standard has no effect on equity at January 1 and December 31, 2004 and as such, is not an issue for the company’s financial statements as of December 31, 2005. As can be seen, the company maintained the same format in segment reporting for the presentation of segment information in Note 3 of both 2004 and 2005 financial statements. Disclosures are generally in compliance with PAS 14. The company focused on using the primary reporting format, since the use of geographical segment reporting is not feasible due to a non-substantial portion of revenues earned by international operations, which are still few in number. In addition, the company disclosed information for inter-segment sales and transfers and the basis of pricing these transactions.PAS 16: Property, Plant, and Equipment Disclosure requirements on property, plant and equipment are the measurement bases to determine gross carrying amounts; depreciation methods and useful lives used; gross carrying amounts and accumulated depreciatio n at the beginning and end of the period; reconciliations of carrying amount of PPE assets pertaining to additions, reclassifications, and other increases or decreases; the recognition of impairment and reversal of impairment losses; restrictions on title of PPE assets, PPE assets pledged as security for liabilities; expenditures related to property, plant and equipment; and changes in accounting estimate as to residual values. Furthermore, the entities should disclose contractual commitments for acquisition of PPE assets; compensation to third parties rising from impairment of PPE items included in profit and loss; information regarding the revaluation of property, plant, and equipment as to effective date of revaluation, involvement of third parties for revaluation, assumptions in estimating fair values, carrying value of assets under cost models, and revaluation surplus; and information on idle properties. The company believes that there is no significant effect on equity upon ad option of PAS 16. Similar formats were presented, with differences in the probable restatements done in the 2005 financial statements. This is evidenced in note (c) of section 2. 4. 2, which depicted the management’s estimation uncertainty assumptions regarding PPE assets. In section 2. 9, the policy on accounting for PPE assets was presented, including compliance with general disclosures in accordance with PAS 16; while in Note 11, the financial statements showed the reconciliation of carrying amounts of PPE assets pertaining to additions, retirements, reclassifications, and transfers, including the disclosure regarding a fire that damaged the company’s commissary. It also included compensation from the insurance company for the damage of the property. No disclosure is necessary on revaluation of properties, as the company had not yet hired appraisers to revalue their properties. Disclosures regarding derecognition on PPE assets and idle and fully depreciated property are not of greater importance, since all properties have found its usage in the company.PAS 17: Leases PAS 17 prescribes appropriate accounting policies and disclosures to apply in relation to finance and operating leases. It also prohibits expensing of initial direct costs in the financial statements of the lessors. Under this standard pertaining to operating leases, which the company have adopted (as can be seen in section 2. 3. 1 reconciliation of equity in the company’s financial statements, in letter (c) in note 2. 4. 1, and section 2. 26 in Note 2 of the financial statements), disclosures should include total future minimum lease payments under non- cancellable operating leases for periods within one year, within after one year but not more than five years, and after 5 years (for both lessors and essees); future minimum sublease payments under non-cancellable subleases; lease and sublease payments recognized as expenses (for the point of view of lessees); disclosures r egarding contingent rents recognized as income, general description of leasing arrangements, bargain purchase options or renewal options, and restrictions involving lease arrangements as lessors or lessees (for both lessors and lessees). JFC does not expect any significant changes in accounting policies when it adopts PAS 17. In Note 26, the future minimum rental receivables and payables were presented, including the general details of lease arrangements entered by JFC (both positions are renewal options), and legal issues normal to its operations. The company did not entered into sale and leaseback transactions. The Company complied with the accounting rules in accordance with PAS 17.However, as a lessor, the company did not classified assets subject to operating leases according to the nature of the assets in the balance sheet. This is on the assumption that the firm’s lease transactions involve only commercial properties. Information on such classification was aggregated i n the financial statements, which ensured its compliance. PAS 18: Revenue Disclosure requirements to comply with this standard includes accounting policies adopted for the recognition of revenue; methods used in accounting for stage of completion of service transactions; the amount of significant categories of revenue recognized during the period, which includes sale of goods, rendering of services, nterest, royalties, and dividends; and the amount of revenue arising from exchanges of goods and services included in each significant category of revenue. The policies adopted for revenue recognition is presented in section 2. 23 as to how they recognize revenue from various categories. Its compliance with standards related to revenue recognition from royalty and franchise fees are delineated in Note 18. Though the financial statements do not present the breakdown of revenues according to significant categories, they believe that the use of segment information is already sufficient enou gh to present the revenues of the company. In this case, such segment information suffices compliance with PAS 18.PAS 19: Employee Benefits Disclosure requirements under PAS 19 include the policy for recognizing actuarial gains and losses; general description of the types of plans; reconciliation of assets and liabilities regarding defined benefit obligations; actuarial gains or losses; fair value of plan assets; reconciliation of movements in the next period of net assets or liabilities, total expenses related to employee benefits such as current service costs, interest costs, expected actuarial returns on plan assets, past service costs, effects of curtailment and settlement; actual return on plan assets and actual return on reimbursement right recognized as an asset; and principal actuarial assumptions used at balance sheet date such as discount rates, expected rates of returns, expected rates of salary increases, medical cost trend increases, and other assumptions all expressed in absolute terms. The company was able to comply with the rules set on PAS 19. As can be seen in Note (a) of Section 2. 3. 1 of the Notes to Financial Statements, the policies on actuarial gains, losses, past service costs, plus its effect on the retained earnings and net income were depicted. Moreover, such information was also presented in the reconciliation of equity. In section 2. 4, the company disclosed their policy on employee benefits, both pension and share-based payments. Accordingly, the company uses defined benefit accounting. They also used defined contribution accounting to some extent for employees of Chinese domiciled subsidiaries of the company, as seen in Note 22; only a limited disclosure regarding the use of this plan was indicated. It also provided information as to actuarial gains, actual returns on plan assets, plan liabilities, reconciliation of movements in the present value of obligations and fair value of plan assets, fair value of plan assets, the date o f actuarial valuation, the actuarial assumptions such as salary increase rate, rate of return on assets, and discount rates.Termination benefits and other long-term benefits are not considered issues to the company. Other disclosures such as medical costs, schedules of contributions by employers and employees, and the recognition of actuarial gains and losses not presented in the financial statements will not affect the company’s compliance with the standard. PAS 21: The Effects of Changes in Foreign Exchange Rates Disclosure requirements under PAS 21 referring to functional currency of the parent includes the amount of exchange differences recognized in profit or loss except for those arising on financial instruments measured at fair value through profit or loss in ccordance with PAS 39 and net exchange differences classified in a separate component of equity, in addition to the reconciliation of the amount of such exchange differences at the beginning and end of the period. Moreover, reasons for using presentation currency rather than functional currency should be indicated if such is the case; or if there is a change in the functional currency of either reporting entity or a significant foreign operation, that fact and the reason of change should be disclosed. It will only be deemed complying with the IFRS if all the requirements of each applicable accounting standard and interpretations are followed including the method of translation. The company disclosed its adoption of PAS 21, and they will be applying it prospectively.They also noted that goodwill arising from acquisition of a foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition are now treated as assets and liabilities of the foreign operation and are to be translated at a closing rate. However, this new policy will have no significant impact to the company. As seen in letter (d) of note 2. 4. 1, the company has determine d the Philippine peso as the functional currency of the company. Additional information regarding functional currency and translation method is provided in section 2. 5. There is no issue as to the use of functional currency, since both parent and subsidiaries will use the Philippine peso.But as can be noticed, although there is a presented amount of exchange differences resulting from translation as indicated in the Statement of Changes in Equity, there is no reconciliation of the amount of such differences at the beginning and end of the period. PAS 24: Related Party Disclosures Relationships between parents and subsidiaries shall be disclosed irrespective of whether there have been transactions between those related parties. An entity shall disclose the name of the entity’s parent and, if different, the ultimate controlling party. If neither the entity’s parent nor the ultimate controlling party produces financial statements available for public use, the name of the next senior parent that does so shall also be disclosed. Moreover, disclosure requirements include key management personnel ompensation in total and per categories presented in paragraph 16 regarding short-term employee benefits, post-employment benefits, other long-term benefits, termination benefits, and share based payments; the nature of related party relationships and information on the amount of transactions and outstanding balances, provisions for doubtful debts, and expenses recognized during the period in respect of bad and doubtful debts. The parent shall make separate disclosures, in addition to their interests in a joint control or significant influence over the entity, information regarding the parent company’s subsidiaries, associates, joint ventures, key management personnel, and other related parties.JFC finds this standard to have no effect on its equity but they are amenable to adopt the new standard. In note 24, the company noted that the transactions with members of the Jollibee group are eliminated while intercompany advances are major transactions with joint venture. They complied with the presentation of outstanding balance of advances as indicated in the standard. The company was able to justify such presentation in Notes 8 and 9. Yet on the other hand, there is no information regarding key management personnel and their compensation schedule. Accordingly, since JFC, as a parent, runs its business independently of its subsidiaries and other related parties, there is no dependence on the company’s related parties.PAS 27: Consolidated and Separate Financial Statements In this standard, the entity’s compliance of the standards depends on their disclosure of the nature of the relationship between the parent and the subsidiary, reasons that will not constitute control of an investee in the entity, differences in reporting dates, and a listing of information regarding significant investments in subsidiaries, jointly cont rolled entities or associates. In note 8, the company’s financial statements presented its required disclosures of investments in subsidiaries, although information with their compliance to paragraphs 41 and 42 of the standard is not that material for their presentation regarding separate financial statements. Hence, the company managed to comply with the disclosure requirements of PAS 27.PAS 31: Interests in Joint Ventures PAS 31 delineated several disclosure requirements such as the aggregate amount of specified contingent liabilities, unless the probability of loss is remote; the aggregate amounts of capital commitments of the parties with respect to their interest in the joint venture; a listing and description of their interests in joint ventures; and accounting methods in recognizing interests in joint ventures. JFC was able to comply with the disclosure provisions of the standard, having presented its description of their interest in a joint venture and the accounting method for its joint venture, as seen in section 2. 18 in Note 2 and the entire Note 9 of the financial statements. The first two items are not applicable in the company at the moment. In this case, the company was able to comply with the requirements of PAS 31.PAS 32: Financial Instruments: Disclosure and Presentation To enhance the understanding and significance of financial instruments of the entity, the firm should describe its financial risk management objectives and policies, including hedging policies for each main type of forecast transaction for which hedge accounting is used. The firm should also disclose a description of the hedge; financial instruments designated as hedging instruments including their fair values, nature of risks being hedged, and for cash flow hedges, the period in which cash flows are expected to occur. Information about the nature of financial instruments and basis for accounting recognition must also be divulged.The firm should disclose the amount of gain or loss on a hedging instrument recognized in equity, removed from equity, and the amount removed from equity and was included in the initial measurement of acquisition cost or carrying amount of non-financial assets or liabilities. Information about their exposures to credit risk and interest rate risk are also mandated. Furthermore, the standard requires information regarding fair valuation of financial instruments, de-recognition of financial instruments, financial assets held as collateral, compound financial instruments with multiple embedded derivatives, reclassification and presentation of income, expenses, gains, and losses resulting from financial assets and financial liability transactions, and impairment and defaults/breaches. Under Note (c) of section 2. 3. of the notes, JFC has embedded information on how the company identified its financial assets, and how they valued those financial assets. These pertain to their investment in stocks, refundable deposits on leas es and noninterest bearing car loans. These financial assets were explained in full detail in section 2. 6 of Note 2. In section 2. 16, information on de-recognition of financial assets and liabilities in accordance with PAS 32 were presented. Under Note 27, the company expressed its compliance with PAS 32, showing their risk management objectives and policies, and information on how JFC addresses the financial risks discussed in the standard.In Note 29, the financial statements presented the valuation of financial assets and liabilities, in accordance with the valuation set by PAS 32, together with the information of multiple embedded derivatives. However, detailed information about the maximum degree of risk exposure must be presented. PAS 39: Financial Instruments: Recognition and Measurement PAS 39 has no disclosure requirements since they were moved to PAS 32. However, to comply with IAS 39, information about the decrease in retained earnings and carrying amounts of financial a ssets was disclosed. In note (c) of Section 2. 3. 1, they also disclosed unrealized loss in the company’s AFS financial assets as part of compliance with the standards. Section 2. 6 provided a description of financial instruments held by JFC.In Section 2. 10 the company disclosed information on the impairment of financial assets in accordance with the requirements of PAS 39. Section 2. 22 presents information on the impairment of non-financial assets. Information on Notes 27 and 28 are still applicable in compliance with PAS 39 regarding measurement of financial assets and liabilities. PAS 33: Earnings per Share In presenting the financial statements in accordance with PAS 33, the standard requires the presentation of amounts used as numerators in calculating basic and diluted earnings per share and its reconciliations to profit or loss attributable to the parent entity for the period.It should also disclose the average number of ordinary shares used to calculate basic and di luted EPS, instruments that could dilute basic EPS in the future, and a description of ordinary share transactions that occur after balance sheet date. Jollibee’s compliance with the standard was indicated in section 2. 27 of Note 2 and Note 25, which presented the Earnings per share computations. As indicted in section 2. 3. 4, comparative information and disclosures have been presented as required. However, the adoption of PAS 33 has no effect on equity of JFC. The presentation of Earnings per Share of Equity Holders of the Parent was indicated in the Income Statement of JFC.PAS 36: Impairment of Assets Disclosure requirements in accordance with PAS 36 include the amount of impairment losses recognized in profit or loss during the period in each class of assets and revalued assets, the reversals of impairment losses in each class of assets and revalued assets. For material impairment losses, disclosures as to the events that led to the recognition or reversal of impairments losses in assets, cash generating units and information on aggregate losses should be indicated. Such compliance by JFC’s 2005 financial statements is indicated in letter (b) of section 2. 4. 2, section 2. 22 of Note 2, Note 3 regarding segment information on impairment losses, Notes 10 and 11. The company provided disclosures of their assessment of impairment losses on non-financial assetsPAS 37: Provisions, Contingent Liabilities, and Contingent Assets PAS 37 requires disclosures regarding contingent assets, liabilities, and provision. Contingencies are disclosed except when the possibility of an inflow or outflow of resources is remote. Information regarding the nature and estimated amount of such contingency, its financial effects, the uncertainties relating to the outflow and amount of reimbursements are also noted. Obligatory disclosures for provisions include carrying amounts, additions of provisions, provisions used, and unused amounts reversed during the period. Mor eover, brief descriptions on each class of provisions are due for presentation in the financial statements.The company was able to provide information regarding the company’s provisions, as stated in Note 14. While information on contingencies is not substantial, still, the assumptions are still presented in Note 2 of the financial statements. PAS 40: Investment Property PAS 40 identified the presentation requirements for investment properties. Disclosures under this standard are and extension of the requirements presented in IAS 17 (or PAS 17, â€Å"Leases†). Entities shall disclose whether they apply the fair value model or cost model in valuing investment properties. Should they apply fair value model, firms should indicate the circumstances property interests held under operating leases are classified and accounted for as investment property.If the classification is difficult, they should distinguish investment property from owner-occupied property and from propert y held for sale in the ordinary course of business. In addition, entities have to identify the methods and significant assumptions in valuation of investment properties. Amounts recognized in profit or loss such as rental income, operating expenses incurred from properties that are income and non-income generating, existence of restrictions on realizable characteristic of investment properties upon disposal, and contractual obligations regarding investment properties should be disclosed. Because JFC elected to use cost model in the valuation of investment properties as shown in note (e) of Section 2. 3. of Note 2, disclosures require the depreciation methods used, useful lives or depreciation rates used, gross carrying amount and accumulated depreciation, a reconciliation of the beginning and ending balances showing additions, assets classified as held for sale, depreciation, transfers, impairment losses, and fair value of investment properties. In the same notation, JFC presented t he effects of adopting the policy in the financial statements, as evidenced by the reconciliation found in the same note. Here, the changes in retained earnings and net income were presented, in addition to the expressed carrying value of the property. In Section 2. 20, the company presented their significant accounting judgments and policies regarding the adoption of the new standard. In Note 10, since they are using the cost method of valuing investment properties, reconciliation was presented showing the cost and accumulated depreciation of investment properties.Moreover, it also showed information regarding any transfers; retirements; impairment losses; and depreciation were depicted. Yet, they did not disclose the accounting methods used and the estimated useful lives of investment properties subject to depreciation. Table 3 Financial Reporting Issues Presented in the Analysis of Jollibee’s Financial Statements for the Year 2005 Standard No Financial Reporting Issues Pre sented The non-inclusion under Notes 2. 3. 5 regarding disclosure standards regarding capital management that should be indicated even though the provisions are not yet effective The classification of Judgments a-c in Notes 2. 4. 1. Is that considered a judgment, or an estimation uncertainty? PAS 1 PAS 8 PAS 24 PAS 40 ADDITIONAL NOTESSame as the problem of application in PAS 1 regarding disclosure standards on capital management Information about key management personnel was not indicated in the notes to financial statements. Information about the persons, their salaries, etc. is found in the 2005 SEC Form 17A. Only the disclosure regarding accounting methods used and estimated lives of investment properties subject to depreciation were not described. The release of the financial statements in the annual report has produced several encoding errors in the production of the financial statements. In summarizing the entire discussion, Table 3 highlights all financial reporting issues no ted in the analysis of Jollibee Foods Corporation’s 2005 financial statements. As can be seen, there has been an issue regarding the adoption of ten Philippine Accounting Standards.In addition, there was noted some encoding errors in the financial statements per examination of the annual report. Referencing regarding the reconciliation of equity upon adoption of the new standards is one example. Such errors, if noticed, may lead to some confusion in understanding the financial statement information. Other Problems in Financial Reporting This section tackles the problems that might have encountered by Jollibee in their preparation and presentation of the financial statements other than disclosure requirements. In addition, this paper will address how the company may have resolved such setbacks to achieve a fair presentation of the financial information.Functional Currency and Translation This problem arose for the reason that Jollibee has been maintaining international operati ons in the United States, Hong Kong, Vietnam, Brunei, Guam, and Saipan. In addition, its Chowking stores are located in Dubai, while their Yonghe King restaurants situated in China. Red Ribbon had also expanded in the US even before it was acquired by Jollibee. Because these countries uses different currencies in their daily operations and in the preparation of financial data, it is wondered how Jollibee will address such problem in their consolidated financial statements, whose parent company is situated in the Philippines.The problem was resolved in Note 2. 5. As can be said, the company’s management determined its functional currency to be the Philippine peso. In this case, the company measured these international transactions in Philippine peso at the transaction dates. Monetary assets and liabilities were measured using the exchange rate at balance sheet date. Non-monetary assets and liabilities wee measured at historical cost using the exchange rate at the date of initi al transaction. Its foreign subsidiaries’ financial statements were translated into the presentation currency of the company. Exchange rate differences were presented in the financial statements, though in aggregate form.Receivables Although the company’s main business is the development, operation, and franchising of Quick Service Restaurants (QSR), the company also maintains other operations in support of their QSR restaurants like franchising and leasing of facilities to other companies, it can be inferred that the company does not only depend on cash sales brought about by their restaurant operations. Receivables arose because franchising and real estate are also revenue-generating areas of the organization which also forms part of their trade receivables. Moreover, they also have dues from the joint venture and other related parties, which were aggregated as loan receivables. To prevent confusion, the company presented in its segment information the operations of such segments and as such, users can find out those transactions under franchising and real estate operations may primarily cause such receivables recognition.Inventory Valuation Because the primary operation of Jollibee is the operation of QSRs, it is noteworthy that the major bulk of their investments are food supplies, novelties, packaging, store supplies, and processed inventories. The perishable nature of food supplies and processed inventories, and the obsolescence of other supplies due to the release of new packaging designs, the lapse of periods where Jolly Kiddy meals come with novelties, and other time-based factors are the problems that Jollibee encounter in the valuation of its inventories. As such, the company maintained the policy of the First-In, First-Out (FIFO) basis of inventory system and in their valuation of inventories as of the balance sheet date.This is to prevent the deterioration of goods that may be harmful if not used within a certain amount of time, and to maximize the usability of these items. Though designs change, its utility value is the same for packaging all Jollibee products. Cost valuation using FIFO allows the firm to value its unsold or unused inventories at more recent dates of acquisition, which is acceptable under the new standard. Revenue Recognition Jollibee recognizes revenue from various sources such as from sale of goods, royalty fees, franchise fees, dividend income, rental income, and interest income. While the policy of revenue recognition was presented in the notes to financial statements, certain question on how they recognize revenues from franchise fees.Accordingly, such revenues are recognized when all services or conditions relating to the transaction have been substantially performed. Substantial may not be the total performance demanded to the company in providing such services. The question lies regarding new franchisee transactions that the company’s services commence at one period and terminat es on the other period. How will the company assess their substantial performance on such franchise services to its new franchisees on the first period? Segment Reporting As can be seen, Jollibee has presented its segments on the basis of the nature of operations. Specifically, the company presented the food service, franchising, and real estate segments of its business.Knowing that Jollibee has international operations in the USA, East and Southeast Asia, and even in the Middle East, it is of question why did the company did not presented information related to geographical segments. Be it noted that of the more than 1,000 outlets of the Jollibee Group, less than 140 of them were located outside the Philippines, including the 101 Yonghe King restaurants in China. Based on the combined performance of these stores, the international operations has yet to contribute more in the total operations of Jollibee, as approximately 90% of their stores are located in the Philippines. Again, it should also boil down on the notation that Jollibee has other major operations.That could be the reason for segment information to be reported that way. Admission of Red Ribbon into the Jollibee Group In 2005, the company bought Red Ribbon, a company that sells cake products to Philippine consumers. Red Ribbon’s financial statements prior to acquisition are prepared for the fiscal year ending June 30. Since Jollibee and Red Ribbon have time differences in financial reporting, the stockholders and the Board of Directors agreed that the reporting period of the company should follow the calendar year presentation of Jollibee. Hence, the notes presented the summative position and performance of Red Ribbon for the fiscal year endedJune 30, 2005 and for the six months ended December 31, 2005, following the calendar year. Financial Instruments Due to the applicability of PAS 32 and 39, the company classified certain investments in shares of stocks as available-for-sale financial as sets and valued at fair value, though these has been measured at lower of aggregate cost or market value in the previous GAAP. Refundable deposits on leases and non-interest bearing car loans were re-measured at fair value at initial recognition and subsequently at amortized value under the effective interest method. Prior to such adoption, these are carried at cost, less impairment in value under previous GAAP.Such adoption resulted in a decrease in retained earnings for the company, which may have brought adverse effects to the company from the point of view of layman financial statement reader. Realizations After analyzing the financial statements of Jollibee Foods Corporation’s 2005 financial statements to identify the issues and problems in their financial reporting in accordance with the PFRS and PAS, this paper presents some realizations about the state of the company struggling to ensure compliance with the Philippine accounting standards under issue in the preparatio n of the financial statements. In addition, an insight regarding problems in financial reporting is presented. 1. Some judgments may not be considered judgments at all.While the company may have a point in identifying several issues to be as accounting judgments, it may be preferable if such judgments like impairment, leases, and asset retirement be presented under estimation uncertainties. This is because this transactions or events normally require estimations rather than judgments. 2. Keep abreast with the release of new standards. It can be assumed that the newest release of PAS 1 standards relating to capital management may not yet noted by the company. Jollibee must continuously upgrade its awareness of these new standards since it might have a significant bearing on how they will present the information to comply with such new standards. Such can be achieved through attendance to seminars on PAS and PFRS, and continuous training and research. 3. Redundancy can lead to fair pr esentation.Standards have the say. Sometimes, the notes have to be redundant in stressing out the emergence of applications, measurement, and valuation of items that are covered by a particular accounting standard (e. g. PAS 14, â€Å"Segment Reporting† and PAS 18, â€Å"Revenue,† where both standards require the presentation of similar information related to reportable and non-reportable segments). In such case, preparers of financial information have no option but to present the information more than once, as per accord with the standards. 4. Show reconciliations, when necessary. The use of such reconciliations may lead to a better understanding of the financial statements.Showing the movements in the beginning and ending balances may already be an important tool to understand the information related to such reconciliation. 5. Encode information with accuracy and with precision. Preparers of financial statements must exercise due care in encoding of information in th e soon-to-be published financial statements. Errors resulting from such carelessness may mislead users of financial information in making economic decisions for the company. 6. Problems are immortal. New policies, new standards, new conventions. These lead to problems especially in dealing with the preparation of the company’s financial statements. Instant compliance maybe difficult. Sometimes, resolving these problems might have adverse effects.It really depends on the company on how they are motivated to face these situations and eventually gear itself to imminent financial reporting problems in the future. References Acuna, C. , Bernaldo, R. , Dy, L. , Malabanan, R. , & Young, L. (2004). A comparative study on the performance and financial position of Jollibee and McDonald’s for the years 1999 – 2006. Unpublished undergraduate thesis. Manila, Philippines: De La Salle University. Jollibee Foods Corporation (2004). Jollibee Foods Corporation Annual Report 2004. Pasig City, Philippines. Jollibee Foods Corporation (2005). Jollibee Foods Corporation Annual Report 2005. Pasig City, Philippines Philippine Institute of Certified Public Accountants (2005). Philippine Accounting Standards Vol. 1-5. Mandaluyong City, Philippines.