An Application of the Law on Trusts - Free Essay Example

Sample details Pages: 8 Words: 2337 Downloads: 8 Date added: 2017/06/26 Category Law Essay Type Cause and effect essay Tags: Trust Essay Did you like this example? INTRODUCTION A trust is an equitable obligation, binding a person (called a trustee) to deal with property owned by him (called trust property, being distinguished from his private property) for the benefit of persons (called beneficiaries or, in old cases, cestuis que trust), of whom he may himself be one, and any one of whom may enforce the obligation [or for a charitable purpose, which may be enforced at the instance of the Attorney-General, or for some other purpose permitted by law though unenforceable (Hayton, Matthews Mitchell , 2010, p. 2). In determining the claims of the parties, some time-tested principles of Equity and Trust will be examined. Don’t waste time! Our writers will create an original "An Application of the Law on Trusts" essay for you Create order ISSUE 1 Was there an intention to create trusts for the benefits of George and Jayne on the part of Barry? Intention to create a trust is crucial for the validity of any trust. The court said in Twinsectra Ltd v Yardley (2002): A settlor must, of course, possess the necessary intention to create a trust, but his subjective intentions are irrelevant. If he enters into arrangements which have the effect of creating a trust, it is not necessary that he should appreciate that they do so; it is sufficient that he intends to enter into them(p. 71) Furthermore, an express trust is invalid until it is completely constituted. There are two ways by which a valid express trust may be completely constituted: by an effective declaration of oneself as trustee or by transfer of properties to trustees (Davies Virgo, 2013). In effect, Turner LJ in Milroy v Lord (1862) stated that: Settlor must have done everything which according to the nature of the property comprised in the settleme nt was necessary to be done in order to render the settlement binding upon him. He may do this by: à ¢Ã¢â€š ¬Ã‚ ¢ Actually transferring the property to the persons for whom he intends to provide à ¢Ã¢â€š ¬Ã‚ ¢ If he transfers it to a trustee for the purposes of a settlement à ¢Ã¢â€š ¬Ã‚ ¢ Declares that he holds it on trust (p. 264). Either of the two methods of constituting trust must be completely satisfied for the trust to be effective. According to Davies Virgo (2013), where the settlor declares himself a trustee of the property, the issue of transfer becomes irrelevant, as the legal title already vests in him. The only issue which would be left to the courts to clarify is if there was a valid declaration of trust. They further opined that for a declaration of trust to be valid, there must be certainty of the settlorà ¢Ã¢â€š ¬Ã¢â€ž ¢s intention to create a trust. Indeed, this is also true for an express trust constituted by transfer to trustees. Lord Eldon in Wri ght v. Atkyns (1823) made it clear that for a trust to be valid, à ¢Ã¢â€š ¬Ã…“firstthe words must be imperative; secondlythe subject must be certain; and thirdlythe object must be as certain as the subject (pp. 143, 157). The requirement of intention is more easily ascertainable where the trust is constituted by transfer, as the settlorà ¢Ã¢â€š ¬Ã¢â€ž ¢s intention is manifested by the transfer. Intention can be inferred from actions. Lord Selborne, L.O., in Lyell v. Kennedy (1889) said: A man who receives the money of another on his behalf, and places it specifically to an account with a banker ear-marked and separate from his own moneys, though under his control, is, in my opinion, a trustee of the fund standing to the credit of that account. For the constitution of such a trust no express words are necessary; anything which may satisfy a Court of Equity that the money was received in a fiduciary character is enough. It is not requisite that any acknowledgment of such a t rust should be made to the ces tui que trust or his agent; to whomsoever made it is evidence against the trustee (p. 457). The case of Jones v. Lock (1865) is quite instructive. Mr. Jones produced a cheque for 900 pounds made payable to himself, which he handed over to his baby and said: à ¢Ã¢â€š ¬Ã‹Å"look you here, this is for baby; it is for himself and I am going to put it away for him and will give him a great deal more along with ità ¢Ã¢â€š ¬Ã‚ . Mr. Jones died six days later. It was held that there had been no valid gift to the baby (since the gift of a non-bearer cheque required endorsement of the issuer), neither was there a declaration of trust in his favour. The court could not infer an intention to make himself a trustee, and the gift was ineffective and thus, failed. The case of Richard v. Delbridge (1874) also establishes that an intention to give a gift cannot be transformed into an intention to create a trust. Richard wished to hand over his business to Edwar d. He demonstrated his intention by endorsing a memorandum on the lease of the business premises, which read thus: à ¢Ã¢â€š ¬Ã…“This deed and all thereto belonging I give to Edward from this time forth with all the stock in tradeà ¢Ã¢â€š ¬Ã‚ . The court decided that it was meant as an outright gift, not a declaration of trust. Sir George Jessel MR held: If it is intended to take effect by transfer, the court will not hold the intended transfer to operate as a declaration of trust, for then every imperfect instrument will be made effectual by being converted into a perfect trust. It is true he need not use the words à ¢Ã¢â€š ¬Ã‹Å"I declare myself a trusteeà ¢Ã¢â€š ¬Ã¢â€ž ¢, but he must do something which is equivalent to it, and use expressions which have that meaningà ¢Ã¢â€š ¬Ã‚ ¦(at 11) A mere promise without mo is not a valid declaration of trust. The law will not enforce mere promises; it will only enforce contractual bargain and trusts (Hudson, 2008). Thus, a mere promise is unenforceable if beneficiary gave no consideration (Re Rallià ¢Ã¢â€š ¬Ã¢â€ž ¢s Will Trust (1964)). APPLICATION 2.1.1 GEORGEà ¢Ã¢â€š ¬Ã¢â€ž ¢S CLAIM George claims that Barry promised to transfer the car into his name. There is nothing from Barryà ¢Ã¢â€š ¬Ã¢â€ž ¢s words or action to indicate that he was making himself a trustee of the car for the benefit of George. Neither did Barry seek to transfer the car to another person to hold in trust for Barry. Therefore, the two methods of constituting a valid express- by declaration of self as trustee, and by transfer to a trustee- are conspicuously lacking. Furthermore, the rule set out in Wright v. Atkyns (supra) which insists that the intention to create a trust must be certain for any trust to be valid, is clearly lacking. It would rather seem like Barry intended to make an outright gift of the car to George, but as the case of Richard v. Delbridge (supra) clearly indicates, the courts will not turn this into a trust. The fact that he started using the car again, and he never sent the vehicle registration documents which he had filled out t o the right authority indicate that he may have changed his mind about transferring the car into Georgeà ¢Ã¢â€š ¬Ã¢â€ž ¢s name. 2.1.2. JAYNEà ¢Ã¢â€š ¬Ã¢â€ž ¢S CLAIM Jayne insists that Barry verbally agreed to give her his cottage in Wales. Again, it was a verbal agreement to part with property. There is nothing in his words to indicate that he intended to create a trust of the property for Jayneà ¢Ã¢â€š ¬Ã¢â€ž ¢s benefit. As the court held in Richardà ¢Ã¢â€š ¬Ã¢â€ž ¢s case, à ¢Ã¢â€š ¬Ã…“the court will not hold the intended transfer to operate as a declaration of trustà ¢Ã¢â€š ¬Ã‚ . Whereas there was an intended transfer, the court will not interpret this as Barryà ¢Ã¢â€š ¬Ã¢â€ž ¢s intention to create a trust on the property, neither will it enforce a mere promise, without consideration by the beneficiary. ISSUE 2 Will equity aid a volunteer or perfect an imperfect gift? It is trite law that equity will not aid a volunteer nor perfect an imperfect gift. Turner LJ in Milroy v. Lord (supra) clearly stated the law: à ¢Ã¢â€š ¬Ã…“Settlor must have done everything which according to the nature of the property comprised in the settlement was necessary to be done in order to render the settlement binding upon himà ¢Ã¢â€š ¬Ã‚ ¦there is no equity in this court to perfect an imperfect giftà ¢Ã¢â€š ¬Ã‚ (p. 264). In the case of a transfer of landed property, Section 9 of the Statute of Fraud requires that any form of transfer be in writing. By this provision, transfer of landed property cannot be done orally, no matter how clear the intention. However, the following exceptions exist to this rule of equity: The strict position laid down in Milroyà ¢Ã¢â€š ¬Ã¢â€ž ¢s case has been modified to the effect that à ¢Ã¢â€š ¬Ã‹Å"equity will not aid a volunteer except the donor has done all that is in his power to do to perfect the giftà ¢Ã¢â€š ¬Ã¢â€ž ¢. The court in Re Rose made the above modification when it held that the donor had done all in his power to effect the transfer of the shares he held in the company, having made the transfer in the form required by the articles of the company on 30th of March. It was held that the effective date of transfer was on the 30th of March, not 30th of June when the transfer was registered by the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s directors. This is obviously an attempt to balance the rule and ensure that while equity does not aid a volunteer by perfecting an imperfect gift, the principle of equity that à ¢Ã¢â€š ¬Ã‹Å"equity will not strive officiously to defeat a giftà ¢Ã¢â€š ¬Ã¢â€ž ¢ is not relegated. The rule in Strong v. Bird (1874). The rule provides that where a donee of an imperfect gift who has not furnished consideration obtains title to the gift in another capacity, then this will be sufficient to perfect the gift in equity (Davies Virgo, 2013). This usually happens where such a donee becomes executor of the donorà ¢Ã¢â€š ¬Ã¢â€ž ¢s will. In Strongà ¢Ã¢â€š ¬Ã¢â€ž ¢s case, the donor was Birdà ¢Ã¢â€š ¬Ã¢â€ž ¢s step-mother whom he owed some money before her death. However, it turned out that she made him executor to her will. The court held that by vesting the legal title in her estate on him, she had manifested her intention to release him from the debt. The rule in Strong v. Bird has been applied to administrators in Re James (1935), although the accuracy of this application has been questioned in Re Gonin (1979). I must state here that I totally agree with the court in Re Gonin. The donor, having died intestate, could not have been involved in the choice of administrators of his estate, therefore, the intention to forfeit the debt or perfect the imperfect gift is lacking. Where the donee has furnished valuable consideration in expectation of the gift, the law no longer sees him as a mere volunteer, but gives him contractual rights (Re Plumptreà ¢Ã¢â€š ¬Ã¢â€ž ¢s Marriage Settlement (1910)). Donationes mortis causa (gifts made in contemplation of death). This exception originated from Roman law, but has now found a place in English law through decisions of English courts (per Nourse LJ, in Sen v. Headley (1991)). For an effective donatio mortis causa, three elements must be present: à ¢Ã¢â€š ¬Ã…“the gift or donation must have been in contemplation, though not necessarily in expectation of death; there must have been delivery to the donee of the subject matter of the gift; the gift must be made under such circumstances as to show that the thing is to revert back to the donor in case he should recoverà ¢Ã¢â€š ¬Ã‚  (Watt, 2014, p. 134 ; Cain v. Moon (1896)). 3.1 APPLICATION 3.1.1. GEORGEà ¢Ã¢â€š ¬Ã¢â€ž ¢S CLAIM George will remain a volunteer before the law, as he his case does not fall under any of the exceptions to Milroyà ¢Ã¢â€š ¬Ã¢â€ž ¢s case. Barry did not do all in his power to vest the car in George (he could have at least, sent the registration documents to the Vehicle Licensing Authority). Furthermore, George furnished no consideration, he was not an executor but an administrator of the estate, and the promise was not made in contemplation of death. 3.1.2. MIDREDà ¢Ã¢â€š ¬Ã¢â€ž ¢S CLAIM Mildredà ¢Ã¢â€š ¬Ã¢â€ž ¢s claim would have been on all fours with Strong v. Bird (supra), except that Barry died intestate and Mildred is an administrator of Barryà ¢Ã¢â€š ¬Ã¢â€ž ¢s estate, not an executor. That will put Mildredà ¢Ã¢â€š ¬Ã¢â€ž ¢s claim within the contemplation of the highly controversial Re James. My opinion concerning this matter, Mildred is advised to abandon her claim, as Re James is an isolated case, and su bsequent cases have criticized it, and/or made decisions inconsistent with it. 3.1.3. JAYNEà ¢Ã¢â€š ¬Ã¢â€ž ¢S CLAIM Jayneà ¢Ã¢â€š ¬Ã¢â€ž ¢s case does not seem to fit into any of the exceptions to the rule in Milroy v. Lord (supra). Barry had not done all that he needed to do to effect the transfer and Jayne had not furnished any consideration whatsoever. Jayneà ¢Ã¢â€š ¬Ã¢â€ž ¢s claim will fail also because there is nothing to show from the circumstances that Barry made the promise to transfer his cottage to her in contemplation of death, although he was indeed, ill when he made the promise. However, if Jayne can prove that the promise was made to her in contemplation of death, or that the cottage keys were delivered to her, her claim may stand. CONCLUSION Georgeà ¢Ã¢â€š ¬Ã¢â€ž ¢s claim has been adjudged as baseless, Mildredà ¢Ã¢â€š ¬Ã¢â€ž ¢s claim stands on unstable waters, while Jayne requires further proof of certain facts to be able to effect Barryà ¢Ã¢â€š ¬Ã¢â€ž ¢s promise to her. REFERENCE LIST Davies, P. and Virgo, G.(2013) Equity Trusts: Text, Cases and Materials. Oxford: Oxford University Press, page 145 Hayton D, Matthews P. and Mitchell, C. (2010) Underhill and Hayton: Law Relating to Trusts and Trustees, 18th edn. London: LexisNexis Hudson, A. and Thomas, G. (2010) The Law of Trusts, 2nd Edn. OUP: Oxford Hudson, A. (2008 ) Understanding Equity and Trusts, 5th edn. Abingdon, Oxon: Routledge Cavendish. Watt, G. (2014). Trusts Equity. Oxford: Oxford University Press CASES CITED Cain v Moon (1896)2 QB 283, per Lord Killowen CJ at 286. Jones v Lock (1865) 1 Ch App 25 Lyell v. Kennedy (1889)14 App. Cas. 437 Milroy v Lord (1862) 4 De GF J 264 Re Rallià ¢Ã¢â€š ¬Ã¢â€ž ¢s Will Trust [1964] 1 Ch 288 Re Rose (1952) Ch. 499 Re Gonin (1979 Ch. 16, 34 Re James (1935) Ch. 449 Re Plumptreà ¢Ã¢â€š ¬Ã¢â€ž ¢s Marriage Settlement(1910) 1 Ch 609 Richard v Delbridge (1874) LR 18 Eq. 11 Sen v Headley (1991) Ch 425 CA Strong v Bird (1874) LR 18 Eq. 315 Twinsectra Ltd v Yardley(2002) UKHL 12 at [71]; [2002] 2 All ER 377 at [71] Wright v. Atkyns (1823) Turn. R. 143, 157

Still I Rise - Analysis - 639 Words

Still I Rise by Maya Angelou is a very moving ballad poem, and has a positive and strong tone throughout it. The main theme of this poem is discrimination. It portrays a strong woman living with confidence and a positive attitude. The reason why I chose to write my essay on Still I Rise is because it has a very powerful message. Although this poem was written in 1978, I feel as if anyone can relate to it even in this time period. Everybody experiences discrimination at some point in their lives, and this poem teaches readers to have pride and hope in their selves in order to overcome any obstacle that comes their way. There are quite a few poetic devices in the poem I will be focusing on such as similes, metaphors, repetition and†¦show more content†¦She feels free and open like the ocean, able to overcome any difficulty. The metaphor can also be described as cruelty or evil, and how things can occur unexpectedly. This could be how her life is full of horrific and unexpect ed events. 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Reporting of Environmental Liabilities and Risks

Question: Discuss about the Reporting of Environmental Liabilities and Risks. Answer: Introduction: The conceptual framework has been developed by the IASB and FASB for explaining and defining the objective of accounting. The conceptual framework provides an in-depth understanding of the theoretical and conceptual issues in financial reporting that underlines the development of accounting standards. The accounting standards are generally based on generally accepted accounting principles (GAAP) that develops a frame of reference for the businesses worldwide at the time of preparation of financial statements. The principles-based standards require a conceptual framework to provide a proper explanation of the body of principles that are used for financial reporting. The use of principles-based approach for the development of accounting standards would help to attain the objectivity of financial reporting by providing practical-based outcomes. The conceptual framework will provide proper guidance for the application of accounting standards at the time of financial reporting. The FASB h as developed conceptual framework that provides proper explanation to the accounting concepts for facilitating the development of financial statements (Barth, 2007). The principles-based approach provides a conceptual basis for accountants to ensure the development of sound financial reports. The incorporation of principles-based standards in conceptual framework will provide broad guidelines to explain the objectives of accounting. The principles-based standards must be rooted in fundamental concepts for developing good financial accounting and reporting. The fundamental concepts of accounting must constitute a framework that is sound, comprehensive and internally consistent. The FASB and IASB has developed the conceptual framework of accounting that is mainly rules-based and should be developed into principles-based for providing broad guidelines to develop sound financial reports (Pounder, 2009). Importance of IASB and FASB sharing a common conceptual framework The FASB and IASB should develop a common conceptual framework for increasing accuracy and consistency in accounting and financial reporting. The FASB and IASB have undertaken a common project in the year 2002 for revisiting the conceptual framework. The main objective of the project is to refine, update, complete and converge the existing frameworks of tow boards into a common conceptual framework. This is necessary for developing a common conceptual framework that is principles-based and therefore develops accounting standards that are fundamentally based. The sharing of a common conceptual framework by both the IASB and FASB will help in reducing the complexity and ambiguity that exist in developing of financial reports by business corporations. The fundamental concepts of accounting must be rooted in the conceptual framework guidelines that underline the preparation of financial reports by businesses. This is helpful in enhancing the reliability and relevance of financial reporti ng and therefore reduces the chances of error-occurrence. The development of principles-based conceptual framework will help in application of international financial reporting accounting standards (Kieso et al., 2010). Thus, a common conceptual framework that is shared by both IASB and FASB will help in easy implementation of accounting concepts and conventions that are principles-based. Also, the development of a common project will help in alignment of agendas and thus supports faster decision-making. The boards encounter problems during decision-making due to presence of two different conceptual frameworks. The development of a common conceptual framework will also help in overcoming the difficulty of the boards that arises due to presence of different accounting concepts and conventions in their existing frameworks. Thus, it can be said that there is large importance of sharing a common conceptual framework by both the IASB and FASB (Camffermann and Zeff, 2015). Reason for Conceptual Framework more important to some parties than others The basic purpose of conceptual framework is to provide support to preparers during the development of financial statements. The development of a common conceptual framework will help in increasing the uniformity of financial statements worldwide. The main user of the conceptual framework is IASB that makes its decisions on the basis of its stated accounting concepts and principles. The conceptual framework is most important to IASB as it develops accounting concepts and conventions adopted worldwide in guidance with the conceptual framework (Epstein, 2009). As per the IASB, the main purpose of the conceptual framework is to identify accounting concepts that will help in development and revisiting of IFRS (International Financial Reporting Standards). The conceptual framework also provides assistance to the IASB in development of accounting policies and thus has a large influence on development of accounting standards. In addition to this, the conceptual framework is also important t o preparers, investors and auditors as it underlines the preparation and presentation of financial statements. The preparers and auditors will gain the support from the accounting concepts and conventions of the conceptual framework during developing and interpreting the financial reports of businesses worldwide. The conceptual framework also help in maintain the trust of investors by provide reliable and relevant information in the financial statements (Greenberg, 2013). Cross-Cutting Issues and its examples Cross-cutting issue refers to take into account the uncertainty that occurs due to measurement of an asset or liability. The reduction in uncertainty during the measurement of an asset or liability can occur by providing most relevant financial information to the users. The uncertainty in the measurement of an asset or liability can occur if there are uncertain cash flows. In this context, the IASB should also include the technique of measuring an asset or liability in the conceptual framework. The fair value of an asset or liability can be measured through the use of cash flow information that helps in real estimation of the fair value. The possible examples of cross-cutting issues include assessing the unit of account that is measuring the assets in groups rather than estimating its fair value individually. The main reason for the occurrence of cross-cutting issues is lack of fully developed measurement concepts in the conceptual framework. This is responsible for the occurrence of uncertainty in the measurement of an asset or liability and therefore lead to the occurrence of cross-cutting issues (Jones, 2015). Historic Cost Measurement Principle Issues under GAAP The generally accepted accounting principles (GAAP) incorporate the use of historic cost measurement principle while recording the value of an asset in the balance sheet. The historic cost can be stated as a price of an asset based on its initial cost at the time of its purchase. Thus, the historic cost measurement principle does not take into account the change in the price of an asset over a period of time. The historic cost is mainly based on the price of an asset when acquired by a company and does not reflect the real market value of an asset. Thus, the fundamental problem associated with the cost measurement principle is that it only states historic facts. It fails to depict the real market situation and thus do no present the fair value of an asset. The investors fail to predict the real economic condition of an organization and thus it is not able to maintain the trust of investors and analyzers (Maali and Jaara, 2014). The historic cost measurement principle is easier in application than other costing method but does not provide a fair picture of state of affairs of a business entity. The income statement prepared with the use of historic cost accounting does not reflect true profitability as revenues are recorded on the basis of current value while expenses are recorded on the basis of historic cost. Thus, investors and analyzers are not able to predict the real profitability position of an organization with the use of historic cost measurement principle. The balance sheet also fails to depict the true financial condition of an organization as monetary items such as cash, loan, debtors and creditors are stated at the current money value. On the other hand, non-monetary items such as inventory, land, and building are recorded at historic cost. Therefore, the real profitability position of an organization is not reflected with the use of historic cost measurement principle (Macve, 2015). Accounts must reflect economic reality as a core principle of measurement in accounting The GAAP principles are mainly based on historic costing that record the price of an asset at the initial price and do not take into account the changes in market value. This is responsible for occurrence of large number of issues in accounting as actual financial condition of an organization is not reflected with the use of historic cost measurement principle. The accounts must incorporate the principle of reflecting true market reality as a core principle of measurement in accounting. This is essential for providing a fair estimate of the financial performance of an organization to all its stakeholders. The stakeholders of an organization must have a real estimate of the operating performance of a business entity. The protection of interests of all the stakeholders is essential for a business organization to achieve transparency in its operational activities. Thus, accounting must incorporate the use of fair value measurement principle for depicting the real market value of an asse t. The use of fair value accounting method would help in providing a true and actual estimate of the price of an asset. The incorporation of market changes in the price of an asset would help in depicting the actual economic condition of an organization. Thus, it can be stated that historic cost measurement principle in accounting is not able to depict the economic reality and therefore there is high need for the use of better measurement principle in accounting. Measurement of Economic Reality in Accounting The economic reality in accounting can be measured through the help of fair value accounting technique. As per the IASB, fair value in accounting reflects rational and unbiased estimate of the current market price of an asset. The fair value of an asset takes into account the acquisition, production, replacement and distribution cost and thus reflects the real market price of an asset. The method of fair value accounting is more useful in financial reporting as it provides real estimate of the assets and liabilities and thus depicts the real economic situation of an organization. The fair value of an asset takes into account all the fluctuations existing in the market and therefore reflects true economic reality. The main objective of financial accounting is to reflect corporate and economic realities for protecting the interests of investors. This is possible only when the financial statements of a business corporation reflect the actual market condition of a business entity. The fa ir method of accounting depicts the economic reality and therefore should be accepted as a core principle of measurement in accounting under GAAP (Stolowy and Lebas, 2006). Reliability in Accounting The GAAP principles in accounting have incorporated the reliability principle according to which the accounting system should only record those business transaction that can be verified with objective evidence. The objective evidence can include canceled cheques, bank statements, purchase receipts that provides reliable and consistent financial information. The principle in accounting is developed is that only materially accurate and reliable information is presented to the end-users and there is no misrepresentation of the financial statements. The reliability principle in accounting also reduces the chances of occurrence of errors and therefore only true and relevant information is disclosed to the end-users. The principle of reliability is qualitative in nature as per which the information should be verifiable and objective in nature. The financial information presented to the users should be verified and reliable to be used by the investors and creditors. The accounting rule of r eliability ensures that accounting records and statements incorporates the use of most accurate and precise financial information during the preparation of the financial statements. The financial statements prepared meets the principle of reliability if the information presented through it can be verified and is consistent in nature. The principle of reliability and relevance in accounting is one of the major qualitative characteristic in accounting that provides a conceptual basis for accountant during financial reporting (Weygandt et al., 2009). Environment liability of companies refers to their obligations and measures adopted for ensuring environment protection. The business companies operating in the US should record a provision in relation to environment cost of retiring an asset as per the US standard setter. The FASB has made it mandatory for the business entities operating in the US to reserve for environment liabilities if its fair value can be estimated properly. The recognition of environment liabilities has emerged as a major issue among the countries worldwide for ensuring environment protection. The companies in the US and worldwide should promote a minimum level of disclosure relating to environment issues for missing the damage that occur to environment as a result of business operations (Bergkamp and Goldsmith, 2013). The US FASB has issues a provision in 2002 to account for environment liabilities for retiring assets. The main condition of recording a provision in relation to reserving environment liabilitie s is that its fair value should be reasonably estimated. However, it is rather difficult for the companies to comply with such a provision as estimating the fair value of an asset is very problematic. The companies are complying with FASB provision of reserving environment liabilities by recording huge funds in the income statement against environment liability. This is done to minimize the chance of occurrence of any contingency and for covering the environment risk that exist due to business operations. The companies must maintain adequate financial reserves as environment liabilities for retiring assets as per the FASB litigation. Thus reserving environment liabilities is mainly important for business corporations for obtaining environment compliance (Rogers, 2005). The main requirement for deferring recognition of the environment liability for US companies is to record the fair value of retiring assets. This is essential in order to account for the reserves that should be maintained for overcoming the environment damage that can occur in future with such an asset. The estimation of the market value of retiring asset is essential for the US companies in order to defer recognition of an environment liability. Also, the US companies should provide a fair picture of the possession of contaminated property that can cause environment damage in future period of time. The adequate reserves against such a contaminated property should also be maintained by the US companies for granting environment protection. The US corporations can defer the recognition of an environment liability through mothballing a contaminated property. This means that a contaminated factory should maintain proper reserves for covering the cost of environment damage that can occur with the possession of such a contaminated property (Rogers, 2005). The recognition of environment liability in a business corporation requires maintaining proper reserves for covering the environment damage associated with it. Thus, companies are required to maintain huge funds as environment liability in their income statements. This is likely to have a negative impact on the operation profit of companies for a short-term. However, the recognition of environment liability and maintaining proper reserves for it will help the companies to minimize the chance of occurrence of any contingency condition in the future. Also, it is likely to increase the brand image of a corporation in the international market thus enhancing the operating profit in long-term. Thus, it can be stated that recognition of an environment liability can decrease the net profit of a company in the current year but will increase it in the future period of time (Uzochukwu et al., 2009). Cash-flow in the current and future years The cash-flows of a business corporation are also likely to decrease with the recognition of an environment liability. This is due to decrease in net profit of a corporation as discussed above. On the other hand, the cash-flows of a corporation will increase in future period of time with the increase in its profitability position (Uzochukwu et al., 2009). Importance of recognition of environment liability and extent of its disclosure by business Corporations The recognition of environment liability is very important for business corporations around the world. This is because maintenance of proper reserves for covering the environment damage by business operations is necessary to eliminate the occurrence of environment risk. The environment damage can be recovered easily with recognition of environment liability in advance thus ensuring its protection and growth. The protection of environment by a business corporation would also promote its growth and development by enhancing its goodwill in the international market. The different type of operational activities of a business corporation can cause destruction of environment in many ways. The FASB has implemented litigation for business corporations to achieve environment compliance by maintaining proper reserves (Bergkamp and Goldsmith, 2013). The business corporations should maintain a proper disclosure regarding the material risks associated with operational activities to obtain environment compliance. The companies have to adequately disclose the financial reserves in the income statement that it maintains to comply with provision of reserving environment liabilities. This is necessary for businesses not only to properly cover environment risk but also to promote its brand image in the international market. The proper disclosure of environment liabilities strengthens the brand image of a company and promotes brand awareness internationally. Thus, it increases the customer base of an organization enhancing its profitability position. Therefore, it can be stated that recognition of an environment liability is highly important for business entities to ensure its sustainable growth and development (Uzochukwu et al., 2009). References Barth, M.E. 2007. Research, Standard Setting, and Global Financial Reporting. Now Publishers Inc. Bergkamp, L. and Goldsmith, B. 2013. The EU Environmental Liability Directive: A Commentary. OUP Oxford. Camfferman, K. and Zeff, S.A. 2015. Aiming for Global Accounting Standards: The International Accounting Standards Board, 2001-2011. OUP Oxford. Epstein, B.J. 2009. Wiley GAAP 2010: Interpretation and Application of Generally Accepted Accounting Principles. John Wiley Sons. Greenberg, M. 2013. Fair Value Accounting, Historical Cost Accounting, and Systemic Risk: Policy Issues and Options for Strengthening Valuation and Reducing Risk. Rand Corporation. Jones, S. 2015. The Routledge Companion to Financial Accounting Theory. Routledge. Kieso, D. et al. 2010. Intermediate Accounting: IFRS Edition. John Wiley Sons. Maali, B. and Jaara, O. 2014. Reality and Accounting: The Case for Interpretive Accounting Research. International Journal of Accounting and Financial Reporting 4(1), 155-168. Macve, R. 2015. A Conceptual Framework for Financial Accounting and Reporting: Vision, Tool, Or Threat? Routledge. Pounder, B. 2009. Convergence Guidebook for Corporate Financial Reporting. John Wiley Sons. Rogers, G. 2005. Financial Reporting of Environmental Liabilities and Risks after Sarbanes-Oxley. John Wiley Sons. Stolowy, H. and Lebas, M. 2006. Financial Accounting and Reporting: A Global Perspective. Cengage Learning EMEA. Uzochukwu, G. et al. 2009. Proceedings of the 2007 National Conference on Environmental Science and Technology. Springer Science Business Media. Weygandt, J. et al. 2009. Financial Accounting. John Wiley Sons.

The Effects of Watching Tagalized English Movies in the Philippines Essay Example

The Effects of Watching Tagalized English Movies in the Philippines Essay Introduction: . Tagalization is the process of converting foreign language into Filipino language or it is the translating of text into Filipino. Under the 1987 Constitution XIV Section 6, the Filipino national language was settled and the Education department adopted a bilingual program to promote the use of Tagalog, the other official language. The government was swayed by studies indicating that children tended to learn better in their native languages The trend for Tagalization or as some would call it Filipinization has increased in the recent years. Among those in the media which have changed languages through the years are the movies. And because of this, the level of English proficiency decreased. Incapability to speak English fluently and efficiently is one of the realities faced by many young Filipinos today. There are many reasons to explain the decline in English proficiency but the proliferation of television shows such as tagalizing English movies is one of the attributors. With this, how could we expect the young generation to speak and write English fluently? Absract: This research entitled â€Å"The Effects of Tagalizing English on the English Proficiency of the First Year College Students of Pasig Catholic College† was conducted to know the effects of tagalizing English movies of the first year college students of Pasig Catholic College. It aims to answer the following questions 1. What is the profile of the first year college students of Pasig Catholic College in terms of: 1. 1 Gender 1. 2 Program1. 3 Age 2. What is the academic level of performance of those students who watch tagalized English movies? 3. What are the effects of watching tagalized English movies? We will write a custom essay sample on The Effects of Watching Tagalized English Movies in the Philippines specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on The Effects of Watching Tagalized English Movies in the Philippines specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on The Effects of Watching Tagalized English Movies in the Philippines specifically for you FOR ONLY $16.38 $13.9/page Hire Writer The researcher chose the first year college students of Pasig Catholic College to be her respondents. In this regard, the researcher used descriptive method to determine the different effects of tagalizing English movies of the abovementioned first year college students. The researcher used the survey questionnaires in gathering data as the main instrument. The questionnaire is divided into three parts. Part I was about the profile of the respondents, part II was the grade in English of the first year college students for the first semester, and part III dealt with the different factors regarding tagalized movies. In the light of the study, the researcher came up with the following findings: Area of Focus This study aims to determine the effects of tagalizing English movies of the first year college students of Pasig Catholic College. The English Teacher: This study may prove significant to the English teachers to become aware of the student’s needs and responses. He/she, as a facilitator of learning should encourage the students in engaging oral and written activities to enhance their English proficiency. The Students: This study will serve as an encouragement to the students to watch English movies more instead of tagalized English movies to develop fundamental communication skills that prepare students to engage in fluent and responsible communication. The Parents: Through this reseach, the parents will come up with ways to assist and expose their children to different English resources to develop the student’s skills in English proficiency. Related Literature: According to Shianee Mamanglu of Manila Bulletin (2010) agreed that the Filipino skill in English have diminished over the years thus the need to enhance it. She also said that only five to ten are accepted out of every 100 call center applicants because of poor English skills particularly on communication. Lingualearn, (2002 ) said that one can learn grammar of a language in different ways and one of these is by watching television. All have an inborn mechanism for decoding and making sense of foreign languages. By immersion in the foreign language and culture, one should be able to pick up any language. The New Strait Times and the Star Newspaper (2005) said that it is important that students should watch more television, especially educational English programs.