...Some theorists contend that companies that create pollution should report the social cost of that pollution in income statements. They argue that such companies are indirectly subsidized as the cost of pollution is borne by society while only production costs (and perhaps minimal pollution fines) are shown in the income statement. Thus, the product sells for less than would be necessary if all costs were included. Assume that the FASB is considering a standard to include the social costs of pollution in the income statement. The process would require considering both relevance and faithful representation of the information produced by the new standard. Your instructor will divide the class into two to six groups depending on the size of the class. The mission of your group is to explain how the concepts of relevance and faithful representation relate to this issue. To make a difference in the decision process, information must be relevant to the decision. Relevance in the context of financial reporting means that the information must possess predictive value and/or confirmatory value, typically both. It help decision makers to have a better picture of the net income if social costs of pollution is included as a part of the income statement. Financial information is material if omitting it or misstating it could affect users' decisions. To consider if social cost of pollution is material or not, it is important that the cost be measured accurately. If production of a good...
Words: 431 - Pages: 2
...Chapter 1: The objective of financial reporting Chapter 1 describes the objective of financial reporting, the primary user group to which financial reporting is directed, the types of decisions made by that group and the financial information useful to that group in making those decisions. 1. The boards decided that an entity’s financial reporting should be prepared from the perspective of the entity (entity perspective) rather than the perspective of its owners or a particular class of owners (proprietary perspective). Do you agree with the boards’ conclusion and the basis for it? If not, why? Yes, we agree with the boards’ conclusion about the preparation of the entity’s financial reports from the entity perspective because this is in correspondence with the current situation of entities. In other words, under the entity perspective, the reporting entity has substance by its own; contrary to the situation under the proprietary perspective where it does not have substance separately from the proprietary one. The proprietary perspective is more accurate to the situation where entities do not exist separately from its owners or to those days where most businesses were sole proprietorships and partnerships that were managed by their owners. Nowadays, the separation between managers and owner grew, most of today’s businesses have legal substance, and multiple capital providers with limited legal liability being more appropriate, in our opinion, the entity adopted perspective...
Words: 2126 - Pages: 9
...political climates, and they gained different levels of influence within government as a result. The emergence of the German Greens in the twentieth century coincided with the rise of new social movement protests during the 1960s 1970s. This movement brought about a heightened awareness of social and environmental problems among new-left student populations, as well as citizen action groups, that helped set the stage for a “Green challenge within the electoral process” (Burchell, 2002, p. 53). The German Greens achieved their first electoral breakthrough at the federal level in October 1983, with 5.6 percent of the vote and the election of 27 Green deputies (Burchell, 2002, p. 53). In the Germans’ case, the structure of proportional representation served as a...
Words: 1100 - Pages: 5
...“democratic” electoral system… Firstly, the main issue within the first past the post system is the democratic persona it creates; due to the fact that only the votes of the successful party are counted and the remaining votes (no matter how close) are discounted therefore making it based on a “winner takes all” system and in effect, undermining the remaining candidates as well as electorates whose votes are discounted. This can be seen evidently in the 2010 general elections as although labour had won 258 seats, conservatives had won 307 seats therefore stating conservatives had received more votes than all other parties and so their votes are the only one that count whilst all other votes are redundant. Systems involving proportional representation, such as the Additional Member System (AMS) are more democratic as electorates receive two votes so they have an impact to the results as both votes are counted. However, this is not all entirely true as in a first past the post system; parties still have to reach a certain number of seats in order to earn a majority and thus avoid a coalition. On the other hand, not all is negative for the system; FPTP is considered to be a simple and publicly accepted. This is a positive outlook on the...
Words: 934 - Pages: 4
...The current electoral system has been constantly assessed and targeted by civilians who believe that First Past The Post is no longer effective and should be gotten rid of. Even though it lost in the 2011 referendum, People still believe the electoral system should be changed, especially the liberal democrats who are in favour of this change because they would benefit. FPTP is a simple plurality system the candidate with the most votes in one constituency becomes a MP and then the party with the most MPs becomes the government. The first reason i think the electoral system should be reformed is that the system is very unrepresentative as large mainstream parties with their supporters concentrated in certain constituencies do well and win. For example the constituency of Buckingham is highly populated with conservative supporters meaning that any other people living in that area who want to vote for labour or any other parties will continuously lose, so their votes are wasted and even more votes are wasted if losing parties' supporters are spread out rather than concentrated making it unfair especially to fringe parties. However, even though it can be seen as unrepresentative, it is quote an efficient method as it usually guarantees that one party will win the majority and become the government making it easier to pass laws in parliament unless there is a coalition which would lead to clashes in ideas. Another argument for reform is that minority governments are formed...
Words: 705 - Pages: 3
...“democratic” electoral system… Firstly, the main issue within the first past the post system is the democratic persona it creates; due to the fact that only the votes of the successful party are counted and the remaining votes (no matter how close) are discounted therefore making it based on a “winner takes all” system and in effect, undermining the remaining candidates as well as electorates whose votes are discounted. This can be seen evidently in the 2010 general elections as although labour had won 258 seats, conservatives had won 307 seats therefore stating conservatives had received more votes than all other parties and so their votes are the only one that count whilst all other votes are redundant. Systems involving proportional representation, such as the Additional Member System (AMS) are more democratic as electorates receive two votes so they have an impact to the results as both votes are counted. However, this is not all entirely true as in a first past the post system; parties still have to reach a certain number of seats in order to earn a majority and thus avoid a coalition. On the other hand, not all is negative for the system;...
Words: 357 - Pages: 2
...Should the Electoral system used in general elections in the UK be reformed? The election system that we currently have in the UK is a lot like marmite, you either love it or you hate it… There are many different arguments for and against this system, however people forget that within getting rid of the First Past the Post system, you will then need to then replace it. This then poses the vital question of which is the best fitting system and should we really change tradition? First past the post is a simple plurality system which requires the plurality of votes to win: that is one more vote than the second candidate. There is no requirement to obtain the votes cast. In contests involving three or more candidates, the winner may fall well short of an overall majority. MPs are elected in a single member constituencies. Each of the 650 constituencies in the UK elects one representative to the House of Commons. There has been a long running debate on this issue, as there are other electoral systems being currently used I the UK for other things for example the Supplementary vote used the elections of the London Mayer. People argue that one of the other electoral systems could replace the First past the Post, in May 2011 a referendum was held asking the public if they would want to change to the system to AV. This was a resounding ‘no’, which makes the question of a possible reform purely hypothetical at this moment in time. Was this because people do in fact like the FPTP system...
Words: 1460 - Pages: 6
...constituency a candidate has to gain a minimum of a one vote advantage over the nearest rival. This system is not proportional which means that for every constituency there is only one MP representing them in Parliament. Even though the FPTP system has come under criticism, it remains as the electoral system used for Westminster and local government elections, and its advantages are the following. The FPTP system is very simple and easy to understand. The voters only have to write an “X” to indicate their choice. There is no need to rank candidates or to make more than one preference, in contrast to other more complicated systems where confusion arises. For example, there are a huge number of spoilt papers under various types of Proportional Representation as a result of voter confusion. In Scotland when STV was used there were thousands of spoilt ballot papers. However it could be argued that the advantage of ease is overrated as the electorate could be prepared enough to cope with another system as they do in other countries such as Germany or Switzerland. Speed is another lauded attribute of FPTP. We can get the results in constituencies just hours after the polls close and a verdict on who will secure the ability to govern alone before the next dawn breaks. By contrast other electoral systems can take days to calculate as votes are redistributed. In the Republic of Ireland it can take many days to discover who has the ability to form a government as recounts and redistributions...
Words: 1032 - Pages: 5
...for. First Past the Post (FPTP) The British electoral system is based on the FPTP system. This system is very clear-cut and definitive, the candidate with the highest number of votes in a constituency wins. In order to vote in a FPTP system you simply mark a cross (X) next to the name of the candidate you are choosing. Alternative Vote (AV) Voters must rank the candidates on the ballot paper in order of preference. If a candidate receives 50 per cent or more of first preferences then they are elected. If not, then the candidate with the lowest number of first choices is eliminated and their second choices are redistributed to the other candidates. This process continues until one candidate has an absolute majority. Proportional Representation Publicity and Electioneering Activities It is important that a candidate becomes well known in the area they are hoping to represent and to this end they will often...
Words: 1651 - Pages: 7
...Electoral systems There are two main types of electoral systems in the UK: First Past the Post (FPTP) Proportional Representation (PR) First Past the Post (FPTP) FPTP is the voting system used for the election of MPs to 'seats' in the UK Parliament. It is a system in which the 'winner takes all' and usually gives a clear majority both at constituency and national level. This means that a candidate in a constituency only needs one more vote than the nearest rival to win the seat. Similarly, political parties only need to win one more seat in the House of Commons to have a majority. Advantages of FPTP There is very little chance of extremist parties being elected to Parliament under FPTP because they are unlikely to gain enough votes in any one constituency. Generally the results of elections using FPTP can be calculated quickly. When necessary, this makes the transfer of power from one party to another much easier. Disadvantages of FPTP The main criticism of FPTP is that the number of votes cast for a party in general elections is not accurately reflected in the number of seats won. An example of this was the 1997 election when the Conservatives gained 18% of the vote in Scotland but not one seat. This is mirrored at constituency level, where the winning candidate may have received only one third of the votes cast. Indeed, a government may be elected on a minority vote, as happened in 1974 when Labour won the general election on the number of seats gained...
Words: 1422 - Pages: 6
...Table of Contents Motivation 1 Introduction 2 Definitions and Explanations 3 Merits and Demerits of the Plurality and PR systems 4 Analysis 5 Conclusion Motivation The motivation behind selecting the assignment topic is that elections and the understanding of the electoral systems seem to be at the center of understanding Political Governance 1 Introduction In discussing the assignment question the paper will endeavor to first provide definitions and explanations for the terms; democracy, representative democracy, electoral systems, plurality system and proportional representation. The presentation will proceed to identify and analyze the merits and demerits of the plurality and proportional representation electoral systems with reference to the practice in South Africa and Zambia. However, the analysis on the merits and demerits of the two electoral systems will be preceded with a discussion on the relevance of elections in a democracy. In conclusion, the presentation will strive to augment the viewpoint(s) developed from the analysis and offer an opinion as to whether it would be beneficial for South Africa to adopt the plurality electoral system. 2 Definitions and Explanation The word democracy is one that has a variety of versions in practice and theory, however, according to Johari (2013, p. 491) almost all governments proclaim to be democratic.1 Hague and Harrop (2010, p.84) write that the core principle of...
Words: 2558 - Pages: 11
...Altruism is the will and intention to help another without regard for oneself. The will or instinct to help others is a driving force for altruistic behavior. Animals can engage in altruistic behavior; however they do not realize that they are being altruistic, therefore the behavior that is exhibited is not altruistic. For a behavior to be altruistic one needs to understand that they are benefiting others at their expense. Humans possess the will necessary to perform altruistic deeds, and can put it to great use. Humans are still animals, and may perform altruistic behaviors without realizing it. Altruism in politics is rare, but it is necessary to prevent social groups from being outcast. A proportional representation system will allow for altruism by helping minorities be represented at all times, while not requiring the current majority to relieve their representative power. Frans deWaal shows that alrutism is actually more natural than it seems, despite the apparent inconsistencies they present. Altruism is a choice to help others over one’s self. Only humans can be truly altruistic, as humans have the potential to make choices and realize their consequences almost completely, however seemingly altruistic events due occur naturally in the animal kingdom. “Taking on the midwife role another female spent no less than two and a half hours assisting the in experienced mother”(deWaal 688). The helper bat did know actually know and think about its actions and consequences. The...
Words: 1539 - Pages: 7
...Should FPTP continue to be used for elections to the House of Commons? The first reason that FPTP should continue to be used for elections to the House of Commons is that it produces effective constituency representation because there are single member constituencies, meaning that people know which MP represents them in the House of Commons, and thus who they can take their grievances to. This is a strength because it results in a strong working link between an MP and a geographical area, thus connecting communities to central politics. For example, Greg Barker, the Conservative MP for Bexhill and Battle, has worked with his constituents, since he won 51.6% of the vote and was thus elected to the House of Commons in 2010, to represent their need in Parliament. For instance, in September 2014, Barker advocated for the expansion of free childcare for 2,200 two-year-olds in East Sussex, as a result of the 2006 childcare act. Moreover, due to the fact that under FPTP only one MP is elected per constituency, the public can easily hold their representative directly accountable for their actions, and consequently can vote them out of power at the next general election. For example, the labour MP for Bethnal Green and Bow, Oona King, lost her seat in the 2010 general election, when her predominantly Muslim constituents voted her out of power, after her support for the Iraq war. Consequently, since under PR systems the link between constituents and representatives is significantly weakened...
Words: 1394 - Pages: 6
...What is proportional representation? Proportional representation is whereby the results of the vote are directly proportional to the views of the public, meaning that the results are representative. It is the main principle behind a number of electoral systems and contrasts to the majoritarian principle, which would mean that literally, most votes wins. An example of a PR system is AMS; Additional member system; or STV; Single Transferrable vote. AMS is a hybrid system and only 1/3rd of the seats are elected via PR. This also uses the list system, in which voters choose between parties and not candidates. Highlight 3 arguments against plurality systems One disadvantage of FPTP is that the results produced can be unrepresentative of the public’s opinion. This is because parties can win and lose simultaneously due to having a higher percentage of the vote, but not gaining more or less seats than their nearest competitor. An example of this is during the 1951 elections, where labour had 48.8% of the vote and conservatives had 48%. Even though by percentage labour had one, conservatives gained 321 seats and won the election, whereas labour only got 295 seats. Another disadvantage of plurality systems and FPTP is that it discriminates against small parties. Historically, few small parties have done well under this type of system. In the 2015 general elections, UKIP needed a minimum of 3.8 million votes to gain 1 seat, whereas labour and conservatives both needed between 30,000-40...
Words: 1354 - Pages: 6
...simple majority, not necessarily and absolute majority. 4. An electoral unit that returns one or more representatives, or the body of voters who are so represented. Used for elections to the House of Commons and therefore it serves to form the UK governments. Hence it is known as the Westminster electoral system. First past the past has the following implications. * Disproportionally * Systematic biases * Two - party system * Single-party government * The Landslide effect 5. FPTP fails to establish a reliable link between the proportion of votes won by parties and the proportion of seats they gain. This happens because the system is primarily concerned with the election of individual members, not with the representation of political parties. An example of this is that it is possible with the FPTP for sensation of political parties. This is what happened in 1951, when the Conservatives formed a majority government but won fewer votes than...
Words: 279 - Pages: 2
