Accounting Concept Essay Example

Accounting Concept Essay The accruals concept brings a meaning that every expense should be recognized as they occurred. (Wild, Shaw, Barbara, 2009) For examples, when an expense incurred, we need to record it in the financial report, not when payment is made. While we receive the goods, we need to record the revenues. We need to record the net profit using the formula of net profit is equal to total revenue total cost. So that, we get a more accurate amount of profit for net profit is not equal to total revenue. When non-compliance of historical cost concept, the value of the assets is not objective and not reliable anymore since the evidence of transaction is not shown. Additionally, the market price changes often according to time period and thats why some users will prefer market value as it is more relevant. At current value, it will distort the whole fabric of accounting. It makes accounting information unreliable. If monetary concept is not practiced into the business, the condition as he unit used for measurement of value is not the same; the information in the financial statement couldnt be compared as its not the same of the real value. We will write a custom essay sample on Accounting Concept specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Accounting Concept specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Accounting Concept specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Certain information such as the value of workers and the types of goods will not be recorded into the financial as they do not a price for it. If going concern concept is not applied, the business is expected to shut down if the business is facing financial crisis. Therefore, this business would have a negative or pessimistic thinking and this would give a bad image to the public and shareholders. The business might have a hence to revive their business in the future but if they do not have a positive or optimistic thinking, their business would have a high chance of facing bankruptcy if they faced a financial crisis. The information in the financial statement cant be compared anymore, when time interval concept is not used. For example, if the financial statement of a company is prepared annually and the next one is closed in half year, then we cant compare these two financial statements because there are many transactions happen during the time interval, the profit calculated will be not name. Due to the reason the information in the financial statement is no longer reliable. Thus, there would be lesser potential share buyers interested in the company due to unreliable information. When non-compliance of business entity concept, the information in the financial statement wont be appropriate because unrelated information of the owner will be recorded in the financial statement. This will affect the profit and loss of the business because the owner personally expenses and revenues will be recorded in the financial statement. For example, the capital will e taken in as a drawing thus counted as a liability to the business when the owner invested ARM 100,000 into the business. If this concept is not used, the investment wont be record as a drawing. If accrual concept is not applied, the information in the financial statement wont be trustworthy anymore. The expenses wont be recorded when expenses incurred. It will be recorded when payment is made while. If revenues and expenses are recorded when payment made, the profit and loss of the business will become not accurate. Four qualitative characteristics that a uncial statement should posses: Understandability While preparing finance statement, the most significant things is the information should be easily understood by the public and able read through it easily. Relevant information need to be organized under a connected group. This is because it enables public to measure and give Judgment to the performance of the business easily with the accurately reliable information. CITATION we 1 17417 (Wood Gangster, 2012)Relevance The information in financial statement should be materialistic, as it stands as an important point to stakeholders to make a decision while using the information from the financial statement. Furthermore, materiality is one of the relevance criteria, as all the information we find out should be linked to evaluate past evaluation. It also enables the public to predict the future performance of the company. CITATION we 17417 (Wood Gangster, 2012)Reliability Reliable information will be useful to users as it doesnt include any wrong material. Faithful representation is one of the criteria of reliability in the accounting balance sheet. The transaction must represent accurately as at the reporting date. Another criterion in

Achieving Readiness for Organizational Change Review

Achieving Readiness for Organizational Change Review Introduction Organizations require workers to connect them with the widening array of coworkers, consultants, and the shared knowledge bases. This connection is important during the process of change and/or when preparing for it. It is crucial to note that it is impossible to implement any change without clear and precise communication.Advertising We will write a custom critical writing sample on Achieving Readiness for Organizational Change Review specifically for you for only $16.05 $11/page Learn More Indeed, communication encourages the development of a shared teamwork vision to minimize competition between workers. It contributes towards the development of knowledge learning and sharing culture, which is an important aspect for change and organizational continuity. This paper critically reviews an article by Smith Ian titled Achieving Readiness for Organizational Change with a particular focus on the theme of communication. Article Summary In the articl e, Achieving Readiness for Organizational Change, Ian (2005) discusses different roles that people play within organizations during a change process. His main purpose entails examining the significance of being equipped to welcome change, the strategy that people can adopt to implement a change, and the criteria that can be deployed to evaluate the change (Ian, 2005). In its findings, the article considers the attainment of change and its sustainability incredibly important for any organization. However, the issue of the role of communicate comes in when Ian (2005) declares people the success factors or hindrances to effective change. They need to be prepared for the change to make it possible. How can organizations achieve change preparedness? Ian (2005) responds to this question by claiming that people’s readiness for change can be achieved through creating the earnestness or requirement of change in them and ensuring that they feel and appreciate its meaning. This process involves releasing the status quo and creating an expressive stirrup in people. The goal is to create dissatisfaction with the status quo so that people can begin looking for different ways of reducing such disappointment with the current situation or status. In this process, Ian (2005) reveals how the communication of change is incredibly important. Critical Review Irrespective of the change strategies that organization adopts, Ian (2005) posits that planting the seed of change in an organization requires the establishment of a shared vision. The shared vision may originate from one individual, probably a leader, an organization’s employee, or a group of employees. To ensure that all other people embrace the idea of change, its communication is important.Advertising Looking for critical writing on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Ian (2005) supports this line of argument by adding that thr ough active revelation of discrepancies that exist between the present situation and the envisioned state, it becomes possible to build motivation and the readiness for change. A potential criticism is that Ian (2005) does not provide information on how this end can be achieved. However, he counters this gap by reckoning, â€Å"communicating the change messages and ensuring participation and involvement† (Ian, 2005, p.410) are the key factors to ensuring that people develop the desire for change.  Consistent with Ian’s (2005) school of thought, communication links the plans that leaders develop to enhance the success of an organization and the actual implementation process. Developing working strategies requires ardent communication at all hierarchical structures of an organization. Communication is vital since the implementation of new strategies often involves change (Williams Seaman, 2001). Poor communication often results in the resistance to change, especially where the persons who work in an organization consider the change a threat to their jobs and personal excellence. For instance, while personnel at the administrative centers may be fighting for the standardization of products that an organization produces to ease the supply chain and logistics challenges, employees at the departmental levels may be opposed to such an endeavor. This gap reveals why Ian (2005) says that people are either success factors or great hindrances to the change process. Despite Ian’s (2005) substantive arguments on the necessity of communication during a change, he does not demonstrate it using a particular case on how communication can frustrate or enhance the change process. For example, Barrett (2006) says that inadequate communication at the intra-organizational levels may result in different perceptions of brands that are availed in the market. This miscommunication minimizes the opportunities for channeling all organizational energies to the prof itable brands. The emphasis on areas that are critical in pushing for the acceptance of brands in the market requires leaders to communicate effectively on the organization’s positioning and sales targets.  Ian (2005) does not also explain who is supposed to communicate the desired change in an organization. The change may involve a modification of workers’ attitude or the alteration of work processes in the effort to support an organization’s competitive advantage (Williams Seaman, 2001). Effective leadership entails the communication of success strategies that touch on business objectives and goals (Barrett, 2006). Such communication should feature terms that employees can understand easily.Advertising We will write a custom critical writing sample on Achieving Readiness for Organizational Change Review specifically for you for only $16.05 $11/page Learn More In response, employees feel engaged and valued. Hence, they work collecti vely towards driving organizational success. In fact, many communication programs fail when they do not address precisely what employees, who are also the change implementers, need to know and/or do to enhance excellent organizational performance. Conclusion Ian (2005) should have considered leaders the communicators of the vision to the employees. Leaders who are capable of leading through change acknowledge the fact that communication can help to deliver tangible products. Issues such as improving consumer satisfaction, enhancing service delivery, and/or enhancing employee retention are all dependent on effective communication that the article addresses. Reference List Barrett, J. (2006). Leadership Communication. New York, NY: McGraw-Hill. Ian, S. (2005). Achieving Readiness for Organizational Change. Library Management, 26(6/7), 408-412. Williams, J., Seaman, E. (2001). Predicting change in management accounting systems: National culture and industry effects. Accounting, Organi zations and Society, 26(5), 443−460.

Marketing plan Essay Example | Topics and Well Written Essays - 2500 words - 4

Marketing plan - Essay Example The collections include ancient vessels and artefacts. These vessels were mostly used in the period between 17th and 18th century. The pricing structure is such that individuals willing to subscribe as members pay $15 while household customers pay a fee of $20.The Museum is one of the leading museums in UK. Television, Magazine and radio advertisements are mostly used in promoting events. The strategy for implementing the market plan focuses on three main areas. These are product, promotion and pricing. The Museum intends to increase the quality of services it offers while at the same time employ a pricing technique that will attract more customers and the same be financially satisfying. Promotions and advertisements are crucial in any marketing plan and a strategic approach shall be used to ensure this is done correctly. Aberdeen Maritime Museum gives the story of Aberdeen city’s lengthy bond with the Sea (Lamb, 123). The award-winning museum is situated on the famous Shiprow and integrates Provost Rosss House. The Museum is home to a unique collection made up of fast sailing ships, port and fishing history. It is a unique site being the only place in Britain where one can see North Sea oil industry. A marketing plan is a document that helps managers in strategizing on how to improve the performance of that business in a given sector (Runyard, 105). A good marketing plan should be able to give solutions to performance issues relating to a business. A marketing plan contains various components that analyze the current scenario and design a strategy to improve the performance of a business (Burnett, 108). This marketing plan sets out a convincing and inclusive vision for Aberdeen Maritime Museum; a vision, which is firmly in line with mission of the biggest public art gallery in the north of Scotland. Aligned with Scotland’s national strategic and performance agendas, this plan and its