Kompyuter Adiksyon

E. Competition In the Tagaytay City we have several competitors in the terms of Shawarma product and there are also a lot of food charts that place in the different area of Tagaytay City because it is the tourist spot in the Philippines. The main targets of this food chart are the lower middle to upper middle class and some are tourist international and local. Our indirect competitors are Mr. Mappy pizza, Potato Chips, Siomai, Angel’s Burger and etc. Our direct competitors in the area Turks (Olivarez) and Alibaba Shawarma (magallenes branch and robinson tagaytay). Market Shares:Turk’s Shawarma (Olivarez Plaza) is the number one in market shares because of its place and the volume of people go in Olivarez Plaza while Alibaba Shawarma (Robinson Tagaytay Branch) is the number two on the spot because of its place but theres a lot of competitors in the place like restaurant and fast food chains and Alibaba Shawarma (magallenes square Branch) it is the last spots because in t he that place only workers of different establishment are the customer because that place have different restaurant and food chains to choose from like Leslies, Max restaurant, Yellow Cab and many more.Resources: Since, this establishment is food stall type and there is a Franchisee and Franchisor. The resources of the business are comes from the Franchisor all the thing that will be needed in the business comes from franchisor. Product and Market Focus The product is shawarma product it is meat preparation, where  lamb,  chicken,  turkey,  beef,  veal, or mixed meats are placed on a  spit  (commonly a vertical spit in  restaurants), and may be grilled for as long as a day. Shavings are cut off the block of meat for serving, and the remainder of the block of meat is kept heated on the rotating spit.There market focuses to sell the product on their target market they only focus on selling the product they not create new idea about the product. Goals They goal is to se ll a delicious shawarma to their customer and serve the best shawarma on the place. Strategies This food stall only focuses in selling the product to their customer they not focus on how their establishment continues to operate. Their also dependent on their franchisor all planning and strategies comes from their franchisor. Strengths and WeaknessesAll establishments has a nice place but the product they offer is only limited in terms of sizes and different variety of flavor. Key Barriers to Entry There no vacant place to rent There are so many stalls in the place There are no yet crews for the business There is no yet a stall for the business Our product is unique from the other shawarma product because our product is a kind of street food that is of the same concept as Shawarma which is thinly sliced meat mixed with chopped vegetables and is rolled into a large piece of steamed bread. The difference from our product and the traditional shawarma is that we modified the fillings.We will not fill the bread with the usual meat and vegetables. Instead, we will add new flavors to the traditional shawarma. Examples are Spaghetti, Pizza and California maki flavored shawarma. We will address our product as shawarma because the idea of filipino consumers of shawarma is filled flatbread which is applied in our new product. This new product will be named â€Å"Shawarmalaya†. Shawarmalaya came from the words â€Å"Shawarma† and â€Å"Malaya. Shawarma because the concept of this food is derived from the traditional shawarma and Malaya because customers can freely choose from the new flavors of shawarma.The idea of this product is mostly derived from the traditional shawarma so the preparation of this product will be quite the same. The facilities to be used will also be the same except for the vertical grill used in cooking the traditional shawarma meat. We will also be needing an oven and steamers for the baking and steaming of the bread. Usual kitchen ute nsils will also be used for cooking and preparing the fillings. The processes and technology to be used in the preparation of this product will not be as high-tech as used in making the traditional shawarma.Since we are short on facility and capital, we have decided to use alternatives to make the product. The use of old processes of making food will also mean less cost and expenses which will be good for the group/company. The usual shawarma meat is cooked in a vertical grill, in our case; we will just grill meat in an old fashioned way which will make the meat tastier and cost less. On the other hand, the preparation of the bread will be the same as the traditional shawarma which is baked and steamed then rolled with the fillings.This idea is innovative in a way. We managed to add a twist and modify an already existing product. We didn’t change the form of the product but its approach. We are trying to make a new perception of shawarma on the minds of the consumers. We also want the consumers to enjoy the food they like in a new more flavorful way. Our product is difficult to copy because we have secret ingredient to put up to the product and we have the best suppliers that will supply best ingredients that will be needed.Our competitors will be surprise because we have different approach to our customer because they have the free will to choose what the flavor will be put to their shawarmalaya. Our competitors will be surprise because we have different variety to choose from we have different flavors that is new to the eyes and taste of the consumer. When we launch our product we will do first 100 customers is free to taste our product and first one week of our product is by one take one. In takes a lot of time to copy our product because it is unique and it has different ingredients to find.

History of Sport Essay

In my paper I will be discussing the early form of calisthenics and how the men and women who implemented exercise and fitness into our everyday life. Although there were many disagreements among the early supporters the first sightings of controlled calisthenics are from physical education classes and in schools. Many fought over what was beneficial for a human being and what was considered a waste of time. Many early idealists agreed appaun the body and mind are connected meaning a healthy mind was impossible without an equally healthy body. Eventually as you get closer to the 1900’s all educators for men at least developed the thinking that physical education particularly calisthenics was a prerequisite for child development. Meaning it was crucial, important almost vital to becoming the most all around successful human able to achieve nothing short of greatness. The belief that by strengthening mans body a man could strengthen his ‘will’. These were thoughts brought up long before the 19th century. Many men who believed in the connection between mind and body thought this was an individual responsibility calisthenics just provided the means. It gave everyone an outlook on the idea of what could come down the road for men who exercised and trained what new levels of success could bring to a mans future just by adding another form of practice into your everyday schedule. In the 1820s American educators began to advocate physical education as well as organize some type of instruction. Many men and educators as time increased and popularity grew for health believed the athlete was the new hero and the new â€Å"human form divine† from all three articles the new idea of man became to be the â€Å"aristocrat of character† not an aristocrat at birth. They were trying to say just because you were born into money or born into wealth doesn’t mean you were going to grow up to be the ideal king everyone expected you to be. You need to be taught, develop character, strength and the will to become the best. Corrupting the mind to control your destiny will lead to the control of your body to un seen lengths of being immortal or superior. Many Americans in the early form of calisthenics became obsessed with health. Tons of men thought the key was strict dieting though the develop of strength training began to take control. As we get closer to the 19th century Americans are troubled with many un explained illness’s and disease. Many ‘irregular’ doctors at the time emphasized exercise and hygiene rather then the radical remedies people performed on one another for cure by the ‘regular’ physicians of the era. During the early part of the civil war for Americans 1861-65 made exercise and physical education a major component in their programmes. Due to the long war some men were forced to deal with anxieties that brought down much of the interest in health and exercise. To balance out the progress already made before the war bringing men together from different sections of the country fighting together as one helped create and spark the interest of sport.

Enterprise Resource Planning Systems Assignment

Enterprise Resource Planning Systems - Assignment Example Enterprise resource planning systems envisioned to facilitate sharing of information, business planning, as well as decision making upon an establishment -wide basis (Somers & Nelson, 2003). For instance, companies that have adopted Enterprise Resource Planning systems can use them to forecast the demand for a product, track inventory, order the needed raw materials, allocate costs, and devise production schedules. Enterprise permits firms to replace intricate computer-applications with a lone, integrated system. Enterprise Resource Planning system shares data with other business software systems in a company. Enterprise Resource Planning system is a planning backbone for a firm’s core business operations. ERP system is a complex and cosmic system that undertakes years and a lot of cash to implement. In implementing an ERP system, there is a need to pay attention to the commitment of the top management. For the implementation to be successful, the top managers must support the project through funding and undertake an active responsibility in fostering the change. The other aspect to pay attention to is the re-engineering of existing business procedures while implementing ERP system. One key benefit of enterprising resource planning is derived from re-engineering a firm’s existing business operations (Gunson & Blasis, 2002). Enterprise resource planning systems bring integration into a company; hence, a company should understand the kind of integration as well as its effect towards the whole business. Experts with technical, functional and interpersonal skills should be obtained to implement ERP; therefore, there is a need to pay attention to enterprise resource planning systems’ consultants while implementing ERP systems. Another point to keep in is the implementation time.  

A Critical Analysis of Duncan Joness Moon Essay

A Critical Analysis of Duncan Joness Moon - Essay Example The movie setup represents a futuristic aspect whereby human beings have managed to solve their fuel problems, and hence managed to substitute the earthly fuel reserves with newly discovered oil supplements on the moon. Therefore, Sam’s role was to make observations, and communicate with other members of the extraction team on earth. For, a common case, human beings perceive science fiction to be associated with scientific innovations and matters concerning the space and the moon in general. Human being's perception about science fiction involves the belief that the moon and other features found within the earths galaxy basically indicated untapped fields. As a result , most of the scriptwriters and movie directors tend to incorporate the aspects of complex machinery, with amazing features and abilities. This feature basically forms an illusion that some of the features that are relayed in the movies will be realized after a number of years. This feature makes up the entire co ntent of the science fiction movies. The features will be the basis of discussion in the following essay. The movie moon, clearly illustrated the various innovations that the modern day scientist has not been able to achieve. It is a clear reflection of the scientific milestones that human beings hope to achieve in the near future. According to the movie, the human being character exhibited , gives the impression that the post -modern human being is surely and educated on the various earthly complications, that affect life, on the surface of the earth. Secondly, the human being exhibited in the movie is also knowledgeable about the various environmental implications of mining, and the results of disruption of activities in the biosphere. According to Science Tech Story (2013), Science fiction movies are usually far from reality. The Creators of such movies, do not usually have the real data and reference material that can back up their illustrations. They base their work on mere spe culation, and also the relation to the present innovations, that have come up in comparison to the previously produced science fiction films. In comparison to Cinema, science fiction according to Bradshaw. P (2009), takes an animated view, most of the highlighted subjects are usually fabricated, or the authors merely make an assumption of futuristic occurrences. Generally, the information reflected upon is entirely false, or there is some little bit of truth in it. Scott. A.O ( 2009), noted that science fiction movies tend to adopt some of the already proven information. In addition, they make certain alterations to it, in order to enable people to relate to it, which might in a way influence how they respond to the movie. A cinema on the other hand is not different from science fiction, according to Velasco. R. J (2013), cinema is basically the British name for movie theatres. Science fiction is in itself a component of both cinema and television. Many schools may hold the opinion that one is the improvement of the other, but in real sense both are different from each other. Science fiction is a field that is endowed with numerous scientific modifications. To be able to come up with efficient technology, involving both cinema and television viewing, there must be an application of efficient technological advancements that back up this invention. This among other issues generally relates to both fields. Science fiction is a field related to advancement in technological creations. Some of the innovations made in the yester years that served as key indicators of the changes are displayed by the televisions. Science fiction relays the future as time with significant changes in motion. When the same

Globalization Essay Example | Topics and Well Written Essays - 1250 words - 1

Globalization - Essay Example As a result of the hard hitting Washington Consensus [—the West’s interest-serving set of socio-economic and political prescriptions, for instance], it is quite obvious that the world’s poor have surrendered a huge chunk of their sovereignty to the powerful global forces, which apparently, are at constantly at work circumscribing their spheres of action (Dreher 1092). The resurgence of Adam Smith’s laissez faire economics is today more of a reality than it was then; seldom since the nineteenth century’s heydays of free trade has this theory galvanized such certainty; certainty that has also been far removed from the realities on the ground. Quite frankly, all [scholars] are entitled to personal opinions, for globalization is but a multifaceted concept that encapsulates changing fortunes [both for the rich and the poor], but with a convincing conviction that deregulated markets and the accompanying elements creates super-humans who earn their lifesty les even by the most despicable moves that includes but not limited to taking the world’s poor six feet under. ... nd than going global is but a better way of encouraging higher standards; that apart from the increased overall quality of goods and services due to the increased competition, the development of information technologies has enabled crucial knowledge enhancing exchanges between nations, the poorest included. More importantly, it has availed the hitherto unavailable access to foreign capital in addition to advanced technology and subsequent export markets, thus breaking the jinx of the old, domestic monopoly production approaches riddled with wasteful inefficiencies (Osland 137-138). Martens and Raza notes that globalization has added a great deal of impetus to the world’s economic growth, without which the population of the worlds’ poor would be much greater, and in even much deplorable circumstances without the advances that has secured a stream of food supply for the world poor that know less of family planning even at their states of affairs (281). It is, however, unf ortunate that while globalization is credited for the significant improvements above across the globe, the global nature tendencies of the same forces have destroyed lives in equal measure, perhaps even worse than the benefits. A carefully designed process whose control is a tightly knit affair in the hands of the transnational corporations (TNCs) suspended by the governments of wealthy industrialized nations, the interests of the world’s poor seems to have been relegated to the periphery. With capitalist mindsets driving the disproportionate allocation of resources globally, capital movement, exchange, revenue, structural adjustment and interest seem to be the trending terms, yet sinking the disadvantaged by taking away even the very little in their custody. Indeed, it is; for never in history has

Human Transport System Essay Example | Topics and Well Written Essays - 1500 words

Human Transport System - Essay Example The atria and ventricle are separated by auricoventricular septum with a aperture guarded by three flaps called as tricuspid valve which prevents back flow of blood from right ventricle to right atria when right ventricle contracts. The opening of pulmary artery is also guarded by semi lunar valves to prevent the back flow of blood from pulmonary artery to right ventricle when it contracts. Thus right side of the heart receives venous blood from all parts of the body and pumps it to lungs for oxygenation. The left side of the heart also comprises of two chambers iii) upper left thin walled atria which receives oxygenated blood from the lungs through pulmonary veins and pumps to iv) lower left ventricle in turn opens to aorta to distribute to all parts of the body. Here again the atrioventricular septum separates upper and lower left atria and the ventricle with an aperture guarded by two flaps called the 'bicuspid valve' and the opening of aorta is guarded by 'aortic valve'. The superior vena cava collecting the deoxygenated blood from upper torso and head and Inferior venacava collecting from the lower torso and legs feeds the right atrium. The right atrium on contraction pours to right ventricle. The right chambers are small compared to left chambers as they carry blood to lungs of about a short distance. From the right ventricle pulmonary artery carries the deoxygenated blood to lungs for reoxygenation. After reoxygenation from lungs the blood is carried through pulmonary vein to left atrium which on contraction pumps to left ventricle. When the left ventricle if full the left atrium contracts pumping the blood in the left ventricle into the aorta which then distributes to entire body by means of small arteries arterioles and capillaries. Types of circulation I) Coronary circulation: Coronary circulation is the circulation of blood through the tissues of the heart for its own nourishment. The two coronary arteries branch from aorta and further branch themselves into smaller arteries capable enough to penetrate the cardiac muscles. II) Pulmonary circulation: The deoxygenated blood in right atrium is pumped to right ventricle and from there to lungs for reoxygenation and back from lungs to left atrium and subsequently to left ventricle is known as pulmonary circulation. III) Systemic circulation: the reoxygenated blood collected from lungs leaves the heart through the main artery-aorta. Aorta supplies the reoxygenated blood to all parts of the body through network of smaller arteries and capillaries. Again after the exchange of oxygen and metabolites it is collected from the capillaries of venous system and directed to the right atrium through two vena cavae. This phase is systemic circulation. During systemic circulation blood passes through kidneys for waste removal known as 'renal circulation' phase and also through small intestine known and 'portal circulation' phase. Structure and functions of the blood vessels Anatomically all blood vessels are made up of three layers i) inner -tunica intima. It is made up of flat endothelial cells resting on a layer of connective tissue with

Ionian and Pythagorean schools Case Study Example | Topics and Well Written Essays - 1000 words

Ionian and Pythagorean schools - Case Study Example The Pythagoreans on the other hand, with their basic conception of abstract form and permanence, stressed deductive reasoning or theory to arrive at conclusions. However, both Greek schools of thought round out the basics of what constitutes science - providing both for observation and theories as both essential to scientific knowledge. The Ionians and Pythagoreans moved away from the divine explanation of things --- that is, pointing to religion as key to understanding the world and its phenomena. Although, like them, the Egyptians and Babylonians were excellent scientists and mathematicians, the Greek philosophers did not view religion as supreme and sacred when it came to the pursuit of knowledge. For the Greeks, mysticism and reason could be separated (although Pythagorian school was said to be a religious sect which practiced abstinence, clean living, certain dietary preferences, and Pythagoras believed in one God as the source and cause of the order of the universe). Thus the Greek philosophers had a The Ionians were primarily concerned with what goes on with the physical world. Their school was focused on what are observable in nature, thus the followers were called "phusikoi" or natural philosophers . The word physics was derived from the Greek word for nature, "phusis". The Ionians, most of whom were born in Ionia in the 6th to the 5th centuries B.C. were interested in the origins of the universe, the causes of natural phenomena and the materials that compose the universe. On of their most important contributions to scientific knowledge was their search for the basic substance that makes up the universe, which can be said to have led to modern-day pathways to chemistry's identification of elements and substance, and the basic physical configuration of the universe in the notion of atomic particles. The Ionian philosopher Thales and Anixamander conceived of water or air as the basic matter that explains the seemingly clash of opposites in nature. Thus, they theorized on how ea rth and life formed on earth - out of the action of heat on moisture or water. They somehow correctly antedated the accepted scientific theory in biology and in particular evolution that life most likely was first formed in the oceans before appearing as life forms on land. Heraclitus added a significant impetus to the Ionian school when he focused on why and what moves observable phenomena of which chaos and strife are all too evident. He posited that fire, not air or water constitutes the basic form of the universe. Balance or equilibrium is always achieved by the upward and the downward paths of "fire". Fire here was defined Ionian and Pythagorean views by movement, not just as basic matter -- thus it can be understood as energy or movement. According to Heraclitus, fire or energy moves and unites the working of the natural world - antedating modern scientific findings on the laws of thermodynamics, that energy can be changed from one form to another but cannot be destroyed. In Einstein's theory of relativity, early Ionians position on matter and Heraclitus' energy or fire would again be unified - with matter and energy being the same. Pythagoras and

Media Assignment Example | Topics and Well Written Essays - 1000 words

Media - Assignment Example They also explain the meaning of the internet and give insight into the significance of this medium of communication especially when conducting business. 3. Did you read or listen first? Why? Do you think the order you chose helped you or not? How many times did you need to read & listen before you felt confident about understanding the topic and vocabulary? How do you feel about this topic, e.g. positive or negative feelings? Do you agree/disagree with the ideas?† I listened first to this documentary then read the article about the development of the internet. I wanted to grasp the key terms used. Through listening to something, I believe that it is easier to quickly understand the context of the subject being discussed. This order greatly helped me because I have discovered that new information and communication technology through the internet has changed our communication landscape as well as improving the way we conduct business. I listened to the documentary twice and I managed to grasp the meaning of the vocabulary used. I have positive feelings about this topic and I strongly agree with the ideas. I learnt something new from listening to this documentary. I discovered that it is impossible to access information that is secured on the internet though the internet is a network of connected computers. Somehow, I think this topic is connected to my future studies because I am increasingly using the internet for conducting my academic researches as well as to stay connected with friends and relatives. Through using the internet, I hope to discover new features of this medium of communication. Listening to this documentary was easier given that the presenter was very audible and his voice was clear such that I could grasp everything he said. Reading the article was also easy and I could understand everything. I found that both reading and listening were not very challenging since

Lesson plan Assignment Example | Topics and Well Written Essays - 500 words - 3

Lesson plan - Assignment Example This is generally to enable follow various instructions and give feedback either to peers or adults. This is done with support and practice to ensure the pattern persists. The supervisor should pay attention to the movement up and down the steps especially from one step to the next for the students. Very close attention to be accorded to Rosa since she has very low muscle tone and falls frequently which could prove fatal. Additionally Rosa’s fine motor skills are not fully developed hence supervisor should ensure that Rosa is supported either by her peers or the supervisor to do it in person. Communication during the process should be encourage to ensure that the peers help each other and learn to say the words The performance of Rosa during the activity will enable the supervisor to carry out the assessment. This information will be obtained during the practical session period and additional information from the knowledge obtained from peers as well as parents. The information is obtained and documented. The lesson bases just on Rosa’s motor skills. Since Rosa has low muscle tone and poorly developed motor skills there is need to improve these skills. The area of interest is the ability to coordinate movement so that she can move up and down steps without struggling. The activity is interesting so this will create a good understanding between the supervisor and Rosa. This will help develop fine motor skills which will be used in other areas of her life which include feeding. This will be done repeatedly but in stages to ensure Rosa can do it independently without much risk or problem. During the process some communication skills area also learned. How does this lesson engage students and help them achieve the goal of the lesson? How will you measure their engagement and time on task? How are you incorporating assistive technology into the lesson? How are you using

Economies of scale and diminishing returns Essay Example for Free

Economies of scale and diminishing returns Essay In Business Economics, the short run is defined as the concept that within a certain period of time, in the future, at least one input is fixed while others are variable and the long run is defined as a period of time in which all factors of production and costs are variable. The law of diminishing returns is a short run concept, which states that increasing successive units of a variable factor to a fixed factor will increase output but eventually the addition to output will start to slow down and would eventually become negative. This is because if capital is fixed, extra labour will eventually get in each other’s way as they attempt to increase production. E.g. think about the effectiveness of extra employees in a factory that’s maximum workers is 100. If the firm employs 150 workers, then the productivity will eventually decrease, as they will get in each other’s way etc. However, this law only applies in the short-term, as in the long run, all factors are variable. As you can see from the graph above, the average fixed cost (AFC) curve falls as output increases due to the fact that fixed costs are a decreasing proportion of total cost as output increases. Both the average total cost (ATC) and the average variable cost (AVC) curves fall, and then rise again. The curves start to rise after a certain point because diminishing return takes place. The distance on the y-axis between the ATC and the AVC represents the value of the average fixed cost (AFC). Just like the average variable cost and average total cost curves demonstrate, the marginal cost also falls, and eventually rises again as diminishing marginal returns take place. Economies of scale, however, refer to the advantages that arise from large-scale production, which in turn results in a lower average unit cost (cost per unit). It explains the relationship between the long run average costs of producing a unit of good with increasing level of output. Unlike  diminishing returns, economies of scale is a process that operates and is caused by a development over a long period of time. Economies of scale also have many sources whereas diminishing returns is the relationship between output and only one input of production.There are two different forms of economies of scale that could occur in a firm. The first is internal economies of scale. This refers to the advantages that are caused as a result of the expanding and growth of a firm/business. Internal economies of scale can be additionally categorized into commercial, managerial, financial and technical economies of scale. Commercial economies of scale arise from the purchase of raw materials and the sale of finished goods. When the firm’s output increases, they order larger quantities of the raw materials (bulk buying) and therefore these raw material firms favour these businesses, and offer lower prices due to their ordering of higher quantities. Managerial economies of scale is a process that follows the principle of the division of labour and creates specialization due to the firm’s ability to employ specialized employees, and this causes an increase in production efficiency. A financial economy of scale is when a large firm benefits by getting better credit facilities e.g. credit at cheaper rates, being able to negotiate better finance deals etc. Finally, a technical economy of scale arises due to large-scale production because there is a technical advantage in the use of large machinery in the production process. Technical economies of scale will most likely arise due to machinery being used in the production process, which are more efficient than human labour, and also require less maintenance, training and do not require payment. External economies of scale refers to the advantages firms/businesses can get as a result of the growth of the entire industry as a whole. Usually, the industry grows due to an improvement in a specific area of the industry, such as an increase in the local’s skill and training, and improving in the training facilities themselves, which causes an increase in the quality of training for the future employees or an increase in the foreign supply of labour with a higher skillset that before.

Importance of Intellectual Capital in the Modern Economy

Importance of Intellectual Capital in the Modern Economy Executive Summary The report discusses the relative importance of the Intellectual Capital in the present economy due to the revolution that fosters the propagation of the value creation. The Intellectual Assets of an organisation play a vital role in improving its value and maintaining the competitive advantage. However, these intellectual assets are not capitalised in the financial statements as they are unable to determine their historic costs and their future benefits are sometimes uncertain. Despite of this a lot of companies have discovered ways that facilitate the valuation , measurement and reporting of their intellectual assets i.e companies like Coca Cola , Marks Spencer and Kingston Hull Plc have reflected their intangible assets such as brands separately from the goodwill on their company balance sheets as some guidance is provided by the International Accounting Standard in the disclosure of the intangible assets. The report also presents some theories that are aimed at eliminating the confusions created about the Accounting Profession. As the Accounting Profession and the Accountants cannot be blamed as conservatives in not providing space for the Intellectual Assets in the financial statements because in doing so , the financial statements will loose their relevance , reliability and neutrality. The report further throws some light on the issues that are related to the field of Intellectual Capital that include that there is no uniformity in the relative theory as there is no such definition and the Intellectual Capital model that is accepted generally. In the end the report concludes by suggesting that the under the supervision of the International Accounting Standard researchers, consultants, scholars and the accountants have to find a common way such that the value relevance of the Intellectual Capital and the principles of accounting are preserved. Aims and Objectives The aim of this study is to discuss that whether the exclusion of the Intellectual Assets of an organisation in the balance is realistic and pragmatic. As the Intellectual Capital is considered a value driver for the modern economy and a lot of organisations are focusing on their intellectual assets as compared to the intangible assets. Objectives The objectives of this study include: To assess the importance of the Intangible assets as compared to the tangible assets of an organisation. To provide some evidences about the organisations attitudes and the awareness about their intellectual assets. Finally, to conclude that whether the eviction of the Intellectual assets is pragmatic or not. Rationale The Current Gobal economies are now facing a new revolution that brings them to a new form of business environment. This major change in the world economies is due to the fact that there has been a disproportion observed between the Book Value and the Market Value of a firm. Because , in the past the Balance Sheet and the Income statement were the only tools used by the Shareholders ,managers and the executives to make strategic decisions and monitoring the performance of the company. However, it can be argued that things have changed now. As one of the important concern for the companies is the Value Creation. The expansion of the markets in the product or a service sector has been possible with the aid of the internet , high- technology and the innovation ,information , market chains and globalisation. This in turn has created a global competition among the firms that are now striving to acquire knowledge. Furthermore, the acquisition of the knowledge brings some vital concerns of its use, management and the improvement. This has changed the operations of the the organizations that used to emphasize on the production capability ,now focus on the creative operational structure. The organisations are now using the special tools for acquisition, management and the protection of knowledge such as Research Development , Patents , trademarks , copyrights , databases , customer and supplier relationships and Human Resources are known as the intellectual assets of the organization and constitute the Intellectual Capital. The relative importance and the expected returns of the Intellectual Capital has convinced the organisations to think and work in a new innovative way to achieve dominance over the competitors in the market. However , inspite of this the Intellectual Capital has not been considered in the performance appraisals and not included in the financial statements under the heading of assets. The organisations are spending a lot on the Intellectual Capital as compared to their tangible assets so therefore it is not wise to go against the flow of current market trends by focusing more on the tangible assets. This would lead to the creation of inaccurate procedures, policies and the decisions. Hence reducing the value in front of the investors and the customers. Cowey (1999), approves the conception of a â€Å"New Economy â€Å" and the â€Å" Knowledge Company † and insists that this concept accepted world-wide. He demonstrates that the opinions of â€Å" what we own † to â€Å" what we Know † have changed and know it depends upon the companies to apprehend the value creation by putting stakes in the training technology , staff retention and knowledge otherwise the efforts will not be productive. The Organisation for Economic Co-operation and development (OECD , 2005) reports that the investments in the Intellectual Capital has grown faster than the investments on machinery and equipment few years back. It is further revealed that the spending on the Research Development , software and the higher education was higher than the spending on the Machinery and the equipment in USA and Finland notebaly in 2002 and increased in greater proportions between 1994 2002 among the OECD countries as well. Arora(2000) purports that the the edge on the competitors in the challenging business environment can only be achieved by the proper administration of the Intellectual Capital which is another name of the Knowledge management. Kaplan Norton(2001) suggest that the company’s market value includes only 10-15% of the company’s book value of the assets. Furthermore, the possibilities of producing a value are risen through the the activities whose foundation is the knowledge that is enforced on the intangible assets of an organisation as compared to tangible assets. A Convention held under the OECD(1999) , concludes that a prominent set of information is required on the Intellectual Capital in its association with the tangible assets in the determination of value. Traditional Financial Reporting does not provide the necessary information to pursue the value creation process. Due to the availability of the information via internet technologies there is a need of a new reporting model that accommodates the information pertaining the Intellectual Capital that creates the value for customers and suppliers. Bradley(1997) discovered that the predicaments that were involved in the traditional financial accounting were due to the emergence of value. He explained the problem by arguing that the balance sheets and the income statements were the benchmarks in delivering the financial information to the shareholders. However, the significance of these financial statements in propagating the value has decreased due to the emerging trend of investments in the intangible assets. It is stated that the value of the brands was not reflected in the financial statements and in the equity values .This has led to the reconsideration of the intangible assets and the brands specifically. This fostered the proposition of of including such assets in the financial statements. However , the accounting profession does not fully supports the the idea that the intangible assets are the main factors in creating the value. On the contrary the investors and the trade leaders have acknowledged this truth. Furthermore, it is also quoted that 72% of the value was not reflected in the balance sheets of the companies surveyed in United Kingdom. Brands form the major part of the unexplained value that is not part of the balance sheet (Brand Finance plc , 2000). The Figure 1 shows the Gap between the market capitalisation and the net asset value. Why Intellectual Capital Upton(2001) reports that the companies under the scrutiny of the FASB Business Reporting Research Project provide considerable non- monetary information. Therefore it can be argued that the AICPA and FASB have been analysing the Intellectual Capital since 1991.The Intellectual Capital is considered endangered when the information of a company becomes obsolete when the competitor increases its information. Therefore the preservation of the Intellectual Capital is crucial for maintaining the competitive edge. However,the companies that are knowledge intensive are prone to risks of losing their market shares(MacDougall Hurst,2005).Guthrie(2000) suggests that â€Å"Accountants must find a to incorporate measures of Intellectual Capital or they will become irrelevant â€Å". Statement of Methodology The method used in the report is the study of the literature that is already present in the field of Intellectual Capital and the Accounting to support the arguments.After, the study necessary facts and evidences are combined to form the Literature Review of this report. This report does includes the collection of the primary data and its analysis. A case study is added to further enhance the understanding of the applications of IC in firms. Research Question The research question is â€Å" Is the exclusion of Intellectual Assets from accounting statements realistics?† The research question of this report is basically a debate that is going on in the academic, industrial and the business sector. This topic demands study to be commenced taking in account both the views of the implications of including or excluding the intellectual assets in the financial statements. Literature Review Definition of the Intellectual Capital The Organisation for Economic Co-operation and development (OECD , 1999) illustrated that the Intellectual Capital was the composition of the financial value of two classes of the intangible assets i.e Structural Capital Human Capital The structural Capital includes the organisational resources like the softwares, databases etc. The Human Capital however, contains the human resources employees (internally) , customers and suppliers(externally). The term Intellectual Capital is presumed as having the same meaning as the Intangible Asset. In contrast , the definition that is provided by the OECD(1999) puts the Intellect Capital as a subset of the intangible assets of an organisation. Because there are certain intangible assets that do not fall under the category of the Intellectual Capital. The repute of a firm is not considered as a part of the Intellectual Capital(Guthrie Petty , 2000). Stewart(1997) defines the Intellectual Capital as a â€Å" Intellectual Material â€Å" that Includes the knowledge , information , intellectual property , experience that can be used to generate wealth. Furthermore , Stewart (1997) categorises the intellectual capital in to structural , customer and the human capital. He argues that the human capital is the generator of the innovation and the improvement. The structural capital includes the tools and the facilities that are used the human capital to form value. Customer Capital includes the value that is produced as a consequence of the organisations relations with which performs the business transactions(Stewart , 1997). Intellectual Capital can also be defined as the combination of the human capital and the structural capital. The human capital includes the knowledge , skills and the experience of the employees. It is further argued that the human capital is not in the possession of the organisation as compared to the structural capital (Edvinsson Malone , 1997). Elements of the Intellectual Structural Capital Structural Capital is what is left behind in the organisation when the employees go home. The Structural Capital arises from the those organisational processes that are focusing on the improvement and the establishment of the organisation. (Roos et al , 1997). Bontis et al (1999) suggests that the structural capital includes the organisational resources that encompass the knowledge that is not actually stored in the human brains and whose value is greater than its physical value.These assets include databases , softwares , manuals , trademarks , leaseholds , franchises , patents , licenses , employee training , employee contracts etc. The structural capital plays an important role in the creation of the value. As it helps the human capital to explore new ideas , learn from the past experience and protects the knowledge and the new inventions by providing the technology and the legal aid. Customer Capital Kohli jaworski(2000) defined the customer capital as the organisations ability to evolve the knowledge about market that is focusing on the cutomer desires and perceptions. This acquired knowledge is used by the organisations in response to the changing attitudes of the customers and the market. Organisations use this knowledge to have a contingency plan to tackle the threats produced from changing market trends. The definition provided by Bontis(1999) suggests the customer capital should be iterated as the relational capital that includes the relationships with the suppliers, partners and the investors in addition to the relationship with the customers. Human Capital Hudson(1993) defined the human capital as the composition of the inheritance, qualifications , experience with the opinions about life and business. It is further argued that the organisational employees are the key architects of the Intellectual Capital through their proficiency , opinions and expertise. The competence of the employees includes skills and qualifications and their opinions come under their behaviour and perceptions about work. The expertise is important in devising the innovative solutions to the problems. Furthermore, employees are an important asset for an organisation but they are not owned assets(Roos et al , 1997). Exploitation Of Intellectual Capital (Economical Perspective) It is suggested that the critical factor in the improvement of the economy is the proper utilization of the Intellectual capital .It is further noted that by increasing the tricks of Intellectual Capital will provide a competitive edge and the value of the firm will be augmented and specifically business will bring financial benefits. It is not a new thing that the intangible assets like brands, intellectual property , relationships are considered as a unprocessed input for the organization that increases the worth by the application of intelligence in possession of the organization. (Watters et al 2006 , Intellectual Assets Center , Glasgow, Uk). The research on the recognition and reporting of the intangible assets and the intellectual capital has brought them to the acute attention.The research believes that the intangible assets play a significant role in the creation of endurable competitive advantage with in the advanced organsations.Due to the expansion of the modern knowledge based economy it has become transparent that the intangible assets and the Intellectual Capital of an organization have become a platform in accomplishing the competitive advantage as compared to the hi-tech tangible assets(Drew , 1999). Tayles et al (2005) have described two doctrines in the realization of the intangible assets that provide the assistance in the achievement of the competitive superiorty. The research is continuously striving to find the authentic procedures to measure the intangible assets and the indices that provide a forecast of the future economical benefits based upon the doctrines that are prescribed by Tayles et al (2005).Firstly , the expanding financial statements of the companies is the idiosyncracy of its Intellectual Capital that give the edge on the market competitors. Secondly, is the inefficient justification of the Intellectual Capital in the expansion of the economy(Tayles et al , 2005). Skinner (1986) purported that with the utilization of the technology, manufacturing productivity can be achieved by the intangible assets of the company which are the authentic reagents of the prosperity and that justify the monetary investment. How the Companies Exploit the Intellectual Capital Case Study Kingston Communications(Hull) Plc is group of companies based in Hull,United Kingdom. The groups is presently offering the services related to information, communication technology and the telecommunications to the consumer markets in UK. The groups Brands include Affiniti,Smart 421,Jam IP(Integration and management services),Karoo, Eclipse, Mistral (Internet and Telecommunication services) and Hull Color pages and Know( Information Services). The group is Ammortising the its Intangible Assets that aquired in the Acquisitions.In 2007,the ammortisation on intangibles was à ¢Ã¢â‚¬Å¡Ã‚ ¤8 million(from Total depreciation and ammortisation).The group also has purchased the tangible and the Intangible assets worth à ¢Ã¢â‚¬Å¡Ã‚ ¤30.2 million.The Groups Controlled measures include, measuring the learning and development(p9),Customer Satisfaction. KM also believes that Human Resources when managed through and effective Policy can bring the Tangible effect on the companys performance. KM is running a development program to enhance the Knowledge and Intelligence of the employees.The company also manages the Relational (Custmer) Capital by arranging the meetings of the Directors on the Investor relations and the shareholders concerns specifically. The Company’s publishes its Financial Reports complying with the IFRS,however, the company also provides additional disclosures if compliance with the IFRS does not fullfil the requirements of the users(i.e External Stakeholders,External investors,Suppliers and the Customers) to understand the impact of certain transactions that have an effect on the financial performance of the company. Relational Capital Management and Policies Arranaging meetings with the shareholders time to time to discuss the company’s strategies and performance.Maintaining a investors relations function to encourage and improve the communication with the investors. The Goodwill of the Company in 2007 was worth à ¢Ã¢â‚¬Å¡Ã‚ ¤192.754 million(2006:à ¢Ã¢â‚¬Å¡Ã‚ ¤155.551 million) and the Intangible Assets had the value of à ¢Ã¢â‚¬Å¡Ã‚ ¤48.511 million (2006 : à ¢Ã¢â‚¬Å¡Ã‚ ¤39.450) according to the Balance Sheet on 31st march,2007. The Cash Flow Statement of the Company for the year ended 31st march,2007 also explicitly show the Amounts of the Ammortisation of Intangibles as compared to the tangible fixed assets.The Cash Flow statement also show the companys procurement of the Intangible assets à ¢Ã¢â‚¬Å¡Ã‚ ¤6.495 illion in 2007. The financial statements of the Company are prepared according to the principles prescribed by IFRS and IFRIC.These financial statements are based on the concept of historical Cost accounting.However, the statements are modified due to the revaluation of the financial assets to a fair value by using the income statement. Intangible Assets Identified by Kingston Communications The Intangible Assets of the Kingston Communication include: 1.) Goodwill 2.) Customer and Supplier Relationships 3.) Technology and Brands 4.) Software 5.) Development Goodwill The Groups Goodwill is reported in the acquisitions of the subsidiaries and it is the difference between the Cost of Acquisition and the Net Assets. The Goodwill is tested for impairment annually. Development The company’s intangibe asset that is developed through the research and development activities only when it fulfils the criteria of Intangible Asset Recognition prescribed by IAS 38 i.e the asset is identifiable,impact on future cash flows and the developmental costs of the assets are measured reliably.The estimated life of the internally developed intangible asset is 1 year and is also ammortised on a straight line basis. Valuation of the Intangible Assets in Kingston Commnuications The intangible assets that are acquired through the acquisitions are valued on the basis of their time value and the future impact of on the performance of the companies. Appraisal of Intellectual Capital in Kingston Communications The Kingston Communication is exploiting,managing and reporting its Intellectual Capital as tool necessary for the competitive advantage and for improving the future performance of the company. According to the companies policy the Intangibles Assets are included in the Balance Sheets in order to satisfy its investors and guarantee the future investments in the company. However, there are no benchmarks for the management and the evaluation of the these Intangible assets.Also, the company is not using the models for the Classification of these Intangible assets as suggested by (Kingston Hull plc , 2008) Measuring the IC (Performance)through strategies(Management Accounting) Simons(1999) suggests that the by measuring the performance of a company is basically the comparison of the outcomes of the business activities with the critical business targets. The traditional financial accounting utilizes two techniques to measure the Performance .These are Return on Capital Employed(ROCE) and Return on Assets (ROA). However , these techniques are condemned due to the fact that they are old fashioned , unable measure the intangible assets and are unable to appraise the stakes in the technology which is essential for the firm to compete in the global market(Bourne et al , 2000; Amir Lev , 1996). Valuation Methodologies(Performance Measures as well) The economic measure of the Profit yields the same result as the traditional accounting during the matching phase of costs and revenues by preserving the value significance. This is done by improving the financial reports with the disclosure of the concealed assets like the intangible assets and the investments in the long run(Simons , 1990). (It includes the tools and various methodologies ) Watters et al(2006) have discussed the application of a Scorecard assessment tool in the Scottish SME that provides a review that how efficiently companies are exploiting their Intellectual assets.The tool helps the SMEs to manage three areas of operations i.e Sales and Marketing , Research and Development and Human Resources. It assign the scores to activities that come under the three operational areas according to their effectiveness and links them to the strategic objectives of the firms. (Appendix 1) Brand Finance plc(2000) suggests that there are a lot of methods present for the valuation of the Brands, however there is a need to find an optimal one. Cost based methods of brand valuations show a disparity from its market valuation. The Market Comparison method is not efficient as it is difficult to obtain the comparison data. Royalty Relief method determines the royalty rate on the estimates of the income generated from brands. However , this method does not clearly states that how a brand is going to create value. The Economic Use method combines the consumer and the competitor to entitle the value to the brand.The last method is the most optimal method which is the Brand Finance that uses the Discounted Cash Flow (DCF) analysis in concluding the value for a brand.As the Discounted Cash Flow method valuation complies with the valuations performed by the financial analysts , accountants to check for the impairment of the intangible assets. Measurement of Intellectual Capital Why there is a need for the companies to measure the intellectual capital This is a very long debate that why companies need to measure the intellectual capital.There are several advantages of doing that. The term intellectual capital can be said to be â€Å"expandable† in terms of the Value and rewards. The greater the effort of a company the greater is a competitive advantage and greater is sustainability of the company. Nowadays companies and the firms have become Knowledge aware i.e they have now recognized the importance of the of the knowledge that creates value and sustainability. The Companies working in the Telecommunication, Pharmaceutical and the research technology sector specifically have to invest a lot in the Research and Development to compete and develop the innovative solutions to avail the opportunities in the market.Therefore, there is a strong need for these companies to devote themselves to measure and manage their intellectual capital effectively. However, it is very difficult to justify the investments in digging out the knowledge that creates value .These investments are rather very complex and unpredictable even if they are tested and analysed by the efficient tools for their proficiency. Some Organisations that are knowledge based are sometimes not sure about the amount of the Knowledge they have and the amount of knowledge they need tocarry out their functions internally and externally. That is the reason, these organizations loose the interest of the investors and therefore the investment. Balanced Scorecard (An Alternative to Balance Sheets) Kaplan Norton(1992) , presented the theory of the Balanced Scorecard for improving and tracking down the performance of an organisation. The authors suggest four dimensions such as Financial , Customer , internal business process and learning and growth. These dimensions are believed to provide a insight in to the current performance and identify the factors that can improve the future performance. A combination of the non-financial and financial measures are insufficient in determining the performance of an organisation. The main problem is that its just like a Wild Goose Chase as this amalgam of the performance indicators are not pursuing a specific business objective. Kaplan Norton(1996) believe that the both the financial and the non- financial measures must have a focus on a goal that has to be achieved in maintaining the sustainability. The authors further argue that the various measures provided by the balanced scorecard can help the organisation to plan a particular strategy and then can implement it across its subsidiaries, departments to share a common motive with trasnparency. A well planned BSC can hep the organisation to learn from the short-term reports that are generated and scrutinized through various perspectives. Andriessen(2004) suggests that the predicament of measuring the Intellectual Capital can be resolved by applying the balanced scorecard. It has been advised that the specified strategy plans can be created that guide the organisations to confidently invest in the human resources, technology and the structural capital. It is further revealed that by measuring and administering the intellectual capital can also help the organisation to convert its non-monetary achievements in to monetary achievements(Kaplan Norton , 2004). A study conducted by Hagood Friedman(2002) devised a way for the implementation of the balanced scorecard to measure the accomplishments of the human resource information system of a company. They have developed a system that uses the balanced scorecard as its foundation to improve the human resource information system in association with highlighting the goals and objectives of the organisation. Despite of its usefulness the Balanced Scorecard has some limitations. In this context Voelpel et al (2006) has identified five limitations of the balanced scorecard in its application in the modern economy. First being its inflexibility that is, it measures the performance of a company only in four perspectives by leaving behind some other perspectives out of attention. Voelpel et al(2006 ) explain the second limitation which is that the BSC is less efficient in accommodating the changes in the changing economy. The BSC a defines a strategy for a company and its subsidiaries to achieve a goal by neglecting the individual goals of a subsidiary as a consequence a company is unable to use its potential properly. The third one is that BSC focuses more on improving the internal performance of an organisation therefore by losing a link with the external world to exploit the innovation.The forth limitation of a BSC is that it focuses on the organisation in itself and provides no information about the actions of competitors. The fifth problem with the balance scorecard is that it goes straight in measuring the performance in a rational way .As a consequence the more complex predicaments are difficult to apprehend(Voelpel et al , 2006). A Comparison between the benefits that arise from intangible and tangible assets There are risks involved with the investment in the intangible assets like RD. Kothari et al(1998) have conducted a research by comparing the uncertainty of benefits associated with the tangibles and the intangibles assets. The methodology used for this research was the regression analysis of the future earnings variability involved with the expenditure in Research and Development and the tangible assets .Furthermore , the variables like firm size and the leverage are also used to define the boundary of a research.It has been illustrated by Kothari et al (1998) that the future benefits of RD investment are more uncertain than the tangible assets. Shi(2003) has analysed and studied the relationship of bond prices and the measures of RD expenditures and suggest that there is a fair risk involved with the spending of the RD projects that increases risk factor with the bondholders claims and hence are more riskier than the other projects. Issues in Intellectual Capital(Flaws in the IC Concepts) Bontis (2001) discovered a predicament with the intangibles assets is that there is no unique conception that is accepted by everyone. Every investigator or a consultant who contributes to the debate expects the approval and recommends his own jargon. Various other researchers have pointed out flaws in the definitions of the Intellectual Capital. According to Edvinsson and Malone(1997) the intellectual capital was the difference of Market value and the Book value. In contrast Upton(2001) recommends that the intellectual capital cannot be absolutely characterized by simply calculating the difference of market and book value. Following that Habersam and Piber(2003) advocate that the term intellectual capital cannot be determined by the difference of market value and the book value. Pragmatically, the difference can be influenced by some other elements that are not associated with the intangibles.Further research enumerates five components that can realize a change in the the stock prices which incorporates the recognised assets , company liabilities , legal events , shareholders equity and the timing issues(Garcia-Ayuso 2003). The benefits received by a firm cannot be attributed to the individual intangible Assets as such benefits are a result from the inter-cooperation of more than one Intangible asset. Therefore, it could be wise to value the intangible assets all together. It is further argued that the market value of a firm cannot be ascribed to the intangible asset Importance of Intellectual Capital in the Modern Economy Importance of Intellectual Capital in the Modern Economy Executive Summary The report discusses the relative importance of the Intellectual Capital in the present economy due to the revolution that fosters the propagation of the value creation. The Intellectual Assets of an organisation play a vital role in improving its value and maintaining the competitive advantage. However, these intellectual assets are not capitalised in the financial statements as they are unable to determine their historic costs and their future benefits are sometimes uncertain. Despite of this a lot of companies have discovered ways that facilitate the valuation , measurement and reporting of their intellectual assets i.e companies like Coca Cola , Marks Spencer and Kingston Hull Plc have reflected their intangible assets such as brands separately from the goodwill on their company balance sheets as some guidance is provided by the International Accounting Standard in the disclosure of the intangible assets. The report also presents some theories that are aimed at eliminating the confusions created about the Accounting Profession. As the Accounting Profession and the Accountants cannot be blamed as conservatives in not providing space for the Intellectual Assets in the financial statements because in doing so , the financial statements will loose their relevance , reliability and neutrality. The report further throws some light on the issues that are related to the field of Intellectual Capital that include that there is no uniformity in the relative theory as there is no such definition and the Intellectual Capital model that is accepted generally. In the end the report concludes by suggesting that the under the supervision of the International Accounting Standard researchers, consultants, scholars and the accountants have to find a common way such that the value relevance of the Intellectual Capital and the principles of accounting are preserved. Aims and Objectives The aim of this study is to discuss that whether the exclusion of the Intellectual Assets of an organisation in the balance is realistic and pragmatic. As the Intellectual Capital is considered a value driver for the modern economy and a lot of organisations are focusing on their intellectual assets as compared to the intangible assets. Objectives The objectives of this study include: To assess the importance of the Intangible assets as compared to the tangible assets of an organisation. To provide some evidences about the organisations attitudes and the awareness about their intellectual assets. Finally, to conclude that whether the eviction of the Intellectual assets is pragmatic or not. Rationale The Current Gobal economies are now facing a new revolution that brings them to a new form of business environment. This major change in the world economies is due to the fact that there has been a disproportion observed between the Book Value and the Market Value of a firm. Because , in the past the Balance Sheet and the Income statement were the only tools used by the Shareholders ,managers and the executives to make strategic decisions and monitoring the performance of the company. However, it can be argued that things have changed now. As one of the important concern for the companies is the Value Creation. The expansion of the markets in the product or a service sector has been possible with the aid of the internet , high- technology and the innovation ,information , market chains and globalisation. This in turn has created a global competition among the firms that are now striving to acquire knowledge. Furthermore, the acquisition of the knowledge brings some vital concerns of its use, management and the improvement. This has changed the operations of the the organizations that used to emphasize on the production capability ,now focus on the creative operational structure. The organisations are now using the special tools for acquisition, management and the protection of knowledge such as Research Development , Patents , trademarks , copyrights , databases , customer and supplier relationships and Human Resources are known as the intellectual assets of the organization and constitute the Intellectual Capital. The relative importance and the expected returns of the Intellectual Capital has convinced the organisations to think and work in a new innovative way to achieve dominance over the competitors in the market. However , inspite of this the Intellectual Capital has not been considered in the performance appraisals and not included in the financial statements under the heading of assets. The organisations are spending a lot on the Intellectual Capital as compared to their tangible assets so therefore it is not wise to go against the flow of current market trends by focusing more on the tangible assets. This would lead to the creation of inaccurate procedures, policies and the decisions. Hence reducing the value in front of the investors and the customers. Cowey (1999), approves the conception of a â€Å"New Economy â€Å" and the â€Å" Knowledge Company † and insists that this concept accepted world-wide. He demonstrates that the opinions of â€Å" what we own † to â€Å" what we Know † have changed and know it depends upon the companies to apprehend the value creation by putting stakes in the training technology , staff retention and knowledge otherwise the efforts will not be productive. The Organisation for Economic Co-operation and development (OECD , 2005) reports that the investments in the Intellectual Capital has grown faster than the investments on machinery and equipment few years back. It is further revealed that the spending on the Research Development , software and the higher education was higher than the spending on the Machinery and the equipment in USA and Finland notebaly in 2002 and increased in greater proportions between 1994 2002 among the OECD countries as well. Arora(2000) purports that the the edge on the competitors in the challenging business environment can only be achieved by the proper administration of the Intellectual Capital which is another name of the Knowledge management. Kaplan Norton(2001) suggest that the company’s market value includes only 10-15% of the company’s book value of the assets. Furthermore, the possibilities of producing a value are risen through the the activities whose foundation is the knowledge that is enforced on the intangible assets of an organisation as compared to tangible assets. A Convention held under the OECD(1999) , concludes that a prominent set of information is required on the Intellectual Capital in its association with the tangible assets in the determination of value. Traditional Financial Reporting does not provide the necessary information to pursue the value creation process. Due to the availability of the information via internet technologies there is a need of a new reporting model that accommodates the information pertaining the Intellectual Capital that creates the value for customers and suppliers. Bradley(1997) discovered that the predicaments that were involved in the traditional financial accounting were due to the emergence of value. He explained the problem by arguing that the balance sheets and the income statements were the benchmarks in delivering the financial information to the shareholders. However, the significance of these financial statements in propagating the value has decreased due to the emerging trend of investments in the intangible assets. It is stated that the value of the brands was not reflected in the financial statements and in the equity values .This has led to the reconsideration of the intangible assets and the brands specifically. This fostered the proposition of of including such assets in the financial statements. However , the accounting profession does not fully supports the the idea that the intangible assets are the main factors in creating the value. On the contrary the investors and the trade leaders have acknowledged this truth. Furthermore, it is also quoted that 72% of the value was not reflected in the balance sheets of the companies surveyed in United Kingdom. Brands form the major part of the unexplained value that is not part of the balance sheet (Brand Finance plc , 2000). The Figure 1 shows the Gap between the market capitalisation and the net asset value. Why Intellectual Capital Upton(2001) reports that the companies under the scrutiny of the FASB Business Reporting Research Project provide considerable non- monetary information. Therefore it can be argued that the AICPA and FASB have been analysing the Intellectual Capital since 1991.The Intellectual Capital is considered endangered when the information of a company becomes obsolete when the competitor increases its information. Therefore the preservation of the Intellectual Capital is crucial for maintaining the competitive edge. However,the companies that are knowledge intensive are prone to risks of losing their market shares(MacDougall Hurst,2005).Guthrie(2000) suggests that â€Å"Accountants must find a to incorporate measures of Intellectual Capital or they will become irrelevant â€Å". Statement of Methodology The method used in the report is the study of the literature that is already present in the field of Intellectual Capital and the Accounting to support the arguments.After, the study necessary facts and evidences are combined to form the Literature Review of this report. This report does includes the collection of the primary data and its analysis. A case study is added to further enhance the understanding of the applications of IC in firms. Research Question The research question is â€Å" Is the exclusion of Intellectual Assets from accounting statements realistics?† The research question of this report is basically a debate that is going on in the academic, industrial and the business sector. This topic demands study to be commenced taking in account both the views of the implications of including or excluding the intellectual assets in the financial statements. Literature Review Definition of the Intellectual Capital The Organisation for Economic Co-operation and development (OECD , 1999) illustrated that the Intellectual Capital was the composition of the financial value of two classes of the intangible assets i.e Structural Capital Human Capital The structural Capital includes the organisational resources like the softwares, databases etc. The Human Capital however, contains the human resources employees (internally) , customers and suppliers(externally). The term Intellectual Capital is presumed as having the same meaning as the Intangible Asset. In contrast , the definition that is provided by the OECD(1999) puts the Intellect Capital as a subset of the intangible assets of an organisation. Because there are certain intangible assets that do not fall under the category of the Intellectual Capital. The repute of a firm is not considered as a part of the Intellectual Capital(Guthrie Petty , 2000). Stewart(1997) defines the Intellectual Capital as a â€Å" Intellectual Material â€Å" that Includes the knowledge , information , intellectual property , experience that can be used to generate wealth. Furthermore , Stewart (1997) categorises the intellectual capital in to structural , customer and the human capital. He argues that the human capital is the generator of the innovation and the improvement. The structural capital includes the tools and the facilities that are used the human capital to form value. Customer Capital includes the value that is produced as a consequence of the organisations relations with which performs the business transactions(Stewart , 1997). Intellectual Capital can also be defined as the combination of the human capital and the structural capital. The human capital includes the knowledge , skills and the experience of the employees. It is further argued that the human capital is not in the possession of the organisation as compared to the structural capital (Edvinsson Malone , 1997). Elements of the Intellectual Structural Capital Structural Capital is what is left behind in the organisation when the employees go home. The Structural Capital arises from the those organisational processes that are focusing on the improvement and the establishment of the organisation. (Roos et al , 1997). Bontis et al (1999) suggests that the structural capital includes the organisational resources that encompass the knowledge that is not actually stored in the human brains and whose value is greater than its physical value.These assets include databases , softwares , manuals , trademarks , leaseholds , franchises , patents , licenses , employee training , employee contracts etc. The structural capital plays an important role in the creation of the value. As it helps the human capital to explore new ideas , learn from the past experience and protects the knowledge and the new inventions by providing the technology and the legal aid. Customer Capital Kohli jaworski(2000) defined the customer capital as the organisations ability to evolve the knowledge about market that is focusing on the cutomer desires and perceptions. This acquired knowledge is used by the organisations in response to the changing attitudes of the customers and the market. Organisations use this knowledge to have a contingency plan to tackle the threats produced from changing market trends. The definition provided by Bontis(1999) suggests the customer capital should be iterated as the relational capital that includes the relationships with the suppliers, partners and the investors in addition to the relationship with the customers. Human Capital Hudson(1993) defined the human capital as the composition of the inheritance, qualifications , experience with the opinions about life and business. It is further argued that the organisational employees are the key architects of the Intellectual Capital through their proficiency , opinions and expertise. The competence of the employees includes skills and qualifications and their opinions come under their behaviour and perceptions about work. The expertise is important in devising the innovative solutions to the problems. Furthermore, employees are an important asset for an organisation but they are not owned assets(Roos et al , 1997). Exploitation Of Intellectual Capital (Economical Perspective) It is suggested that the critical factor in the improvement of the economy is the proper utilization of the Intellectual capital .It is further noted that by increasing the tricks of Intellectual Capital will provide a competitive edge and the value of the firm will be augmented and specifically business will bring financial benefits. It is not a new thing that the intangible assets like brands, intellectual property , relationships are considered as a unprocessed input for the organization that increases the worth by the application of intelligence in possession of the organization. (Watters et al 2006 , Intellectual Assets Center , Glasgow, Uk). The research on the recognition and reporting of the intangible assets and the intellectual capital has brought them to the acute attention.The research believes that the intangible assets play a significant role in the creation of endurable competitive advantage with in the advanced organsations.Due to the expansion of the modern knowledge based economy it has become transparent that the intangible assets and the Intellectual Capital of an organization have become a platform in accomplishing the competitive advantage as compared to the hi-tech tangible assets(Drew , 1999). Tayles et al (2005) have described two doctrines in the realization of the intangible assets that provide the assistance in the achievement of the competitive superiorty. The research is continuously striving to find the authentic procedures to measure the intangible assets and the indices that provide a forecast of the future economical benefits based upon the doctrines that are prescribed by Tayles et al (2005).Firstly , the expanding financial statements of the companies is the idiosyncracy of its Intellectual Capital that give the edge on the market competitors. Secondly, is the inefficient justification of the Intellectual Capital in the expansion of the economy(Tayles et al , 2005). Skinner (1986) purported that with the utilization of the technology, manufacturing productivity can be achieved by the intangible assets of the company which are the authentic reagents of the prosperity and that justify the monetary investment. How the Companies Exploit the Intellectual Capital Case Study Kingston Communications(Hull) Plc is group of companies based in Hull,United Kingdom. The groups is presently offering the services related to information, communication technology and the telecommunications to the consumer markets in UK. The groups Brands include Affiniti,Smart 421,Jam IP(Integration and management services),Karoo, Eclipse, Mistral (Internet and Telecommunication services) and Hull Color pages and Know( Information Services). The group is Ammortising the its Intangible Assets that aquired in the Acquisitions.In 2007,the ammortisation on intangibles was à ¢Ã¢â‚¬Å¡Ã‚ ¤8 million(from Total depreciation and ammortisation).The group also has purchased the tangible and the Intangible assets worth à ¢Ã¢â‚¬Å¡Ã‚ ¤30.2 million.The Groups Controlled measures include, measuring the learning and development(p9),Customer Satisfaction. KM also believes that Human Resources when managed through and effective Policy can bring the Tangible effect on the companys performance. KM is running a development program to enhance the Knowledge and Intelligence of the employees.The company also manages the Relational (Custmer) Capital by arranging the meetings of the Directors on the Investor relations and the shareholders concerns specifically. The Company’s publishes its Financial Reports complying with the IFRS,however, the company also provides additional disclosures if compliance with the IFRS does not fullfil the requirements of the users(i.e External Stakeholders,External investors,Suppliers and the Customers) to understand the impact of certain transactions that have an effect on the financial performance of the company. Relational Capital Management and Policies Arranaging meetings with the shareholders time to time to discuss the company’s strategies and performance.Maintaining a investors relations function to encourage and improve the communication with the investors. The Goodwill of the Company in 2007 was worth à ¢Ã¢â‚¬Å¡Ã‚ ¤192.754 million(2006:à ¢Ã¢â‚¬Å¡Ã‚ ¤155.551 million) and the Intangible Assets had the value of à ¢Ã¢â‚¬Å¡Ã‚ ¤48.511 million (2006 : à ¢Ã¢â‚¬Å¡Ã‚ ¤39.450) according to the Balance Sheet on 31st march,2007. The Cash Flow Statement of the Company for the year ended 31st march,2007 also explicitly show the Amounts of the Ammortisation of Intangibles as compared to the tangible fixed assets.The Cash Flow statement also show the companys procurement of the Intangible assets à ¢Ã¢â‚¬Å¡Ã‚ ¤6.495 illion in 2007. The financial statements of the Company are prepared according to the principles prescribed by IFRS and IFRIC.These financial statements are based on the concept of historical Cost accounting.However, the statements are modified due to the revaluation of the financial assets to a fair value by using the income statement. Intangible Assets Identified by Kingston Communications The Intangible Assets of the Kingston Communication include: 1.) Goodwill 2.) Customer and Supplier Relationships 3.) Technology and Brands 4.) Software 5.) Development Goodwill The Groups Goodwill is reported in the acquisitions of the subsidiaries and it is the difference between the Cost of Acquisition and the Net Assets. The Goodwill is tested for impairment annually. Development The company’s intangibe asset that is developed through the research and development activities only when it fulfils the criteria of Intangible Asset Recognition prescribed by IAS 38 i.e the asset is identifiable,impact on future cash flows and the developmental costs of the assets are measured reliably.The estimated life of the internally developed intangible asset is 1 year and is also ammortised on a straight line basis. Valuation of the Intangible Assets in Kingston Commnuications The intangible assets that are acquired through the acquisitions are valued on the basis of their time value and the future impact of on the performance of the companies. Appraisal of Intellectual Capital in Kingston Communications The Kingston Communication is exploiting,managing and reporting its Intellectual Capital as tool necessary for the competitive advantage and for improving the future performance of the company. According to the companies policy the Intangibles Assets are included in the Balance Sheets in order to satisfy its investors and guarantee the future investments in the company. However, there are no benchmarks for the management and the evaluation of the these Intangible assets.Also, the company is not using the models for the Classification of these Intangible assets as suggested by (Kingston Hull plc , 2008) Measuring the IC (Performance)through strategies(Management Accounting) Simons(1999) suggests that the by measuring the performance of a company is basically the comparison of the outcomes of the business activities with the critical business targets. The traditional financial accounting utilizes two techniques to measure the Performance .These are Return on Capital Employed(ROCE) and Return on Assets (ROA). However , these techniques are condemned due to the fact that they are old fashioned , unable measure the intangible assets and are unable to appraise the stakes in the technology which is essential for the firm to compete in the global market(Bourne et al , 2000; Amir Lev , 1996). Valuation Methodologies(Performance Measures as well) The economic measure of the Profit yields the same result as the traditional accounting during the matching phase of costs and revenues by preserving the value significance. This is done by improving the financial reports with the disclosure of the concealed assets like the intangible assets and the investments in the long run(Simons , 1990). (It includes the tools and various methodologies ) Watters et al(2006) have discussed the application of a Scorecard assessment tool in the Scottish SME that provides a review that how efficiently companies are exploiting their Intellectual assets.The tool helps the SMEs to manage three areas of operations i.e Sales and Marketing , Research and Development and Human Resources. It assign the scores to activities that come under the three operational areas according to their effectiveness and links them to the strategic objectives of the firms. (Appendix 1) Brand Finance plc(2000) suggests that there are a lot of methods present for the valuation of the Brands, however there is a need to find an optimal one. Cost based methods of brand valuations show a disparity from its market valuation. The Market Comparison method is not efficient as it is difficult to obtain the comparison data. Royalty Relief method determines the royalty rate on the estimates of the income generated from brands. However , this method does not clearly states that how a brand is going to create value. The Economic Use method combines the consumer and the competitor to entitle the value to the brand.The last method is the most optimal method which is the Brand Finance that uses the Discounted Cash Flow (DCF) analysis in concluding the value for a brand.As the Discounted Cash Flow method valuation complies with the valuations performed by the financial analysts , accountants to check for the impairment of the intangible assets. Measurement of Intellectual Capital Why there is a need for the companies to measure the intellectual capital This is a very long debate that why companies need to measure the intellectual capital.There are several advantages of doing that. The term intellectual capital can be said to be â€Å"expandable† in terms of the Value and rewards. The greater the effort of a company the greater is a competitive advantage and greater is sustainability of the company. Nowadays companies and the firms have become Knowledge aware i.e they have now recognized the importance of the of the knowledge that creates value and sustainability. The Companies working in the Telecommunication, Pharmaceutical and the research technology sector specifically have to invest a lot in the Research and Development to compete and develop the innovative solutions to avail the opportunities in the market.Therefore, there is a strong need for these companies to devote themselves to measure and manage their intellectual capital effectively. However, it is very difficult to justify the investments in digging out the knowledge that creates value .These investments are rather very complex and unpredictable even if they are tested and analysed by the efficient tools for their proficiency. Some Organisations that are knowledge based are sometimes not sure about the amount of the Knowledge they have and the amount of knowledge they need tocarry out their functions internally and externally. That is the reason, these organizations loose the interest of the investors and therefore the investment. Balanced Scorecard (An Alternative to Balance Sheets) Kaplan Norton(1992) , presented the theory of the Balanced Scorecard for improving and tracking down the performance of an organisation. The authors suggest four dimensions such as Financial , Customer , internal business process and learning and growth. These dimensions are believed to provide a insight in to the current performance and identify the factors that can improve the future performance. A combination of the non-financial and financial measures are insufficient in determining the performance of an organisation. The main problem is that its just like a Wild Goose Chase as this amalgam of the performance indicators are not pursuing a specific business objective. Kaplan Norton(1996) believe that the both the financial and the non- financial measures must have a focus on a goal that has to be achieved in maintaining the sustainability. The authors further argue that the various measures provided by the balanced scorecard can help the organisation to plan a particular strategy and then can implement it across its subsidiaries, departments to share a common motive with trasnparency. A well planned BSC can hep the organisation to learn from the short-term reports that are generated and scrutinized through various perspectives. Andriessen(2004) suggests that the predicament of measuring the Intellectual Capital can be resolved by applying the balanced scorecard. It has been advised that the specified strategy plans can be created that guide the organisations to confidently invest in the human resources, technology and the structural capital. It is further revealed that by measuring and administering the intellectual capital can also help the organisation to convert its non-monetary achievements in to monetary achievements(Kaplan Norton , 2004). A study conducted by Hagood Friedman(2002) devised a way for the implementation of the balanced scorecard to measure the accomplishments of the human resource information system of a company. They have developed a system that uses the balanced scorecard as its foundation to improve the human resource information system in association with highlighting the goals and objectives of the organisation. Despite of its usefulness the Balanced Scorecard has some limitations. In this context Voelpel et al (2006) has identified five limitations of the balanced scorecard in its application in the modern economy. First being its inflexibility that is, it measures the performance of a company only in four perspectives by leaving behind some other perspectives out of attention. Voelpel et al(2006 ) explain the second limitation which is that the BSC is less efficient in accommodating the changes in the changing economy. The BSC a defines a strategy for a company and its subsidiaries to achieve a goal by neglecting the individual goals of a subsidiary as a consequence a company is unable to use its potential properly. The third one is that BSC focuses more on improving the internal performance of an organisation therefore by losing a link with the external world to exploit the innovation.The forth limitation of a BSC is that it focuses on the organisation in itself and provides no information about the actions of competitors. The fifth problem with the balance scorecard is that it goes straight in measuring the performance in a rational way .As a consequence the more complex predicaments are difficult to apprehend(Voelpel et al , 2006). A Comparison between the benefits that arise from intangible and tangible assets There are risks involved with the investment in the intangible assets like RD. Kothari et al(1998) have conducted a research by comparing the uncertainty of benefits associated with the tangibles and the intangibles assets. The methodology used for this research was the regression analysis of the future earnings variability involved with the expenditure in Research and Development and the tangible assets .Furthermore , the variables like firm size and the leverage are also used to define the boundary of a research.It has been illustrated by Kothari et al (1998) that the future benefits of RD investment are more uncertain than the tangible assets. Shi(2003) has analysed and studied the relationship of bond prices and the measures of RD expenditures and suggest that there is a fair risk involved with the spending of the RD projects that increases risk factor with the bondholders claims and hence are more riskier than the other projects. Issues in Intellectual Capital(Flaws in the IC Concepts) Bontis (2001) discovered a predicament with the intangibles assets is that there is no unique conception that is accepted by everyone. Every investigator or a consultant who contributes to the debate expects the approval and recommends his own jargon. Various other researchers have pointed out flaws in the definitions of the Intellectual Capital. According to Edvinsson and Malone(1997) the intellectual capital was the difference of Market value and the Book value. In contrast Upton(2001) recommends that the intellectual capital cannot be absolutely characterized by simply calculating the difference of market and book value. Following that Habersam and Piber(2003) advocate that the term intellectual capital cannot be determined by the difference of market value and the book value. Pragmatically, the difference can be influenced by some other elements that are not associated with the intangibles.Further research enumerates five components that can realize a change in the the stock prices which incorporates the recognised assets , company liabilities , legal events , shareholders equity and the timing issues(Garcia-Ayuso 2003). The benefits received by a firm cannot be attributed to the individual intangible Assets as such benefits are a result from the inter-cooperation of more than one Intangible asset. Therefore, it could be wise to value the intangible assets all together. It is further argued that the market value of a firm cannot be ascribed to the intangible asset

Dramatic Interpretation of Death and the Maidan and They Dance Alone :: Drama

Dramatic interpretation: 'Death and the Maidan' and 'They Dance Alone' RESPONDING The strategies that we have used in Death and Maiden, 1984 and They Dance Alone are cross-cutting, non-verbal means role play and freeze frame. We used cross-cutting in Death and Maiden, non-verbal means in They Dance Alone, role play in 1984 and freeze frames in most of the performances. Cross-cutting is a technique used especially in filmmaking in which shots of two or more separate, usually concurrent scenes are interwoven; it can also be called inter-cutting. We used this technique in the Death and Maiden piece of Drama where we had five different scenes; two past, two futures and one present, and we started the piece in the future then past, then present, then past and finishing on future. This technique was used many times in this performance and resulted into being very effective. It was effective because in our performance we cut in and out of different scenes showing Paullina’s life in the past and in the future, but depending on what was going to happen in the present depended on which future was going to happen. The two different future scenes were two completely different outcomes; one being her talking to a councillor about her week and her past with the doctors. She is still paranoid that people look at her because they do not like her and she panics about the slightest noise or incident which might be taking place, and the other was her getting married to her partner. The future of Paullina would only happen depending on her past, which was her attending an opposition leader’s meeting which resulted in her being found out and the other scene which was Paullina starting in a mental hospital being supervised by medical staff. FUTURE PAST PRESENT PAST FUTURE Nonverbal communication includes facial expressions, tones of voice, gestures, eye contact, spatial arrangements, and patterns of touch and expressive movement. Research suggests that nonverbal communication is more important in understanding human behaviour than words alone - the nonverbal "channels" seem to be more powerful than what people say. Non-verbal means is being other than verbal; not involving words: nonverbal communication this could include involving little use of language: a nonverbal intelligence test. But for our non-verbal means performance we did not use any verbal communication in any of the scenes. Our performance was one scene because making the performance non-verbal decreases the chance of engaging the audience into the scene. We used simple repetitive movements and sounds to engage the audience which was very effective.

Fiction vs. Non-fiction Boundaries Essay -- Books Literature fiction T

Fiction vs. Non-fiction Boundaries Blurring the boundaries between Fiction and Non-Fiction has always been a great way for authors to make their points, yield their arguments, and to keep interest. Some may even be inclined to believe that there is not a definite boundary between the areas of fiction and non-fiction. Fiction is often used throughout non-fiction writings as more of a point of view than a character in itself. This voice is not exactly a character in the text, but it still exercises an attitude toward the material to help control the writing.   Ã‚  Ã‚  Ã‚  Ã‚  Ã¢â‚¬Å"Lola,† by Truman Capote is a great instance where these boundaries are so well mixed, that it becomes hard to tell the difference where one starts and another begins. This story is about a bird named Lola, and the main character. At first, Capote doesn’t like the bird and in fact despises it. However, towards the middle and towards the end of the story, he beings to care for the bird and treat it as a pet. This story does not state very many facts like one would expect throughout a non-fiction account, but rather tells a story like in fiction writing. By doing this, the reader would actually never suspect that the story was in fact non-fiction without being told so. It is a first person account of the events that unfold throughout the story. Capote does a fantastic job of revealing these events and holding the readers attention instead of boring the reader with the strict description, times, and dates such as one would find some non-fiction wri tings. He incorporates humor into the story to help with the excitement of these events. â€Å"The Kerry decided Lola was the latter. He tapped her with his paw. He chased her into a corner. She fought back, pecked his snout; her cawing were coarse and violent as the harshest cures words. It frightened the bulldog;†¦Ã¢â‚¬  This sentence revels some of the intermingling of fiction and non-fiction that Capote utilizes within the account. He is actually giving human characteristics to these animals where the dog â€Å"decides† and the bird begins to â€Å"swear†. Capote does not actually know what these animals are thinking so this is a perfect example of fiction controlling the tempo throughout a non-fiction writing.   Ã‚  Ã‚  Ã‚  Ã‚  The structure of â€Å"Lola† relates strongly to the structure of a fiction story. It includes an introduction, middle, climax, and ending. Similar to ficti... ...ases. The reader does not know if Danny Deever is a real person or just some made up fictional character. The poem actually describes Danny and his death to the reader. â€Å"For they’re done with Danny Deever, you can hear the quickstep play. The regiment’s in column, and they’re marching us away.† These Sentences show how the poem rhymes and yet confuses the reader in the fiction or non-fiction account of the poem. The reader does never really discover what the poem is and this is the exact reason why the author made it this way. To keep the reader guessing and to hold the attention.   Ã‚  Ã‚  Ã‚  Ã‚  Blurring these boundaries between Fiction and Non-Fiction has always been a great way for authors to make their points, yield their arguments, and to keep interest. If authors did not utilize this particular technique, most non-fiction accounts would become boring and uninteresting to a reader who did not want to learn about the particular. It is completely acceptable as long as the readers are told of the fictional aspect of the work. This is not one of the easiest techniques to use but if written correctly, creating a fictional account cannot be considered anything but excellent writing.   Ã‚  Ã‚  Ã‚  Ã‚