Literature Review: the Indian Banking System

Literature Review: the Indian Banking System Literature reviews that Indian banking system consist of a larger structure on of financial institutions, Commercial banks, foreign financial institutions. These structural transformations of Indian finance system can be divided into three parts. First, the post independence period (1947-1968). The Reserve bank of India, performed role as a supervisor and controller of finance system. RBI, dominated over all the forms of finance controls in India. In this time RBI, worked on financial stability, credit control, and regulation of interest rates and formation banking structure. The second financial repression, period the movement commenced with the nationalization of banks. This nationalization of commercial banks derives the base for changes in finance and banking system. The result into interest rate regulation and credit programmers deposit and banking working methods etc. The third period known as financial reform and liberalization period. Started in early 90s. In that period gov ernment of India was more likely to more liberalized. The three committee in 1985, vagual in 1987 and the Narasimham committee 1991. The most influential recommendations made by the committee of Narasimham regarding liberalization, consolidation and privatization in banking system. And the government of India started a financial reform era with the financial sector liberalization program. The main aims of financial liberalization program is to regulate the rates of interest, cash reserves and performance financial system consist of financial institute stocks exchanges and banks. It makes liberalization program enhance the importance of banking sector and make it more efficient and competitive. The globalization, deregularisation and privatization system emphasized on Washington consensus. These leads country to simplistic way of transforming system by functioning of market and state owned institutions restructuring. The liberalization program made changes internal economy. It restated more competitive and productive in shorter period. The liberal interest rates and reserve limits of banks resulted into stable and sound borrowing and lending market and monetary policy of government. The bank requires to keep certain amount of reserves to avoid too uncertainty an future due to competitive market another element of banking reforms is stabilization, non performing loan, which burdensome for banks are recapitalized and require standard working environment one of the most effective part is alteration of state owned banks into private sector banks. Under the government controls state owned banks recommends to sell out its public portion to private sector and consume the public pr operty in other economic project which needs more funds and these funds are taken from the privatization of state owned banks. Under the Nationalization act 1969, the largest banks were nationalized with the aim of increase in public deposits. The reason behind the nationalization of banks to grow the economy and bank network expansion. The government of India requires enhancing the economy and serving to prior areas. In 1980, more six banks were nationalized added into public share in banks to keep landing to priories areas. It was material to control on banking system and resulted into increase in priority area landing and five year plans of Indian Government. Moreover, these turned into inefficiency in banking system instead of providing equal distribution of funds. Addition banking system faced problems in 1980s these are the period of unprofitability and inefficiency and in mid 80s creates more limitations on returns and capital and reserves. These leads banks to the unrealistic performance standards. As mention above the 1991 Narasimham committee caters a influencing idea on banking sector reforms whic h idealized on interest rate deregulation, credit services and entry of new banks on Indian market private as well as foreign banks. Before the committee, interest rates were medium of subsidiary between different sectors of economy. Deregulation of interest rates was major part of making reforms that gave growth to financial savings and improve organizational finance system. On the other hands committee recommended total liberalization on deposits rates. In 2004 RBI set only rates for the savings and NRI deposits rates rest of the other deposits banks are free to levy their rates. The last major recommendation of committee was on entry of new banks in Indian market. Before it was a limited authority to the banks to do with interest rates and deposits, there were totally restrictions for new banks entry. Due to liberal view of new banks entry in Indian market seven private and twenty foreign banks started their operations in India after 1990. As per RBI (2004), the liberal aspect of new banks entry improved the quality of operation, risk management, technological changes and competition. In addition, before 1990 public sector bank distorted market system by its non profitability and inefficient management. To recover the stability in market Government inject more funds in 1993 and 1999 to liquidate the government and depositors bear loses through public sector banks. In 1995 SBI act framed partial privatization of public sector banks and SBI was the first bank to get funds in form of equity and become private sector bank. Despite of partial privatization Government decide to increase the private holding up to 49 percentage and to control banking system appointment was made for a public agent to control administrative strategies after all the changes have been made the Indian banking sector covers several changes and explore the improvement effect. In case of privatization of Indian banks there are only interest rates, credit control and deposits rates to know the changes in economy are increase in savings. It predicts the removal of deposit policy in baking will lead to increase in capital availability these can make changes in private sector capital formation. The interest rates make vary forms the fixed deposit rates, lending rates are increased and steadily decline in 1990 which effect on todays market. The Repressioninst policy reduction improves the risk management of banks it is an indication of liquidity. The liberalization treated as an instrument of financial policy reformation of credit rates and statutory lending rates the division of two rates in minimum and maximum can gradually effect the repressive of monetary policy. As the liberalization program aimed to make banks more efficient and productive to compose the efficiency of banking sector based on technical efficiency, scale and scope efficiency called parametr ic and non parametric efficiency. The parametric methods considered banking returns and input like production and profit, cost, revenue to know how effective bank is performing. In Indian traditional economy needed to lift the banking sector through technological changes, global market, economic pressure and bank crisis forced to change in way of doing business in traditional way. It helps in increase in competition at local market by removal of interest rates on current account, deposit rates. More competition enhanced the service of banks in free services, capital formation and mergers. The Indian economy faces various challenges due to privatization. First, the government unable to consider the running of nationalized banks during 1997-1998 crises. In this period government cannot pressure the security holders to disclose their holding and these creates problems in negotiation of foreign bank partners and for debt forgiveness issues. Though state owned banks serves qualitative and respectable task in banking sector. In India, state owned banks only work on remote areas like rural and urban banking. Alternatively some credit unions and financial institutio n also seems, in remote areas state owned banks encourage small and medium enterprises by lending programmers, in crisis time state owned banks has quick time to deal. The cycle time is quicker than private banks some time lack of local infrastructure for finance, government organization only is the way to get hands. These are the way state owned serves public and make quality service against less return against service. Privatization Experience and Issues The privatization in recent years, the way to sell out some states to some financial institutions foreign organization. Other way government directly sell its parts to public in form of equity in stock market. These method might be useful to countries state owned banks because lack of supervision of bank management, another thing is to transparent operations before it privatized, because of they need to know the what they are buying. The bad factor during privatization was bank commercialization and collection of loans. Globalization suggest the more effective completion partially nationalize banks therefore moved to fully privatized in short period for operational efficiency later on the issue arise on reserving some share for state. The share of state in private banks derives the powers to influence the decision making and strategies of banks. The way accepting a state ownership becomes a better option. Mergers and consolidation and efficiency The banking system consists of various institutions in size, ownership, competitive profitability, structure and technology. The relationship between profitability and size of bank is relative, smaller number in having loss making institution and lager organization has very advantage over small organization like return on capital. But smaller banks have good efficiency in work while large organization. Above state bank consolidation is new phenomenon for competition due to entry of foreign banks, privatization and deregulisation. Crises deregulisation and globalization causes increase in the foreign banks in economy, there is no doubt that the region has become more open for foreign has become more open for foreign banks. The foreign bank entries enhance the quality of banking services foreign participation load to foreign international trade and membership of the European union and these will turn domestic banks into foreign banks and assist home country to provide service abroad. As foreign banks came in India, they serving large corporate customers and no service for ruler and small sized organization they are unattended. The risk of pricing is in foreign banking is more likely. If risk was proper than organization have advantage because the foreign banks entry is dangerous because of distribution and a market imperfection reasons. There is a plenty of literature on the bank efficiency but in the developing country it concerns to banking performance on maintenance acquisition and regulation and mergers. There are various hypothesis to measure the efficiency of banks but due to mix results if enable to derive the proper result. Deregulation in various country will goes very well in developing country. The mergers and acquisitions are improves the efficiency. The improvement efficiency is mainly generating higher output than input, revenue than costs. Micro economy theory provides the framework for effective banking, in the developing country due to lack of completion. They started reforming economy with deregulation. Deregulisation give more freedom to banks and thus if increase in bank cost and technical progress of liberalization. The state ownership banks aims to fulfill public aims and government plans. The non economic goals such as provide low rate leading, loans and interest rates stability. It called public owned bank but there is no access for common people to participate in management actions. The collective decision making process lead management to inefficient last the state bank is the support from government and gets benefit to inefficient management. Over the last two decades. Many countries are availing to go with private state owned banks. Privatization is the way of improvement in efficiency. Privatization brought drastic changes in ownership of Indian banking sector from government to private, private and local control to foreign control. Privatization deals in change in corporate field and looking for improvement. Ownership push the organization toward divestment mechanism to improved management structure. Berger argues that the examination of bank efficiency is varied in form of static, dynamic and selective on performance. Even though, bank efficiency is improves any in different structured banks. By Appling a vital concept of bank efficiency gives more detail literature for privatization liberalization affect and foreign institution participation with respect of developing economy and Indian finance system. The financial reforms provide so many improvements in Indian economy. First, improvement In financial structure of banking industry there is more sophisticated and define process carried between intermediate banks and financial institutions. The lowering the statutory-emption had lowered and that turn to provide more finance for commerce in India. The structure of intrest rates become more gradual and independe nt so many banks can provide better loans and landing system makes easy and vast so financial exchange become fast and reliable. To enhance the performance of public sector banks are recapitalized and put some restrictions on management and allow public agents in area of operation so that it become more trustworthy. The micro prudential measure improves the bank working conditions to cope up with international standard practice the result banks improves their working conditions in just 90 days and gave more competitive and safety. The liberalization process gives many good results but it has many drawbacks too. According to world development report , the liberalizations in order to count the risk as a market reforms whereas the financial conditions are differ from the expected. The crisis of 1992 many banks were affected and these resilience filled by the government in sense of pouring money in deficits. The reforms brought technological changes in banking sector many new foreign ba nks had fast network of working and technology, network payments, electronic transfers these turns into best banking practice developed.

Shakarganj Food Products Limited Marketing Essay

Shakarganj Food Products Limited Marketing Essay SFPL is a public limited company set up by the Crescent Group with the objective to diversify its business activities. The group has been conducting business in the region for over 100 years and has a varied industry portfolio in sugar, textile, steel and farming. Its head office is located at Lahore, Pakistan while the production plants are in central Punjab the main fruit growing and milk supplying region of the country. The company is professionally run by experienced management. The CEO of the company is also the serving Chairman of the Pakistan Dairy Association. SFPLs human resource has a vast experience in the dairy and food industries. Continuous development and skill enhancement are an integral part of the employee development programmed at Shakarganj. Shakarganj is working hand in hand with the Dairy Industry of Pakistan to improve milk productivity and animal health. Competitors There are many competitors who provide milk like Nestle, gourmet milk, loose milk, Haleeb, Dairy milk. Mission and Vision statement Shakarganj Food Products Limited strives to be among the leading companies in the food industry and is committed to manufacturing and selling consistent, high quality world class products. SWOT Analysis Strengths The strengths of Shakarganj Good Milk according to their marketing plan are: Premium Positioning: They have position their product very well. They are positioning their product with clear message so thats why they are attracting more customers towards them by telling them their exact needs and wants. Available Everywhere: They have very much strong distribution channels through which they can make available their product at everywhere. Convenient: the product is easy to use. The packs of Good Milk have a closure for the handiness to the customers. PR with farmers This company has operating with other variants as well so they have very strong contact with their farmers and they are very happy with their deals they actually engage for giving them good advices for fertilize their land thats why gaining a good reputation over the year. So we can say that we have an advantage over others. They have long term relationships with farmers thats why farmers always wants to give milk to them. Strong consumer product research Good milk always has done research specially before launching the product and after launching as well they have very strong consumer and product research. This act can give them exact figures of the behavior of their customers and help them to develop their portfolio for future concerns. They also have global research partners such as JWT Asiatic and Mars marketing and some of other marketing and advertising agencies. Technology: Their biggest strength is their plants they have almost latest technology to process the milk and give best to their customers. Weaknesses: The weaknesses of Shakarganj Good Milk according to their market plan are: Low Quality Milk As the company doesnt have their own dairy farms so they are collecting milk from different sources so sometimes they face the problem of low quality milk. Milk collection Cost In the above section as it is mentioned that they are processing the milk by collecting it from other sources so obviously this will cost them a lot so this could be their weakness that they have to bear the cost of collection as well. On the other hand if they have their own dairy form near to processing centers then they can cut their this kind of cost. Packaging As we know that they are selling tetra pack milk so they must have their own tetra pack plant but in the mean while they are dependent on tetra pack company because that is the only option avaible to them if in case they increase the price then they have to increase their price for ultimate consumer which is their weakness that they always depend on tetra pack for their packaging. Opportunities Large Potential Market According to the market research, 80% of the total market is using Open Milk which is more beneficial according to them. Shakarganj Good Milk has a large potential market which is the opportunity to grow their business. Support by Government Previously Government has decided to support farmers because of the growth in this industry so this could be opportunity for this company that they can get benefit from the government schemes. They must be providing cheap products to the industry to sustain the growth. Awareness among consumers: Have better opportunity to give best to consumer this time because people are becoming dissatisfied as they getting aware of the side effects for loose milk its hygiene and health issues. Threats The threats for Shakarganj Good Milk are as follows: Competition There is always having threat from competitors same like good milk having the treat from their competitors because they are stronger in terms of finance and everything. Competition always creates a threat because everyone wants to be a market leader and to get maximum shares. Others brands are serving in the market from so long so they have more market share as compare to good milk. Good milk is facing strong competition which is the biggest threat to them. Price Differentials As we know that other companies are very strong so they have strong influence in the market like they can provide goods in cheap rates then good milk because big corporations having more leverage in terms of profit. Consumer preferences As this is a not so big company so obviously they cannot invest huge more capital but on the other hand consumers preferences changing over the time. Sometimes consumers purchasing power get lower and sometime they need some different taste so company has to cope with every situation. PEST Analysis Political Factor: Political environment always influencing the organizations same is the case with good milk political condition in Pakistan is not constant. They keep on changing every day so its directly influencing the matters of company. Due to unstable government there is no law and order regarding consumer rights and the tax structure is not defined in well manner so ultimately consumer is effecting from this conditions. Economic Factor: As we all know that economic crises going on, in the world so economic conditions in Pakistan are not fruitful as well. Banks increase their interest rates so company is getting loans with high interest rates so ultimately they will be serving with high rates in market. Un-employment is also increasing day by day and the purchasing power of consumer going down so company have to sell their products with affordable price where as on the other hand cost is increasing because of high rate of inflation. Social Factors Population of Pakistan is increasing so company has more opportunity to sell their products because milk is the basic necessity of life. In Pakistan most people prefer to buy fresh milk rather than pasteurize milk. There is no specific choice for consumers that they want to buy foreign product or not but still high income level community wants to buy foreign or some renowned brand and low ones go for the cheaper and affordable products. Technological Factors Technology factors always impact on the success of the organization. Technology enables the product innovation and makes services at good standard. This factor decreases the chances of unhygienic milk and provides better quality of milk. Good milk can store milk for long term with the help of modern nutrition machines and fresh milk will be available for consumer. Through technology organization can easy communicate directly and indirectly with consumers and within the organization. Organization can increase the dairy milk process and dry milk process technology. Conclusion In the net shell we can say that company is having strong position but as compare to other companies their financial position is lower than others so they should increase their financial position by doing more investments to increase earnings. Company having more opportunities for the market because market is expending so they have more market space. Company should overcome their weakness and make them strength in future so that they can cope with market every time. Refrences http://www.shakarganj.com.pk/foods/foods_bro.pdf http://marketingteacher.com/lesson-store/lesson-swot.html http://marketingteacher.com/lesson-store/lesson-pest.html

Listening Skills :: Communication

CLOSE LISTENING According to scholars in the field of listening, â€Å"Listening is the process of receiving, constructing meaning from, and responding to spoken and/or nonverbal messages" (qtd in Thompson, et al. 1994). While we may feel that we are already good listeners, we are also aware that sometimes our attention wanders, we space out completely, or we lose track of a speaker because we begin thinking about our own ideas. By asking you to practice listening, we are not suggesting that you are not a good listener already, but that by thinking about listening -- what qualities make a good listener, the various kinds of listening roles we play, and the personal challenges we have in effective listening – and doing some listening exercises, you’ll maintain the listening skills you have and perhaps develop new ones. Getting Started (Class 1) 1. First, working in groups of 4 or 5, generate a list of 8 qualities that good listeners have. These might include both visible and non-visible items. 2. Next, create a list of 8 things that can get in the way of ones ability to listen fully and effectively. For example, what kind of environments are best for listening? What kinds of emotional states make it harder to listen accurately? 3. Next, think about the different kinds of listening people engage in; what roles do listeners play from day to day? 4. Finally, come together as a class and compile a master list of your group’s findings. The â€Å"What I heard† Exercise (Class 2) Because a big part of engaged listening involves giving feedback to a speaker, sometimes we have to be able to both listen and think simultaneously. While focusing too much on our own thoughts can get in the way of effective listening, making simple connections to explore later can be very useful. In this exercise, you will listen to your classmates describe the main points from their Close-Reading papers (from Assignment One), and follow-up with a segue to your own paper. 1. First, one person says what passage his or her Close Reading is about and either reads all of it or an excerpt aloud. 2. Next, that person tells the class about the main points of his or her Close Reading, using the Close Reading paper as notes. 3. At this point, anyone whose passage is similar (some may even have identical passages) or raises similar issues, enters the conversation with an affirmation that he or she has heard the previous speaker by saying something like, â€Å"What I heard you say is †¦Ã¢â‚¬  followed by the link that the student sees between his or her own paper and the paper of the previous speaker. Listening Skills :: Communication CLOSE LISTENING According to scholars in the field of listening, â€Å"Listening is the process of receiving, constructing meaning from, and responding to spoken and/or nonverbal messages" (qtd in Thompson, et al. 1994). While we may feel that we are already good listeners, we are also aware that sometimes our attention wanders, we space out completely, or we lose track of a speaker because we begin thinking about our own ideas. By asking you to practice listening, we are not suggesting that you are not a good listener already, but that by thinking about listening -- what qualities make a good listener, the various kinds of listening roles we play, and the personal challenges we have in effective listening – and doing some listening exercises, you’ll maintain the listening skills you have and perhaps develop new ones. Getting Started (Class 1) 1. First, working in groups of 4 or 5, generate a list of 8 qualities that good listeners have. These might include both visible and non-visible items. 2. Next, create a list of 8 things that can get in the way of ones ability to listen fully and effectively. For example, what kind of environments are best for listening? What kinds of emotional states make it harder to listen accurately? 3. Next, think about the different kinds of listening people engage in; what roles do listeners play from day to day? 4. Finally, come together as a class and compile a master list of your group’s findings. The â€Å"What I heard† Exercise (Class 2) Because a big part of engaged listening involves giving feedback to a speaker, sometimes we have to be able to both listen and think simultaneously. While focusing too much on our own thoughts can get in the way of effective listening, making simple connections to explore later can be very useful. In this exercise, you will listen to your classmates describe the main points from their Close-Reading papers (from Assignment One), and follow-up with a segue to your own paper. 1. First, one person says what passage his or her Close Reading is about and either reads all of it or an excerpt aloud. 2. Next, that person tells the class about the main points of his or her Close Reading, using the Close Reading paper as notes. 3. At this point, anyone whose passage is similar (some may even have identical passages) or raises similar issues, enters the conversation with an affirmation that he or she has heard the previous speaker by saying something like, â€Å"What I heard you say is †¦Ã¢â‚¬  followed by the link that the student sees between his or her own paper and the paper of the previous speaker.

Great Expectations by Charles Dickens :: Great Expectations Essays

Great Expectations by Charles Dickens Chapters 1-3 give you a feeling of welcoming. The first three chapters aren't just comical but in some places they are edgy. The humour makes it enjoyable to read and the apprehensive situations make you want to read on to see what happens. Right from the beginning Dickens has aroused the readers interest. The story is told in First Person Retrospective Narrative. This enables Dickens in the early chapters to re-create the child's eye view whilst fusing it with adult judgements. ================================================================== Instantaneously we know that it is wrote in First Person Retrospective Narrative because of the use of the pro-noun "I". The main character "Pip" is introduced straight away and we find out his situation. Pip introduces himself and tells you a brief background on himself. He explains where he got his name from and that his sister has been a mother type figure to him as all his brothers and parents are deceased. ====================================================================== "MY FATHER'S family name being Pirrip, and my Christian name Philip, my infant tongue could make of both names nothing longer or more explicit than Pipà ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦ à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦--I am indebted for a belief I religiously entertained that they had all been born on their backs with their hands in their trousers-pockets, and have never taken them out in this state of existence." ---------------------------------------------------------------------- Pip laughs at his own childish inexperience as he pictures his parent appearance just from the tombstones. By the third paragraph he has already established the setting - marshland (Desolate Area). He tells us what time it begins at - Twilight. (Anxiety already created). "On a memorable raw afternoon towards evening." We already suspect something to take place. The convict enters suddenly and Pip is startled. Quick exchanges between the characters gives a tense feeling. The convict steals Pip's bread and scoffs it as if he hasn't had anything to eat for some time. Chapter 2 opens with Pip's naivety setting in again as he describes

Make Death Penalty Legal Essay -- essays research papers

â€Å"And thine eye shall not pity, But life shall go for life, eye for eye, tooth for tooth, hand for hand, foot for foot,† the Book of Deuteronomy 19:21. When the word â€Å"death penalty† or capital punishment is mentioned, so is morality. Others claim that there is no morality in such punishment. However, what is more moral than the Bible? The Bible encourages condemning sinners. The golden rule practically sums it all up: do unto others as you want done unto you. If you choose to kill, then you had better be ready to accept the consequences. California is a state built on a foundation of justice and equality. It is only fair that when an innocent life or lives are taken, some kind of compensation is given. In most cases, the death penalty is a matter of justice and equality. With most crimes, the purposes of the punishment are to rehabilitate the convict and to send a warning to others who would commit similar crimes. According to the U.S. Department of Justice statistics, 60 to 80 percent of all convicts will continue to commit more and generally worse crimes when released. Violent con...

Discussion of Ias 17 Leases

Advanced Accounting Theory & Practice Assignment: Discussion of IAS 17 Leases Huixuan HUANG Student ID: 500284151 Module Organizer: Colin Bradley Words Count: 1964 words Date of Submission: 17th April, 2012 Discussion of IAS 17 Leases Introduction Accounting for leasing is always being a hot topic. The standard setters of IAS 17 encountered much controversy when they tried to stop charging all lease payments to the income statement.In this essay, firstly, I will point out the key features of the current IAS 17 with its effect on General Electric Company for illustrative example. Then I will analyst the development of IAS 17 and its underling rationale. Finally, the criticisms of the standard will mainly be discussed, followed by the brief debate of proposed new leasing standard. Key features with example IAS 17 aims to prescribe the appropriate accounting treatment and disclosure to apply in leased items such as property, plant and equipment for both lessees (the user) and lessor s (the supplier).First of all, IAS 17 defines a lease as â€Å"an agreement whereby the lessor conveys to the lessee in return for a payment or series of payments the right to use an asset for an agreed period of time† (IAS 17) and then the standard classified a lease as finance lease if â€Å"a lease that transfer substantially all the risks and rewards incidental to ownership of an asset† (IAS 17). All other leases are distinguished as operating leases. It is the most prominent feature of IAS 17.Clearly, the classification of a lease, ignoring the legal form of arrangement, depends on the substance of the transaction instead, which means it concentrate on the â€Å"risks and rewards† linked with ownership rest with either the lessee or the lessor. IAS 17 provides five primary situations in detail as indicators which would normally be viewed as a finance lease. Additionally, the land element and the buildings element should be normally considered separately whe n distinguishing a lease. The minimum lease payments are allocated between the elements of the lease proportional to their relative fair values at the incipiency of the lease.Of course, IAS 17 requires different accounting for operating leases and finance leases. In the case of operating leases, as the lessee does not shoulder the risks and rewards of ownership, the annual leases payment are only recognizes on a straight-line basis over the lease term as an expense through the income statement. However, for finance leases, lessees are required to list leased items as an asset in their financial statements along with a related obligation for future payments to the lessor. It means it is not allowed to leave the leased asset and lease obligation out of the balance sheet.Finance leases must be capitalized in the lessee’s accounts. Take General Electric Company for example. As a lessee in operating leases, GE recognizes the lease payment as an expense on a straight-line basis ove r the lease term. Their rental expense under operating leases is shown as following. Cited from GE Annual report 2011 At December 31, 2011, minimum rental under operating leases for GE and GECS aggregated $2,387 million and$2,119 million, respectively. Amounts payable in the next five years follow. Cited from GE Annual report 2011As a lessor in operating leases, it presents these assets in statements of financial position according to the nature of the asset. The depreciation policy for leased assets is consistent with GE’s normal depreciation policy for similar assets. Lease revenue from operating leases is recognised in income on a straight-line basis over the lease term. GECS revenues from equipment leased to others were $11,343 million in 2011 and$11,116 million in 2010. As IAS 17 requires, under finance leases, GECS recognize assets in balance sheet and present them as financing receivables at an amount equal to the net investment in lease.Its investment in finance lease s includes direct financing and leveraged leases of aircraft, railroad rolling stock, transportation equipment, medical equipment, commercial real estate, commercial equipment and facilities, etc. Net investment in financing leases is following: Cited from GE Annual report 2011 According to IAS 17, many large companied such as GE have to convert their operating leases to finance leases. Such a conversion results in increasing on both current liabilities and total liabilities.These increases might have significant implication for financial analysis. Development of IAS 17 and its underlying rationale The growth in the leasing industry became massive in 1970s, which means leasing had been a significant economic resource. However, accompanied with the growth in off balance sheet financing, leasing in popularity led to a problem that companies’ financial statements were seemed to be distorted by the accounting treatment of leasing transaction. Thus, they did not show a true and fa ir view about their business activities by financial reports.Like many other standards, urgent action was needed as there was no uniformity in treating and disclosing the lease transactions to prevent manipulated accounting message occurring. IAS 17 proved to be very controversial accounting standards. Time witnessed the extent of the controversy. Originally, IAS 17 was published in September 1982 by the IASC and revised in December 1997. In December 2003, it was revised again and issued by the IASB. In April 2009, an amendment about the classification if land leases as a part of the Annual Improvements to IFRSs as made to IAS. Then the revised IAS 17 remains effect to now. The ASC in the UK expressed a concern that the standard might lead to undesirable economic consequences by reducing the quantity of leasing and that the lessee firm’s gearing might be affected disadvantageously by the inclusion of the lease responsibility. Nevertheless, â€Å"in the event, the commercial reasons for leasing and the capacity of the leasing industry to structure lease agreements to circumvent the standard prevented a reduction in lease activity.Evidence of lessors varying the term of the lease agreements to ensure that they remained off balance sheet is supported by Cranfield and by Abdel-Khalik et al. †(2008, Elliott, B. and Elliott, J. ) In current IAS 17, the leased items that substantially transferred the risks and reward to the lessee should be reported in the financial statements. The standard requires finance leases to be capitalized. The asset and liability should be brought onto the statement of financial position. Criticisms of IAS 17Unfortunately, there are strong criticisms raised in relation to the existing IAS 17S by securities regulators, professional accountants and other interested parties. The main criticisms focus on the failure of the existing accounting model to meet the needs of financial analysis for users of financial statement. Commonly, investors and other users of financial statements believe operating leases produce assets and liabilities so they routinely adjust the recognized amounts to recognize the assets and liabilities so as to make comment the effect of lease contracts in profit or loss.However, there are deficiencies in the information on leasing accounting in the current IAS 17. It cannot provide a complete picture of a company’s leasing activities and is difficult to compare entities each other. Equally importantly, existing IAS 17 could provide opportunities to structure leasing transactions whereby lease contracts can be built in a particular way in order to achieve a particular lease classification and lead to a particular outcome. For instance, a lease contract could be fabricated in such a way that it is not in accord with any bright-line indicators of IAS 17.Consequently, it is classified as an operating lease in order to obtain an economic source of unrecognized financing and thereby achi eves a particular capital structure. Moreover, the two different accounting models for leases might lead to very different accounting treatment for similar transactions. This also reduces comparability for users of financial statements. Some critics of IAS 17 have pointed out another problem that the existing accounting model is conceptually deficient. IAS 17 only identifies as liabilities obligations due under finance leases, not those under operating leases.Specifically, arriving at a lease contract, the lessee obtains the right to use the leased equipment, which fulfills the board’s definition of an asset. Similarly, the obligation of the lessee to pay rentals also meets the definition of a liability. However, the right and obligation are not recognized if we identify the lease as an operating lease. In addition, accounting model for leases growingly differs from other contractual arrangements, which gives rise to inconsistent accounting between lease arrangements and simi lar arrangements that are not defined as lease arrangements.Besides, managers and auditors have complained about complexity of the existing accounting model. Especially, it is difficult to define a distinction line between finance leases and operating leases in theoretical way. As a result, the standards employ bright-line tests and a mixture of subjective judgment, which is hard to implement. Future of IAS 17——Draft ED/2010/09 In March 2009, a joint discussion paper on leases issued by the IASB and the FASB. The objective of this project is to correct and improve those deficiencies in IAS 17.On 17 August 2010, the exposure draft, Draft ED/2010/09, was published to set out a proposal for a new IFRS on leases. There are more than seven hundred comment letters received on it. A re-exposure is expected in the second quarter in 2012. The board plan to issue the new standard after 1 January 2013. The ED would correct the apparent weaknesses in the current standard and the p roposal would lead to a significant improvement. The distinction between finance leases and operating leases would be eliminated. It would set out new accounting methods on leasing for both lessees and lessors.Within the scope of the proposal, lessees would be no longer permitted to treat leasing as off-balance sheet financing in the right-of-use model but would be reflected as assets and liabilities, regardless of the form structure, if they meet the definitions in the Conceptual Framework. Furthermore, ED/2010/6 would help to show a more accurate measure of a company’s gearing or capital structure and enhance the comparability characteristic of financial reports. However, new issues emerge that need further consideration. For the proposed revenue standards, further clarification is needed on the â€Å"continuous transfer of control† criterion.The proposal might give rise to diverse explanation for certain types of contracts. Secondly, although the lessons’ acc ounting in proposal is conceptually sound, the lessors’ accounting lacks theoretical virtue. Employing a hybrid model is contrary to the single right-of-use model. The performance obligation method recognizes the underlying assets, lease receivables and two income streams, interest income and lease income as well. It is conceptually weak because, in reality, there is only one underlying asset and one income stream from lease payments.Although this approach brings about significant economic benefits, side-effect could also occur when testing impairment of underlying assets and lease receivables. Turning to derecognition approach, although it more closely consists with the single right-of-use model and has more theoretical merits, its new concept of residual asset requires further deliberation. For instance, whether it meets the definition of an asset? If it is so, is it a tangible asset or an intangible asset? Conclusion Although the current IAS 17 encountered many comments, t he joint leases roject is still under development and the explained provisions are not final. There is no doubt that the proposed new leasing standard provides a more accurate representation of the economic transaction in the leasing field. The users of financial statements will make better decision with more complete information. But to some extent, it is more onerous than the existing accounting rules so that probably, some small entities daunt their progress faced with the increasing complexity rules and investors will have to calculate by themselves on the implications of this new information.So IAS  17 still works. Hopefully, the final standard is expected to be issued later in 2012 and to become effective in late 2013 or early 2014. In short, it cannot be disputed that it is crucial for anyone to clearly understand the new standard that is keen to interpret financial statements accurately.Reference [1] Billenness, L. (2010), ‘The Future of Lessee Accounting: Everything You Wish You Never Had to Know About the New Lease Accounting Standards’, EMEA ViewPiont, December 2010 [2] Byrnes, N. 2006), ‘You May Be Liable for That Lease: FASB’s Review of Lease Accounting Standards Could Really Hammer Retailers’, Business Week, June 5 2006 [3] Deloitte’s IFRS Global Office, (2010), ‘IFRS in Focus——IASB issues Exposure Draft on Lease Accounting’, [Online] Available at: http://www. iasplus. com/en/publications/ifrs-in-focus/2010/ifrs-in-focus-2014-iasb-issues-exposure-daft-on-lease-accounting-august-2010/file [Accessed 4 April 2012] [4] Elliott, B. and Elliott, J. (2008), ‘Financial Accounting and Reporting’, 12th edition, London: Pearson Education Limited, pp433-448 [5] Grossman, A.M. and Grossman, S. D. (2010), ‘Capitalizing Lease Payments: Potential Effects of the FASB/IASB Plan’, CPA Journal, May 2010 [6] IASB (2010), ‘Snapshot: Leases’, [Online] Available a t: http://www. ifrs. org/NR/rdonlyres/FBE30248-225B-48AF-AAE5-96494D83A978/0/LeasesSnapShot0810. pdf [Accessed 16 April 2012] [7] IASC Foundation staff, ‘Technical Summary: IAS 17 Leases’, [Online] Available at:http://www. iasb. org/NR/rdonlyres/B8ABE9AA-8F5B-4301-866E-ED2D423504E7/0/ias17sum. pdf [Accessed 4 April 2012] [8] IAS 17 [Online] Available at:

Beyond Beyond Fashion

There is a trick of my writing teacher: When we finish reading an essay, first he asks: â€Å"What is it about? † We answer, then he asks:† If that's not what the essay is about, then what is it about? † So we answer again, striving to squeeze out every drop of intelligence out of our brain cells. Repetitively, after we are willingly tortured by this same question for three more rounds, the essence of the essay shows up. This was exactly the same feeling I received from the exhibition Charles James: Beyond Fashion, displayed by the Costume Institution of the Metropolitan Museum ofArt. Throughout the exhibition, I was asked this question over and over again: If fashion is not what the exhibition about, then what? Started from Maya and lasting until August 10, the special exhibition of Costume Institute of Metropolitan Museum presents the audience signature pieces of Charles James, an Anglo fashion designer who was active during the post-WWW 20th century in America. The exhibition is held in the special exhibition galleries on the Museum's first floor and The Costume Institute's Anna Winter Costume Center on the ground floor, including one small adjunct hall showing documents.Fifteen evening ball gowns and about fifty ready-to- wears are displayed. With intricate costumes, James first of all stood out as a king of fabric sculptor without crown beyond the simple definition of a fashion designer who made clothes that fit in the trend. The costumes were indeed â€Å"amazing†Ã¢â‚¬â€- quoting the most commonly used word of the visitors. James' original spiral cut, almost seamless design and the free draping technique are still not nearly comparable in the present day.They were not Just fashion, but sculptures that go around human body with full artistry and could stand the test of pure aesthetic examination. However, if the costumes were examined even beyond their tags of â€Å"fashion† and beyond their sculptural appearances, the int ention of these designs was actually in some degree provoking, if we examine the quotes of James that were written on the walls of the halls. A quote of James revealed that his ideal of fashion was largely sexual. â€Å"The feminine figure,† he believed, was â€Å"intrinsically wrong†.Thereby he claimed, â€Å"All my seams have meaning, they emphasize something about the body. † In this way, he striver to â€Å"perfect† the female body, however destroying the natural beauty of female odd at the same time. As a result, the innate motive beyond the fashion appearance of these designs was sexism aesthetics of the traditional malpractice, which should have been eliminated a long time ago. James' fastidious and male-centric aesthetic of female figure beyond his ability as an artist was further revealed by details in his designs. In the actual practice, James overemphasized the female parts.First, the tops gather into sharp and pointing horn. This design was ma de possible by darts of the gowns' tops following the traditional Rococo corset, which once made the teenage arils and young wives' waistlines tiny but at the same time cruelly took away many of their lives. At the same time, the bottoms of gowns spread widely. Either the gowns had big volume of piled-up drapes on the hip, or they were supported directly by two bustles, which was also a typical classic masculine aesthetic that addressed female's ability of bearing kids.Overall, James' costumes remade a women's body into a funnel shape. In addition, the bosoms were preferably shaped as cones, which presented women lasciviously. Even in the Victorian times, this male-dominant esthetics was giggly controversial for these characteristics defined females simply attractive in the way of a reproduction and bearing machine. In the post World War II America, after the liberation of female body brought by the ‘H' dresses, this Victorian renaissance was a recess that brought female back into the prison of clothes.Rather, in today's aspect, these aesthetics of female body are morbid. For females, it is the blood and tears in females' costume history. These characteristics, as â€Å"beautiful† as some might consider, are dross of the Victorian culture that should never be reused to improve he figure or even hinted in a modern design. I have to say, peeking into the motive of the designer, I saw an egocentric though man who are arrogant in the way he examining females. Finally, the end of the exhibition explored what truly was beyond this fashion designer Charles James explored even deeper.Beyond a fashion godfather, a king of fabric sculpturing, and a self-involved and orthodox masculine artiest, the documentary hall showed James as a person. Traditional mannequins and sketches were shown. While at the meantime, the document room also showed he videos clips of James kissing his finale model on her cheek before going on the runway, and an important list of cele brities and artists typed by James that James would like to design for. The tone of the list was playful, ironic and effusive. There were as well glowing critics, basically eulogies.In this room, though most people do not linger in it, the most interesting information what the artist was available, and it gave anyone who wanted to look deeper into the motive and inspiration of him a lucid answer: genially eccentric, Charles James' boldness and arrogance toward there led to his unceasing pursuit of perfection and the exploration of impossibility, which explained his surprising designs and the elaborate way of fabricating the costumes. As an exhibition of the Metropolitan museum, there were some commendable displaying methods in this exhibition indeed.The exhibition started with a theatrical opening. At the entrance, the world darkened down, and with the wall showing the name of the exhibition and a classic walking mannequin (a woman-shape body model) of James, the bright outer world and the dark inside world were clearly vided. There was as if a magical twilight moment, indicating the arrival of something brilliant in the darkness. After the prologue, I was almost brought into Sesame's studio on 699 Madison Street by muslin samples of his gowns posing around his famous â€Å"butterfly' sofa, recreating the scene of the studio and the salon of James.Inside the hall, the gowns were arranged in a spiral shape, going around his best- known masterpiece: Clover Leaf Ball Gown 1953. The x-ray analysis as well as the animation simulator explained the inner structure of the clothes by showing the involutes plastic bones and complicated drapes in the layers of fabric. The application of new technology treated fashion so scientifically —-as if a real piece of architecture—-that it gave even the most general audience a chance to think about the materialist word â€Å"fashion† in a whole new way.On the pads that showed the information of exhibits, a fe w hints about this sexual intentions of James' designs by showing the costumes of inspiration from the Victorian time, without explaining the underlying meaning of the original design. Though implicit about the word â€Å"sexual†, Hess pictures purposefully gave the audience a clue to the intention but still left them room to think that what was truly beyond fashion beside the artsy structure, allowing their own interpretation.Deliberately, the exposition of the clothes revealed the museum's respect to the master James, for his elaborate effort paid beneath the fabric. Furthermore, the exhibition's respect was also to the audience, as the museum brought fashion back to the ground, accessible to a general audience, while it respect the individual thinking by leading the audience to think about what was truly beyond cushion instead of giving out a definite answer. Still, compare to the art value of the exhibits, the display of the exhibition was fairly not a highlight.The light ing in the main halls was a disaster. Firstly, the semi-dark lighting environment in the black hall was a click. Comparing to other costume exhibitions at the Met Museum, this technique was so widely used that this trick did not tell anything about the artist. It was even anti-characteristic. James had a preference for dark colors. However, the semi darkness created a hostile environment for the audience to see the details. Especially since flash was not allowed, without a professional camera, I could not capture any details of the dark coats and gowns beside their silhouettes.And since the photos could not be used as long-term documents, the educational function of the museum in this aspect was largely sacrificed. Additionally, the semi-darkness also brought a sense of heaviness to the costumes. To illustrate, one of the best-known gown called â€Å"Swan† was named for the lightness of the peplum, which was composed of six layers of delicate chiffon. Nonetheless, with the li ghting, I did not see the eighteens at all because the semi-dark casting light could not go through and light up the costume like natural light.Therefore, what I saw was an impenetrable broom instead of the airy dress, which was not influenced by gravity. Overall, the display was mismatched with the costumes, even though there were few novel techniques applied. The masterpieces were as if sunk in a Jar platitude. The title Beyond Fashion made me feel confused and enthralled when I first stepped in that dark hall, yet I felt illuminated and preoccupied when I stepped back to the bright outer world. The exhibition successfully pushed one to think about the essence beyond appearance by presenting the costumes in different layers and angles.An audience could feel the question of what was beyond fashion throughout the exhibition. The magic would not happen until the very end, where one could confidently give out his/her own answer, like the answer to fifth round of questioning of my writ ing teacher. As for me, beyond fashion, beyond structure, beyond male chauvinism and beyond all his drama, I saw an aloof, fastidious, nostalgic, self- involved, narcissistic yet incredibly serious and genius about fashion soul of this master, this man.