Analysis of balance sheet and income statement Essay

Analysis of balance sheet and income statement - Essay Example The company focuses their services on the following four markets: clean energy, oil and gas, environment and infrastructure and mining (Annual report: AMEC plc 2013, pp. 1-8). On a similar note, Carillion plc is headquartered in Wolverhampton, United Kingdom. The company was founded in 1999. Carillion plc offers services on management in the following fields: efficient energy, buildings and infrastructure, project management and facility management. Carillion plc operates in the following business segments: construction services, support services, Middle East construction services and support services (Annual report: Carillion plc 2013, pp. 1-6). The key item considered in the analysis of the income statement is the revenue. Concerning AMEC plc, the revenue levels in the year 2012 and 2013 were  £ 4,088 million and  £ 3,974 million respectively. The company’s revenue decreased by 2.789% between the periods (Annual report: AMEC plc 2013, pp. 94). Comparatively, the revenue levels for Carillion plc for the same period were  £ 4,402.8 million and 4,080.9 million. The company’s revenue decreased by 7.311% between the two periods. Based on the analysis, Carillion plc’s revenue level were higher than that of AMEC plc, during the two years (Annual report: Carillion plc 2013, pp. 76). The analysis of the statement of financial position covers the total assets. Concerning AMEC plc, the total assets in 2012 and 2013 were worth  £ 2,518 million and  £ 2,384 million respectively. The company’s total assets decreased by 5.322% between the two years (Annual report: AMEC plc 2013, pp. 96). Comparativel y, the total assets for Carillion plc during the same period were worth  £ 3,862.4 million and  £ 3,639.9 million respectively. The company’s total assets decreased by 5.761% between the two years (Annual report: Carillion plc 2013, pp. 79). Based on the analysis,

Texting and Driving Speech Essay Example for Free

Texting and Driving Speech Essay To convince my audience that the use of cell phone while driving is dangerous. Central Idea: The use of cell phone should be banned while driving because of the minds not focus on the driving,the driving and the distraction by the phone. Organization: Problem, solution, solution Main Point: Point Elaborate †¢Mind cannot focus on driving †¢Distraction from the cell phone †¢Effects: accident/injury †¢Effects: jeopardize people around †¢Example: The driver will not focus with the driving and will endanger people around if there are mistakes while driving. (statistic) †¢Hand phone should be banned †¢Banning the usage of cell phone while driving †¢Harm people around †¢Solution: Goverment need to be aggresive on settling this issue. †¢Solution: Government need to fine the driver with high prices. Example –state of Massachusetts have given the penalty to the driver that is found guilty will be fine for $100 for first offense and the second offence will be $250 and the third offence will be $500. †¢Driving amp; distraction †¢To have slower braking time †¢Solution: Installing Rumble Strips along road to get attention of the driver. Topic Gadget Title The use of cell phone should be banned while driving General Purpose To persuade Specific Purpose To convince my audience that the use of cell phone while driving is dangerous Central Idea The use of cell phone should be banned while driving because minds cannot focus on the driving, the ways to overcome this problem which are the government need to fine driver that found guilty with high prices and the government need to improve the roads condition such as installing the â€Å"Rumble strips†. Organization Problem, Solution, Solution INTRODUCTION †¢Open with impact/ Attention getter Cell phone is a gadget where people tend to use to make call, give short message service (SMS). (suddenly the phone is ringing and I picked it up while doing presentation). Tie to the audience/ reason to listen Back to my slide, fact says that we cannot do two things at the same time. Based on what I acted just now showing that while I gave my speech, and someone just call me at the same time, I cannot do that both. It is related with while we are driving, and someone just calls us, and then we tend to do or focus on just one thing. Why I am saying that? That is because we use only half of our brain to process for what we do. †¢Credibility statement/ material When I drove back to my hometown and yes, sometimes I am talking on the phone while driving. So, after few times seeing some accident and the impact when using hand phone while driving, I get my knees shake. †¢Preview of main points/ central idea For today, I will convincing you that cell phone need to be banned while driving because the minds will not focus on the driving and how to overcome this problem which is the government need to fine driver that found guilty with high prices and the government should improve the roads condition such as put the â€Å"rumble strips†. Transition to body of speech: First of all, we need to know what the problem in this statement is. Main point 1 When we are driving in a car while talking on the phone, our mind cannot focus on the road because one hand with the phone and one hand manoeuvre the car. †¢Supporting details 1 Certain studies show that driving while talking on the phone can lead to injury or increasing the crash risk. †¢Supporting details 2 Example like a study by Suzanne McEvoy and colleagues of driver on 2005 in Western Australia have found that drivers that are using cell phones were four times tend to be in injury-resulting crashes when talking on the cell phones. Supporting details 3 Niki Taylor which is a supermodel had got in an accident. The accident was began when a friend of her or stockbroker, James ‘Chad’ Renegar had hit a utility pole while trying to retrieve a ringing phone. From the report, there were also a passenger aside Niki. The weather were stormy and the road were wet and winding. Niki sat in front of passenger seat during the low impact crash. (picture of Niki Taylor) Transition to main point 2 As we all know, the government have banned the use of cell phone while driving. †¢Main point 2 Phone can bring harm to people around if the driver is using it. Government need to be aggressive in settling this issue. So, the government need to fine the driver with high prices summons. †¢Supporting details 1 Example like one of state in United States of America which is Massachusetts had given the penalty to the driver that has been found guilty. They will be fine for $100 for first offense and the second offence will be $250 and the third offence will be $500. †¢Supporting details 2 By doing this, I am sure people will not played their cell phones while driving because the price is to high! Transition to main point 3 Besides that, cell phone is a distracting thing while driving a car. †¢Main point 3 When we are driving, we are tending to be more careful or cautious about people around. But, when something distracting us we might lose focus on driving example when suddenly something happened, we have or tend to have slower braking time. †¢Supporting details 1 To curb this from always happened, the government can also make some changes to the road rather than we use the law to reduce the number of driver that doing this ‘crime’. The government need to install â€Å"Rumble Strips† along road to get attention of the driver. †¢Supporting details 2 Rumble strips can also be called as sleeper lines which are to alert the driver if they have drift from their lane on the road. Besides it is an economical and effective to the driver. Picture shown that the rumble strips in Hennikar, New Hampshire, US. (picture is shown) Transition to conclusion Be sure to keep this in mind that with using cell phone while driving will cause you to be in more high risk state. Conclusion †¢Summary of main point In conclusion, I am emphasise that using cell phone while driving will cause you more impact because your mind cannot focus on driving, and it will distracting you as a driver and we need to follow the law from government or else we might get into trouble.

XML Application for Business Processes :: essays research papers

XML | Applications for Business Process Analysis & Design Introduced in 1996, Extensible Markup Language (XML) was initially intended to function in the place of Hypertext Markup Language (HTML) as the standard format used to define online document structure (Obasanjo, 2003). These intentions are proving inevitable as business organizations begin to realize the real potential found in the family of XML technologies. Potential in terms of improvement in information management practices measured by a company’s reduction in time and overhead. One such organization that has actually realized these benefits in several facets of their operations is Freightliner, a division of Daimler Chrysler who designs, manufactures, and sells specialized commercial vehicles and will be detailed later (Kotok, 2003). XML has proven to be more than simply an advanced version of HTML. It is helping to create a common language for intra and inter-organizational business processes (Obasanjo, 2003). Several aspects unique to XML set it apart from its parent Standard Generalized Markup Language (SGML) and sibling HTML. These are the same aspects spurring a community of software developers, enterprise leaders, and standards commissions to focus on this budding technology as the lingua franca of document exchange (Geyer, 2003). The meta-language not only defines webpage format but also is actually able to provide descriptions of tabular, structured, and semi-structured data. Network protocols, relational databases, program configuration files, web pages, technical drawings and business documents are all examples of these common data forms found in everyday business operations (Obasanjo, 2003). Like HTML, XML incorporates tags that bracket words and attributes. XML, however, uses these tags to define the data leaving the task of interpretation up to the application employing the data. This undefined vocabulary feature allows extensibility in that industry specific terminology is no longer a programming hurdle as in the past (Bos, 1999). XML applications can easily be tailored to plug in and bridge the communication between once stand-alone software. Resource intensive new software investments can be avoided by making use of existing databases and familiar programs. XML can be used with a large assortment of other languages and is not specific to any one operating system or vendor. It is text based and Unicode compliant and can be translated into the many commonly used written languages (Walsh, 2003). This allows for more businesses that run a variety of platforms and operate internationally to take advantage of this technology. Along with XML comes a family of helpful resources designed to automate frequently used tasks and offers services to make writing the language efficient and user friendly.

Multiple Births: Twins, Triplets, and Beyond Essay

Abstract The high number of multiple pregnancies is a concern because women who are expecting more than one baby are at increased risk of certain pregnancy complications, including premature birth. Multiple Births: Twins, Triplets, and Beyond References Martin, J.A., et al. Births: Final Data for 2006. National Vital Statistics Reports, volume 57, number 7, January 7, 2009. Reddy, U.M., et al. Relationship of Maternal Body Mass Index and Height to Twinning. Obstetrics and Gynecology, volume 105, number 3, March 2005, pages 593-597. Wright, V.C., et al. Assisted Reproductive Technology Surveillance–2005. Morbidity and Mortality Weekly Report, volume 57 (SS05), June 20, 2008. Practice Committee of the Society for Assisted Reproductive Technology and the American Society for Reproductive Medicine. Fertility and Sterility, volume 86, Supplement 5, November 2006, pages S51-52. American Society for Reproductive Medicine. Multiple Pregnancy and Birth: Twins, Triplets, and Higher Order Multiples: A Guide for Patients. Birmingham AL, 2004, accessed 12/16/08. Rossi, C., and D’Addario, V. Laser Therapy and Serial Amnioreduction as Treatment for Twin-Twin Transfusion Syndrome: A Metaanalysis and Review of Literature. American Jour nal of Obstetrics and Gynecology, volume 198, number 2, February 2008, pages 147-152. Lopriore, E. et al. Risk Factors for Neurodevelopment Impairment in Twin-Twin Transfusion Syndrome Treated With Fetoscopic Laser Surgery. Obstetrics and Gynecology, volume 113, number 2, February 2009, pages 361-366. Senat, M.V., et al. Endoscopic Laser Surgery versus Serial Amnioreduction for Severe Twin-to-Twin Transfusion Syndrome. New England Journal of Medicine, volume 351, number 2, July 8, 2004, pages 136-144. American College of Obstetricians and Gynecologists (ACOG). Multiple Gestation: Complicated Twin, Triplet, and Higher-Order Multifetal Pregnancy. ACOG Practice Bulletin, number 56, October 2004. Institute of Medicine. Weight Gain During Pregnancy: Reexamining the Guidelines. May 2009. New York: National Academy of Sciences, accessed 12/8/09. American College of Obstetricians and Gynecologists (ACOG). Having Twins: Patient Education Pamphlet. ACOG, Washington, DC, 2004, accessed 12/9/08. When a woman is carrying one baby, it is called a singleton pregnancy. When She is carrying two or more babies it is called multiple births. In the past 2 decades, the rate of multiple births in the United States jumped dramatically. The rate of twin births increased by 70 percent between 1980 and 2004, and the rate of higher-order multiples (triplets or more) increased four-fold between 1980 and 1998 . However, the rapid rise in multiple birth rates may be ending. In 2005 and 2006, the rate of twin births remained stable . The rate of higher-order multiple births has declined 21 percent since its peak in 1998 . Today, more than 3 percent of babies in this country are born in sets of two, three or more; about 95 percent of these multiple births are twins. The high number of multiple pregnancies is a concern because women who are expecting more than one baby are at increased risk of certain pregnancy complications, including premature birth . Premature babies are at risk of serious health problems during the newborn period, as well as lasting disabilities and death. Some of the complications associated with multiple pregnancy can be minimized or prevented when they are diagnosed early. There are a number of steps a pregnant woman and her health care provider can take to help improve the chances that her babies will be born healthy. About one-third of the increase in multiple pregnancies is due to the fact that more women over age 30 are having babies. Women in this age group are more likely than younger women to conceive multiples. The remainder of the increase is due to the use of fertility treatments, including fertility-stimulating drugs and assisted reproductive technologies (ART), such as in vitro fertilization (IVF). In IVF, eggs are removed from the mother, fertilized in a laboratory dish and then transferred to the uterus.  About 44 percent of ART pregnancies result in twins, and about 5 percent in triplets or more. Doctors now monitor fertility treatments carefully so that women have fewer, but healthier, babies. This involves limiting the number of embryos transferred during IVF. In 2006, the American Society for Reproductive Medicine and the Society for Assisted Reproductive Technology issued updated guidelines on the best number of embryos to transfer, depending on a woman’s age and other factors . For example, the guidelines recommend that doctors transfer no more than two embryos for women under age 35, and consider transferring only one embryo for women in this age group who are considered most likely to become pregnant. Doctors monitor women taking certain fertility drugs with ultrasound. If ultrasound shows that a large number of eggs could be released during a treatment cycle, the doctor can stop the treatment and counsel the woman accordingly. The following factors can increase the chances that a woman will conceive multiples: †¢Fertility treatment †¢Age over 30 years †¢A personal or family history of fraternal (non-identical) twins †¢Obesity or taller-than-average height †¢African-American race (African-American women are more likely to have fraternal twins than caucasian women, and Asian women are the least likely to have fraternal twins) Although previous generations often were surprised by a multiple birth, today most parents-to-be learn the news fairly early. A routine first-trimester ultrasound can detect most multiples. (Sometimes a twin pregnancy that is identified very early is later found to have only one fetus. This is called â€Å"vanishing twin syndrome,† and its cause is not well understood. The surviving twin generally is not harmed.) Other factors can alert a health care provider that a woman may be expecting twins or more. These include: †¢Rapid weight gain during the first trimester †¢The uterus being larger than expected †¢Severe pregnancy-related nausea and vomiting (morning sickness) †¢More than one heartbeat heard by a provider using a hand-held ultrasound device (Doppler) †¢More fetal movement than the woman experienced in a previous  singleton pregnancy †¢Abnormal results on maternal blood screening done around 16 weeks of pregnancy to screen for certain birth defects A health care provider who suspects a multiple pregnancy most likely recommends that the woman have an ultrasound to find out for sure. Women who are expecting more than one baby are at increased risk of a number of pregnancy complications. The more babies a woman is carrying at once, the greater her risk. Common complications include: Premature birth: About 60 percent of twins, more than 90 percent of triplets, and virtually all quadruplets and higher-order multiples are born premature . The length of pregnancy decreases with each additional baby. On average, most singleton pregnancies last 39 weeks; for twins, 35 weeks; for triplets, 32 weeks; and for quadruplets, 29 weeks. Low birth weight (LBW): More than half of twins and almost all higher-order multiples are born with low birth weight (less than 5 ½ pounds or 2,500 grams). LBW can result from premature birth and/or poor fetal growth. Both are common in multiple pregnancies. Twin-twin transfusion syndrome (TTTS): About 10 percent of identical twins who share a placenta develop this complication. TTTS occurs when a connection between the two babies’ blood vessels in the placenta causes one baby to get too much blood flow and the other too little. Until recently, severe cases often resulted in the loss of both babies. Preeclampsia: Women expecting twins are more than twice as likely as women with a singleton pregnancy to develop this complication, characterized by high blood pressure, protein in the urine and generalized edema. Severe cases can be dangerous for mother and baby. In some cases, the baby must be delivered early to prevent serious complications. Gestational diabetes: Women carrying multiples are at increased risk of this pregnancy-related form of diabetes. This condition can cause the baby to grow especially large, increasing the risk of injuries to mother and baby during vaginal birth. Babies born to women with gestational diabetes also may have breathing and other problems during the newborn period. Early diagnosis and management of these complications can help protect mother and babies. Women who are expecting multiples generally need to visit their health care providers more frequently than women expecting one baby. These extra visits  can help prevent, detect and treat the complications that develop more often in a multiple pregnancy. Health care providers may recommend twice-monthly visits during the second trimester and weekly (or more frequent) visits during the third trimester. During the third trimester, the provider may recommend tests of fetal well-being. These include. Eating right and gaining the recommended amount of weight reduces the risk of having a premature or LBW baby in singleton, as well as multiple, gestations. A healthy weight gain is especially important if a woman is pregnant with multiples because they have a higher risk of premature birth and LBW than singletons. The chance of a cesarean birth is higher in twin than in singleton births. However, a pregnant woman has a good chance of having a normal vaginal delivery if both babies are in a head-down position and there are no other complications. When a woman is carrying three or more babies, a cesarean birth usually is recommended because it is safer for the babies.

Diabetes Websites

INTRODUCTIONDiabetes websites are only one form of the many sources produced by technology. The usage of websites in obtaining information is now widely credited because it is fast, up-to-date and efficient while on the comfort of home. When using the internet, the available facts are always ready for printing and research use. Like any other illness, diabetes is a wide known subject and almost all ages can have this disease.On the other hand, internet utilization does not choose its consumers. Elderly, children and the adults use websites due to its informative format and easy programs. Let us look on two websites that give data about diabetes. The examination on the accuracy, objectivity, timeliness, coverage and user-friendliness of the two website will determine the strengths of internet usage for diabetes patients.BDDIABETES.COM.USThe Bddiabetes.com.us licensed under U.S. laws and regulation is a site that gives information on diabetes and products and services for patients. Out side the U.S. users are warned by the site upon using their website. They affirm that the laws do not legally cover any access to their site from outside the U.S. In addition, products and services intended for U.S. citizen will not be available outside the U.S. or different from their offered product in a respective country. (bddiabetes.com, 2002)The website asserted that their site is not, of any form, compliance to Medical Advice. They are providing different information’s about diabetes but still consulting a physician is necessary to avoid further damage. The site also affirmed their stand as an informational site not to be substituted for professional assistance nor diagnosing a disease. Treatment or such information’s displayed on the site are for general purposes only because of its summarized form. Furthermore, the site advises those individuals who have read anything on their site that might be helpful in answering their consultative situations not to delay u pon seeking a doctor or to consider it as a medical advice. (bddiabetes.com, 2002)Concerning accuracy on their products and information’s, the BDDiabetes formed their Terms and Condition with which one should comply. The website acknowledges any innovative designs on products and technologies that have legal patents or the submitter having fixed the patents of their designs. On the contrary, the company and its employees do not accept unsolicited informations and promotions, new advertisements, marketing plans and materials. The objective of this regulation is to prevent probable errors or disagreements that might be similar with BD’s products and marketing plans. Whenever someone still submits an entry of unsolicited information, the company will use the information free and in any manner, they want.The site also covers bulletin boards, which they prefer to as â€Å"public areas† and Public Information, where comments or suggestion sent on their data. The compa ny affirms that they have no accountability whatsoever on these comments’ contents like pornography, error, defamation, obscenity, falsehood or inaccuracy. However, the site reviews and observes every detail of sent messages concerning feedbacks and forums and if these messages will contain any unlawful act that will make up or advance conduct considered a criminal offense, the company will subject the person to the laws covering this offense. Furthermore, the site prohibits children less than 18 years of age to send unsolicited and public information on their site. (bddiabetes.com, 2002)The site changes their content from time to time in accordance with Federal Security Laws. These alterations are future revenues, income, products, events and developments that BD anticipates in the future. Several factors may affect changes to the innovative statements regarding the products of the site. These are competitive factors, economic changes like foreign exchange rates, sales and b usiness forecasts, availability of raw materials and amendments on health care and other government decrees. (bddiabetes.com, 2002)JOSLIN.ORGThe Joslin Diabetes Center is a website licensed under the U.S. Federal laws and by foreign laws. This site is a diabetes-related site that gives information about diabetes, products, bulletin boards, forums and emails about the disease. As stressed by Bddiabetes.com, this site also supplies information for diabetes and not for medical diagnosis. It is not to be referred as treatment or advice for the illness. In addition, the discussion boards and emails are not reliable sources in providing treatments for emergency cases. However, they believe that all the supplied information about diabetes is accurate and up-to-date. (joslin.org, 2007)Informations on Joslin.org are protected by Federal laws and could not shared, sell or disclose unless asked with permission. The website gathers its information in emails sent and feedback from users. The Jos lin site also offers an information sheet that will ask some important information about the user and if he or she purchases a product at this site, the survey sheet will be provided. This method of Joslin is to know their liabilities and suggestion from consumers. Mailing lists and registration lists from Joslin are offered to consumers who want to receive newsletters about diabetes and other updates about the site’s information. In addition, people who are included in the mailing lists are sent with surveys to be filled up in order to add information on their diabetes and improve health care. (joslin.org, 2007)User’s information are protected whether on an on-line or off-line state. When a client orders a product on-line by using a credit card or any encryption number, the site will not divulge this to anyone and restricted to the employees assigned in this work. The outside orders from U.S. are in the hands of authorized online site of Joslin likewise the informatio n sent on this site is not disclosed or shared with other people than the employees working in that field. (joslin.org, 2007)The users are notified if there are sudden changes with the policies and functions of the site. An example is information from a third party used by the site. The company will immediately inform the user through mail and if the user disagrees with the utilization of his/her data, the company assures of the client’s information comply with the privacy policy. The site does not handle any data from children 13 years old and below. If the site identifies the user to be a child, the information will be disregarded. (joslin.org, 2007)CONCLUSIONThe diabetes website reflects how people and computers help achieve the fulfillment of knowledge. People are wise enough to invent things in making impossible things possible. The internet really disregarded the word time. With just one click, you can have access to any information you want. The snail mail, for example is now an email. Sending a mail with just one click for free plus it is not a domestic fad but a worldwide service. Access to mail could be of any age group or gender. Another is the messenger or instant messaging, in nonprofessional’s term, chat.This kind of communication is in a live form compared to email. It is a two-way communication that enhances file transfer and overseas communication. All these technology are but just a click away. The most popular of all are the search engines, which replace directories, encyclopedias and dictionaries. Several search engines made their names in World Wide Web like Google and yahoo. These search engines give solutions for instant finding of every need like shopping internationally. Payment made easy by internet in bills, shopping and membership fees on other sites.People with disabilities have specialized programs that cope up with utilizing computers. In some Microsoft programmed computers there are what they call speech tools that are for people who could not use the keyboard. In addition, handwriting software can type words that are written by the hand using the mouse. The blind can also use the computer with specialized keyboard that have Braille markings.Even if there are advantages concerning internet use, there are also numerous disadvantages of internet use. To name a few are personal information, spamming and pornography. Pornography can be easily accessed in the internet as the World Wide Web covers everything. Children nowadays have unlimited access with computers and with pornography at site, they can retrieve pornography agents. Personal information, on the other hand, can be divulged to any user. Even though the technology’s advanced approach give protection to these factors, we still cannot reassure the entities pursuant of stealing this information. Lastly is spamming that clogs up the system and damages the computer.In third world countries, cost of this brand of technology is of concer n. In areas like the Philippines, most teenagers addicted to online gaming spent their allowances on games. Instead of purchasing something to eat, teenagers go to the internet shop for a one hour game. Next are the legal issues of internet crimes. In developing countries, there are no sufficient laws that could control the internet crimes like prostitution in the internet and pyramiding scams.To sum it all up, internet’s use are in many ways, advantageous. Health and education benefit from the internet because of no geographic barriers. But some use this technology in doing illicit activities harming people and their properties.REFERENCESTerms of Use and Disclaimer. (2007) Joslin Diabetes Center. Retrieved October 15, 2007 from http://www.joslin.org/SiteMap_2679.aspTerms and Conditions. (2002) BD Diabetes. Retrieved October 15, 2007 from http://www.bddiabetes.com/us/main.aspx?cat=1&id=601

corporate and business law Essays

corporate and business law Essays corporate and business law Paper corporate and business law Paper corporate and business law BY etu20110952 GASPARD vjrgile LAFITTE Pierre AC504E External auditing Take home case Pacific Sunwear of California Inc Executive summary † 3 The Sarbanes Oxley act: a compliance plan 4 Overview: 4 Summary of the Sarbanes-Oxley 4 The Sarbanes-Oxley act: † 404: Checklist: 5 Auditing standards n05: description of the procedures to comply with the section 5 International standards of auditing in reference with the 6 Processes to comply with the Section case How to comply with the 7 Procedures section 404? mplemented by Pacific Sunwear.. 8 Evaluation of the effectiveness of the process implemented by 9 Impact of the information disclosed on the stock PacSun † 10 Costs and benefits of Sarbanes- Oxley † 13 Recommendations for 15 References. 16 Appendix A : Deadline for the compliance with the different sections of internal the act.. † . 17 Appendix B: Certification required by the SEC about . 9 Appendix C: Certification required by 2 0 the SEC about disclosure controls Executive summary Pacific Sunwear of California entered in the stock market on Nasdaq in 1993. The Sarbanes Oxley act redacted in 2002, established new or enhanced standards for listing companies in the US markets and in particular the section 404 about the creation of an internal report each year, in response to a number of major corporate In this report, we will establish the impact of this United States federal law on PacSun by analyzing the process engendered, influence of the disclosures on the stock price, and the cost/benefits relation. The Sarbanes Oxley act: a compliance plan The Sarbanes-Oxley act enacted in 2002 is a United States federal law to respond to some major corporate and accounting scandals such as Enron, Tyco international or World com. These scandals cost billions of dollars to investors when stock prices collapsed and decreased the public confidence about nations securities markets and auditing standards. So, this standard established new or improved standards and regulations, for all US public company and all foreign companies listed in the US stock markets. This act contains 11 sections and required the Securities and Exchange Commission (US regulator which regulates the securities industry and the stocks and options markets) to implement the rules and comply with the new law. The deadlines to implement SOX are exposed in Appendix 1 . Summary of the Sarbanes-Oxley act: Then, we are going to describe quickly the different sections of the SOX act (except the section 4 explained below): 1 Public Company Accounting Oversight Board (PCAOB): the objective of this board is to register and regulate all public accounting firms to implement compliance standards 2 Auditor independence: creation of standards for external auditor ndependence to reduce conflicts of interest 3 Corporate responsibility: defines the relation between external auditors and corporate audit committees 5 Analyst conflicts of interest: evokes practice to create a new public confidence in the reporting 6 Commission resources and authority: highlights practice to create a new public confidence in the financial analysts 7 Studies and reports: SEC has to make various studies and explain their findings 8 Corporate and criminal fraud accountability: describes criminal penalties for fraud 9 White collar crime penalty enhancements 0 Corporate tax returns requir ed to be signed by the Chief Executive Officer 1 1 Corporate fraud accountability: identified corporate fraud and records classified as criminal offenses The Sarbanes-Oxley 404: Checklist: The section 4 is about enhanced financial disclosures and increases requirements for financial reporting like off-balance sheet transactions. It requires internal controls to offer the accuracy of financial reports and disclosures. An internal control system is failures, or weaknesses in the system that must occur. The section 404 is the cornerstone of the section 4 and demands that each annual eport contain an internal control report. This additional report assesses the responsibility of management for establishing and implementing adequate procedures for financial reporting. This report must include: assessment of effectiveness of internal control structure and procedures, any code of ethics and contents of that code. Consequently, this section is really decisive because it implies extra costs to comply with this requirement for registered public companies in the US stock markets. The Appendix 2 and 3 sum up the certifications required by the SEC. Auditing standards 05: description of the procedures to comply with the section 404 Issued the 24th may 2007, the Auditing standards n05 substitutes the Auditing standards n02. The Public Company Accounting Oversight Board releases the AS n05 to describe the procedures to comply with the section 404: o Highlights a top-down risk based approach (financial risk assessment) o Places greater reliance on entity-level controls o Focuses on understanding and testing controls related to risks for significant accounts and disclosures o Allows for greater ability to rely on work of others o Changes definition of material weakness and significant deficiency: Material weakness: a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the companys annual or interim financial statements will not be prevented or detected on a timely basis. Significant deficiency: A deficiency or combination of deficiencies, in internal control over financial reporting that is less severe than a material weakness, yet important to merit the attention by those responsible for ove rsight of the companys financial reporting. o Simplifies the auditors opinion by eliminating opinion on managements ssessment of internal control 5 International standards of auditing in reference with the case The section 404 referred to some ISA standards: ISA 230 about audit documentation ISA 300 about planning an audit of financial statements ISA 330 about the auditors procedures in response to assessed risks ISA 500 about audit evidence ISA 600 about using the Work of Another Auditor 6 Processes to comply with the Section 404 After evoking the requirements of the section 404, we will describe the processes implemented by Pacific Sunwear first and by the other listed companies in general. Complying with Sarbanes-Oxley is complex; compliance requires a multiple approach involving many departments and many people which will be detailed below. How to comply with the Section 404? Generally, according to Sanjay Anand an internal control in accordance with Sarbanes-Oxley is following an eight-step process: 1 Establish a compliance committee which is specialist of the compliance with Sarbanesoxley and can have a general overview of the company about the risk and the solutions. The objective of this committee is to commit the various departments, to provide training and to communication about the objectives. Assess risk in order to identify the magnitude and potential impact of each risk in order to create a risk portfolio. 3 Set reporting objectives by determining the probability of risks and errors to define decision rules and reporting objectives. For ensuring internal control compliance, these areas need to be created: personnel control, system and resource controls, strategic planning controls and business service controls. 4 Prepare a formal implementation plan, which is a transition plan to move from project step to a day-to-day operation for an internal control system. Communicate the ongoing procedures by presenting clearly and effectively with the focusing on understanding, acceptance and observance. 6 Provide training implemented by the compliance committee in internal policies, practices and procedures. 7 Document processes and risk management certified by the Chief Executing Officer and the Chief Financial Officer so as to demonstrate the efficiency of the internal control system. Perform continuous evaluation performed by the manager in order to establish and maintain controls and to ensure the appropriate compliance. 7 Procedures implemented by Pacific Sunwear The most expensive costs of compliance were those linke d with the section 404: costs about internal controls over financial reporting. The procedures of compliance are only described for the two first years in the case study: 2004 and 2005. Before the compliance, PacSun had not internal control system. They only created it in mid 2003 and they paid the services of a Big-4 auditing firms as required by the section 404. They expanded the internal control department at the end of 2004. About the procedures they implemented in 2004, PacSun followed a process in five steps: 1) Scope and plan the evaluation 2) Document the controls nd correct deficiencies 5) Reports on internal control They identified also 21 major business processes assigned to an owner with the objective to develop detailed process narratives. These major business processes were divided into sub processes with the detail of the business objectives and the risks. At the end of 2004, they had identified a total of 238 key controls and they managed to highlight a significant deficiency about the revaluation of deferred leases which can affect by definition the reliability of external auditing data. Then, all public officers had to certify in their area that the control was effective. The CEO and CFO certified then of the fairness and reliability of the financial statements. In 2005, the process became easier because all the information had already been created. They reduced the number of key controls to 222, only a 7% decrease, in comparison with larger companies (19% of decrease). They discovered a new significant deficiency because they didnt recognize liabilities about the companys loyalty program. 8 Evaluation of the effectiveness of the process implemented by PacSun Strengths: Enables to discover two significant deficiencies which misstate the financial statements Enable to create an efficient internal control system, which reduces the risks and increases the efficiency of the global system Implementation of a double control : internal control and Big-4 auditing firms control Better assessment of risks implied Significant reduction of the costs after the first year of implementation of about 40%, comparable to the other companies Commitment of all the employees which can increase the motivation and the corporate culture Better disclosure of financial information for financial analysts and investors Weaknesses: Compliance costs of $2 million in 2004 and $1. million in 2005 Additional costs associated with the training of the staff with the necessary creation of a SOX program training The compliance is very time-consuming with an increase of the formalization Competitive disadvantage in comparison with the other competitors not listed Overall, PacSun had efficiently implemented the compliance and the weaknesses will tend to reduce over the long term. However, PacSun management believed that the costs are greater than the benefits engendered. The costs implied and generally the time spent to respect the compliance rules, can Justify this opinion. Impact of the information disclosed on the stock prices In 2005, PacSun need to restate his prior two years financial statements, which resulted in no material change to net income. Auditors Judge restatement like deficiencies but they dont agree about the type of deficiency: two of the Big-4 firms judge this particular type of restatement as only a significant deficiency, i. e. a control deficiency, or combination of control deficiencies, that adversely affects the companys ability to be in accordance with GAAP. The others two Judge it to be a material weakness, i. e. significant deficiency, or combination of significant deficiencies, that result in more than remote likelihood that a material misstatement of financial statements will not be prevented or detected. by the PacSun loyalty program called Pac Bucks. In fact, the liabilities and expenses of this program were not recognizing in the proper quarter. This accounting problem was considered by external auditors like a significant deficiency, but not a material weakness. Thus, in FY 2005, PacSun received clean financial statement and 404 opinions. What is the impact of Information Disclosure provided by these deficiencies n PacSuns stock price? In this graph, we can see that the PacSuns stock price is very volatile between 2005 to 2007 (Beta higher than 1) when the NASDAQ is regularly up. This volatility can be explained by 10 the convergence of PacSun to SOX and the substantial increase of information provided on the firm. But it is very hard to have a real opinion of the impact of Information Disclosure on stock Market Returns with a unique firm. Thus we will answer with papers which study this impact on a large sample of US Company. The Sarbanes-Oxley Act of 2002 is one of the , if not the, most important pieces of egislation affecting corporations traded on the US stock exchanges, since the Securities Act of 1932 and Securities Exchange Act of A934 were enacted (Gordon et al. 2007). The SOX act introduced significant changes to financial practice and corporate governance regulation, including new rules designed to protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws. And the part of the Act having the most impact must be Section 404, which requires management to submit to the SEC with the companys annually filed financial statements, an internal control report, an assessment of the ffectiveness of the internal control structure and procedures for financial reporting, and finally an audit report which include a description of material weakness in such internal controls and of any material noncompliance. Furthermore, where significant deficiencies exist, they need to be identified as required under SOX like we saw in the PacSun case. Many studies demonstrate that the passage of mandatory government regulation like SOX may be altering the operation of capital market by affecting the stock performance of firms. In 2007, Balakrishnan et Al. , examine, by a dataset on stock arket abnormal returns and consists of 300 firms, how the stock market reaction varies for 8-K filling and how this reaction have changed since the passage of the SOX act. The result is that the SOX have the particularity to increase the information flow of a firm. Thus when a disclosure of a deficiency is promulgated, the information is quickly announced by media and have a direct negative impact on the stock market price. Inversely, when a firm received clean financial statement and 404 opinions, we can think that stock price is positively impacted because its an evidence of a very ood internal control of the firm. Another interesting dimension to consider would be the size of the firm. The effect of Sarbanes-Oxley on the firms information environment is expected to vary with the size of the firm (Ghose et al. 2006). In fact, international firm, but in the US sportswear market, this size is important. In a stock market where diversification is one of the solutions to leverage the risk, PacSun can be a blue chip. Thus, a special attention is paid to it by media. 1 Finally, we can say that disclosure of these deficiencies have had a negative effect on irms stock price but, on the contrary, clean financial statement certification and Good 404 opinion have a positive impact on stock price. In addition, a firm can decide to increase the speed with which information reaches investors by publicizing it in me dia articles. Its a good way to build a loyal firms brand image i. e. increase the investor recognition and limited the impact of bad news on the stock price. 12 Costs and benefits of Sarbanes-Oxley PacSun executives seem convinced that the costs of complying with SOX were greater than the benefits to the company. Though, according to a survey entitled Oversight Systems financials Executive Report conducted with 222 corporate finance leaders, 74 percent said their company benefited from SOX, 79 percent reported significantly stronger or somewhat stronger internal controls as a result of SOX, 46 percent said SOX compliance benefits the company by ensuring accountability and 75 percent said they would vote to keep Section 404 if they were members of Congress. In fact, the benefits of SOX Compliance are multiple: There is a positive influence on maintaining investor confidence (and long-term share price) through increased ransparency and fewer surprises. Financial reporting is more timely and reliable. Overall control culture and corporate governance process are improved. Outdated, redundant and inflective processes and controls are eliminated. Employee on- boarding process is easier Then, why did PacSun not benefit from the compliance process to the same extent as some other companies? Or were their compliance costs too high? The main issue of PacSun is this medium size ($1 billon in market capitalization). The high cost of SOX implementation is financially draining many firms. The SOX doesnt ake a distinction between large-cap billion-dollar companies and small-cap; $75- millon companies (the minimum cap to be obliged to apply SOX). Therefore, the Act requires all public companies to comply with the same regulations; it doesnt take into consideration that small companies arent as complex in organizational structure as large companies. Because large corporations have complex business models, more complicated accounting practices, they already have a lot of controls in place to ensure the efficiency of their operations that are required by SOX. In other hand, maller companies have simpler organizational structures and, thus, have slighter accounting practices, which generate simpler financial statements. These small firms require less internal controls. Therefore, since small companies have simpler subject to the same internal control and external auditing requirement of large companies. In the case of PacSun, this business model and accounting practice are closer from a small firm as shown this number of key controls (222 versus an average of 540 for the large companies). In addition, the SOX were created to fight against corporate scandals like Enron. But the majority of these scandals have occurred in large corporations with thousand of shareholders by the intermediary of retirement/pension fund. PacSun doesnt have the same type of shareholders and doesnt require the same level of protection for the shareholder interests. Therefore, although shareholder interests should be protected, SOX regulations arent needed for smaller firms that have simple business structures and a small number of shareholders that are unlikely to fraud themselves (entrepreneurs who start the company, their families, and public shareholders without any link between them). Implanting SOX is a long and costly process for companies. In the case of PacSun where his market is not occupied by large companies but especially by little firms (under the $75-million cap) which dont apply SOX, this implantation creates for PacSun a competitive disadvantage and stumps their growth by requiring them to spend excessive amounts of money and time to implement regulation. As example of costs, we have the cost of training, the implementation of a strong internal control, an increase of the size of finance/accounting departments, the fees of the audit firms ; he required amount of money is disproportionately larger in comparison with the largest firms. Thus in conclusion, we can say that SOX were designed in priority for large and complex companies. These costs are too high in relation with the engendered benefits for small caps. 4 Recommendations for PacSun Continue the work to reduce the number of key controls and try to improve a large part of them (better define it and really find an utility) Check the conformity between all marketing projects and internal control before a launching Optimize the balance between internal and external auditors to reduce the work of he external auditors Change your mind: SOX is an advantage to improve internal control Create a training and development program with an e learning module for example References Anand, S. (2006), Sarbanes-Oxley guide for finance and information technology professionals, John Wiley and Sons, 2nd edition Balakrishnan, K. , Ghose, A. and Ipeirotis, P. 2007), the Impact of Information Disclosure on Stock Market Returns: The Sarbanes- Oxley Act and the Role of Media as an Information Intermediary, University of Cambridge Bowling, D. Julien, R. and Rieger, L. (2003), Implementation of Sarbanes-Oxley S 404: Ensuring Compliance, Leveraging Opportunities Ghose, A. and RaJan. U. (2006) The Economic Impact of Regulatory Information Disclosure on Information Security Investments, Competition, and Social Welfare Proceedings of the Workshop on Economics of Information Security, University of Cambridge Gordon, L. , Loeb, M. , Lucyshyn, W. and Sohail, T. (2006), The Impact of the Sarbanesoxley Act on the Corporate Disclosures of Information Security Activities. Journal of Accounting and Public Policy, 25(5) pp. 503-530. Grinberg, E. 2007), The impact of Sarbanes Oxley Act 2002 on Small Firms, Pace University Ramos, M. (2004), How to comply with Sarbanes-Owley Section 404. Assessing the Effectiveness of Internal Control, John Wiley and Sons, Inc. Available on: http:// books. google. fr/books? id=GAMR23qTQUC=process+to+comply+with+section +404=frontcover=bl= LaTJJAf1 e 1 16 Appendix A : Deadline for the compliance with the different sections of the actl professionals, John Wiley and Sons, 2nd edition, page 63/64 17 18 Appendix B: Certification required by the SEC about internal controls2 professionals, John Wiley and Sons, 2nd edition, page 68

Earth Day Origins

Earth Day Origins Earth Day is celebrated annually by millions of people worldwide, but how did Earth Day begin? When was the first Earth Day? This is a trickier question than you might think. There are actually two official Earth Day celebrations every year, and both got their start in the spring of 1970. The First Widespread Earth Day Celebration The Earth Day most often celebrated in the United States- and in many other countries around the world- first took place on April 22, 1970. It was a nationwide teach-in about the environment, dreamed up by U.S. Senator Gaylord Nelson.  A Democrat from Wisconsin, Senator Nelson had been instrumental earlier in introducing conservation in John F. Kennedys presidency.  Gaylord Nelsons Earth Day was modeled on the anti-war teach-in demonstrations that Vietnam war protesters had used successfully to educate people about their issues. On the first Earth Day, more than 20 million people turned out at thousands of colleges, universities and communities all across America for an environmental teach-in day, which sparked a global environmental reawakening. More than half a billion people in 175 countries now celebrate Earth Day on April 22. The April 22 date was chosen for its fit within the American college calendar, before end-of-semester exams but when the weather is likely to be relatively pleasant nationwide. Conspiracy theorists relish the fact that April 22 is also the birthday of Vladimir Lenin, seeing in that choice more than the mere coincidence that it is. A Second Claim to First Earth Day Yet, it may surprise you to learn that April 22, 1970 was not the first Earth Day. A month earlier, San Francisco Mayor Joseph Alioto had issued the first-ever Earth Day proclamation on March 21, 1970. Mayor Aliotos action was inspired by John McConnell, a San Francisco publisher and peace activist, who a year earlier had attended the 1969 UNESCO Conference on the Environment where he proposed an international holiday focused on environmental stewardship and preservation. McConnell suggested that Earth Day coincide with the March equinox- the first day of spring in the northern hemisphere, March 20 or 21 depending on the year. It is a date filled with all the symbolism associated with spring, including hope and renewal. That is, until one remembers that south of the equator that date signifies the end of summer and the beginning of autumn. About a year later, on February 26, 1971, then-UN Secretary General U Thant supported McConnells proposal for an annual global Earth Day celebration at the March equinox, and issued a proclamation to make it official. Today, the United Nations rallies with Senator Nelsons plan and every year promotes an April 22nd celebration of what they call Mother Earth Day. Edited by Frederic Beaudry.