Potential Possibilities and the Limitations Involved in Formal Essay

Potential Possibilities and the Limitations Involved in Formal Theories of Quantification for Natural Language - Essay Example Jon Barwise and John Etchemendy in Language Proof and Logic give a very understandable argument as to the reasons for quantifiers and the reasons they are not always accurate in their use. A very pertinent consideration for their argument starts out their ninth chapter in Language Proof and Logic by saying, "In English and other natural languages, basic sentences are made by combining noun phrases and verb phrases." (1. Chapter 9 page 227, Language Proof and Logic.) The consideration continues further in that Barwise and Etchemendy contend that, "Quantification takes us out of the realm of truth-functional connectives." (2. Chapter 9 page 227, Language Proof and Logic.) This gives us reason for the consideration that quantifiers are not always the most useful method for determining natural language tendencies. Quantifiers, according to Barwise and Etchemendy, have a tendency to dull the truthfulness of sentences giving them a generalisation that may not bear an ounce of truth within them. In the case of first-order logic, the process assumes that there would be an infinite list of variables so there would be no possible way to run out of these variables, regardless of a sentence's complexity. Theorists like Fitch would understand all of these separate variables involved, of which there are many, but others like Tarski's World would not, in that Tarski's World uses six in place of infinite variables as Fitch would manage. This would in fact present a rather expressive limitation in Tarski's World of language use. Expanding the set of terms of language usually means adding variables to it. At this point, only individual consonants, also known as names would be considered the sole amount of basic terms. Obviously, first-order logic, in the eyes of Barwise and Etchemendy believe a complex series of quantifiers is necessary to describe natural language. They consider universal and existential quantifiers in their equations. Universal quantifiers are those that are all enc ompassing and ultimately considered unconditional. Existential quantifiers are more limiting in scope in giving a value but not a limitless value toward the quantification. W. Tecumseh Fitch, from the University of St. Andrew's School of Psychology wrote a treatise titled The Evolution of Language: A Comparative Review. Fitch says in his work that the study of language evolution is often considered little more than speculative story-telling. Fitch further states that this has actually had little to do with the development of many fields which would touch upon it. Those fields include linguistics, evolutionary biology and neuroscience. Over the last fifteen years increasingly productive study of language evolution has occurred in various different quarters and there is far more collaboration and exchange in relation to this increasing study. There in fact would be three key innovations which should be explained in language evolution. The first critical step would be to distinguish among the various component abilities in languages. Mechanisms that are both

Relationship between demand and price of house increasing in China Research Proposal

Relationship between demand and price of house increasing in China - Research Proposal Example The results from their research had suggested that the major push in the rising demand of housing in China is coming from the stimulus provided by the government. The government strongly regulates the prices of the housing market by adopting relevant polices. According to the research conducted by Rothman (2011 cited in Stohldreier, 2012) government in China wants to influence house ownership which explains the high demand of housing in the country. Researchers have pointed out that there are many factors which influence the housing prices. For instance the research conducted by Beltratti and Morana (2010) had pointed out that the main factors which influence the price of housing include variables like private consumption, rate of CPI inflation, interest rates of the economy, stock price and price of oil. Few researchers have focused on the impacts of monetary policy on the housing market. The results obtained from their study are however mixed and does not show convergence. The research work undertaken by Iacoviello & Minetti (2008) had focused on the impact of credit channel on the housing market. The results from the study had shown that house prices are heavily influenced by changes in the interest changes of the economy. However, this research was conducted in the Western countries namely Finland, Germany, UK and Norway. Researchers who have focused on the Chinese market specifically have found that rising income of the households is one of the strongest factors that have influenced the demand for housing in China. The past three decades of rapid economic growth in the country have had a huge impact on raising the income of the middle-income households including their disposable income (Chen, Guo and Wu, 2011). Additional factors that have influenced the house of pricing in China include high rate of population growth, rise in savings rate, investment in fixed as sets and rising construction

Microeconomic Issue of Social Importance Essay Example | Topics and Well Written Essays - 1000 words

Microeconomic Issue of Social Importance - Essay Example On the other hand, the suggestion too from the literature is that cigarettes are addictive, and so the demand may in fact be somewhat inelastic. This means that it may be that driving up prices through taxation may not curb consumption as the authorities hope. Some studies suggest this somewhat, even as those studies also suggest that demand is elastic for young smokers, new smokers, and those who have low income. In the long run, therefore, as the population turns over, demand should go down due to taxation leading to higher cigarette prices. The issue at hand is the determination of exactly how cigarette taxation impacts demand, such as in terms of the demographic characteristics of the market response to the taxation and other related aspects of demand. In general, in terms of supply and demand, we see from recent data and from insights from the literature that taxation has a large dampening effect on overall demand for cigarettes (Chaloupka;; Meier and Licari; Wasserman et al.). The overall take from the academic literature is that taxation does curb consumption. Moreover, the higher the price increases resulting from higher taxes, the greater the reductions in demand and consumption. Other insights include that demand is more sensitive to price reductions rather than price increases. This means that reducing taxes can increase demand by a greater amount. This is in comparison to the reduction in demand from the same level of tax reductions. To illustrate, say taxes go down by 10 percent, and demand goes up by say 20 percent. Going the other way, if taxes go up by 10 percent, the demand does not go down by 20 percent, but just by half, at 10 percent for cigarettes. These and other insights are useful in understanding the microeconomic aspects of the impacts of taxation on cigarette consumption and economics. The rest of the paper explores these impacts more closely (Sylvain; Bader et al.). Data from 2012 strongly supports the

Health Sciences - Pre Diabetes Essay Example | Topics and Well Written Essays - 1500 words

Health Sciences - Pre Diabetes - Essay Example This condition is also known as the borderline, this is in the sense that the individual shows neither the presence of diabetes nor absence of diabetes. In the food substances that we consume, there are elements of glucose. The glucose levels in the blood are checked by another hormone in the blood called insulin. Insulin is responsible for converting the excess sugar (glucose) in the blood to glycogen (Gottlieb, 2004). The same happens when the body experiences low blood sugar level in which the stored glycogen is discharged back into the blood to elevate the sugar level to normalcy. Diabetes or pre-diabetes condition arises when insulin is not produced in the right quantities in the body or when the insulin effectiveness is hampered and does not function fully (Gottlieb, 2004). The pre diabetes condition does not conform to all the conditions and factors that lead to the conclusion that an individual is diabetic or not. With regard to this, those diagnosed with pre-diabetes conditi on are at higher risks of not only developing diabetes type II but also some other related cardiovascular condition (Metcalf & Metcalf, 2008). The condition of pre-diabetes is also referred to as ‘grey area’. In America, this condition has been surveyed among the citizens and the prevalence and incidence noted, to some extent it has been referred to as an epidemic. It affects almost 57 million people in America (Metcalf, & Metcalf, 2008). The development of the pre-diabetes condition is largely attributed to some of the lifestyle, hence, referred to as lifestyle condition. The life style conditions include the kind of diet we consume - if the diet is having too much glucose it translates, then that there will be more sugar being discharged in blood requiring much more efficient way of conversion to glycogen (Metcalf & Metcalf, 2008). Sedentary lifestyle is also a recipe for the development of the condition. Leading a sedentary lifestyle indicates that not much energy is used for respiration, thus, there is accumulation of the glucose in the body and can accelerate the development of the condition. Too much consumption of alcohol also damages the liver making it inefficient in the production of insulin, a substance that is requires for the conversion of the excess glucose in blood to glycogen (Metcalf & Metcalf, 2008). Tests for monitoring pre Diabetes Monitoring of the condition is essential for people who have developed pre-diabetes condition have to attend a regular monitoring test of their blood sugar to ensure that the critical condition is not hit. Monitoring of the blood sugar can be done in several ways: first of all, HbA1c (A1C or glycosylated hemoglobin test), when this test is run, the level of the blood sugar is noted in a snapshot and the concentration of glycosylated hemoglobin (HbA1c) denotes the level of blood sugar in the body (Gregg, Callaghan & Hayes 2007, 123). Home monitoring is also available and it seems to be the cheapest, t he only problem is how to categorize the extent of blood sugar; whether high or low. The results of the home test are to be discussed with a physician for further insightful recommendations. Benefits of exercise in the prevention of pre-diabetes Involving in the exercise daily is helpful in the burning calories, when the calories are burned, the concentration of glucose in the blood is reduces. The effect of exercise in relation to diabetes type II has been studied and the findings have it that 58% of those who shows pre-diabetes do

Williams Brice Stadium Essay Example for Free

Williams Brice Stadium Essay Williams Brice Stadium appears to be just another college football stadium, but one step through those gates proves it’s a loud exciting and full of heart place. From the band playing, cheers and chants being yelled. The smell of stadium food and the garnet and black color that surrounds you will leave you with the feelings of excitement and a love of college football. Williams Brice Stadium is home to the University of South Carolina Gamecocks football team. Game days at the stadium are the most exciting, thrilling, and full of spirit. From the moment you walk through the gates the sounds of the Mighty Southeast Gamecock marching band, playing â€Å"2001† and â€Å"Step to the Rear† fill your ears. Pumping the fans up for the game that lies ahead. Throughout the game you will hear many cheers and chants being yelled; but none like the famous â€Å"Game Cocks†! The 86,000 plus fans become divided, one half yells â€Å"Game†, while the other half yells â€Å"Cocks†! Making it and Williams Brice Stadium one of the loudest college football stadiums to be. The food at the stadium is delicious typical stadium food. From popcorn, nachos, pizza, hotdogs, cotton candy, pretzels, all fill the walkway behind the seating; thus making your mouth water. All plastic containers are personalized with gamecock football history or design. Sometimes the lines can be a bit long, but so worth the wait. Everywhere you look you will see the colors garnet, black, and white. From bathroom walls, to the signs, banners, railings, letterings, and scoreboards all decked out with school colors. The 86,000 plus fans will all be wearing these beautiful, bold colors. Gamecock fans are some of the most dedicated, loyal, and full of team pride and spirit in all of college football. Visiting Williams Brice Stadium is a very loud, exciting, unique, and full of spirit experience. From the band, to the chants, to the food and color that surrounds you. It’s a one of a kind college football experience. The excitement, the noise, the food, and the Carolina Gamecock pride of football and spirit will leave you longing to return to another game experience at Williams Brice.

Human Rights and Business Ethics

Human Rights and Business Ethics The interest of corporate organisations in human rights has increased over the years due to the criticism and concerns over the use of child labour, low wages, female discrimination and abuse factories. Incorporating values and ethics into any business has become very important to corporate organisations, government, and the public in general. As the world becomes ever smaller as a result of globalization, there has been an increase in the movement of labour, knowledge and technology from country to country. This has lead to companies setting up factories in countries with cheap labour and very poor human right laws so they can meet the demand for their product. Government of these poor countries have been forced to dance to the tune of large business. Business ethic emerged as a result of the abuse of human rights and because of the need for corporate organisation to be more ethical and humane in doing business. This has come to the fore front in recent time with the media keeping a constant look out for corporate organisations that abuse or refuse to up hold their social responsibilities in any way. As a result of this organisations now pay more attention to business ethic education and training in order to meet this ever growing ethical responsibility. The growth and development of businesses worldwide has brought about an increase in the standard of living but on the other hand it has resulted in the abuse of workers in many parts of the world. Corporate social responsibility has enter a new phase in which the responsibility of business have to be clearly defined. According to Andrew chapman and Scott Jerbi there are growing expectation that corporation should do everything their powers to promote universal human rights standards even in conflict situation where governance structure have broken down. War on Want has published research which shows that Bangladeshi workers making clothes for Primark, Tesco and Asda toil up to 80 hours a week and earn as little as half a living wage. http://uk.oneworld.net/article/view 4/04/2010 War on Want senior campaigns officer Simon McRae said: â€Å"British companies continue to commit serious human rights abuses across the world. Yet the governments only response is to come up with voluntary initiatives which companies are free to ignore. When will ministers take real action to hold these companies to account?† For any market place to be effective there has to be ethical behaviour on the part of buyers and sellers. According to Solomon (1996) ethical behaviour on the part of both buyers and sellers is tantamount to the effectiveness of the market place. Regardless of the degree of the competition, the successful functioning of the market place rest on the foundation of mutually agreed- upon rules of conduct and shared interest. For the relationship to remain beneficial to both parties it has to be of value to both of them. Unethical behaviour by either party disrupts the relationship and produces exchanges that are both unproductive and ineffective (Morgan and Hunt, 1994) Journal of business ethics: Sam fullerton, KatShleen B kerch,H Robert Dodge 805-814, 1996 II. Structure of the report The report is a focus on the retail cloth industry in relation to its business ethics. In recent times there has been lots of issue on the way clothing retailers deal with human right. People feel that they are not doing enough to deal with human right abuse globally. The report will draw attention to the challenges faced by labour as result of globalisation and the need for a lasting solution through effective corporate policies and strategies. Firstly, the report will identify and spell out companys responsibilities in the protection of human rights, freedom fromslavery and forced labour, freedom from torture and degrading treatment. Which if not up held by any company will damage its brand image and bring about a loss of confidence by customers. Other chapters will talk on recent discussions on business ethics and how consumers view human right standards as regards consumption of products making use of journals, internet, reports etc. The aim is to bring out the different theories and views by various authors for better understanding. In the second chapter which deals with the literature review it will focus on the various ideas and theories that talks about the need for upholding human right standards in the clothing industry. The different theoretical approaches will be analysed with recent happenings in mind for a much better understanding and also help formulate better business ethics practice in the clothing industry. Case studies, recent findings and current happenings will be dealt with in chapter three with relation to the various theories as regards the cloth industry. The back ground of discussion for the study will be taken from the various findings and the data collected. From the analyses of different publications consumers have different views on the labour law as it relates with goods, pricing, and human rights standards. Using the various theories and principles that underline the argument the impact of business ethics on globalisation will discussed in chapter four. The report will show that human right abuses in poor counties of the world are on the increase in the clothing industry. It will also emphasis the importance of upholding human rights for equitability and safety. The Final chapter will focus on the conclusion and recommendations drawn from analysis of data collected.

Comparison of IFRS and U.S GAAP in relation to intangible assets

Comparison of IFRS and U.S GAAP in relation to intangible assets 1. Introduction Businesses have never been as globalised as they are today. Numerous corporations from developed, newly industrialised and developing countries operate on a global basis and need to create financial statements using the accounting practices of their home country, as well as those existing in their areas of operations. The divergence in accounting practices of different countries creates the need for the preparation of separate financial and accounting statements and subsequent reconciliation of differences. The international accounting fraternity is now steadily moving towards global commonality in accounting practices and procedural reporting. The International Accounting Standards Board (IASB) has been working towards convergence of global accounting standards. Its mission is to develop and enforce a single set of global accounting standards, based on preparation of high quality, transparent and comparable financial statements for local and global users. The IASB has been working on compiling a stable set of International Financial Reporting Standards (IFRS) for first time users. The IFRS was mandated for all publicly listed companies in the European Union in 2005 and has also been adopted by other countries like Australia. The IASB has also been working very closely with the US Financial Accounting Standards Board (FASB), since 2002, to bring about convergence between US GAAP and the IFRS. However, while significant work has been done on harmonising IFRS with US GAAP and many pending issues are being currently addressed, a number of accounting topics are still treated differently by these two systems. A number of differences continue to remain in the accounting treatment of intangible assets. Intangibles have been defined in various ways. Essentially they comprise of assets that do not have physical presence and are represented by items like goodwill, brands and patents. These assets do not have shape but do have values; which again are sometimes indeterminate but often capable of estimation. They need to be under the direct control of the organization and capable of yielding future financial gain to be termed as intangible assets belonging to the company. A strong legal right that can lead to future financial gain is a good example of an intangible asset whose valuation is quite indeterminate but nevertheless provides security and the potential for financial gain to an organisation. The treatment of intangible assets has always been contentious and open to different interpretations. Even today, while IFRS and US GAAP have moved towards convergence in a number of accounting areas, significant differences still remain in their treatment of intangibles. These differences are specific in the treatment of goodwill and research and development costs, and lead to specific differences in the final preparation of financial statements. It is the purpose of this assignment to examine the differences and similarities between US GAAP and IFRS for the treatment of Goodwill, Research and Development costs, Brands, Patents and Trademarks. A number of texts have been referred for this assignment, especially International Accounting and Multinational Enterprises 6th edition by Radebaugh, Gray and Black, International Financial Reporting: A Comparative Approach by Roberts, Weetman and Gordon, the US GAAP and IFRS websites, a number of specialised publications by PWC andand the published accounts of many multinational corporations. Accounting statements and established practices are often subject to individual interpretation and the perusal of a number of texts has enabled the researcher to prepare a holistic and critical assessment of the selected topics. Inputs from all these texts and publications have been used in the preparation of this paper. 2. Goodwill Goodwill arises as an intangible asset and comprises of the difference between the cost of an acquisition and the fair value of its identifiable assets, liabilities and contingent liabilities. A recent analysis by PricewaterhouseCoopers (PWC) estimates that intangible assets accounted for approximately 75 % of the purchased price of acquired companies in recent years. Increasing attention is now being paid on the management of intangible assets and the IFRS3 has responded to this need by detailing accounting procedures for intangible assets. Goodwill makes up approximately two thirds of the value of intangible assets of US companies and the figure for companies registered in the EU would presumably be similar. Accounting of Goodwill arises in the case of acquisitions where the purchase price exceeds the net cost of purchased tangible assets, the monetary difference being attributed to goodwill and other intangible assets. IFRS procedures, unlike US GAAP, previously required the amortisation of goodwill over a specific number of years, thus establishing an artificial life for this asset. This procedure has since been changed and with the IFRS position converging with that of GAAP, goodwill is not considered to be a wasting asset anymore. It however needs to be emphasised that this refers only to goodwill obtained from acquisitions. Internally generated goodwill is not reflected as an asset either under IFRS or under US GAAP. The IFRS enjoins companies to distinguish between goodwill and other identifiable intangible assets. As such the value of other intangible assets like Research and Development, Patents, Trademarks, Brands and others need to be removed from the goodwill basket to arrive at the residual goodwill value. The treatment of goodwill is different from other intangibles as, subject to periodic assessments for impairment, it is expected to maintain its value indefinitely. While both IFRS and US GAAP require goodwill to be valued, reconciled, detailed by way of factors and reflected in financial statements, they have dissimilar modes for its accounting treatment. In most acquisitions the amount of goodwill is significant because of the considerable difference between the purchase price and cost of net assets of the acquired company. The difference in accounting treatment between IFRS and US GAAP thus causes the results of the financial statements prepared under the two methods to vary considera bly and calls for a detailed reconciliation. There is no immediate plan to bring about a convergence between these two modes of treatment, which is a matter of regret. a) Goodwill under IFRS Goodwill is not amortised any longer under IFRS procedures and is considered to be an asset with indefinite life. It however has to be subjected to a stringent impairment test, either annually, or at shorter notice if the need arises, to assess for erosion in value. In the event of impairment, the Profit and Loss Account is charged with the computed impairment amount to ensure the immediate highlighting of poorly performing acquisitions. Goodwill is thus not seen as a steadily wasting asset but one with indefinite life; and with a value linked to the performance of the unit. Another significant change in the treatment of goodwill has arisen out of the requirement for treating all business combinations as purchases. This will eliminate the possibility of companiesà ¢Ã¢â€š ¬Ã¢â€ž ¢ not recording goodwill by pooling the assets and liabilities of various companies together for preparation of financial statements. The test for impairment of goodwill under the IFRS is carried out at the level of the Cash Generating Unit or a group of CGUs representing the lowest level at which internal managements monitor goodwill. The IFRS also stipulates that the level for assessing impairment must never be more than a business or a geographical segment. The test is a one stage process wherein the recoverable amount of the CGU is calculated on the basis of the higher of (a) the fair value less costs to sell or (b) the value in use, and then compared to the carrying amount. In case the assessed value is lesser than the carrying cost, an appropriate charge is made to the profit and loss account. The goodwill appropriated to the CGU is reduced pro rata. The IFRS requires detailed disclosures to be published regarding the annual impairment tests. These include the assumptions made for these tests, and the sensitivity of the results of the impairment tests to changes in these assumptions. M/s Radebaugh, Gray and Black, in their book International Accounting and Multinational Enterprises stress that these disclosures are intended to give shareholders and financial analysts more information about acquisitions, their benefits to the acquiring company and the efficacy and reasonableness of impairment reviews. Negative goodwill arises when the cost of acquisition is less than the fair value of the identifiable assets, liabilities and contingent liabilities of the company. While its occurrence is rare, negative goodwill can well arise when loss making units are acquired or a distress sale gives a company the opportunity to acquire a bargain. In such cases IFRS procedures stipulate that the acquirer should reassess the identification and measurement of the acquireeà ¢Ã¢â€š ¬Ã¢â€ž ¢s identifiable assets, liabilities and contingent liabilities and the measurement of the cost of the combination. The excess of net assets over the cost should be recognized and taken to the profit and loss account. Goodwill under US GAAP Goodwill was treated as an asset with indefinite life by US GAAP even when IFRS procedures allowed for its amortisation. The change in IFRS procedures is a thus a desirable step towards convergence. In US GAAP, goodwill is reviewed for impairment at the operating level, which specifically indicates a business segment, or at a lower organisational level. In no case can an impairment assessment be made for a level higher than a business segment. Impairment must be carried out annually or even at shorter intervals, if events indicate that the recoverability of the carrying amount needs to be reassessed. While these requirements are similar to those stipulated by IFRS, the procedure for assessment of impairment is significantly different and comprises of two steps. In the first step the fair value is computed and compared with the carrying amount of the concerned unit including goodwill. If the book value is higher than the fair value, no further exercise is suggested and goodwill carried forward at the same value. If however the fair value of the reporting unit is lesser than its carrying amount, goodwill is considered to be impaired and the second step is applied. Goodwill impairment, under US GAAP, is measured by computing the excess of the carrying amount of goodwill over its fair value. The computation for this is fairly simple and constitutes of determining the fair value of goodwill by allocating fair value to the various assets and liabilities of the reporting unit, similar to the procedure used for the determination of goodwill in a business combination. The calculated erosion in goodwill needs to be shown specifically as an impairment charge in the computation of income. The assessment and treatment of negative goodwill is also somewhat different in US GAAP, even though the basic accounting principles are similar to that followed by IFRS. In this case the excess of fair value over the purchase price is allocated on a pro rata basis to all assets other than current assets, financial assets, assets that have been chosen for sale, prepaid pension investments and deferred taxes. Any negative goodwill remaining after this exercise is recognised as an extraordinary gain. 3. Intangible Assets other than Goodwill Intangible assets other than goodwill are identifiable non-monetary assets without physical substance. M/s Radebaugh, Gray and Black state that intangible assets need to be identifiable, under the control of the company and capable of providing future economic benefits. While formulation of appropriate modes of accounting for these assets pose challenges to accounting theory and concepts, their importance in business is significant enough to warrant the application of detailed accounting thought. All the texts consulted have devoted significant attention to the treatment of intangible assets. A July 2006 paper on Accounting Standards regarding Intellectual and other Intangible Assets by Halsey Bullen and Regenia Cafini of the United Nations Department of Economic and Social Affairs is also very explanatory and deals with the subject both in depth and with comprehensiveness. This section deals with the similarities and dissimilarities under US GAAP and IFRS for specific intangible assets e.g. Research and Development Costs, Brands, Trademarks and Patents. While the growing importance of intangible assets call for their inclusion in financial statements, their intrinsic nature makes it difficult to do so. First, there is little connection between the costs incurred for creation of intangibles and their value. Second, it is also difficult to predict the extent of benefits that intangibles will be able to deliver. Both the IFRS and US GAAP have certain commonalities in the accounting treatment of intangible assets. In case of acquisitions, managements are enjoined to isolate specific intangible assets and value them separately from goodwill. All these assets have to be identified, valued and indicated separately in the balance sheet. The list of intangible assets that need to be recognised separately, as a result of IFRS 3 is extensive and includes a host of things like patents, brands, trademarks and computer software. IFRS 3 demands that the identification and valuation of intangible assets should be a rigorous process. Experts however feel that while valuing intangibles is essentially associated with subjectivity, logical mental application and the use of working sheets should be able to satisfy the demands of regulators. IFRS and US GAAP classify intangible assets, other than goodwill, into assets with limited useful life and assets with indefinite useful life. Assets with finite life are amortised over their useful life. While arbitrary ceilings are not specified on the useful life of those assets, they still need to be tested for impairment every year. An asset is classified as an asset with indefinite useful life if there is no probable limit to the period over which it will benefit the firm. It is however rare for intangible assets other than goodwill to have indefinite useful lives and most intangibles are amortised over their expected useful lives. Assets with indefinite lives have to be subjected to rigorous annual impairment tests. The fact that most intangible assets (other than goodwill) are amortised over their expected useful lives requires the determination of the expected useful life of each of the assets acquired. The general principles detailed above are common to both IFRS and US GAAP and are useful in determining the broad procedures for accounting and disclosure of intangible assets. As previously elaborated, accounting treatment primarily depends upon the determination of the life of an intangible asset, more specifically whether it has an indefinite or finite measurable life. All intangibles are governed by the same sets of disclosure requirements. Accordingly, financial statements should indicate the useful life or amortisation rate, amortisation method, gross carrying amount, accumulated amortisation and impairment losses, reconciliation of the carrying amount at the beginning and the end of the period, and the basis for determining that an intangible has an indefinite life. Apart from these requirements, the differences, detailed below, between US GAAP and IFRS in the treatment of Research and Development costs, Brands, Trade Marks and Patents, also need consideration. Treatment of Research and Development Costs and Brands Development costs are however assessed for valuation of long term benefits and, amortised over their determined benefit period. Capitalisation of development costs is allowed only when development efforts result in the creation of an identifiable asset, e.g. software or processes, whose beneficial life and costs can be measured reliably. If however a Research and Development project is purchased, IFRS provides for the treatment of the whole amount as an asset, even though part of the cost reflects research expenses. In the case of further costs being incurred on the project after its purchase, research costs will need to be expensed out while development costs will be eligible for capitalisation, subject to their meeting the required criteria. US GAAP however stipulates that all Research and Development costs be immediately charged to expenses. Certain development costs pertaining to website and software development are however allowed to be capitalised. Research and Development assets, if acquired are valued at fair value under the purchase method. However if the assets do not have any alternate use they are immediately charged to expense. Both PWC and publications opine that US GAAP will most probably move towards the IFRS position on Research and Development as part of the short term convergence exercise. Brands The treatment of Brands is similar under both US GAAP and IFRS norms. It has been specifically clarified that the value of brands generated internally should not be reflected in financial statements. In case of brands obtained through purchase or acquisition the value of the brand will have to be computed at cost or fair value and it will need to be determined whether the life of the brand is indefinite or finite. Brands with indefinite lives will need to be subjected to rigorous impairment tests every year, and treated like goodwill. Brands with finite lives, while subject to yearly impairment tests, will need to be amortised like other intangible assets. It needs to be noted that the mode of assessment of impairment in US GAAP is different from IFRS and this factor will accordingly come into play for assessment of impairment. Trademarks and Patents The costs of Patents and Trademarks, when developed and obtained internally comprise, mostly of legal and administrative costs incurred with their filing and registration and are expensed out as regular legal or administrative costs. The IFRS specifies that no revaluation is possible for Trademarks and Patents in accordance with IAS 38. This is because an active market cannot exist for brands, newspaper mastheads, music and film publishing rights, patents, or trademarks, as each such asset is unique. In the case of patents and trademarks obtained through acquisition, the treatment is similar to the broad category of intangible assets, for identification, valuation, measurement and recognition for purposes of separate disclosure. Acquired patents and trademarks are measured initially at purchase cost and are amortized on a straight-line basis over their estimated useful lives. Bibliography Bullen, H, and Cafini, R, 2006, Accounting Standards Regarding Intellectual Assets, UN Department of Economic and Social Affairs, Retrieved November 14, 2006 from unstats.un.org/unsd/nationalaccount/ia10.pdf FASB: Financial Accounting Standard Board, 2006, Retrieved November 14, 2006 from www.fasb.org IFRS and US GAAP, 2005, IAS Plus , Retrieved November 14, 2005 from .net/dtt/cda/doc/content/dtt_audit_iasplusgl_073106.pdf Intangible assets: brand valuation, 2004, IFRS News Brand Valuation, Retrieved November 14, 2006 from www.pwc.com/gx/eng/about/svcs/corporatereporting/IFRSNewsCatalogue.pdf Radebaugh, L.H., Gray, S.J., Black, E.L., 2006, International Accounting and Multinational Enterprises, 6th edition, John Wiley and Sons, inc., USA Roberts, C, Westman, P, and Gordon, P, 2005, International Financial Reporting: A Comparative Approach, 3rd edition, FT Prentice Hall, USA