Casestudy Case Study Example | Topics and Well Written Essays - 1500 words

Casestudy - Case Study Example IAS 16 requires that the recognition principle is applied to all property, plant and equipment costs only at their occurrence. Amongst other things, the costs include the initial costs incurred for either the acquisition or the construction of an item of property plant and equipment and the subsequent costs that are incurred for replacement of parts or service. There exists two types of accounting models under IAS 16. These include the cost model and the revaluation model (International Accounting Standards Board, 2006). While the cost model requires that assets are assessed at costs that are less than the accumulated depreciation and the impairment, the revaluation model requires that the assets be recorded at a revaluated amount hence making its fair value at the date of revaluation less the subsequent depreciation and impairment only with provisions that the fair value can be measured with much reliability. The company that we will be taking into consideration is ING Group N.V., a global financial services firm that is based in the Netherlands (ING Group, 2012). The company applies critical accounting policies that the management believes are not only important to the portrayal of the organizations financial condition and results, but that is also require the most difficult, subjective and complex judgement mainly resulting from the need to make estimations about the various effects of matter and that are also inherently uncertain. Key to note is the fact that various judgements and uncertainties that affect the application of the policies which may result reporting of different amounts that are significantly material under the various different conditions or through the use of different assumptions. The company considers financial reporting and disclosure practice and employs the use of accounting policies quarterly in a bid to ensure there is not only accuracy in the reported information that is not only relative to the prevailing economic conditions, but also the business environment. The company’s property, plant and equipment are reported at a cost that is less the accumulated depreciation. The depreciation realized on property, plant and equipment including even the assets under capital is computed on the straight line method over the estimated useful lives which in most cases range between 30 to 40 years in the case of buildings and 2 to 15 years in the case for equipment (ING Group, 2012). The company immortalizes leasehold improvements over the shorter of the leaseholds estimated useful lives or the related lease life that is mostly not less than 10 years. In the instances where the leases have the options of renewable periods, the company employs the use of original lease term that excludes renewal option periods aimed at determining the estimated useful lives. In instances where a failure to exercise a renewal option results into imposition of an economic penalty to the company, the company may determine at the incept ion of the lease about its renewal being reasonably assured and may include the inclusion of the renewal option period in the determination of the various appropriate estimated useful

Nigerias Growth and Economic Experience Essay Example | Topics and Well Written Essays - 1000 words

Nigerias Growth and Economic Experience - Essay Example overty in Nigeria can be attributed to a shortage of vital resources and the endurance of harsh and inhospitable conditions including the breakdown of economic, demographic, ecological, cultural and social systems and bad governance. A community living in the oil producing areas in south of Nigeria displaced by pollution or the migration from rural to urban areas which undermines infrastructural facilities is a good example. A publication courtesy of the UNDP categorised Nigeria as one of the poorest countries in the world. Moreover, there also came a report of the central bank of Nigeria reporting 69.2 per cent of the population being poor. Proportionally this statistics will conclude that two thirds of the Nigerian population are experiencing income poverty. As well in the remote areas of the country, to be specific those in the north east felt that 50 per cent of them were poor and the corresponding figure for the south east was 54.5 per cent (United Nations Development Programme (UNDP), 2009). The poverty gaps are widening and a greater proportion of the wealth is being concentrated in the hands of the wealthiest 20 percent.it is thought that the highest income earning statues is enjoyed by just 10 per cent of the population who have a 31.4 per cent share of the total national income. Nearly 50 per cent of the total income is owned by the twenty per cent of the highest income earning group. Only an insignificant ten per cent of the national income is owned by an estimated 20 per cent of the poorest portion of the population. Reports done by organisations such as UNDP highlights how the poor in Nigeria experience and understand their poverty as quoted by (Pyke and Ali-Akpajiak, 2003). This is so despite the fact that Nigeria’s average growth rate between 2003 and...The country embarked on tenure of democratic change through repeated elections and competitive political structures set in place. However, the new institutions are weak and inchoate, politi cal allies appear divided and self-serving, popular legitimacy is fragile at best and these fledging regimes face numerous challenges including detrimental economic conditions, (Lewis, 2007). The economy had a detrimental decline due to slow growth, joblessness; slack investment, institutional disarray and fitful policy changes. These pressures have contributed to mounting trends of ethnic, religious and local conflicts. Economic outlook A critical look at poverty measurements shows a grim picture. Statistics focus on just 0.2 per cent of GDP on health care and 0.7 per cent on education. Though the country has its own share of problems, external investors have the capacity to contribute positively to its share of long-term investment through joint ventures. A huge beneficiary as an asset is the current high price of crude oil. Proper management and governance has the potential of sustaining Nigeria’s development and prosperity in this century and far beyond.