Definitions and Interpretations of Rhetorical Irony

Definitions and Interpretations of Rhetorical Irony To state a certain something yet to mean something different - that might be the least complex meaning of incongruity. Be that as it may, in truth, theres nothing at all straightforward about the expository idea of incongruity. As J.A. Cuddon says in A Dictionary of Literary Terms and Literary Theory (Basil Blackwell, 1979), incongruity evades definition, and this trickiness is one of the primary reasons why it is a wellspring of so much captivated request and hypothesis. To empower further request (instead of diminish this unpredictable figure of speech to shortsighted clarifications), weve assembled an assortment of definitions and understandings of incongruity, both antiquated and current. Here youll locate some repetitive topics just as certain purposes of difference. Does any of these essayists give the single right solution to our inquiry? No. Be that as it may, all give food to thought. We start on this page with some wide perceptions about the idea of incongruity - a couple of standard definitions alongside endeavors to order the various sorts of incongruity. On page two, we offer a concise overview of the manners in which that the idea of incongruity has developed in the course of recent years. At long last, on pages three and four, various contemporary authors talk about what incongruity means (or appears to mean) voluntarily. Definitions and Types of Irony The Three Basic Features of IronyThe head deterrent in the method of a basic meaning of incongruity is the way that incongruity is anything but a basic marvel. . . . We have now introduced, as fundamental highlights for all irony,(i) a differentiation of appearance and reality,(ii) a certain ignorance (imagined in the ironist, genuine in the casualty of the incongruity) that the appearance is just an appearance, and(iii) the comic impact of this ignorance of a differentiating appearance and reality.(Douglas Colin Muecke, Irony, Methuen Publishing, 1970)Five Kinds of IronyThree sorts of incongruity have been perceived since relic: (1) Socratic incongruity. a cover of honesty and numbness received to win a contention. . . . (2) Dramatic or terrible incongruity, a twofold vision of what's going on in a play or genuine circumstance. . . . (3) Linguistic incongruity, a duality of importance, presently the great type of incongruity. Expanding on the possibility of sensational incongruity, the Romans reasoned that language regularly conveys a twofold message, a second frequently taunting or cynical importance negating the first. . . .In present day times, two further originations have been included: (1) Structural incongruity, a quality that is incorporated with messages, in which the perceptions of an innocent storyteller point up further ramifications of a circumstance. . . . (2) Romantic incongruity, in which authors plan with perusers to share the twofold vision of what's going on in the plot of a novel, film, etc.(Tom McArthur, The Oxford Companion to the English Language, Oxford University Press, 1992) Applying IronyIronys general trademark is to make something comprehended by communicating its inverse. We can in this way segregate three separate methods of applying this logical structure. Incongruity can allude to (1) singular interesting expressions (ironia verbi); (2) specific methods of deciphering life (ironia vitae); and (3) presence completely (ironia entis). The three elements of ironytrope, figure, and all inclusive paradigmcan be comprehended as logical, existential, and ontological.(Peter L. Oesterreich, Irony, in Encyclopedia of Rhetoric, altered by Thomas O. Sloane, Oxford University Press, 2001)Metaphors for IronyIrony is an affront passed on as a commendation, hinting the most annoying parody under the diction of laudatory; putting its casualty exposed on a bed of briars and thorns, daintily secured with rose leaves; enhancing his temple with a crown of gold, which copies into his cerebrum; prodding, and worrying, and riddling him totally with ceaseless releases of s uperstar from a covered battery; revealing the most delicate and contracting nerves of his psyche, and afterward flatly contacting them with ice, or smilingly pricking them with needles.(James Hogg, Wit and Humor, in Hoggs Instructor, 1850) Incongruity SarcasmIrony must not be mistaken for mockery, which is immediate: Sarcasm implies absolutely what it says, yet in a sharp, harsh, cutting, burning, or acerb way; it is the instrument of anger, a weapon of offense, while incongruity is one of the vehicles of wit.(Eric Partridge and Janet Whitcut, Usage and Abusage: A Guide to Good English, W.W. Norton Company, 1997)Irony, Sarcasm, WitGeorge Puttenhams Arte of English Poesie shows thankfulness for unpretentious logical incongruity by deciphering ironia as Drie Mock. I attempted to discover what incongruity truly is, and found that some antiquated essayist on verse had discussed ironia, which we call the drye fake, and I can't think about a superior term for it: the drye mock. Not mockery, which resembles vinegar, or criticism, which is regularly the voice of disillusioned vision, yet a fragile throwing of a cool and enlightening light on life, and in this manner an augmentation. The ironist isn't severe, he doesn't look to undermine everything that appears to be commendable or genuine, he disdains the modest scoring-off of the wisecracker. He stands, in a manner of speaking, fairly at one side, watches and talks with a balance which is periodically decorated with a glimmer of controlled misrepresentation. He talks from a specific profundity, and consequently he isn't of a similar sort as the mind, who so frequently talks from the tongue and no more profound. The brains want is to be entertaining, the ironist is just interesting as an auxiliary achievement.(Roberston Davies, The Cunning Man, Viking, 1995) Vast IronyThere are two expansive uses in regular speech. The first identifies with grandiose incongruity and has little to do with the play of language or figural discourse. . . . This is an incongruity of circumstance, or an incongruity of presence; it is just as human life and its comprehension of the world is undermined by some other significance or plan past our forces. . . . The word incongruity alludes to the furthest reaches of human significance; we don't see the impacts of what we do, the results of our activities, or the powers that surpass our decisions. Such incongruity is vast incongruity, or the incongruity of fate.(Claire Colebrook, Irony: The New Critical Idiom, Routledge, 2004) A Survey of Irony Socrates, That Old FoxThe most powerful model throughout the entire existence of incongruity has been the Platonic Socrates. Neither Socrates nor his counterparts, in any case, would have related the wordâ eironeiaâ with current originations of Socratic incongruity. As Cicero put it, Socrates was continually claiming to require data and declaring appreciation for the shrewdness of his partner; when Socrates questioners were irritated with him for acting along these lines they called himâ eiron, a disgusting term of rebuke alluding for the most part to any sort of tricky misdirection with hints of joke. The fox was the image of the eiron.All genuine conversations ofâ eironeiaâ followed upon the relationship of the word with Socrates.(Norman D. Knox, Irony, The Dictionary of the History of Ideas, 2003)The Western SensibilitySome venture to such an extreme as to state that Socrates amusing character initiated a particularly Western reasonableness. His incongruity, or his capaci tyâ notâ to acknowledge regular qualities and ideas yet live in a state ofâ perpetualâ question, is the introduction of theory, morals, and consciousness.(Claire Colebrook, Irony: The New Critical Idiom, Routledge, 2004) Doubters and AcademicsIt isn't without cause that such a significant number of fantastic thinkers became Skeptics and Academics, and prevented any assurance from securing information or perception, and held feelings that the information on man stretched out just to appearances and probabilities. The facts demonstrate that in Socrates it should be nevertheless a type of irony, Scientiam dissimulando simulavit, for he used to disguise his insight, as far as possible to upgrade his knowledge.(Francis Bacon, The Advancement of Learning, 1605)From Socrates to CiceroSocratic incongruity, as it is built in Platos dialogues,â is thereforeâ a technique for ridiculing and exposing the assumed information on his questioners, thus driving them to truth (Socratic maieutics). Cicero sets up incongruity as a talk figure which faults by acclaim and acclaims by fault. Aside from this, there is the feeling of grievous (or sensational) incongruity, which centers around the complexity be tween the heroes obliviousness and the observers, who know about his lethal predetermination (as in Oedipus Rex).(Irony, in Imagology: The Cultural Construction and Literary Representation of National Characters, altered by Manfred Beller and Joep Leerssen, Rodopi, 2007) Quintilian OnwardsSome of the rhetoricians perceive, however as though in passing, that incongruity was considerably more than a normal expository figure. Quintilian says [in Institutio Oratoria, interpreted by H.E. Butler] that in theâ figurativeâ form of incongruity the speaker masks his whole importance, the camouflage being evident instead of admitted. . . .Be that as it may, having addressed this marginal where incongruity stops to be instrumental and is looked for as an end in itself, Quintilian steps back, appropriately for his motivations, to his useful view, and essentially conveys about two centuries worth of rhetoricians alongside him. It was not until well into the eighteenth century that scholars were constrained, by hazardous advancements in the utilization of incongruity itself, to start considering amusing impacts by one way or another independent artistic finishes. And afterward obviously incongruity burst its limits so adequately that men at long last excused on ly utilitarian incongruities as not even unexpected, or as self-clearly less artistic.(Wayne C. Booth, A Rhetoric of Irony, University of Chicago Press, 1974) Infinite Irony RevisitedIn The Concept of Ironyâ (1841), Kierkegaard explained the possibility that incongruity is a method of seeing things, a method of review presence. Afterward, Amiel in his Journal Intimeâ (1883-87) communicated the view that incongruity springs from a percep

The Battle of Ypres 1915 Cost 6000 Canadian Casualties

The Battle of Ypres 1915 Cost 6000 Canadian Casualties In 1915, the second Battle of Ypres built up the notoriety of the Canadians as a battling power. The first Canadian Division had quite recently shown up on the Western Front when they won acknowledgment by holding their ground against another weapon of present day fighting - chlorine gas. It was likewise in the channels at the second Battle of Ypres that John McCrae composed the sonnet when a dear companion was killed, one of 6000 Canadian setbacks in only 48 hours. War World War I Date of Battle of Ypres 1915 April 22 to 24, 1915 Area of Battle of Ypres 1915 Close to Ypres, Belgium Canadian Troops at Ypres 1915 first Canadian Division Canadian Casualties at the Battle of Ypres 1915 6035 Canadian losses in 48 hoursMore than 2000 Canadians kicked the bucket Canadian Honors at the Battle of Ypres 1915 Four Canadians won the Victoria Cross at the Battle of Ypres in 1915 Edward Donald BellewFrederick Bud FisherFrederick William HallFrancis Alexander Scrimger Outline of the Battle of Ypres 1915 The first Canadian Division had quite recently shown up at the front and were moved to Ypres Salient, a lump in the front of the City of Ypres in Belgium.The Germans held the high ground.The Canadians had two British divisions to their right side, and two French armed force divisions on their left.On April 22, after a cannons siege, the Germans discharged 5700 chambers of chlorine gas. The green chlorine gas was heavier than air and sank into the channels constraining officers out. The gas assault was trailed by solid infantry attacks. The French resistances had to withdraw, leaving a four-mile wide opening in the Allied line.The Germans needed more holds or security against the chlorine gas for their own soldiers to exploit the gap.The Canadians battled during that time to close the gap.On the principal night, the Canadians propelled a counter-assault to drive the Germans out of Kitcheners Wood close St. Julien. The Canadians cleared the forested areas yet needed to resign. More ass aults that night brought about sad losses yet got some an ideal opportunity to close the hole. After two days the Germans assaulted the Canadian line at St. Julien, again utilizing chlorine gas. The Canadians hung on until fortifications showed up.

Greece And Rome Essay Example | Topics and Well Written Essays - 1250 words - 1

Greece And Rome - Essay Example The Gods’ existences influenced the psyches of each person who lived in Rome among different areas. How is what somebody does or doesn't do relate to the Gods? Does it influence their way of life? Do certain Gods meet explicit models for the residents of Rome? These inquiries influence the uneasiness of how life is lived dependent on how every God is seen. Luckily, these concerns are frequently settled for the vast majority when rules are executed and stories are informed that anticipate the fallout of loving one God versus another. Quintus Horatius Flaccus, or Horace as present society knows him by, is no special case to making and encourage the thoughts of life within the sight of Gods (Horace, standard. 1). Horace portrays his occupation as: â€Å"Ye commendable trio! we poor children of tune/Oft find ‘tis liked right that drives us wrong† (Flaccus, standard. 3, ll. 33-34). We poor children of tune alludes to other melodious artists. The following line oft find ‘tis liked right that drives us wrong methods their ability of rehashing history, commenting on thoughts and sharing them ought not be a conscience help. As it were, their capacity in performing tributes is a decent deed in the event that it is done accurately and not deciphered the manner in which the artist trusts it ought to be to pick up preference. Horace comments on how writers, or specialists, are not divine beings and that it is essential to recollect that in lines 45-46: By feeling of craftsmanship, makes another imperfection/Fix on some easygoing model; he will know/How to give nails their sharpness, hair its stream;/Yet he will come up short, since he does not have the spirit/To grasp and repeat the entirety. (Flaccus, standard. 3) The watchwords referenced first are craftsmanship and imperfection since it demonstrates that residents need to keep a level head. He does not have the spirit advances Horace’s contention in that spirit is characterized as the pro found or unimportant piece of an individual or creature, viewed as undying. Horace is stating that individuals may see how common things work, however they don't accomplish the ability to make it dependent on the way that he composed recreate the entirety. Entire, for this situation, which means containing all its normal constituents, parts, or components expresses that people can't reproduce life in its careful total the manner in which Gods can when it is matched with the activity of propagation. In this manner, the Gods are seen as being over the Romans, and they are substances that ought to be regarded and venerated so as to have fruitful existences. Horace’s tribute keeps on talking about the topic of the Gods and how they sway Roman life. He says, â€Å"To Vesta’s sanctuary and King Numa’s royal residence/†¦ Wild, love-lorn stream god! He considered himself to be/Avenger of his long-bemoaning llia† (Horace, tr Michie, 5, ll. 15, 17-18). The God s are a piece of Roman life. Here, Vesta is referenced for she is the goddess of the hearth, and the main goddess to disdain if an untouchable trespasses on a home. Additionally, the waterway God as well, yet what is generally obvious about this section is that human feeling is embodied on the Gods through words like love-lorn, which means being without adoration; spurned by one’s sweetheart, and justice fighter that is characterized as to get revenge in the interest of. The Romans did this so as to identify with the Gods and produce understanding. The Gods were seen as having broad impact in forming the lives of the residents of Rome. At the point when something significant occurred, particularly on the off chance that it was a turn for the more awful, individuals went to the Gods. Horace says, â€Å"Which of the divine beings presently will the individuals gather/To prop Rome’

Concept Paper- Research Method, Measurement, and Summary sections Assignment

Idea Paper-Research Method, Measurement, and Summary areas - Assignment Example This has been ascribed to cultural viewpoints that incline men to request for sex reasonably. With an end goal to control and wipe out sex dealing, interest for administrations collected from abuse of sex dealing casualties has been distinguished as urgent purpose of center for relief and mediation systems. The purpose behind this is past and current methodologies coordinated at fighting sex dealing, which demonstrated to have been uneven. The fact is significant intercession procedures have been aimed at the flexibly side of sex dealing, which leaves a hole in information and information with respect to angles that drive sex dealing on the interest side. This paper is planned for featuring the proposed look into techniques that mirror an applied examination objective and exhibit legitimacy inside the setting of the picked inquire about structure and by and large logical thoroughness. The examination strategies utilized inside the structure of this investigation require a multi-facet ed way to deal with encourage the extensive social occasion of information that is applicable and critical to request decrease in sex dealing. This requires research of the interest for sex dealing to adopt on a blended strategy while applying approach and mediation systems. ... The examination techniques ought to likewise ensure the legitimacy of research study, which includes the correspondence between the measure and the idea or idea it is intended to gauge (Moustakas, 2001). As indicated by Moustakas (2001), likeness of the exploration study’s results and information should ensure their outer legitimacy. Subjective research techniques encourage the revealing of multifaceted parts of people’s encounters with sex dealing. Specifically, this technique can be utilized to get information on the particular factors that decide and impact interest for sex dealing (Bernstein, 2001). Subjective research strategies are perfect in revealing cultural elements that legitimize men’s attack into the universe of sex dealing, where they fill in as the essential drive of the interest for sex dealing. The generalizations built up in the public arena that legitimize men’s invasion and requesting for business sex administrations can be assessed and explored through subjective research strategies (Bernstein, 2001). Quantitative research techniques empower the examination and estimation of information (Moustakas, 2001). It makes it workable for analysts to independently assess free and ward factors in detail being material in speculation applied inside the structure of examinations. Examination into completion interest for sex dealing should consider that assessment and examinations include shrouded parts of the populace. Therefore, examine philosophies applied ought to be intended to address these conditions and envision difficulties that will be experienced because of this viewpoint. Concealed populaces are people whose size and limits are obscure, and for whom no examining outline exists (Moustakas, 2001). Subjective techniques require authoritative

10 Humorous Audiobooks by Women Funny Ladies Being Funny

10 Humorous Audiobooks by Women Funny Ladies Being Funny Its been a day. I spent the hours from 9:00 to 5:00 being screamed at by baby boomers   (#notallboomers) who still use AOL exclusively and wonder why Im not literally Google. In my brief respite from that, I check into Twitter only to regret doing so immediately. My brain reels as I read the words fake news for the 3 bazillionth time and the fact that I even know the term tender age shelters leaves me with a crushing sense of despair. Its mid-July. Although right wing, science-denying pundits tell me that climate change doesnt exist, I find it odd that it went from frozen tundra in June to sweltering July-appropriate temperatures in the span of three days. My body, now unaccustomed to what summer heat feels like, pours itself into my sweltering car as I sigh out my knowledge of   unarmed men of color being shot by the very people tasked with protecting them and melanin-deficient people calling the cops on children trying to have a childhood. I need a release. And that release is funny-ass audiobooks by funny-ass ladies. I need that reminder that humor can be found in dire situations and that women have, the world over, adjusted to their experienced injustices by laughing in the face of their oppressors. For centuries we took to laughing with each other at your ridiculousness over fences, while you thought we were exchanging recipes for some vile casserole featuring the much-lauded cream of mushroom soup. If you need an escape from the 7th circle of hell (were not yet at number nine, stay tuned) in which we currently live, even if its only for a 30 minute commute, here are a handful of hilarious-yet-honest books by some of the funniest and smartest women ever gifted to us by the heavens. And these selections get extra bonus points for being narrated by these funny ladies, only adding to this small blessing. SO CLOSE TO BEING THE SH*T, YALL DONT EVEN KNOW BY RETTA In  So Close to Being the Sh*t, Yall Dont Even Know,  Parks and Recreation  star Retta takes us on her not-so-meteoric rise from roaches to riches (well, rich enough that she can buy $15,000 designer handbags yet scared enough to know shes always a heartbeat away from ramen with American cheese). SELF-INFLICTED WOUNDS: HEARTWARMING TALES OF EPIC HUMILIATION BY AISHA TYLER Here, Aisha Tyler, comedian, actress, cohost of CBSs  The Talk,  star of  Archer,  and creator of the top-ranked podcast  Girl on Guy,  serves up a spectacular collection of her own self-inflicted wounds. From almost setting herself on fire, to vomiting on a boy she liked, to getting drunk and sleeping through the SATs, to going into crushing debt to pay for college and then throwing away her degree to become a comedian, Aishas life has been a series of spectacularly epic fails. And shes got the scars to prove it. Literally. YOU CANT TOUCH MY HAIR: AND OTHER THINGS I STILL HAVE TO EXPLAIN BY PHOEBE ROBINSON Being a black woman in America means contending with old prejudices and fresh absurdities every day. Comedian Phoebe Robinson has experienced her fair share over the years: Shes been unceremoniously relegated to the role of the black friend, as if she is somehow the authority on all things racial; shes been questioned about her love of U2 and Billy Joel (isnt that…white people music?); shes been called uppity for having an opinion in the workplace; shes been followed around stores by security guards; and yes, people do ask her whether they can touch her hair all. The. Time. Now shes ready to take these topics to audioâ€"and shes going to make you laugh as shes doing it. ONE DAY WELL ALL BE DEAD AND NONE OF THIS WILL MATTER BY SCAACHI KOUL In  One Day Well All Be Dead and None of This Will Matter, Scaachi Koul deploys her razor-sharp humor to share all the fears, outrages, and mortifying moments of her life. She learned from an early age what made her miserable, and for Scaachi anything can be cause for despair, whether its a shopping trip gone awry, enduring awkward conversations with her bikini waxer, overcoming her fear of flying while vacationing halfway around the world, dealing with Internet trolls, or navigating the fears and anxieties of her parents. IM JUDGING YOU: THE DO-BETTER MANUAL BY LUVVIE AJAYI With over 500,000 readers a month at her enormously popular blog, AwesomelyLuvvie.com, Luvvie Ajayi is a go-to source for smart takes on pop culture.  Im Judging You  is her debut book of humorous essays that dissects our cultural obsessions and calls out bad behavior in our increasingly digital, connected lives. It passes on lessons and side-eyes on life, social media, culture, and fame, from addressing those terrible friends we all have, to serious discussions of race and media representation, to what to do about your fool cousin sharing casket pictures from Grandmas wake on Facebook. FUNNY IN FARSI: A MEMOIR OF GROWING UP IRANIAN IN AMERICA BY FIROOZEH DUMAS In a series of deftly drawn scenes  Funny in Farsi  chronicles the American journey of Dumas wonderfully engaging family: her engineer father, a sweetly quixotic dreamer who first sought riches on  Bowling for Dollars  and in Las Vegas; her elegant mother, who never fully mastered English (nor cared to); her uncle, who combated the effects of American fast food with an army of miraculous American weight-loss gadgets; and Firoozeh herself, who as a girl changed her name to Julie, and who encountered a second wave of culture shock when she met and married a Frenchman, becoming part of a one-couple melting pot. WHY NOT ME? BY MINDY KALING In  Why Not Me?  Kaling shares her ongoing journey to find contentment and excitement in her adult life, whether its falling in love at work, seeking new friendships in lonely places, attempting to be the first person in history to lose weight without any behavior modification whatsoever, or, most important, believing that you have a place in Hollywood when youre constantly reminded that no one looks like you. WELL, THAT ESCALATED QUICKLY: MEMOIRS AND MISTAKES OF AN ACCIDENTAL ACTIVIST BY FRANCHESCA RAMSEY Well, That Escalated Quickly  includes Ramseys advice on dealing with Internet trolls and low-key racists, confessions about being a former Online hater herself, and her personal hits and misses in activist debates with everyone from bigoted Facebook friends and misguided relatives to mainstream celebrities and YouTube influencers. With sharp humor and her trademark candor, Ramsey lets listeners know we can have tough conversations that move the dialogue forward, rather than backward, if we just approach them in the right way. WE ARE NEVER MEETING IN REAL LIFE. : ESSAYS BY SAMANTHA IRBY With  We Are Never Meeting in Real Life., bitches gotta eat blogger and comedian Samantha Irby turns the serio-comic essay into an art form. Whether talking about how her difficult childhood has led to a problem in making adult budgets, explaining why she should be the new Bacheloretteâ€"shes 35-ish, but could easily pass for 60-somethingâ€"detailing a disastrous pilgrimage-slash-romantic-vacation to Nashville to scatter her estranged fathers ashes, sharing awkward sexual encounters, or dispensing advice on how to navigate friendships with former drinking buddies who are now suburban momsâ€"hang in there for the Costco lootâ€"shes as deft at poking fun at the ghosts of her past self as she is at capturing powerful emotional truths. THE LAST BLACK UNICORN BY TIFFANY HADDISH Tiffany cant avoid being funny: Its just who she is. But  The Last Black Unicorn  is so much more than a side-splittingly hilarious collection of essaysâ€"its a memoir of the struggles of one woman who came from nothing and nowhere. A woman who was able to achieve her dreams by reveling in her pain and awkwardness, showing the world who she really is, and inspiring others through the power of laughter. What humorous audiobooks by women have you enjoyed lately? Sign up for Audiobooks to receive the latest from the audiobooks world. Thank you for signing up! Keep an eye on your inbox.

Essay on How Religious Young People Are

Essay on How Religious Young People Are How Religious Are Young People? In many cultures religion is considered to be a part of tradition, and as such it is seen as an integral part of social life. However, younger people are not likely to be tied to tradition, and are more prone to expose themselves to diverse cultural influences. Youth considers religion to be a practice of the elderly. This is due to the fact that people are seen to embrace religion as they age and get closer to death, thus seeking the scenario of an afterlife for comfort. Young people are introduced to religion by their parents, but many of them decide to abandon their faith later in life. Studies conducted on Protestants aged between 18 and 30 showed that seventy percent of them stopped going to church by the age of 23, despite having attended it regularly in high school (Wilson, 2009). Studies carried out on young people and their attitude towards religion help understand its place in modern society and its future. It is the young generation that is at the forefront of social and cultural change. Their engagement in religion provides information on its innovation, transformation and adaptation in relation to wider cultural and social trends, as well as the future of faith and how resilient practices and beliefs are (Wilson, 2009). Further studies conducted on people under 30 showed that both Christians and non-Christians are now more critical of Christianity, than their peers were ten years ago. The study conducted by Bama Group showed that opinion of non-Christians about adherents of this religion was also more favorable than it is now. A research conducted on senior pastors indicated that they were having difficulties in church, as Christianity was facing a lot of negativity and hostility. The common perceptions expressed by young people regarding present-day Christianity included seeing it as too involved in politics, old-fashioned, hypocritical, and judgmental. The interviewed people were not ignorant, as they had been either attending church themselves before stopping to do so, or had at least five friends who were Christians (Grossman, 2007). The contempt for faith was seen to come from a position of familiarity with it, through personal interactions and true stories from other people that provided non-Christian experiences. One of the reasons that young people specified in a survey conducted to find out why they disdain Christianity was the excessive unloving attitude and disdain that Christians showed towards lesbian and gay people. They said that church regarded homosexuality as a bigger sin than others, and failed to provide biblical teachings that would help them relate to or have friendships with such people (Robinson, 2007). Both young Christians and non-Christians are frustrated at the level by which modern Christianity has shifted from its earlier teachings. This opinion was discovered to be shared by the majority of the population, implying that the common trend whereby more people became religious as they aged would be a thing of the past as well. Christianity is the most common faith in the United States, though there is a possibility that the situation will change with more people becoming secular in a few years to come. Many high school and college students get involved in community service and volunteerism. Their participation in such activities is seen as a way to define themselves and their identity as Christians. Religion is often presented as compulsory by parents, denying young people the experience of spiritual and personal understanding, but in doing so they only provoke rebellion and make youngsters disdain religion even more (Grossman, 2007). Some young people are able to maintain their tolerance, and are, therefore, able to grow in both spirituality and religion, irrespective of their denomination. It is, however, possible that some young people are beginning to understand religion in ways that they did not before, and are, consequently, strengthening their religious beliefs and faith.

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The Social Responsibility Of Business - 787 Words

The economist and Nobel laureate Milton Friedman’s article published in The New York Times Magazine in 1970 titled, â€Å"The Social Responsibility of Business Is to Increase Its Profits.† (NYTimes, 1970) set tone for companies all across the country and all over the world. Companies start to turn in profits that shattered all charts and stock markets. Beginning in 1960s to 1990s, Capitalism had won the cold war with its arch rival the Soviet Union had withered away into the oblivion and the companies that turned focused in profits could not have been more right, or so everybody thought. With the latest economic recession in 2008, everything came tumbling down on the front door of once Wall Street and brought the world economy to halt. Today the social responsibility of Business is defined by economic development, the environment investment and human rights. Today, the general publics which turns to social media in every step to learn about company’s social involvement and use social media as a tool to address or engage with the company. In this interconnected world, a company cannot afford to ignore their social responsibilities. It had proved time and again, any missteps a company makes in the social media can prove to be a publicity nightmare from which it can barely come out unharmed. Just 10 years ago, only a handful of the fortune 500 companies paid any attention to Corporate Social Responsibility (CSR). However, now â€Å"More than 8,000 businesses around the worldShow MoreRelatedThe Social Responsibility Of Business932 Words   |  4 PagesA corporation does do business within a vacuum; rather exist as part of larger collective framework of society, stakeholders and a global business community. 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Likewise, these execution methodologies can be vary time to time as the corporate needs to satisfy different groups of people such as : top hierarchy stakeholders, staffs ,shareholders, and even non-related business groups such as environmentalistsRead MoreThe Social Responsibility Of Business1422 Words   |  6 Pagesthe business be held accountable for these actions? In his essay â€Å"The Social Responsibility of Bu siness Is to Increase Its Profit† Milton Friedman, powerful economist, discusses what a business should prioritize in the economic system. Friedman declares what a business is responsible for and the guidelines they must follow. Due to Friedman’s view, he would not have condoned the actions and decisions that the executives at Ford Motor Company took. Friedman argues that the only responsibility a businessRead MoreThe Social Responsibility Of Business1042 Words   |  5 PagesCorporate Social Responsibility is defined as a business preparation that involves participating in creativities that help society. Friedman: The Social Responsibility of Business is to increase its profits. Milton Friedman argues that the only social responsibility a business has is to itself – mainly to its profits, and therefore, its stakeholders. The business management in charge of a company works for the organization and eventually for the stakeholders. This person is responsible for carryingRead MoreThe Social Responsibility of a Business647 Words   |  3 Pagesï » ¿The Social Responsibility of Business: The role of business in the society became a major aspect across business after Milton Freedman wrote the most provocative article in 1970. As an economist, Freedman stated that the main purpose of businesses is to generate profits for its shareholders. Furthermore, he argued that companies with responsible attitudes were likely to encounter increased binding constraints unlike those that lacked these attitudes, resulting in them becoming less competitiveRead MoreThe Social Responsibility Of Business1437 Words   |  6 Pagesthe business be held accountable for these actions? In his essay â€Å"The Social Responsibility of Business Is to Increase Its Profit† Milton Friedman, powerful economist, discusses what a business should prioritize in the economic system. Friedman declares what a business is responsible for and the guidelines they must follow. Due to Friedman’s view, he would not have condoned the actions and decisions that the executives at Ford Motor Company to ok. Friedman argues that the only responsibility a businessRead MoreThe Social Responsibility Of Business2053 Words   |  9 Pagesevolution-taking place; now the level of a business social responsibility has become increasingly integrated into modern business practices. This focus has seen both advantages and disadvantages to the business. However, to what extent has the use of the greater focus of a business social responsibility affected its competitive advantage in its marketplace. CSR is described as; â€Å"the principle that companies can and should make a positive contribution to society, of managing the social, environmental and economicRead MoreSocial Responsibility Of A Business1444 Words   |  6 Pagesareas of business and nonprofit management. However, Cohen’s article on social responsibility drew a lot attention from other scholars like Friedman. In view of this, this paper will discuss and define the concept of social responsibility of a business to its workers, stakeholders, and society; how the perspectives align with that of Drucker; comparing Cohen’s opinion with that of Friedman and finally determines which of the two individual’s opinion best aligns with the current business climate promotingRead MoreThe Social Responsibility Of Business Essay1959 Words   |  8 Pagesagree or disagree with the following quotation: â€Å"There is one and only one social responsibility of business—to use its resources and engage i n activities designed to increase its profits so long as it stays within the rules of the game, which is to say engages in free and open competition, without deception and fraud.† Milton Friedman, a Nobel Prize winning economist. In other words, the social responsibility of business is to make a profit. I do not agree with the following quote by Milton FriedmanRead MoreThe Social Responsibility Of Business1463 Words   |  6 PagesIn his paper titled The Social Responsibility of Business is to Increase Its Profits†, Milton Friedman addresses the key issue of weighing social responsibility against profit maximization for shareholders. This conflict is the basis for Friedman’s whole paper, as he explores the two sides of the situation. In order to set up his argument, Friedman lays down a framework by explicitly stating a certain premise. This is that businessman view â€Å"social responsibility† and profit as not being mutually

Child Labour And Child Labor - 1600 Words

Child Labor Issues There are children that suffer through child labor daily. Child labor is the use of children in a business or industry, usually illegal. â€Å"3 billion people around the world survive on $2.50 a day or less. And 2 billion people do not hold a bank account or have access to essential financial services† (â€Å"Living in Poverty†1). Children that are normally in labor come from a poor family that’s in need of money so badly that it comes down to selling their own children or putting them up for jobs. Child labor is happening right now, all around our world. There are children being forced into labor and not knowing anything different. Therefore, some parents and families may rely on child labor in order to have lives basic†¦show more content†¦Ã¢â‚¬Å"Willful violations may be prosecuted criminally and the violator fined up to $10,000† (â€Å"Department of Labor† 1). Child labor is mostly made up of children who have familie s in poverty. Poverty is when someone is in the state of being extremely poor. There are many reasons for why so many people have ended up in poverty. The causes of child labor could decrease in the future. There are many charities for people in poverty. Not having people in poverty leads to Adults not putting their children through labor. Child labor isn’t good for our world. Not only because it’s against the law, but it effects our future. It effects our future by the children getting put into labor who can’t become knowledgeable people. Who could possibly do great things when they become adults because they are being taken out of school to work for their families. Child labor is a very effective thing to many people. It effects the parents of the children because many of them end up never even seeing their children because they are always having to work for them. Also it effects economies of where child labor is mainly happening. For example, child labor is m ostly found in Asia. Which means people might start looking at Asia as if it were a place where you can get away with child labor easier than other places. Which is not good for the economy of Asia. Supply needs and industry demands for cheap, poor adults can causeShow MoreRelatedChild Labour And Child Labor1142 Words   |  5 Pagescurrently and previously forced to endure child labour. Child labour affects children mentally and physically, as well as putting children at risk for abuse from employers. Child labour is an everyday task for as many as 280 million children. They work on farms, factories, and in sweatshops for extremely low fees; most have little or no education. Child labour addresses many issues and thoughts such as, dehumanization, the lack of enforcement of child labour laws which exist in most countries in theRead MoreChild Labour And Child Labor1381 Words   |  6 PagesThroughout the world around 218 million children are exposed to child labour. It occurs in mo st countries such as underdeveloped places such as India, Ethiopia, Tanzania, Mexico, Pakistan and many others. Many of these children do not go to school because their families cannot provide an income that would cover the fees for an education. More than half of them are exposed to the worst forms of child labour such as working in hazardous environments, slaver and Illicit activities including drug traffickingRead MoreThe Theory Of Child Labour1398 Words   |  6 PagesThe tem â€Å"Child Labour† is often defined as work that deprives children from their childhood, their potential and their dignity and that is harmful to physical and mental development. It is serious and extensive problem with many children under the age of 14 years. Children living in poorest household and in rural areas are mostly likely to be engaged in child labour. Children have worked for as long as families have needed all hands to pitch in. Beyond defining work as a means of survival, definingRead MoreNegative Effects Of Child Labor In Ghana1583 Words   |  7 PagesLives of little ones are destroyed, when child labor is employed. This is one of the famous slogans that shows the severity and the cruelty of child labor. Child labor refers to work that threatens children’s health and safety or deprives their right to education (Herring). Child labor is a serious global issue that the world is facing these days. According to the International Labor Organization (ILO), 215 million children worldwide between the ages of five and seventeen work under conditions thatRead MoreChild Labour And How Does It Happen?914 Words   |  4 PagesChild Labour The focus of this investigation is Child labour and recently developing child labour especially in developing countries. Child labour is when someone has power over children and they use it to their advantage such as businesses, especially when illegal or considered exploitative. It is predicted that child labour happens where there is more people. There are a lot of different types of child labour such as: Agriculture, Carpet weaving, automobile workshop, mining, stone/ marble cuttingRead MoreChild Labour : A History Essay1228 Words   |  5 PagesChild Labour in The United States Child Labour: A History America and The Industrial Revolution ‘Forms of child labor, including indentured servitude and child slavery, have existed throughout American history.’ (http://www.continuetolearn.uiowa.edu/laborctr/child_labor/about/us_history.html) During the years following the Civil War, (http://americanhistory.about.com/od/industrialrev/a/indrevoverview.htm) the American working class made an abrupt transition away from farm work and home choresRead MoreChild Labour. . The Industrial Revolution (1760 To 1840)1134 Words   |  5 PagesCHILD LABOUR The industrial revolution (1760 to 1840) was an exciting time, and while Britain and America were transforming modern society there was an incredibly high demand for labor. Children as young as 4 years old were working underpaid in factories to keep themselves and their poverty struck families alive. I will be exploring why it was that so many children were working in factories during the industrial revolution, and how they compare to the child labourers of todayRead MoreFree the Children from Child Labour1517 Words   |  7 PagesFree The Children from Child Labour: The Disadvantageous of Child Labour Two hundred million children are suffering in the world! â€Å"the world has an estimated 186 million child labourers – 5,7 million in forced and bonded labor, 1.8 million in prostitution, and 0.3 million in armed conflict† .( Basu amp; Tzannatos, 2003, p.147). In Africa, Asia and the Middle East, a huge number of children are child labourers, and most of them under 14 years old. However, they are working hard as sameRead MoreChild Labor Is Not An Effective Way For India1533 Words   |  7 Pagesreceive our goods. All around the world, child labor is one of the most widely social issues affecting the younger population, specifically, in India. For the children of India, work becomes a nightmare based on suffering and mistreatment. While children have no choice but to be independent and forced to work, it can be a big influence on the child’s education, life, health, and development. Where child labor is deeply rooted from tradition, the causes of chi ld labor are difficult and complex beliefs andRead MoreInternational Labor Standards Of Child Work906 Words   |  4 PagesINTERNATIONAL PERSPECTIVE International labour standards characterize child work by its outcomes; it includes work that is rationally, physically, socially or ethically perilous and destructive to children, and meddles with their educating. UNICEF characterizes child work as work that surpasses a base number of hours, contingent upon the age of a child and on the sort of work. The 18th International Conference of Labor Statisticians held at Geneva held that Child work (slated for nullification) ought

Dantes Inferno Essay - 856 Words

Dantes Inferno It was sometime in the middle of the 17th century that British cleric Thomas Fuller wrote, He that falls into sin is a man; that grieves at it, is a saint; that boasteth of it, is a devil. If Fuller was right, where does one place Dante, the pilgrim who bravely wandered where no man had wandered before? Certainly, the sojourner precisely written by the poet of the same name was a man. Certainly, also, he repented his sinful ways (how could one not after braving not only the depths of Hell but later the stretches of Purgatory and the many waters of Heaven?), but he was no saint. Indeed, Inferno itself can be easily construed as a boast of sorts—made it through hell, met Lucifer, bought the t-shirt. But in reality,†¦show more content†¦In Canto 3, Dante is so overwhelmed by his surroundings that overcame all feeling in me [ln 135] and he faints, saying dramatically, I fell like one whom sleep is taking [ln 136]. Not much later, in Canto 5, the traveling duo comes upon a pair of lovers, condemned to an eternity of suffering due to a small case of incontinence. Dante is overcome with sympathy as he listens to their story, and promptly blacks out again, this time with even more dramatic flair: for pity I fainted as if I were dying, and I fell as a dead body falls [ln 141-142]. Before he hits the dust, he manages to express his sympathy to Francesca, one of the lovers: Francesca, your sufferings make me sad and piteous to tears [ln 116-117]. This sense of pity is an important indicator of his progress, or lack thereof, through Hell. At this, the beginning of his journey, Dante identifies with the condemned and thus has not only sympathy, but empathy toward them. He understands a life of sin and can picture himself in their place. As time goes by and the pilgrims journey continues, Dante gets hardened against the strife and pain inflicted upon the sinners. Of course, seeing enough of anything begets tolerance, but in Dantes case his lessening sympathy shows lessening empathy as well. His thoughts and ideals have become progressively more pure and pious, and hes started to lose his identification with the life of sin and contempt. Virgil encourages his displacementShow MoreRelatedThe Story in Dantes Inferno910 Words   |  4 PagesIn the story Dante’s Inferno we as readers get to experience hell in a whole light. Throughout the narrative we find out that hell is not only what we know of it from the Christian bible . According to Dante Hell is a complex situation that is nothing like anything we have read earlier. There are many people who have read at least some portion of the Holy Bible. Whether it be because of personal reasons or educational ones, the holy bible most read (and sold) books in existence. Through readingRead MoreDantes Inferno Essay1447 Words   |  6 PagesAt the start of the poem we find Dante in the dark forest(Inf. 1.2). Not much description is given maybe to show Dante’s disorientation. Whether the disorientation is spiritual, physical, moral or political; that is unclear at the start of the poem. The poem us written this way so reader can identify with Dante. It is also written in such a way that sometimes it is difficult to understand some parts, you sometimes have to read it backwards to get a better understanding. The way Dante characterizesRead MoreThe Odyssey and Dantes Inferno1300 Words   |  5 Pagesheart of a poet, whether it be romance, adventure or simply a story from experiences. And perhaps there are no better poets that are better able to drag their willing audience along a journey than Homer and Dante. The epic tales of The Odyssey and Inferno, respectively, were seemingly written along a parallel train of thought when describing their characters journey, easily engaging the creative functions of the reader with adventurous tales of hope and adventure. Their characters, Odysseus and DanteRead More Dantes Inferno Essay496 Words   |  2 PagesDantes Inferno In Canto I, Dante has strayed from the True Way into the Dark Wood of Error. He opens his eyes and sees the mount Mount of Joy which is lit up by the sun. He sets out to try to climb the mountain, but his way is blocked by the Three Beasts of Worldliness: The Leopard of Malice and Fraud, The Lion of Violence and Ambition, and The She-Wolf of Incontinence. He then starts to lose all hope when Virgil, Dante’s symbol of Human Reason appears. Dante is very frightened and nervous byRead MoreCritique Of Dantes Inferno1602 Words   |  7 Pages The Inferno is the first part of Dante’s epic poem The Divine Comedy. The Inferno tells the journey of Dante going through Hell, guided by the ancient Roman poet Virgil. In the poem Hell is illustrated as nine circles of torture that is located in the middle of the Earth, the Inferno describes the recognition and the ultimate rejection of sin. Every canto is written in parts of what sinner is being punished, what their punishment is an d why they are there. Susan Blow writes a critique of Dante’sRead MoreThe Influence of Dantes Inferno Essay1380 Words   |  6 Pages Dante Alighieri’s Divine Comedy is an epic poem that begins with the Inferno. The Inferno is an extremely influential part of European literature. The structure of story is for many people a piece of the vision of Hell. Religiously, this poem has had great prevalence. Dante paints a picture of the Hell that is both unsettling and justifiable. A whole world is created through his poem. The levels and intensity of sin is pondered. Crime is put to a level of small to large scale. ThoseRead MoreAnalysis of Dantes Inferno Essay748 Words   |  3 PagesIn Dante’s Inferno, Dante is taken on a journey through hell. On this journey, Dane sees the many different forms of sins, and each with its own unique contrapasso, or counter-suffering. Each of these punishments reflects the sin of a person, usually offering some ironic way of suffering as a sort of revenge for breaking God’s law. As Dante wrote this work and developed the contrapassos, he allows himself to play God, deciding who is in hell and why they are there. He uses this opportunity to strikeRead MoreThe Contributions Of Death In Dantes Inferno1168 Words   |  5 PagesIn the Inferno, Dante journeys along the path that will eventually lead him to God by first passing through Hell. As he goes through his journey in Hell with Virgil, Dante encounters several sinners who are being punished based upon the sins each individual committed. Dante’s attitude towards the sinners’ punishment changes from sympathy to hostility as he goes through his path towards God. At first, Dante is to feeling sympathy for the souls that reside in the Second Circle of Hell, whose punishmentRead MoreDantes Inferno and the Renaissance Essay2380 Words   |  10 PagesIt is one of the most known and referenced books of its time and is still a commonly read work of literature, but is Dante Alighieri’s The Inferno more that just one man’s interpretation of what hell is like? We know it now as a remarkable piece of literature, but some contend that it was a turning point in writing and how many viewed the world. Claims have also been made that it is an example of how man paved the road out of the Dark Ages and into the Renaissance, the period that shaped a lot ofRead MoreDantes Inferno and The Afterlife Essay1819 Words   |  8 Pagesperson can interpreted it in a slightly different way and allegories are most often personalized by a reader. Dante’s Inferno allegory is present throughout the entire poem. From the dark wood to the depths of Dan te’s hell he presents the different crimes committed in life as they could be punished in death. One of the first punishments we observe comes from the fifth circle of Dante’s hell, the wrathful and the sullen, as the author expresses his thoughts of the fitting consequence with each sin

Fv Project Summary of Fasb and Iasb Free Essays

Project Summary Background The objective of this project is to provide guidance to entities on how they should measure the fair value of assets and liabilities when required by other Standards. This project will not change when fair value measurement is required by IFRSs. Discussion at the September 2005 IASB Meeting At the September 2005 meeting, the IASB added the Fair Value Measurements topic to its agenda. We will write a custom essay sample on Fv Project Summary of Fasb and Iasb or any similar topic only for you Order Now The aim of the project is to provide guidance to entities on how they should measure the fair value of assets and liabilities when required by other Standards. This project will not change when fair value measurement is required by IFRSs. Discussion at the November 2005 IASB Meeting The staff conducted an education session on the FASB’s working draft of a final Statement on Fair Value Measurements. In addition, the staff reviewed the scope of FASB’s Fair Value Measurements project as it relates to IFRSs and the issues and questions to be addressed in preparing an IASB Exposure Draft and related Invitation to Comment. No decisions were made. At a previous meeting, the Board decided to issue the FASB’s final Statement on Fair Value Measurements as an IASB Exposure Draft with an Invitation to Comment. The appendices in the FASB document dealing with consequential amendments and references to US GAAP pronouncements will be replaced with proposed consequential amendments and references to IFRSs. The Board further decided that there should be limited changes to the FASB’s document. Instead, the Invitation to Comment should discuss any areas where the Board disagrees with the FASB’s conclusions along with the basis for the disagreement. The staff expects these areas to be identified during Board deliberations during the December 2005 and January 2006 meetings whilst aiming toward issuance of the IASB Exposure Draft by April 2006. Discussion at the December 2005 IASB Meeting Definition of fair value The staff presented a paper identifying and comparing the differences between the definitions of fair value in the FASB’s draft Fair Value Measurements (FVM) standard to the definition in IFRS. This comparison was meant to assist the Board in concluding whether or not to replace the current IFRS definition of fair value with the FVM standard definition. The staff’s overall recommendation was to replace the current IFRS definition of fair value with the definition of fair value in the FVM standard. However, the staff made it clear that it was not stating that this definition be applied to all instances where fair value is currently used in IFRS. This scoping issue is the subject for a separate discussion that would span several Board meetings. The Board discussed in detail, the various components of the current and proposed definition of fair value in the context of the staff’s analysis. Although the Board was in overall agreement to proceed with the proposed definition in the FVM standard, the following points were noted: †¢ Certain Board members wanted to see the various issues discussed pulled together and presented in some logical manner that would clarify how fair value is approached. As noted below, the Board was concerned that the proposed definition would cause confusion where this was not the intention. Some Board members were concerned about changing ‘amount’ to ‘price’ as this would change the meaning of fair value. This concern seemed to emanate around the treatment of transaction costs. †¢ The explicit discussion of ‘exit values’ in the draft guidance was seen by some as problematic. Illustrations were provided indicating that at the time of the transacti on; the agreed price constitutes both an ‘entry’ and ‘exit’ value for that specific asset or liability. Others indicated that it was their belief that the current fair value definition already encompasses an exit value notion. Following on from this issue, the notion of ‘marketplace participants’ is believed by some Board members to be a less superior phrase to the widely accepted ‘knowledgeable, willing parties’ notion which is more readily understood to apply to a transaction between two parties without the necessity of the existence of a ‘market’. The FASB’s rationale for introducing the ‘marketplace participants’ notion as a means of excluding to the greatest extent possible, any entity specific factors when determining fair value, was noted. The Board will be asked to debate the meaning of the ‘reference market’ notion at subsequent meetings. Scope of the Fair Value Measurements Project The Board considered a paper setting out on a Standard by Standard basis, which individual standards should be scoped in or out of this project. That paper was organised into three sections: †¢ Standards that require fair value measurement †¢ Standards that require fair value measurement by reference to another standard †¢ Standards that do not require fair value measurement Within each of these sections, the staff made various proposals for the Board’s consideration. Overall, the staff recommended not modifying as part of this project existing reliability clauses and practicability exceptions. The staff concluded that such modifications could result in significant changes to current practice and that any changes should be considered on a standard-by-standard basis separately from this project. Standards that require fair value measurement The following standards were noted as requiring assets or liabilities to be measured at fair value in certain circumstances: †¢ (a) IAS 11 – Construction Contracts †¢ (b) IAS 16 – Property, Plant and Equipment (c) IAS 17 – Leases †¢ (d) IAS 18 – Revenue †¢ (e) IAS 19 – Employee Benefits †¢ (f) IAS 20 – Accounting for Government Grants and Disclosure of Government Assistance †¢ (g) IAS 26 – Accounting and Reporting by Retirement Benefit Plans †¢ (h) IAS 33 – Earnings per Share †¢ (i) IAS 36 – Impairment of Asset s †¢ (j) IAS 38 – Intangible Assets †¢ (k) IAS 39 – Financial Instruments: Recognition and Measurement †¢ (l) IAS 40 – Investment Property †¢ (m) IAS 41 – Agriculture †¢ (n) IFRS 1 – First-time Adoption of International Financial Reporting Standards †¢ (o) IFRS 2 – Share-based Payment (p) IFRS 3 – Business Combinations and the June 2005 Exposure Draft †¢ (q) IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations The Board agreed with the staff recommendations (as set out in the observer notes) for each standard except in the following instances: †¢ IAS 18 – the staff concluded that in the instances where an entity received services for dissimilar goods or services, the measurement objective is not consistent with the draft FVM standard and therefore IAS 18 should be excluded from the scope. The Board noted this issue but indicated a preference to include IAS 18 within the scope of the FVM Standard as this is a minor part of the fair value requirements in IAS 18. The confusion caused in the market if the Board were to exclude IAS 18 from the project would be undesirable. †¢ IFRS 2 – due to the grant date model, the Board noted the issue that may arise where an entity measures a share-based payment transaction by reference to the equity instruments granted, not the goods or services received. However, the Board decided to include IFRS 2 within the scope of the FVM Standard on the same basis as for IAS 18. Standards that require fair value measurement by reference to another standard †¢ (a) IAS 2 – Inventory †¢ (b) IAS 21 – The Effects of Changes in Foreign Exchange Rates †¢ (c) IAS 27 – Consolidated and Separate Financial Statements †¢ (d) IAS 28 – Investment in Associates †¢ (e) IAS 31 – Interests in Joint Ventures (f) IAS 32 – Financial Instruments: Presentation and Disclosure †¢ (g) IFRS 4 – Insurance Contracts †¢ (h) IFRS 7 – Financial Instruments The Board agreed with the staff recommendation that discussion of the above is not necessary as these standards do not contain any additional requirements to measure assets or liabilities at fair value. Standards that do not require fair value measurement †¢ (a) IAS 1 – Presentation of Financial Statements †¢ (b) IAS 7 – Cash Flow Statements (c) IAS 8 – Accounting Policies, Changes in Accounting Estimates and Errors †¢ (d) IAS 10 – Events After the Balance Sheet Date †¢ (e) IAS 12 – Income Taxes †¢ (f) IAS 14 – Segment Reporting †¢ (g) IAS 23 – Borrowing Costs †¢ (h) IAS 24 – Related Party Disclosures †¢ (i) IAS 29 – Financial Reporting in Hyperinflationary Economies †¢ (j) IAS 30 – Disclosures in the Financial Statements of Banks and Similar Financial Institutions †¢ (k) IAS 34 – Interim Financial Reporting (l) IAS 37 – Provisions, Contingent Liabilities and Contingent Assets †¢ (m) IFRS 6 – Exploration for and Evaluations of Mineral Reserves With regard to IAS 37, the Board concurred with the staff that the measurement principles therein are consistent with fair value principles in many respects and went further to state that when the amendments to IAS 37 are finalise d, it would add explicit reference to fair value to clarify this issue. Discussion at the February 2006 IASB Meeting This was a brief session to inform the Board about recent tentative decisions of the FASB on its fair value measurement standard. No observer notes were provided for this session. The FASB discussed the fair value hierarchy at its last meeting. FASB’s exposure draft had proposed a five-level fair value hierarchy. The FASB has come to the conclusion that it is difficult to distinguish levels two to four in the hierarchy. They have therefore reduced the hierarchy to three levels. The FASB has not made other changes to its proposed fair value guidance. The staff said that discussion will continue in March. Discussion at the May 2006 IASB Meeting Principles of the fair value measurement project The following principles were put to the Board as those forming the foundation of the fair value measurement project: †¢ The objective of a fair value measurement is to determine the price that would be received for an asset or paid to transfer a liability in a transaction between market participants at the measurement date. †¢ The definition of fair value and its measurement objective should be consistent for all fair value measurements required by IFRS. A fair value measurement should reflect market views of the attributes of the asset or liability being measured and should not include views of the reporting entity that differ from market expectations. †¢ A fair value measurement should consider the utility of the asset or liability being measured. As such, the fair value measurement should consider the location and the condi tion of the asset or liability at its measurement date. The Board concurred with the staff that the above principles form the foundation of the fair value measurement project. Revised definition of fair value In the staff’s view, the FASB’s revised definition of fair value is substantively similar to the one tentatively approved by the IASB in December 2005. Based on that, the IASB agreed that the revised definition is consistent with the measurement objective. However, some Board members expressed concern about the change to a ‘price’ rather than ‘amount’. In addition, the revised definition is based on an exit price notion that does not consider prices that exist other than the exit price. As a consequence, other Board members noted that the current definition will require measurement based on a hypothetical market that, for some types of assets and liabilities, cannot be calibrated with reality and in most cases will result in day 1 gains or losses, which constituents are uncomfortable with. Revised fair value hierarchy The draft fair value measurement statement indicates that valuation techniques used to measure fair value shall maximise the use of observable inputs and minimize the use of unobservable inputs. The hierarchy prioritises the inputs to valuation techniques used to measure fair value based on their observable or unobservable nature. The revised three-level hierarchy is summarised as follows: †¢ Level 1 inputs are observable inputs that reflect quoted prices for identical assets or liabilities in active markets the reporting entity has the ability to access at the measurement date. †¢ Level 2 inputs are observable inputs other than quoted prices for identical assets or liabilities in active markets at the measurement date. Level 3 inputs are unobservable inputs, for example, inputs derived through extrapolation or interpolation that cannot be corroborated by observable data. However, the fair value measurement objective remains the same. Therefore, unobservable inputs should be adjusted for entity information that is inconsistent with market expectations. Unobservable inputs should also consider the risk premium a market participant (buyer) would demand to assume the inherent uncertainty in the unobservable input. IFRSs currently does not have a single hierarchy that applies to all fair value measures. Instead individual standards indicate preferences for certain inputs and measures of fair value over others, but this guidance is not consistent among all IFRSs. The Board agreed with the staff’s conclusion that the revised hierarchy in the draft fair value measurement statement is consistent with the principles discussed above and that the hierarchy in the draft fair value measurement statement represents an improvement over the disparate and inconsistent guidance currently in IFRSs. Unit of account and fair value measurements The Board agreed that it is not appropriate or practical to provide detailed guidance on the unit of account within the fair value measurement project. Determining the appropriate unit of account is a critical element of accounting and is not always consistent from one asset or liability to another or from one type of transaction to another. Determination of which market The Board agreed with the FASB’s conclusion to adopt the ‘principal market’ view. While this will result in a change from the ‘most advantageous’ view currently in IFRS, the ‘principal market’ view more accurately reflects the fair value measurement objective and provides a more representative measure of fair value by giving preference to highly liquid markets over less liquid markets. Transaction price presumption At the December 2005 meeting, the IASB tentatively agreed the fair value measurement objective was an exit price. The December discussion highlighted the conceptual difference between transaction price (what an entity would pay to buy an asset or receive to assume a liability) and an exit price objective (what an entity would receive to sell an asset or pay to transfer a liability). The staff concluded that an entity cannot presume an entry price to be equal to an exit price without considering factors specific to the transaction and the asset or liability. As a consequence, the staff plans to bring a separate discussion of day 1 gains or losses to the Board at a future meeting. The Board shared the concerns of the staff that if a transaction price were presumed to be fair value on initial measurement, entities might not sufficiently consider the differences between an entry transaction price and an exit fair value. As such, IFRSs should require an entity to consider factors specific to the transaction and the asset or liability in assessing if the transaction price represents fair value. Fair value within the bid-ask spread Entities often transact somewhere between the bid and ask pricing points, particularly if the entity is a market maker or an influential investor. However, application of the rule in IAS 39 results in consistency across entities without consideration of entity specific factors that may influence where within the bid-ask spread the entity is likely to transact. Further, the rule creates a bright-line in quoted markets, thus limiting the use of judgement and subjectivity in the fair value measurement. The Board agreed to add a discussion to the invitation to comment that communicates agreement with the principle in the draft fair value measurement statement. The discussion would state that it is not appropriate to use a consistently applied pricing convention as a practical expedient to fair value. This recommendation would result in both a change to existing IFRSs as well as a departure from the FASB’s draft fair value measurement statement. Transaction and transportation costs in measuring fair value The definitions of transaction type costs vary in IFRSs, though such costs are consistently excluded from fair value measurements. Currently, IFRSs are not clear (with the exception of IAS 41) whether transportation costs are an attribute of the asset or liability, and as such should be included in the fair value measurement. The draft fair value measurement statement defines transaction costs as the incremental direct costs to transact in the principal or most advantageous market. Incremental direct costs are costs that result directly from, and are essential to, a transaction involving an asset (or liability). Incremental direct costs are costs that would not be incurred by the entity if the decision to sell or dispose of the asset (or transfer the liability) was not made. In the draft fair value measurement statement, the FASB concluded the fair value measurement of the asset or liability shall include only those costs that are an attribute of the asset or liability. The FASB concluded transaction costs are an attribute of the transaction, not an attribute of the asset or liability. Therefore the fair value measurement of the asset or liability shall not include transaction costs. The staff agreed with the conclusions in the draft FVM statement regarding transportation and transaction costs. However, the staff concluded that the discussion of what types of costs are attributes of the asset or liability could be more robust as it is difficult to decipher justification for different treatment of transaction costs and transportation costs in the current discussion in the draft FVM statement. As such, the staff recommended, and the Board agreed that the invitation to comment should include a question on the sufficiency of the discussion of costs that are attributes of an asset or liability, such as transportation costs. Discussion at the June 2006 IASB Meeting The Board continued its discussion of Fair Value Measurements (FVM), and reviewed the current project plan and due process steps. In addition, the Board had a preliminary discussion on accounting for ‘day-one gains’. Project Plan and Due Process The Board was briefly updated on the developments from the last FASB meeting at which the Fair Value Measurements project was discussed. The Fair Value Measurement project was added to the IASB’s agenda in September 2005. At that time, the Board decided that they would expose the FASB’s final FVM standard as an IASB exposure draft, not modifying it other than change US GAAP references to the appropriate IFRS references. Since then, the staff has become aware of concerns raised by IASB constituents. These include: †¢ As the FVM project could change how fair value is measured, some think that proceeding directly to an IASB exposure draft based on the final FASB document could potentially short-cut the IASB’s due process requirements. †¢ As the FASB document applies a different concept of fair value from that of older IFRSs, constituents have problems with the conceptual reasons for changing to an ‘exit price objective’ of fair value, particularly when an entity have no intention to sell an asset. As fair value is being increasingly used, fundamental questions regarding relevance and reliability need to be debated prior to completion of the project. Due to these concerns, the staff presented the Board with two alternative solutions: †¢ The first alternative was a modified plan which still would include issuing the FASB document as an exposure draft, in addition to conducting field visits and round-table discussions to get input from constituents. †¢ The second alternative was to issue the FASB document as a discussion paper, deliberate this, and then issue an exposure draft. This would allow the Board more time and more flexibility to address the concerns raised by constituents and hopefully a better standard, even if this route will be a longer one. The Board expressed sympathy for the concerns raised by the constituents, and the majority of Board members agreed that this would require a shift from the current project plan to alternative two which is to issue the FASB document as a discussion paper. However some Board members thought that the second alternative should be avoided as this would delay the issuing of a final standard too long. Alternative two will result in a final IFRS in late 2008 or early 2009. Some Board members thought that it would be crucial to communicate with constituents that this move away from the current project plan and towards the discussion paper route would take more time, but that it would be done to ensure the interest of constituents. The Board voted in favour of alternative two, resulting in a discussion paper being issued based on the FASB document. The Board noted that a final plan could not be put together before the final FASB document is issued. As long as the FASB have not issued their final document including, e. . their application guidance, the IASB will not have a public document accessible for issuing as the IASB’s discussion paper. Day-one Gains and Losses Fair value, as defined in the FASB’s document is an exit price. As a result of the Board’s tentative approval of the exit price definition of fair value, in circumstances where an asset or a liability is required to be measured at fair value on initial recognition, a day-one gain or loss may be recorded. The staff believes the existing guidance in IAS 39 is inconsistent with the exit price notion as tentatively approved by the Board, and therefore needs amendment. The Board was asked whether they would consider: †¢ To make only consequential amendments to conform IAS 39 with the guidance in the Fair Value Measurement statement and to leave the current guidance on recognition of day-one gains and losses in IAS 39. †¢ Making consequential amendments and change the existing guidance in IAS 39. The Board decided that they would not make any amendments right now, but rather put a question in the discussion paper whether this should be dealt with in a separate project or as a part of the Fair Value Measurement project. September 2006: FASB issues fair value measurement standard On 15 September 2006, the US Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 157 Fair Value Measurements. FAS 157 provides enhanced guidance for using fair value to measure assets and liabilities. It applies whenever other standards require (or permit) assets or liabilities to be measured at fair value. FAS 157 does not expand the use of fair value in any new circumstances. Click for: †¢ FASB News Release (PDF 19k) Special issue of the Heads Up Newsletter Summarising FAS 157 (PDF 218k) Some points about FAS 157: †¢ Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the market in which the reporting entity transacts. †¢ Fair value should be based on the assumptions market participants would use when pricing the asset or liability. †¢ FAS 157 establishes a fair va lue hierarchy that prioritises the information used to develop those assumptions. The fair value hierarchy gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data, for example, the reporting entity’s own data. †¢ Fair value measurements would be separately disclosed by level within the fair value hierarchy. †¢ FAS 157 is effective for financial statements issued for fiscal years beginning after 15 November 2007, and interim periods within those fiscal years. Early adoption is permitted. †¢ FAS 157 may be downloaded from FASB’s Website without charge. The IASB has on its agenda a project on fair value measurement. It is one of the convergence projects with the FASB. This means that the IASB and the FASB plan to have similar, if not identical, definitions and guidance relating to fair value measurements. The IASB plans to issue a discussion paper in the fourth quarter of 2006 that will: †¢ indicate the IASB’s preliminary views on the provisions of FAS 157; †¢ identify differences between FAS 157 and fair value measurement guidance in existing IFRSs; and †¢ invite comments on the provisions of FAS 157 and on the IASB’s preliminary views about those provisions. Discussion at the September 2006 IASB Meeting The staff noted that FAS 157 Fair Value Measurements was issued on 15 September 2006 (see IAS Plus News Story of 19 September 2006). The IASB staff can now complete the preparation of an IASB Discussion Paper on Fair Value Measurements, which will comprise: †¢ FAS 157; †¢ excerpts of existing FVM guidance in IFRSs; and †¢ an Invitation to Comment that expresses the Board’s preliminary views and requests constituent input on certain matters Non-performance risk The Board noted that IFRSs currently do not discuss non-performance risk in relation to the fair value of liabilities. IAS 39 requires the fair value of a financial liability to reflect the credit quality of the instrument. Reflecting credit quality in the fair value measurement of a financial liability effectively causes the fair value measurement to reflect the risk that the obligation will not be fulfilled. FAS 157 extends this principle to the fair value measurement of both financial and non-financial liabilities. It was noted that non-financial liabilities include both credit risk (which related to the financial component) and non-performance risk (which related to the activity). After some discussion, the Board agreed to include a preliminary view in the invitation to comment agreeing with the concept that the fair value of a liability should reflect the non-performance risk relating to that liability (in addition to credit risk). Issues in the Invitation to Comment Entry and exit prices The Board agreed that the Invitation to Comment should discuss the concepts of entry and exit prices without stating a preliminary view. The Discussion Paper will address two views without stating a preference. The discussion note that the notion of a price established between ‘a willing buyer and a willing seller’ matters only when one is shifting markets. In many IASB standards, ‘fair value’ is used to mean an exit price; in a few (such as IFRS 3, IAS 39, and IAS 41), the phrase is used to mean an entry price. Board members found using the same phrase to communicate two different measurement objectives confusing. Board members noted that they might need to reassess the measurement objective in IFRS 3, IAS 39, and IAS 41 should they adopt the approach in FAS 157 paragraph 17(d), which allows the use of a price other than the transaction price to represent fair value if the transaction occurred in a market other than the principal or most advantageous market. The staff proposed wording ‘on the fly’, which they will bring back to the Board. Principal or most advantageous market IAS 39 requires an entity to use the most advantageous active market in measuring the fair value of a financial asset or liability when multiple markets exist, whereas IAS 41 Agriculture requires an entity to use the most relevant market. By comparison, the FAS 157 requires an entity use the principal market for the asset or liability. In the absence of a principal market for the asset or liability, the entity uses the most advantageous market. The principal market is the market in which the reporting entity would sell the asset or transfer the liability with the greatest volume and level of activity for the asset or liability. The most advantageous market is the market in which the reporting entity would sell the asset or transfer the liability with the price that maximizes the amount that would be received for the asset or minimizes the amount that would be paid to transfer the liability, considering transaction costs in the respective market(s). In either case, the principal (or most advantageous) market (and thus, market participants) should be considered from the perspective of the reporting entity, thereby allowing for differences between and among entities with different activities. The Board reconfirmed their view taken in May 2006, namely: When multiple markets exist for an asset or liability, the fair value measure should be based on the principal market for that asset or liability. If there is no principal market, the most advantageous market should be used. In both instances, the principal or most advantageous market should be determined from the perspective of the reporting entity. A question will be asked on this topic in the Invitation to Comment. Calling ‘level 3’ measurements ‘fair value’ The Board noted that FAS 157 establishes a three level hierarchy for categorising and prioritising inputs for fair value measurements. Level 3 of the hierarchy is ‘unobservable inputs’ for the asset or liability (that is, they are not observable in a market). Unobservable inputs are used to measure fair value only to the extent that observable inputs are not available. These inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). When Level 3 measures are used, FAS 157 prescribes additional disclosures. The Board agreed that the disclosure requirements in FAS 157 highlight sufficiently the nature of the fair value measurement so that users of financial statements can develop a view of the potential uncertainty of that measurement. Therefore, it would not be necessary to include in the Discussion Paper a discussion of whether measurements comprised of significant Level 3 inputs should be labelled something other than fair value. Block premiums and discounts The Board agreed to address the issue of whether block premiums and discounts should be discussed in the Discussion Paper. Such premiums or discounts may arise when a larger-than-normal quantity of an asset or liability is being sold in a market. Board members noted that the requirement to use the ‘Price x Quantity’ formula is limited to Level 1 measures, and that this opens the treatment of block purchases and sales to abuse, since it could be argued that these should be measured using Level 2 or 3 inputs. Board members also agreed that there is a need to distinguish illiquidity caused by the size of the block from that caused by the thinness of the market. The staff will draft a question on this issue for inclusion in the Invitation to Comment. Day 1 gains and losses The Board noted that an exit price measurement objective could have significant implications on certain fair value measurements in IFRSs, particularly in IAS 39 on initial recognition. They reasoned that it is important to highlight situations where the guidance in FAS 157 differs significantly from current IFRSs. Further, convergence on the day-one gain matter is a high-profile issue to many large financial institutions and is an area where the staff expects many comments. The Invitation to Comment will contain a discussion and question on the transaction price presumption. US GAAP-specific material contained in FAS 157 The Board agreed that, in the interests of timely publication, they would not alter FAS 157 in any way for the purposes of the Discussion Paper and Invitation to Comment, and that it would therefore have US GAAP-specific material. The Invitation to Comment would note that any Exposure Draft would be IFRS-specific. Next steps On a poll, 12 Board members voted to issue the Invitation to Comment and Preliminary Views, and one Board member abstained, pending resolution of the discussion of entry and exit prices. The Discussion Paper is scheduled for publication in late 2006. November 2006: Discussion Paper Issued On 30 November 2006, the IASB published for public comment a Discussion Paper on Fair Value Measurements. The Discussion Paper sets out the IASB’s preliminary views on how to measure fair values when fair value measurement is already prescribed under existing IFRSs. It does not propose any extensions of the use of fair values. The DP is built around FASB’s recently issued SFAS 157 Fair Value Measurements. SFAS 157 establishes a single definition of fair value together with a framework for measuring fair value for financial reports prepared in accordance with US GAAP. Click for IASB Press Release (PDF 53k). The Discussion Paper will be available without charge on the IASB’s website starting 11 December 2006. Comment deadline is 2 April 2007 [extended to] 4 May 2007. The IASB plans to publish an Exposure Draft in 2008. Discussion at the January 2007 IASB Meeting Extension of the comment deadline on the Discussion Paper The staff reported that several constituents had asked the Board to extend the deadline for comments on the Board’s Discussion Paper Fair Value Measurements. The constituents highlighted that the comment period coincided with the financial reporting season for those with calendar year ends and asked for more time so that an important and complex document could receive the attention it deserved. The Board agreed unanimously to extend the deadline for comments to Friday 4 May 2007. Discussion at the September 2007 IASB Meeting The staff informed the Board that the FASB had formed a Valuation Resource Group (VRG). The purpose of the VRG is to provide the FASB with input for clarifying the guidance related to the application of the principles in SFAS 157 Fair Value Measurement when fair value is required or permitted under US GAAP. The VRG is drawn from accounting firms, valuation advisers, preparers, users, regulators and standard setters. The first meeting of the VRG is planned for 1 October 2007. Issues raised at that meeting will be brought to the October FASB meeting. The IASB staff noted that any decisions made by the FASB are likely to have implications for valuations performed under IFRSs because constituents may apply the US guidance in the absence of IFRS guidance. The staff will keep the Board informed of the project. No decisions were made. Discussion at the October 2007 IASB Meeting The staff presented their analysis of comments received on the IASB’s discussion paper on fair value measurement. The discussion paper was issued as a ‘wrap around’ of FASB Statement of Financial Accounting Standards No. 157. The complete analysis is available in the Observer Notes section on the IASB’s website (Agenda Paper 2C). The staff asked the Board to do the following: †¢ consider the main points raised in the comment letters (136 received); †¢ affirm the project objectives; and †¢ approve the staff’s preliminary project plan. The main points raised in the comment letter by constituents included (please refer to Agenda Paper 2C for a detailed analysis): †¢ General agreement to that the fair value measurement project is needed; †¢ Concerns about how to provide guidance on determining fair value when it is not clear in hich circumstances; †¢ The interaction between the fair value measurement project and the conceptual framework project (in particular, phase C which covers measurement); †¢ The view that in many situations an entry price notion is superior to an exit price notion; †¢ Fair value is more akin to a heading for a ‘family’ o f measurement bases and accordingly terms should be used which are more descriptive (that is, more clearly articulate what the Board’s intended measurement basis in that situation is); and †¢ With regard to measuring liabilities at fair value, the respondents raised concerns about the application of a transfer notion instead of a settlement notion and asked for guidance as to the meaning of non-performance risk. Regarding the interaction between this project and the Conceptual Framework project, some Board members noted that the outcome of this project is only one of a number of possible measurement bases that will be in the revised Framework. Consequently, the impact on the Framework project is only minor. The staff confirmed that it consults with staff of the Framework project on a regular basis. Some Board members observed that the notion ‘entry price’ should be as well defined as ‘exit price’. Staff noted that this is part of the proposed pr oject plan. No decisions were made. The Board was also asked to agree on the following project objectives: †¢ Development of principles and measurement guidance for an exit price measurement basis; and †¢ Completion of a standard-by-standard review of fair value measurements permitted or required in IFRSs to asses whether each standard’s measurement basis is an exit price. If the Board does not agree, will it agree to decide on a case-by-case basis whether or not to develop measurement guidance for those other measurement bases. The Board agreed to both objectives. On the second bullet point, it was clarified that this analysis will not lead to the development of additional guidance for those measurement bases that will be identified as not fitting in the definition of fair value for the purpose of the fair value measurement project. However, the Board noted that a working definition for fair value must first be agreed on before the analysis can be done. Additional Discussion at the October 2007 IASB M eeting This was an education session and accordingly no decisions were made. The session was led by representatives of the valuation profession to illustrate practical valuation concepts and issues (the complete presentation [Agenda Paper 11A] can be obtained from the Observer Notes section on the IASB Website). The focus was on the valuation methodologies used in the measurement of tangible and intangible non-financial assets. The background of the session was the Discussion Paper on Fair Value Measurements that was issued by the IASB in November 2006. The main topics of the presentation were: †¢ Value concepts in IFRSs †¢ The purchase price allocation process Overview of valuation methodologies (that is cost approach, market approach, income approach) The presenters’ main focus was the valuation requirements resulting from a business combination and what are the factors valuation professionals consider in such transactions. Although this was an education session only the Board showed particular interest in certain topics of the presentation: †¢ If and how appraisers exclude entity-specific factors from their valuation models †¢ Customer-related intangible assets (separation and assumptions used in valuation) †¢ Consideration of tax in the valuation process †¢ Separation and valuation of contingent liabilities On the last point, the representatives of the valuation profession admitted that they have difficulties identifying all contingent liabilities and how to value them based on a transfer notion (that is what would an entity have to pay to pass on the risk – in contrast to a settlement notion). Discussion at the November 2007 IASB Meeting The staff began the morning session by informing the Board about the latest developments in relation to the implementation of SFAS 157 Fair Value Measurements which is the basis for the Discussion Paper published by the IASB. The developments included the deferral of the effective date of SFAS 157 for non-recurring measurements (for example in business combinations). It was noted that these developments would have no impact on the IASB project on fair value measurements. The staff presented its preliminary definitions of ‘current exit price’ and ‘current entry price’ for assets and liabilities that will be used in the standard-by-standard review. The Board and the staff reiterated that they do not want to change the measurement within the standards. The goal of the analysis carried out by the staff would be to find out which measurement attribute the Board and its predecessor (the IASC) had in mind when using the term ‘fair value’. The preliminary working definitions of the staff are as follows: †¢ Assets: Current entry price: The price that would be paid to buy an asset in an orderly transaction between market participants at the measurement date. o Current exit price: The price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. †¢ Liabilities: o Current entry price: The price that would be received to incur a liability in an orderly transaction between market participants at the measurement date. o Current exit price I (transfer notion): The price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. o Current exit price II (settlement notion): The price that would be paid to settle a liability in an orderly transaction at the measurement date. At the request of a Board member staff confirmed that possible components of fair value will be addressed in later stages of the project. The staff also confirmed that it will involve practitioners to gain insight into current valuation practice in the specific circumstances. The Board had a short discussion on certain aspects of fair value measurement and was informed by staff that some of the issues will be discussed at the December Board meeting. The Board agreed on the preliminary definitions of current entry price and current exit price for assets and liabilities and that staff should not consider other measurement bases for the purpose of the standard-by-standard review. Discussion at the December 2007 IASB Meeting The purpose of this session was to continue the deliberations on the issues in the Fair Value Measurements Discussion Paper and to present an analysis of the ‘market participants view’ under SFAS 157 compared to the ‘knowledgeable, willing parties in an arm’s length transaction’ in IFRSs. After staff review of the two approaches, the Board was asked if it agrees with the staff analysis on the market participants view. Some Board members raised concerns about the possible differences of the notion ‘market participants view’ in comparison to a ‘knowledgeable, willing party’. The staff noted that they see no differences in content. One Board member asked why a change in terminology would then be necessary as constituents are familiar with the notion of a ‘knowledgeable, willing party’. Other Board members said that the document must make clear that the terms are interchangeable. After this the Board discussed what a market is and whether, for certain transactions, one can assume a market exists if, for example, actually only two parties are acting. As no definition of ‘market’ was provided, the Board asked the staff to develop an analysis. As all further discussions depend on the outcome of that analysis the Board agreed to postpone discussion of the other items in the agenda paper to a later Board meeting. No further decisions were made. Discussion at the March 2008 IASB Meeting Whether the fair value measurement project should have a working group or other type of specialist advisory group The Board has on its agenda a project on fair value measurement that aims to provide guidance on how to determine fair value if a standard requires or allows fair value measurement. The staff informed the Board that it worked under the assumption that a working group would not be required as there is an overlap with existing working groups that could be involved as required. On further reflection, the staff has concluded that this approach does not work as it proved difficult to involve the other working groups without a clear mandate. The staff also believes that it would not be necessary to set up a formal working group but instead to establish a ‘technical advisory group’ (TAG) that could work on a informal, as-needed basis. Information exchange could be done in person or via electronic communication. However, the IASB Due Process Handbook requires the Board’s consent for not establishing a working group for a major project. One Board member raised the question whether the Valuation Resource Group of the FASB could be involved. The staff answered that this group would interpret and implement SFAS 157, the US standard providing fair value measurement guidance. The Board agreed not to establish a working group, but to form a technical advisory group instead. Discussion at the April 2008 IASB Meeting Representatives of the International Valuation Standards Committee (IVSC) presented an education session to the Board on four valuation issues. No decisions were made at this education session. The four issues presented by the IVSC delegation were: †¢ What is the difference between ‘price’ and ‘value’? †¢ Is there a valuation difference between an entry and an exit price? †¢ Highest and best use †¢ What makes the market? What is the difference between ‘price’ and ‘value’? The representatives made clear that in their view ‘price’ is the amount agreed on in a transaction while ‘value’ is the outcome of a valuation. In practice, most valuations assume a transaction but, depending on the purpose of the valuation exercise, a value could also be entity-specific. It was made clear that in many cases price and value would result in (nearly) the same number. It was also noted that the IVSC standards use three types of valuation with two of them taking a market view and one of them being an entity-specific approach – which could possibly result in different amounts for the same valuation object. Some Board members were confused by the terminology used by the presenters and it was agreed that this could be the cause for much confusion within the constituency and that any communication by the Board must clearly articulate what they mean. One Board member noted that ‘value’ must always be accompanied by an adjective as people understand different things in different situations. Other Board members were confused about where the difference in amounts results from. The IVSC representatives explained that there are many reasons (for example, synergies). Is there a valuation difference between an entry and an exit price? The delegation moved then on to the second question. The representatives explained that the profession holds the view that for non-entity-specific values entry and exit price for the same market should be the same. Often a perceived difference results because entry price is determined on a different market than the exist price. The Board had a lengthy discussion on that issue with a view on the guidance in US GAAP. Highest and best use The highest and best use is terminology from the US GAAP standard SFAS 157 Fair Value Measurements that assumes an entity would also use its asset the best way it can. It was highlighted that the SFAS 157 definition is very similar to the IVSC one. It was noted that this is not a different type or basis of value and that it is inherent in any basis that requires the estimate of an open market transaction. Some Board members expressed their doubt that this always could be assumed for liabilities. What makes the market? The representatives explained that there is an opinion that fair values could only be made where active markets exist. They made it clear that in their view this is not the case. The valuation profession assumes as long as there is enough evidence to establish a valuation it is assumed that a market exist even if the degree of reliability is lower than that for a market with frequent transactions. They would not necessarily link value and liquidity. The Board showed interest in the valuation for some of the instruments where markets have contracted recently and had some debate on that point with the representatives. The Chairman closed the session by asking the IVSC representatives if they have experts on valuing liabilities that could participate in the planned IASB technical experts group. The representatives confirmed that such experts would be available to participate in the group. Discussion at the May 2008 IASB Meeting Discussion of the Meeting of the IASB Expert Advisory Panel on Valuing Financial Instruments in Illiquid Markets The issue was added to the agenda with short notice and no observer notes were available. The staff informed the Board that the Financial Stability Forum has established an expert advisory panel to assist the IASB in enhancing its guidance on valuing financial instruments when markets are no longer active. In addition the staff noted the following: †¢ The first meeting will take place on 13 June 2008. †¢ At the first meeting the panel will decide on the form of guidance issued, e. g. est practice guidance or input for amendment of standards. †¢ The duration of the panel is expected to be two or three months. June 2008: IASB Forms an Expert Advisory Panel on Valuing Financial Instruments in Inactive Markets On 5 June 2008, th e IASB formed an expert advisory panel on valuation of financial instruments in inactive markets, in response to Recommendations made by the Financial Stability Forum (FSF). The new panel will assist the IASB in: †¢ reviewing best practices in the area of valuation techniques, and †¢ formulating any necessary additional practice guidance on valuation methods for financial instruments and related disclosures when markets are no longer active. Organisations participating in the panel include AIG (American International Group); Basel Committee on Banking Supervision; BNP Paribas; Capital International Research Inc. ; Citigroup; Deloitte; Deutsche Bank; Ernst Young; Financial Stability Forum; Fitch Ratings; Goldman Sachs; HSBC; International Association of Insurance Supervisors; International Organization of Securities Commissions (IOSCO); KPMG; Pioneer Investments; PricewaterhouseCoopers; Swiss Re; and UBS. FASB will have a staff observer. The first meeting of the panel will take place on 13 June 2008 in private session. A summary of the meeting will be presented to the IASB at its June 2008 meeting and will be published on its website. More Information on IASB’s website. Related resources are available on our Credit Crunch Page. Discussion at the June 2008 IASB Meeting [pic]Fair Value Measurements – Expert Advisory Panel on Valuing Financial Instruments in Inactive Markets: Meeting update The staff presented a summary of the first meeting held on 13 June 2008 of the Expert Advisory Panel. The staff noted that the purpose of that meeting was to identify the issues arising on valuing financial instruments when markets are no longer active and that possible solutions will be discussed at future meetings. In addition the staff noted the following: †¢ No decision was made regarding the form of guidance the panel will provide, e. g. best practice guidance or input for amendment of standards. Subsets of the issues identified will be discussed by a subgroup of panel members at the next meetings in July (measurement issues) and August (disclosure issues). Meeting dates have not yet been confirmed. The meetings will be held in private sessions with public updates being provided at the July and September Bo ard meetings. †¢ The last meeting is expected to be in September 2008. Updates on the activities of the panel are also available on the IASB’s website. Discussion of the Fair Value Measurements Project Following the joint IASB-FASB meeting in April 2008 the Board discussed the way forward in this project. At the joint meeting the IASB decided not to re-debate all aspects of the Fair Value Measurement discussion paper (the DP), i. e. ot to fully re-debate FAS 157 Fair Value Measurements on which the DP is based. Instead the Board agreed to redeliberate certain areas of confusion or areas in which FAS 157 had proved difficult to apply. The staff presented an analysis of issues raised in the DP and provided recommendations on whether a particular issue should be redeliberated or not. Technical aspects of fair value measurement were not discussed at this meeting. The Board agreed to discuss further the topics listed below. These topics will be redeliberated mainly because th e Board did not express a preliminary view in the DP and/or comments received on the DP indicated a need for further discussion: The exit price measurement objective The Board agreed to consider both entry and exit notions of fair value measurement based on the standard-by-standard review currently performed by the staff. The market participant view In general the Board reaffirmed its preliminary view in the DP. However, the staff was asked to improve the wording in order to address concerns raised by constituents. In particular, it should be clarified how to apply the market participant view in cases where no market exists (for example, liabilities that cannot be transferred). Transfer vs. settlement of a liability The Board agreed to a staff analysis that this is an important cross-cutting issue for other Board projects, particularly, amendments to IAS 37. Transaction price and fair value at initial: Day one gains and losses This issue is considered to be interrelated with the entry vs. exit price issue. The principal (or most advantageous) market The Board reaffirmed the preliminary view in principal but noted that questions about the practical application needs to be resolved. Valuation of liabilities: Non-performance risk There seemed to be a broad consensus to reaffirm the preliminary view that non-performance risks needs to be considered when measuring the fair value. However, the majority of Board noted that this is an important cross-cutting and that there are unresolved issues with regard to presentation (of the counter-entry) and disaggregation. Highest and best use The staff intends to address comprehensively all issues relating to ‘different markets’. Bid-ask spreads: Applicability of mid-market pricing to all levels of the hierarchy? The staff noted that the Board still needs to reach a preliminary and that the question of which transaction costs are to be included will be addressed in this context. Issues not discussed †¢ Disclosures: Redeliberation in light of current market environment †¢ Application guidance: Redeliberation in light of current market environment Topics not to be redeliberated The Board decided not to redeliberate the following five topics: 1. Attributes (characteristics) specific to an asset or liability 2. Whether transaction costs are separate from fair value The staff intends to discuss any outstanding issues in connection with bid-ask spreads. (this sentence relates to bullet 2) 3. Three-level fair value hierarchy Accepted as described in the Discussion Paper without any further deliberations 4. The prohibition of blockage factor adjustments at all levels of the hierarchy The Board had a thorough debate on this issue. One Board member emphasised that the majority of constituents disagreed with the preliminary view expressed in the DP. Finally, there seemed to be a consensus not to redeliberate the issue but to deal with the concerns in the feedback statement. The staff was asked to review the comments received to ensure that the Board ‘has not missed anything’ in reaching the preliminary view. 5. The unit of account for financial assets and liabilities The staff noted that the topics not to be discussed by the Board are broadly consistent with the principles in IFRSs and that they can therefore be addressed in the exposure draft in a way that considers the concerns raised by constituents and is consistent with FAS 157. Discussion at the July 2008 IASB Meeting – Expert Advisory Panel on Valuing Financial Instruments in Inactive Markets: Meeting update The project manager on the fair value measurement project gave an oral update on the activities of the expert advisory panel. The purpose of this panel is to assist the IASB in reviewing best practices in the area of valuation techniques as well as formulating any necessary additional guidance on valuation methods for financial instruments and related disclosures when markets are no longer active. The panel or subgroup met three times. At the kick-off meeting the panel identified specific issues that panel members felt must be addressed (such as forced transactions, the use of pricing services, illiquid markets). It was noted that there seemed to be consistency in applying the fair value measurement requirements in IAS 39 despite the use of different techniques. The staff informed the Board that there will be a draft document to be discussed end of July on those issues, but that it is not clear yet who will publish it. The panel would then turn to appropriate disclosures with the aim to have an exposure draft published in Q4/08. It was noted that there would be ongoing communications with the consolidations project team. Discussion at the July 2008 IASB Meeting At this session the staff asked the Board to decide on a definition of ‘fair value’ – what is the measurement object for items with a measurement basis currently referred to as ‘fair value’? The staff acknowledged that some aspects of fair value have not been discussed yet, but will be brought to the Board at future meetings (for example, principal market and day-one gains/losses). Staff’s view, however, is that whether fair value means an entry or exit price can be decided separately. The staff then turned to the standard-by-standard review as requested by the Board. This review had been requested to help the Board to decide whether: †¢ To retain the term ‘fair value’ and define it appropriately, or †¢ To replace the term ‘fair value’ with more specific terms more appropriate in the individual context. It was noted that a consistent definition of fair value might lead to fewer instances where the Board would require or permit its use. It was also highlighted that a precise definition of fair value would help to ensure proper application where it is required or permitted. The Board had a lengthy discussion about whether entry and exit price would be the equal for the same item on the same date in the same market. Also, the Board discussed which market an entity should refer to in measuring fair value and whether an exit price could include exit by consumption of assets. Board members expressed a range of views on these issues. No clear consensuses were reached. Some Board members observed that if the Board cannot clearly define what fair value means, it would be even more difficult for constituents in applying IFRSs. Board members said that some of the issues that are to be brought back for discussion at future meetings must be resolved before the Board can agree on a definition of fair value. The staff also asked the Board to consider whether to keep the term ‘fair value’ or abandon it. The Board seemed to be split on that issue. The Board discussed whether, in measuring the exit-price fair value of an asset the entity is using, the measurement should take viewpoint of the entity or of an independent market participant. Board members’ views varied, and no decision was reached. The staff distributed a flow chart which was not part of the observer notes that was intended to facilitate the discussion. The Board decided that, once fair value is precisely defined, each reference to fair value in IFRSs should be assessed in relation to the definition. Where ‘fair value’ as used in an IFRS is not consistent with the agreed definition, the term should be replaced with a more descriptive term. Discussion at the September 2008 IASB Meeting – Credit Crisis: Proposed amendments to disclosure requirements Please see separate project page on Amendments to IFRS 7 – Credit Crisis Discussion at the September 2008 IASB Meeting – Expert Advisory Panel on Valuing Financial Instruments in Inactive Markets: Update The staff presented the Board with an update on the work of the expert advisory panel formed in response to recommendations from constituents. The panel’s task is to develop best practice guidance on measurement and disclosures for financial instruments in inactive markets. It was noted that the panel had met six times and will meet again in October. One single document would be published covering both measurement and disclosure. A draft report has just been posted on the IASB’s website. The staff informed the Board that although comments would be solicited until 3 October, comment letters would not be published on the IASB’s website. Asked by a Board member, the staff confirmed that this non-mandatory guidance would be considered when developing the fair value measurement standard and, hence, might become mandatory in the future. Discussion at the September 2008 IASB Meeting – Fair Value Measurements Exposure Draft The staff introduced the session by highlighting the objectives and timeline. The purpose of the session was to seek the Board’s decision on: †¢ Whether a fair value measurement exposure draft should state that fair value reflects the highest and best use of an asset; and †¢ Whether blockage factors should be excluded from fair value measurement. Blockage factors The staff started with the second issue on blockage factors. The staff highlighted that it only sought the Board’s input on this type of discount, not on other discounts or premia. The staff defined a blockage discounts as a discount that represents a discount to the quoted price of an instrument (usually equity securities) to reflect the reduction in the price if the entity were to sell a large holding of instruments at once. The Board had a lengthy debate on this. Some Board members were concerned about ignoring blockage factors as they would represent a real economic phenomenon. Others were of an opposite How to cite Fv Project Summary of Fasb and Iasb, Essay examples