The many failures that lead to the disaster at the Royal Bank of Scotland finance

The many failures that lead to the disaster at the Royal Bank of Scotland finance Among the many failures that led to the disaster at the Royal Bank of Scotland, there was obviously a failure of corporate governance. So it is only right that, along with all the other regulatory reviews, there should be a review of the governance of corporate governance. In Britain, this is partly a matter of self-regulation, with companies expected to follow the best practice corporate governance standards set out in the so-called Combined Code. It is surely only a matter of time before some headline-grabbing politician identifies the root cause of all our problems: we have been letting the rascals regulate themselves. So it is very sensible for the Financial Reporting Council, which acts as caretaker of the Code, to try to get its retaliation in first. And it is very sensible that it will work closely with Sir David Walker, who is conducting a separate review of governance of banks. Critics of the British approach to corporate governance particularly in America enjoy pointing out that RBS was, in fact, a model pupil. It did everything by the book, ticked all the boxes and filled page after page of its annual report with an exhaustive analysis of its corporate governance performance. In particular, it had a separate, non-executive chairman a central pillar of the UK code, but far from standard practice in the United States a post is designed to restrain an over-mighty chief executive. Yet the RBS chairman Sir Tom McKillop failed to restrain Sir Fred Goodwin, with catastrophic consequences for the bank and the taxpayer. American critics of the British system claim that we are so focused on ticking the boxes that it makes us complacent. It is one thing following all the rules, but boards also have to ensure that they are working in practice. There are a few obvious areas the review should examine. The roles of chairman, chief executive and senior non-executive director need to be better-defined. The code should encourage non-execs to seek outside advice on big decisions. It should consider whether there should be special rules applying to banks it would clearly be advantageous if at least the chairman and members of the risk committee of banks had specialist experience. The review should consider ways to encourage more active involvement of shareholders in corporate governance questions. And not just traditional institutions, but also sovereign wealth funds and even hedge funds. The problem with all this is that, however they are structured; boards are only as good as the people on them. And, for many reasons, the job of non-executive director of a big company, let alone chairman of a bank, is not getting any more attractive. Even good people fail. Example is RBS board. It included the likes of Peter Sutherland and Sir Steve Robson. And, given that so many reputations have been tarnished by the credit crisis, the pool of good people is shrinking. But it would be a mistake to allow the few good people to take on too many jobs. As chairman of BP, Mr Sutherland is now supporting the reappointment as a director of Sir Tom, whom he helped to become chairman of RBS. Sir Tom, the man ultimately responsible for Sir Freds pension, even sits on the BP remuneration committee. Research Question and Methodology: Royal bank of Scotland was a good example of following corporate governance which follows all the code of corporate governance. Despite this RBS had to bail out by taxpayer money, and majority of its share now owned by taxpayer. Board of directors of RBS was all outsiders and reputed on their own field and there was no inner member on the Board. This proposal found a report that RBS trader bought  £34 billion pounds of sub-prime toxic assets in US without informing its Board. The sub-prime assets are being blamed for causing the banks near collapse in 2008. Last year RBS posted a loss of  £28 billion the largest in British corporate history. There may be a conflict between Board of members and Management. Maybe if there were member in Board from inside or from management this trouble in RBS might be avoided. This proposal will try to find out structure and role of Board of Member and Management at RBS. And try to find out any conflict between Board and management which put RBS in turmoil. This proposal will try to research on theory of corporate governance and their practice at RBS; try to find out the impact of corporate governance and its practice at RBS. This proposal will use secondary date for its quantitative research. Literature Review: Corporate Governance Board of Directors The Corporate Governance is a wide and important subject that covers a range of issues from accountability and transparency and the relationship between the board of directors, management and shareholders to help in determining the path and performance of the corporation (Hunger Wheelen, 2007, p. 18). The corporate governance system was designed to help oversee the decisions and best interest of the shareholders. The system should works accordingly: The shareholders elect directors, who in turn hire management to make the daily executive decisions on the owners behalf. The companys board of directors position is to oversee management and ensure that the shareholders interest is being served. Corporate governance focus is with promoting enterprise, to improve efficiency, and to address disputes of interest which can force upon burdens on the business. Ensuring that the clearness, and truth in a companys business can make contribution to improving the enterprise standards and public g overnance. In brief, corporate governance is the system of controls to ensure that investors can assure themselves that they will get their investment back. Depending on laws and other standard it might vary, but generally Board of Director describes as bellow: Those who set the overall path, vision and mission within the business. Those who make the decisions to hire and, or fire any top management member (Hunger Wheelen, 2007, p. 19) Those who oversee management and evaluate strategy. Those who have the shareholders best interest in mind. Those who review and approve the use of company resources, as well as monitoring the effectiveness of the governance practices. Corporate Governance in U.K. Corporate governance is varied in almost every country depending on a number of factors such as the economic development of the country, the strength of the legal system, the stability of the government but despite this the U.K is decidedly different from that of its neighbouring regions in the E.U. There is a unitary board of management and a broader shareholder bases as well as hardly any dual shares and no pyramid structures. (Franks et al. 2004) An examination of the history and development of corporate governance and legislation in the U.K may provide some answers to the considerable differences that have occurred in contrast to many other European countries and worldwide. The U.K corporate governance practices have evolved from an agency perspective and the principal agent theory with a strong bias towards shareholder protection and shareholder rights. The protection of shareholders, in particular minority shareholders is covered by Company Law and is a major reason for the wide shareholder base characteristic of U.K listed companies. The major developments of a workable corporate governance system for the U.K came about due to a few notable high profile financial scandals and public corporate collapses such as Maxwells Communication Corporation and Bank of Credit and Commerce International (BCCI). Robert Maxwell had been taking money out of the pension funds to aid his downwardly spiralling financial situations and managed to bypass auditors and shareholders alike. His uncurbed power made this possible. The BCCI scandal had a worldwide effect. The Bank was guilty of bribery, arms trafficking, money laundering, the sale of nuclear technology, tax evasion, illegal immigration etc. Auditors were blamed again. After these and various other scandals there appeared to be a lack of confidence in the ability of many U.K companies to accurately report on their financial situations. This led to an important committee being formed; the Committee on the Financial Aspects of Corporate Governance. The report issued by the committee in December 1992 is one the most influential codes on corporate governance and has been used and adapted by many other countries in the development of their corporate governance systems. Sir Adrian Cadbury was the Chairman of the Committee and so the report became known as the Cadbury Report. This report made many valuable recommendations on the composition and roles of the board of directors as well as the non executive directors. Some of the recommendations given in the Cadbury Report were the separation of the Chairman and the CEO, the inclusion on non executive directors, regular and scheduled board meetings, directors access to advice, the length of appointments, the system of appointing non executive directors, disclosure of remuneration and the system of reporting and controls. All U.K registered companies who want to be listed must comply with the Codes of Best Practice recommended by the Cadbury Report. This comply or explain system as opposed to statutory regulation is said to give the United Kingdom an advantage in that it doesnt unnecessarily constrain business practice and innovation. (Financial Reporting Council 2006)

Seminar Option

(1) What are some factors both developmental and environmental associated with the safety of infants through the second birthday? â€Å"Sharing a bed with a newborn is dangerous if the adult is drugged or drunk-and this in danger of â€Å"overlying† the baby. It may be that co-sleeping is beneficial but bed-sharing is not, partly because adult beds. Unlike cribs, are often soft, with comforters, mattresses, and pillows that increase a baby’s risk of suffocation (Alm, 2007)†. (Berger 2012, p. 137). (2) What is cot death? Cot death is a diagnosis that’s made when an apparently healthy baby dies, without, warning, and for no clear reason.No one knows why babies die in this way. It must be a combination of factors that affect a baby at a vulnerable stage in their development. Some babies may have a problem with the part of the brain that controls breathing and walking. These babies don’t respond if their breathing is slightly restricted, such as if ther e are bed clothes covering their nose or mouth. Sadly, there’s no failsafe way to prevent cot death. However, you can do a number of things to keep your baby safe and reduce the risk. Put your baby to sleep on his/her back in a cot or Moses basket. For the first six months this should be in a room with you.Healthy babies placed on their back to sleep are not more likely to choke. This is the safest place and position for your baby to sleep in. At about five months of six months, babies start to roll. At this age the risk of cot death reduces and it’s safe to let your baby find his/her own comfortable sleeping position. But you should still put your baby down to sleep on his/her back. If you wake up and see that your baby is on his/her front, and he/she’s younger than six months old, gently roll him/her onto his/her back. Babies older than this can usually roll on to their back themselves.You don’t need to get up and check throughout the night, as likely t o change position regularly when he/she sleeps. Don’t smoke during pregnancy or allow anyone to smoke around your baby. If you smoke during or after pregnancy, your baby’s risk of cot death increases. Cot death is more common in babies who are regularly exposed to smoke. The risk to your baby is increased if anyone in the house smokes, even if it’s in another room with a window open. Visitors should smoke outside so the air around your baby is always smoke-free. Never smoke in the same room as your baby.The safest place for your baby to sleep for the first six months is in a cot or Moses basket in the same room as you. Never share a bed with your baby if you or your partner are a smoker (even if you never smoke near your baby), have been drinking alcohol, are taking any medication or drugs or are very tired† (Baby Center, L. L. C. 2012). â€Å"Many factors can affect the development of a fetus. Environmental agents that can negatively affect prenatal deve lopment are called teratogens. Teratogen exposure tends to be most detrimental during the first trimester (the first three months) of pregnancy, when formation of the organs and brain occurs.However, some substances, such as alcohol, can have an effect at any point in pregnancy. Alcohol consumption can harm a developing embryo or fetus, although how much is too much remains much is too much remains unclear. â€Å"The only way to be absolutely certain that your baby is not harmed by alcohol is not to drink at all during pregnancy or while you are trying for a baby,† says the Royal College of Obstetricians and Gynecologists (RCOG). Pregnant women who continue to drink are at increased risk of experiencing a miscarriage or still birth.Infants exposed to alcohol before birth may show signs of Fetal Alcohol Spectrum Disorder (FAST) including learning problems, behavioral problems, and physical disabilities, the RCOG reports. Fetal Alcohol Syndrome, which results in mental retardat ion and facial abnormalities, is uncommon. Unlike FAST), which can occur with only moderate exposure to alcohol. Fetal Alcohol Syndrome only occurs due to heavy drinking during pregnancy† (Demand Media, Inc. 2012). (3) How can you, as an early childhood care professional help parents plan for developmental and environmental factors associated with the safety and health of infants and young children?As an early childhood care professional I can help parents plan for developmental and environmental factors associated with the safety and health of infants and young children by providing parenting education services â€Å"that assist parents or primary caregivers to strengthen their knowledge and skills thereby enhancing positive parenting practices and promoting the health and optimal development of young children and by providing family support services that work with families to strengthen their resiliency and to address the stressors that impair their ability to nurture or su pport the healthy development of their children (ucla. du 2012). (4) Discuss some safety factors associated with toys. â€Å"There are many factors that should be considered in choosing a toy. Assuming that selected toys have been carefully made out of safe materials, the most important thing a consumer should do is consider the age and developmental stage of a child. Even when a child is very intellectually advanced, the age and developmental level of the child must be considered. When toys have labels indicating that they are not appropriated for children under three, they have not been safety tested for infants and toddlers.Genreally the concern is the size of the toy pieces and the risk or potential for choking† (CapitalKids. com 2012). References: Berger, K. (2012). The developing person through childhood. (6th ed. ). New York: Worth Publishers http://www. babycentre. co. uk/baby/health/cotdeath/? oo=0 http://www. livestrong. com/article/92641-factors-affecting-fetus-dev elopment/ http://www. healthychild. ucla. edu/Publications/Documents/ParentEd. pdf http://www. capitolkids. com/toy_safety. html

The Basics of Us History Regents Essay Topics

The Basics of Us History Regents Essay Topics What Has to be Done About Us History Regents Essay Topics Now, while all these approaches are useful, not one of them is able to match the grade of help it's possible to get on our services. In such way, you will secure some brilliant suggestions to introduce in your paper and will determine the most suitable theme. Consequently, you need to understand your prospective audience and attempt to define the most acceptable and robust concept, which would interest a normal reader. The significant challenge comes from how the search for the appropriate and intriguing subject is truly difficult. Over the previous 8 decades, we've been offering students exceptional assistance by using their history assignments. Use the chapter exams as a pre-assessment to find out your weak spots, then conserve time by working through only the lessons you want. As a consequence, many students utilize the aid of special on-line services. I suggest that you spend a minumum of one hour a day practicing your writing abilities. To begin with, the paper is passed through Copyscape application to make certain that it's not plagiarized. It's thus important to remind the readers of your central argument and after that offer an overview of the primary points. For example, you will need an outline. Include a minumum of one good example to keep and develop your primary statements. Though it has a number of similarities with other essay types, there are a few significant differences too. There are a few inconveniences and interruptions that come unexpectedly, and you are unable to avoid them. Choose two problems caused by industrialization. A fantastic history paper is in your reach, hire one of our writers to receive it! We will supply you with all contemporary conveniences and guarantee the maximum quality of our papers. However, in the event you encounter difficulties and you really feel as if you take a sample paper, don't be afraid to ask for our help! Despite the fact that you pay for homework, we provide those options free of charge. The new Regents Exams have to be fair and must accurately assess the wisdom and skills of students. Writing an effective essay demands careful attention to detail and capability to organize your thoughts concerning the principal subject of your research. Students must list the tasks that will need to be dealt with. After the stated theme, they are given a task which they must complete in essay format regarding the theme. It's essential that students understand just what they are predicted to write about in the essay. Is one particular question that a number of students ask themselves. The very first paragraph of your writing ought to be a quick introduction. Let's start from the very start and talk about how to compose a thematic essay. The thesis statement ought to be included within this paragraph to permit readers to comprehend the central argument of the paper. If you would like to compose the essay yourself, we believe it would be best to select a universal subject or issue. Thus, to write an outstanding paper inside this subject, one wants to use a minumum of one history essay introduction example to be guided. Consider the absolute most critical issues and introduce them. There ought to be a very clear distinction between the content in the debut, in the most important body, and in the conclusion.

Accounting for Goodwill a Controversial Topic in Accounting

Abstract The aim of this short paper is targeted at broadening general understanding of the impact of accounting for goodwill in the Non-for-Profit environment based on its financial practicability and how a focus on the fair value of goodwill goes to the heart of the value of an Organization. Various amendments and new accounting rules; Enron and WorldCom misfortunes; Ponzi Schemes and other white collar financial frauds have brought about stricter governance and financial statement reporting responsibilities on organizations, including the government and non for profits organizations. The enactment of the 2002 Sarbanes-Oxley Act; the GASB Statement 34; and the FASB No. 142 has been ways to improve how financial statements are prepared,†¦show more content†¦Goodwill Defined: Perspective of various regulatory bodies Goodwill being a controversial topic in Accounting has derived its definitions from various accounting bodies in us and overseas. The concept of goodwill has been around probably as long as formal accounting systems have been in place, going back probably to the Phoenicians. A variety of definitions of goodwill have evolved over the last two centuries. However, these attempts have been surprisingly unable to capture a comprehensive definition of the term once and for all and in all situations. (Valuing Intangible Assets, 1999, pg.7) Below are some of the definitions and descriptions of goodwill. 1. In earlier common practice in the United Kingdom, the British defined goodwill as the probability that an enterprise’s customers or patrons would continue to do business with it, and value its products and services above those available from other companies or purveyors. (Valuing Intangible Assets, 1999, pg. 7) 2. The American Heritage Dictionary defined goodwill as the positive reputation of a business viewed as an asset, equal to the excess cost required to acquire the business over the fair market value of all other assets. 3. The American Institute of Certified Public Accountants (AICPA) has described goodwill as all those intangibles and supporting assets that contribute to the advantage that an established business has over a comparable business that is about to be started—in other words, image,Show MoreRelatedChanges in treatment of goodwill due to IFRS 31152 Words   |  5 Pages Changes in treatment of goodwill due to IFRS 3 Paper On 19th November 2013 at the Berlin School of Economics and Law Study programme: Accounting and Controlling Matriculation year: 2013 Matriculation number: 412410 Semester: Winter semester Table of contents 1. Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 2 2. Prior treatment of goodwill†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 2 2.1 Goodwill amortization†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦... 3 3. Goodwill after adoption of IFRS 3†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Read MoreHistorical Development of Gaap1322 Words   |  6 PagesA Historical Look at U.S. GAAP Lauren Hollis Accounting Theory Texas Woman’s University School of Management Dr. Pamela Baker January 26, 2013 ABSTRACT This paper discusses the historical development of generally accepted accounting principles through its contributing sources from 1930 to the present. U.S. Businesses had been using double entry accounting since the 1800s yet no uniform accounting practices had been introduced until the American Institute of Accountants (AIA) recommendedRead MoreAccounting Paper2412 Words   |  10 Pageshas been made as far as improving the accounting methodology regarding internally developed intangibles. This paper aims to analyze the weakness in the current system of financial reporting in relation to intangible assets, recount the efforts to improve these weaknesses, and finally to suggest further actions that could be taken to improve the quality of accounting. Weaknesses in Financial Reporting Before we can consider the weaknesses in the accounting system we must first understand the characteristicsRead MoreSimilarities and Differences. a Comparison of Ifrs and Us Gaap33264 Words   |  134 PagesIFRS technical publications IFRS Manual of Accounting 2008 Provides expert practical guidance on how groups should prepare their consolidated financial statements in accordance with IFRS. Comprehensive publication including hundreds of worked examples, extracts from company reports and model financial statements. IFRS News Monthly newsletter focusing on the business implications of the IASBs proposals and new standards. Acquisitions – Accounting and transparency under IFRS 3 Assesses the impactRead MoreThe Article Market Valuation Of Accrual Components By Rick Francis2061 Words   |  9 Pages‘Market Valuation of Accrual Components’ by Rick Francis tries to focus on the numerous aspects of capital market research to enlighten the knowledge of cash flows and accruals for maintaining equity valuation. In financial accounting theory, this issue has been found as controversial as well as unsettled. However, the main objective of this paper is to know the empirical evidence which helps to understand the market condition, market price and the cash flow of accruals. In this regard Francis ran multipleRead MoreIntermediate Accounting 7e by Spiceland TB16595 Words   |  67 Pagesï » ¿Intermediate Accounting by Spiceland 7th Edition Test  Bank   Contact me here sellertbsm2014@hotmail.com to download the test bank INSTANTLY!!! PRICE FOR THE TEST BANK, SOLUTION MANUAL AND BOOK PDF: Test Bank 20$ USD Solution Manual 20$ USD BooK PDF 30$ USD    This is a  sample chapter Chapter 01 Environment and Theoretical Structure of Financial Accounting    True / False Questions    1. The primary function of financial accounting is to provide relevant financial information to partiesRead MoreA Brief Overview of Intellectual Capital and Analysis of the Edvinsson/Malone Framework2624 Words   |  11 PagesA Brief Overview of Intellectual Capital and Analysis of the Edvinsson/Malone Framework Introduction Accounting is a science based on observation. As companies change, the way accountants observe companies must change. Traditional balance sheets, income statements, and statement of cash flows no longer adequately describe a company due to the rapid growth of knowledge-based companies, especially in technological sectors. The Internet and a growth in service industries are also acceleratingRead MoreAcca F7 Answers117326 Words   |  470 Pageswith Pumice’s records. The net profit after tax for the year ended 31 March 2006 was $2 million for Silverton and $8 million for Amok. Assume profits accrued evenly throughout the year. An impairment test at 31 March 2006 concluded that consolidated goodwill was impaired by $400,000 and the investment in Amok was impaired by $200,000. No dividends were paid during the year by any of the companies. Required: (a) Discuss how the investments purchased by Pumice on 1 October 2005 should be treated inRead MoreGlobal Warming Is All Too Familiar For Most Of Us1541 Words   |  7 PagesEthan Reding Mr. Tim Morris Catholic Social Teaching 12/11/14 Our Changing Climate The phrase â€Å"global warming† is all too familiar for most of us. It is a matter addressing our changing climate, and it is one of the most controversial topics of the time. Issues on global warming come from recent changes in our climate: some attribute this to increased involvement with the Earth’s macro-ecosystem, and some people attribute these things to random acts of nature, and some attribute this to patternsRead MoreValuation Is The Price Of Everything, But The Value Of Nothing1646 Words   |  7 Pagesareas of finance. In corporate finance, the firm’s value aims to be as high as possible and will have an effect on corporate decisions, including projects to develop and where to find funds, and on the dividend policy. In such a way to study the topic, we will discuss first the Net Asset Value and its advantages and disadvantages, then the Discounted cash flow method and to finish the dividend discount model. The net asset value (NAV) method measures the value of a fund’s assets. It enables investors