Accounting Answers

Solutions Manual to accompany Company Accounting 8e prepared by Ken Leo John Hoggett John Sweeting Jennie Radford [pic] John Wiley & Sons Australia, Ltd 2009 Chapter 1 – Nature and regulation of companies REVIEW QUESTIONS 1. Outline the advantages of incorporation over other forms of organisation such as partnerships. The corporate form of organisation permits individuals to have â€Å"limited liability†. This confers on shareholders a limit on their liability in the event of a winding up of the company to the amount (if any) unpaid on their shares. (S516). In the case of a partnership no such limitation applies (unless the partnership specifically adopts limited liability) and the insolvency of one or more partners can result in other solvent partners having to contribute any losses and debts out of their own private assets. 2. Distinguish between a proprietary company and a public company. A public company is one in which there is usually a substantial public interest in that the ownership of the company's share capital is widely spread. Public companies are entitled to raise capital through a share issue by issuing a disclosure document which entitles them to have their shares or debentures etc. listed on a stock exchange, such as the Australian Securities Exchange, to facilitate transferability. Proprietary companies on the other hand have specific limitations in terms of the amount and restrictions on its fundraising activities. Specific features of a proprietary company include the need to have a share capital (unlike a public company which may be limited by guarantee and not merely shares): †¢ a requirement to have at least one shareholder and only one director (three directors for a public company) and not more than 50 shareholders (not including employee shareholders) †¢ not required to restrict the transfer of its shares (however it may elect to do so) †¢ the use of the designation â€Å"Pty† or â€Å"Proprietary† in its name †¢ a requirement not to engage in any fundraising activity which would require it to lodge a disclosure document with ASIC. . Distinguish between a large and a small proprietary company. What are the implications of being classified large rather than small? A small proprietary company is defined in Section 45A of Corporations Act 2001, as amended, as one which meets 2 of the following three criteria: *consolidated annual revenue less than $25 milli on *consolidated gross assets at the end of the financial year is less than $12. 5 million #l the companies and the entites it controls have fewer than 50 employees at the end of the financial year. * These figures must be determined in accordance with accounting standards Part-time employees measured at appropriate fraction of full-time If these criteria are not met the company will be a large proprietary. Small proprietary companies do not have to prepare formal financial statements or have them audited. However, they must keep sufficient accounting records to allow preparation and audit of accounts if either 5% of their voting shareholders or ASIC request this to be done. Large proprietary companies, must prepare accounts in accordance with accounting standards, have them audited, send them to shareholders and lodge them with ASIC (Section 292) 4. Outline the special features of a no-liability company. Companies engaged in the more speculative area of mining exploration are most often registered as no-liability. Such companies have NL at the end of the company name and have the advantage of being more attractive to potential investors as unlike companies limited by the unpaid amount on their shares, there is no such liability on the part of shareholders to contribute to the debts and liabilities of the companies. 5. What is the purpose of a certificate of registration? A certificate of registration is issued by ASIC as a part of the registration procedure. Provided the company complies with S117 of the Corporations Act, ASIC will: †¢ give the company an ACN Number †¢ register the company †¢ issue a certificate that states the company's name, ACN No. etc. Once registered, the company is capable of performing all the functions of a corporate body. 6. What are replaceable rules and how do they differ from a constitution? Replaceable rules are the set of internal rules (contained in the Corporations Act) governing the conduct of its operations between the company and its member directors and between members themselves [see example of such rules in ch 1 Section 1. . 3]. If the rules are not adopted by the company then they must draw up a constitution which will cover much of the same issues covered by the replacement rules but may be extended or modified by the promoters of the company. 7. Outline the main features and purpose of a disclosure document. A disclosure document, particularly the prospectus, contains all the infor mation necessary for investors to make an informed assessment of the company's future prospects and other relevant matters including: †¢ rights and liabilities attaching to securities financial position, performance and prospects of the body issuing the securities †¢ interests of each director, proposed director, promoter, stockbroker and their professional advisers in any property acquired or proposed to be acquired with the funds derived from the securities issue. †¢ whether the securities issued will be quoted on a Stock Exchange. 8. In administering a company, the Corporations Act requires the keeping of various books, registers and records. Outline these and briefly discuss their content. There are a range of records required to be maintained by a company including: (Minute books of the proceedings and decisions made at all directors’ and shareholders’ meetings as well as all resolutions passed without a meeting (s. 251A). If the company is a proprietary company with only one director, any declarations by this director must be minuted. (Financial records that will enable financial statements to be prepared and audited from time to time in accordance with the Act (ss. 286, 292, 302 and 303). (Register of members, or share register, giving each member’s name nd address, and the date on which the entry of the member’s name is made on the register. If the company has a share capital, the register must also show the date on which an allotment of shares takes place, the number of shares in each allotment, the shares held by each member, the class of shares held, the share numbers (if any), the amount paid on the shares, and whether or not the sha res are fully paid (s. 169). (Register of option holders to record the names and addresses of the holders of options over the shares of a company. The register must include the number and description of the shares over which options were granted, details of any event that must happen before the options can be exercised, and any consideration for the grant of the options and for the exercise of the options (s. 170). Copies of documents which grant an option over shares must be kept with this register. (Register of debenture holders to record each debenture holder’s name and address, and the amount of the debentures held (s. 171). (Register of charges to record the details of any secured charges over the assets of the company (s. 271). This register must be open for inspection by any creditor or member of the company, without charge. 9. Outline the differences between shares and debentures. Ordinary shares attract no fixed rate of dividend, carry voting rights and may participate in surplus assets and profits of the company – they represent ownership of x% of the company. Ordinary shares are classified as equity. The company may issue shares either fully paid or partly paid (s. 254A). If partly paid shares are issued, the shareholder is liable to pay calls on the shares (except in the case of no-liability companies). A company also has the right to issue preference shares, but may only do so either if there is a statement in its constitution setting out the rights of these shareholders or if these rights have been approved by a special resolution of the company. Not all preference shares are the same. Classification of preference shares as equity or liabilities depends on the rights and features of the shares – judgment is required re which classification is appropriate. For example, redeemable, cumulative 10% preference shares, which are to be redeemed on a set date, are definitely liabilities. Preference shares redeemable at the option of the company may or may not be liabilities, depending on the probability of the company redeeming them. Debentures are issued by the company raise funds but are borrowings, not equity. Debentures may be secured. A trust deed/trustee must be established to protect the rights of debenture holders. 10. What are the main reasons for the development of accounting regulations? The history of accounting regulation had its origins in the industrialised European settlement of the late 18th century. The social, political and economic changes which occurred saw the gradual decline of the importance of family enterprises and the separation of ownership from control as the control of entities was delegated by owners to agents. The growth in the number and size of ‘joint stock companies in the late nineteenth century prompted the rise of disclosure although, initially, this focused on stewardship. The greater complexity of organisations in the mid to late twentieth century gradually led such disclosure to develop into a more sophisticated form of financial reporting, which remains an ongoing process. 11. Does a company have to comply with accounting standards in order to show a ‘true and fair view’ of its financial affairs? Discuss. Before the early 1990s, the directors of a company could elect not to comply with an accounting standard issued by the AASB if they believed the particular standards would cause the accounts not to present a true and fair view. This ‘true and fair override' no longer exists and directors must now comply with applicable accounting standards and add any additional information in the notes to the financial statements if they believe adherence to the standards does not present a true and fair view. Compliance with standards therefore has become the norm, resulting in an increased interest, both positive and negative, in the requirements of accounting standards by different lobby groups, particularly among those required to prepare financial statements. 12. What are the current arrangements for setting accounting standards in Australia? The AASB under the auspices of the Financial Reporting Council is entrusted with the task of making accounting standards both for the purposes of the Corporations Act and for the public and not-for-profit sectors in Australia. See Figure 1. 1 in section 1. 7. 5]. 13. Distinguish between the following organisations and their roles in the regulation of financial reporting in Australia: (the Financial Reporting Council (FRC) (the Australian Accounting Standards Board (AASB) (the International Accounting Standards Board (IASB) (the International Financial Reporting Interpretations Committee (IFRIC) (the Australian Securities and Investments Commissio n (ASIC) (the Australian Securities Exchange (ASX) (the Financial Reporting Panel (FRP). Financial Reporting Council (FRC) The main role of the FRC is to act as an overseer and advisory body to the standard setter, the AASB. The main functions of the FRC under the ASIC Act 1989, s. 225 as amended in 1999, are to: (oversee the process for setting accounting standards and give the Minister reports and advice on that process (appoint AASB members (other than the chairperson) (approve and monitor the AASB’s priorities, business plan, budget and staffing arrangements (determine the AASB’s broad strategic direction give the AASB directions, advice or feedback on matters of general policy and procedures (monitor the development of international accounting standards and the accounting standards that apply in major international financial centres, and –further the development of a single set of accounting standards for worldwide use with appropriate regard to international developments –promote the adoption of international best practice accounting sta ndards in the Australian accounting standard-setting process if this is in the best interests of both the private and public sectors of the Australian economy (monitor the operation of accounting standards to ensure their continued relevance and their effectiveness in achieving their objectives in respect of both the private and public sectors of the Australian economy, as well as the effectiveness of the AASB’s consultative arrangements (seek contributions towards the costs of the Australian accounting standard-setting process (monitor and periodically review the level of funding and funding arrangements for the AASB (establish appropriate consultative mechanisms advance and promote the objectives of standard setting as specified in the Act (perform any other functions that the Minister confers on the FRC by written notice to the chairperson. A major policy direction of the FRC that has affected the agenda of the AASB is the formalisation of a policy of adopting the accounti ng standards of the International Accounting Standards Board (IASB) for application to reporting periods beginning on or after 1 January 2005. (This includes also the adoption of Interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC) for use in the Australian context. ) Australian Accounting Standards Board (AASB) The functions of the AASB, according to s. 27(1) of the ASIC Act 1989, are to: (develop a conceptual framework (not having the force of an accounting standard) for the purpose of evaluating proposed accounting standards and international standards (make accounting standards for the purpose of the Corporations Act (formulate accounting standards for other purposes, e. g. for non-companies, the public sector and the not-for-profit sector (participate in and contribute to the development of a single set of accounting standards for worldwide use (advance and promote the main objectives of developing accounting standards. The AASB must develop accounting standards not only for the corporate sector but also for other sectors, such as the public sector and the not-for-profit sector. The objectives of developing accounting standards are (1) to facilitate the development of accounting standards that require the provision of financial information that: (allows users to make and evaluate decisions about allocating scarce resources (helps directors to discharge their obligations in relation to financial reporting (is relevant to assessing performance, financial position, financing and investment (is relevant and reliable (facilitates comparability (is readily understandable. (2) to facilitate the Australian economy by: (reducing the cost of capital (enabling Australian entities to compete effectively overseas (having accounting standards that are clearly stated and easy to understand. (3) to maintain investor confidence in the Australian economy (including its capital markets). In performing its functions, the AASB is required to follow the broad strategic directions determined by the FRC. The AASB may formulate accounting standards which are of general or limited application, in that the Board may specify the entities, time, place or circumstance to which the standard applies. Furthermore, as long as it is practicable to do so, the AASB is required to conduct a cost–benefit analysis of the impact of a proposed accounting standard before making or formulating the standard. However, the cost–benefit analysis is not necessary where the standard is being made or formulated by issuing the text of an international standard. The AASB conducts its meetings in a forum open to the public, which (hopefully) increases faith in the due process system of standard setting. In line with the FRC’s main function of overseeing the process of setting accounting standards, the AASB is required to adopt IASB standards. The Australian accounting standards and their international counterparts are identical, with three exceptions: – Where some international accounting standards provide a range of optional treatments, the Australian accounting standard may not allow all options. However, the disallowance of any IASB optional treatments in Australia is rare, as evidenced by the AASB’s behaviour since 2005. Some Australian accounting standards may require more information to be disclosed in the notes to the financial statements than that required by the equivalent IASB standard. –Australian accounting standards contain, where applicable, extra paragraphs relevant to entities in the not-for-profit sector. IASB standards are written for application within the business sector only. Besides issuing accounting standards that are equivalent to the IASB’s standards, the AASB has continued to issue accounting standards relevant to the public sector, as well as accounting standards that relate solely to the Australian legal environment, e. g. AASB 1046 Director and Executive Disclosures by Disclosing Entities. International Accounting Standards Board (IASB) The IASB’s mission statement is described as follows on its web site: The International Accounting Standards Board is an independent, privately-funded accounting standard setter( The IASB is committed to developing, in the public interest, a single set of high quality, understandable and enforceable global accounting standards that require transparent and comparable information in general purpose financial statements. In addition, the IASB co-operates with national accounting standard setters to achieve convergence in accounting standards around the world. Following the direction given by the FRC in 2002, the AASB has adopted the standards issued by the IASB as from 1 January 2005. Hence, the financial statements prepared by Australian companies are comparable with those prepared by entities in other countries which also have adopted IASB standards. This should allow for greater understanding of financial statements worldwide, and lead to a more efficient flow of capital acros s national boundaries. The IASB has signed an agreement with the Financial Accounting Standards Board (FASB), the body responsible for issuing accounting standards in the United States. The agreement requires both bodies to work together towards convergence of global accounting standards. The aim is to agree on high-quality solutions to existing and future accounting issues. If such agreement could be reached, potentially there would be one set of global accounting standards. Arguably, for better or worse, the result of this agreement appears to be a gradual adoption of FASB standards by the IASB as its own. International Financial Reporting Interpretations Committee (IFRIC) The IFRIC has the task of reviewing on a timely basis, within the context f existing international accounting standards and the IASB framework, accounting issues that are likely to receive divergent or unacceptable treatment in the absence of authoritative guidance, with a view to reaching consensus as to the appropriate accounting tre atment. The IFRIC considers issues of reasonably widespread importance, and not issues of concern to only a small set of enterprises. The interpretations cover: (newly identified financial reporting issues not specifically dealt with in IFRSs (issues where unsatisfactory or conflicting interpretations have developed, or seem likely to develop in the absence of authoritative guidance, with a view to reaching a consensus on the appropriate treatment. The AASB has adopted the Interpretations issued by the IFRIC for use by Australian companies as from 1 January 2005, and modifies them if necessary for the not-for-profit sector in Australia. Australian Securities and Investments Commission (ASIC) The ASIC is an independent government body set up to enforce and administer the Corporations Act and financial services laws to protect consumers, investors and creditors. ASIC regulates and informs the public about Australian companies, financial markets, financial services organisations and professionals who deal and advise in investments, superannuation, insurance, deposit taking and credit. The Australian Securities and Investments Commission Act 2001 requires ASIC to: (uphold the law uniformly, effectively and quickly promote confident and informed participation by investors and consumers in the financial system (make information about companies and other bodies available to the public (improve the performance of the financial system a nd the entities within it. One of the roles of ASIC is to reduce fraud and unfair practices in financial markets and financial products so that consumers can use them confidently and companies and markets can operate effectively. In an accounting context, as part of its role, ASIC also attempts to ensure that a company’s financial statements lodged with it under the requirements of the Corporations Act comply with accounting standards, if applicable. Australian Securities Exchange (ASX). The ASX is a public company operating Australia’s share markets. It oversees both the shares and future exchanges. In an accounting context, it is particularly concerned with improving the disclosure of information in the financial reports of companies listed with it on the various stock exchanges throughout Australia. It exercises its influence by way of the Listing Rules — a set of rules with which companies must comply if they wish to be listed, and remain listed, on the stock exchange. Financial Reporting Panel (FRP) The FRP, established in 2004, has the function of resolving disputes between the Australian Securities and Investments Commission and companies concerning accounting treatments in their financial reports. The purpose for establishing FRP is to remove the need to initiate legal proceedings in Court in order to resolve a financial reporting matter. FRP is designed to provide an efficient and cost effective way of dealing with disputes, the opportunity to be heard by persons with relevant expertise, and remove concerns about the courts' limited understanding of accounting standards. 14. To which entities do accounting standards apply? Discuss the nature of a reporting entity, and consider reasons for the concept being replaced by one of public accountability. Accounting standards apply to the general-purpose financial statements/reports of entities which are â€Å"reporting entities† and also to those entities which decide to prepare general-purpose financial statements even if they are not reporting entities. The AASB, in SAC 1, provided the following definition of a reporting entity: Reporting entities are all entities (including economic entities) in respect of which it is reasonable to expect the existence of users who rely on the entity’s general purpose financial report for information that will be useful to them for making and evaluating decisions about the allocation of scarce resources. There is no definition of a reporting entity in the IASB’s Framework at this stage. All reporting entities are subject to accounting standards when preparing their general-purpose financial statements. Entities such as small proprietary companies, family trusts, partnerships, sole traders and wholly owned subsidiaries of Australian reporting entities will normally not be required to prepare general purpose statements in accordance with accounting standards. Following the release of the IASB’s Exposure Draft of a Proposed IFRS for Small and Medium-Sized Entities, (SMEs) published in February 2007, the AASB issued, in May of that year, Invitation to Comment ITC 12, proposing to revise the differential reporting regime in Australia by switching the focus away from whether an entity is/is not a reporting entity to whether the entity (subject to a size test) is required to prepare a general-purpose financial statement/report and is publicly accountable. â€Å"Public accountability† is defined in the IASB’s ED on SMEs as accountability to those present and potential resource providers and others external to the entity who make economic decisions but who are not in a position to demand reports tailored to meet their particular information needs. An entity has public accountability if: (a) it has issued (or is in the process of issuing) debt or equity instruments in a public market; or (b) it holds assets in a fiduciary capacity for a broad group of outsiders, such as a bank, insurance company, securities broker/dealer, pension (or superannuation) fund, mutual fund or investment bank. The implications are that if an entity is publicly accountable or satisfies a size test then it will be required to apply Australian equivalents to IFRSs in its general-purpose financial statements. If it is not publicly accountable, and does not meet the size test, then the entity need apply the Australian equivalent of IFRS for SMEs only. See figure 1. 3 in section 1. 9. 2 of the text for a flowchart showing the ITC 12 proposed changes, which, at the time of writing, are expected to be accepted by the AASB for 2009 and beyond: CASE STUDIES Case study 1: Legal obligations Visit the website of the Australian government’s Attorney-General’s Department dealing with the law (www. comlaw. gov. au) and find the Corporations Act 2001. Assuming that you are the director of a small proprietary company, find the â€Å"small business guide† and learn of your obligations under the Act for managing your business. Prepare a brief report for the tutorial class. The Small Business Guide in the Corporations Act can be found following Section 111J. The guide summarises the main rules in the Corporations Act (the Corporations Act 2001) that apply to proprietary companies limited by shares—the most common type of company used by small business. The guide gives a general overview of the Corporations Act as it applies to those companies and directs readers to the operative provisions in the Corporations Act. Students, in their capacity as would-be directors, are required to present a report to the class, summarising the requirements of the Guide. Such topics to be covered include: †¢ The meaning of registration, including shareholders’ and directors’ liabilities †¢ Rules for internal management of a company †¢ Company structure and setting up a new company †¢ Continuing obligations once the company is set up †¢ Company directors, secretaries and shareholders †¢ Who can sign company documents †¢ Funding the company’s operations †¢ Returns to shareholders Annual financial reports and audit †¢ Disagreements within the company †¢ Companies in financial trouble Case study 2: The AASB Visit the website of the Australian Accounting Standards Board (www. aasb. com . au) and find out the following items: †¢ Who is the Chairman of the AASB? †¢ Who are the members, and which organisations do they represent? †¢ Which accounting standards have been issued in the past year? †¢ Why are there differences in the numbering systems for current accounting standards (eg. AASB x, AASB xxx and AASB xxxx)? †¢ What are the current projects (if any) that the AASB is working on in cooperation with the IASB? Assuming that you already have access to the AASB website: Chairman of the AASB Go to AASB Board, then Current Board Members . Current chairman is David Boymal Members of the AASB and organisations represented Stay in the same location and the names and organisations represented on the AASB are all shown. Don’t forget to include the observers as well. Comment: too many people from Melbourne No academics on the board? Accounting standards issued in the past year: On the AASB website, go to Quick Links, then Standards. Read from Table 1 all of the standards issued in the last year. Different numbering systems for standards See Pronouncements for information, plus the section 1. 7. 4 in the text. AASB x represent those standards adopted by the AASB from the IFRSs of the IASB AASB xxx represent those standards adopted by the AASB from the IASs of the IASB and its predecessor the IASC AASB xxxx represent those standards issued exclusively by the AASB for companies in the Australian context In addition, the AAS standards consist of standards issued by the AASB for special organisations e. g. superannuation plans, government Current projects On the AASB website, go to Work in Progress, then Projects. It would appear that there are no specific projects at the moment being worked on by the AASB in cooperation with the IASB. The AASB is one of several standard setting boards that liaise with the IASB and merely provide submissions to the IASB on various topics. See also AASB Submissions to the IASB on the website. Also check the News section and Latest News on the website. Case study 3: Setting up a company Visit the website of the Australian Securities and Investment Commission (www. asic. gov. au) and find the form(s) that you must fill out to start a company, assuming that you wish to set up a small proprietary company to take over your current successful business, which has been operating as a partnership (with three partners) in the past. On the website of the ASIC, go to Download forms, select the form 201 for Registering a company. Students should print the form and fill it out as if they wish to set up a proprietary company, with more than one owner shareholder. Case study 4: The IASB Visit the website of the International Accounting Standards Board (www. iasb. org. k) and find and report to the class on the following pieces of information: †¢ The Memorandum of Understanding of 2005 between the IASB and the FASB of the United States †¢ Which accounting standards have been changed as a result of the Memorandum of Understanding †¢ The membership of the IASB and whic h countries the members come from †¢ The goals of the IASB 1. Memorandum of Understanding On the IASB website, go to About Us, then click on About IASB, and then on the Memorandum of Understanding with the FASB. A full pdf version of the Memorandum can be found here. In relation to the Memorandum the IASB website states: After their joint meeting in September 2002, the US Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) issued their Norwalk Agreement in which they ‘each acknowledged their commitment to the development of high quality, compatible accounting standards that could be used for both domestic and cross-border financial reporting. At that meeting, the FASB and the IASB pledged to use their best efforts †¢ to make their existing financial reporting standards fully compatible as soon as is practicable and †¢ to co-ordinate their future work programmes to ensure that once achieved, compatibility is maintained. At their meetings in April and October 2005, the FASB and the IASB reaffirmed their commitment to the convergence of US generally accepted accounting principles (US GAAP) and International Financial Reporting Standards (IFRSs). A common set of high quality global standards remains the long-term strategic priority of both t he FASB and the IASB. 2. Accounting standards changed/ to be changed as a result of the Memorandum of Understanding On the IASB website, go to About Us, then click on About IASB, and then on the Memorandum of Understanding with the FASB. A full pdf version of the Memorandum can be found here. Not many standards have yet been changed, but plenty of standards are on the agenda for change. From the Memorandum , the topics for short-term convergence include: To be examined by the FASB |To be examined by the IASB | |Fair value option* |Borrowing costs | |Impairment (jointly with the IASB) |Impairment (jointly with the FASB) | |Income tax (jointly with the IASB) |Income tax (jointly with the FASB) | |Investment properties** |Government grants | |Research and development |Joint ventures | |Subsequent events |Segment reporting | |FASB Note: |IASB Note: | |*On the active agenda at 1 July 2005 |Topics are part of or to be added to the IASB’s short-term | |** To be considered by the FAS B as part of the fair value |convergence project, which is already on the agenda. |option project | | Longer term projects include the following, from the Memorandum of Understanding: The boards set the following goals for 2008 for convergence topics already on either their active agendas or the research programmes: |Topics already on an Active Agenda | |Convergence topic |Current status on the FASB |Current status on the |Progress expected to be achieved by 2008 | | |Agenda |IASB Agenda | | |1. Business combinations |On agenda – deliberations in|On agenda – |To have issued converged standards | | |process |deliberations in |(projected for 2007), the contents and | | | |process |effective dates of which to be determined | | | | |after taking full account of comments | | | | |received in response to the Exposure Drafts. | |2. Consolidations |On agenda – currently |On agenda – no |To implement work aimed at the completed | | |inactive |publication yet |development of converged standards as a | | | | |matter of high priority. | |3. Fair value measurement |Completed standard expected |On agenda – |To have issued converged guidance aimed at | |guidance |in the first half of 2006 |deliberations in |providing consistency in the application of | | | |process |existing fair value requirements. 1 | |4. Liabilities and equity |On agenda – no publication |On agenda (will follow |To have issued one or more due process | |distinctions |yet |FASB’s lead) |documents relating to a proposed standard. | |5. Performance reporting |On agenda – no publication |Exposure draft on a |To have issued one or more due process | | |yet |first phase |documents on the full range of topics in | | | | |this project. | |6. Post-retirement benefits |On agenda – deliberations |Not yet on the agenda |To have issued one or more due process | |(including pensions) |underway on the first phase | |documents relating to a proposed standard. | | |of multi-phase project | | | |7. Revenue recognition |On agenda – no publication |On agenda – no |To have issued one or more due process | | |yet |publication yet |documents relating to a proposed | | | | |comprehensive standard. | The objective of the goals set out above is to provide a time frame for convergence efforts in the context of both the objective of removing the need for IFRS reconciliation requirements by 2009 and the existing agendas of the FASB and the IASB. The FASB and the IASB will follow their normal due process when adding items to the agenda. Items designated as convergence topics among the existing research programmes of the boards include: |Topics already being researched, but not yet on an Active Agenda | |Convergence topic |Current status on the FASB|Current status on the IASB|Progress expected to be achieved by | | |Agenda |Agenda |2008 | |1. Derecognition |Currently in the |On research agenda |To have issued a due process document | | |pre-agenda research phase | |relating to the results of staff | | | | |research efforts. | |2. Financial instruments |On research agenda and |On research agenda and |To have issued one or more due process| |(replacement of existing |working group established |working group established |documents relating to the accounting | |standards) | | |for financial instruments. | 3. Membership of IASB and member countries Go to the IASB website and see, About us. Click on About IASB and there you will find the information about the Chairman, currently Sir David Tweedie, the Vice-Chairman and all members of the IASB, and the countries from which they came by reading each person’s information sheet. 4. Goals of the IASB Go to the IASB website and see About us. Click on About IASB and there you will find the IASB objectives. Case study 5: ASIC Visit the website of the Australian Securities and Investments Commission (www. asic. gov. au) and find out and report to the class on the following: †¢ Who the ASIC is and its role †¢ The tips given to prospective shareholders regarding the reading of a company’s prospectus †¢ A list of the policy statements and practice notes issued by the ASIC †¢ â€Å"What’s new† to the website. 1. ASIC and its role On the ASIC website, go to About ASIC and look up Our Role 2. Tips to prospective shareholders re prospectuses From the ASIC website visit FIDO, the ASIC’ s consumer website. From there, go to check our lists and click on prospectuses. The ASIC has information about prospectuses which changes quite regularly. See what tips you can find about prospectuses, assuming that you are a prospective investor. 3. Policy statements and regulatory guides issued From ASIC’s home page, go to Publications and then to Policies. Both the policy list and the regulatory guides are accessible here. 4. What’s new See ASIC’s home page, and What’s New features on the home page.

The Anatomy of a Decision

At the end of John Updike’s short story, all the main characters were at odds with each other. A&P grocery store clerk Sammy, who is the main protagonist of the story, Lengel the manager of the grocery store, and the three young bikini-clad ladies who caught Sammy’s attention, were all arguing over the dress code of the store.The ladies in bikinis just came by to buy a herring snacks from the grocery, much to the delight of Sammy, who enjoyed observing and sexually fantasizing about the bodies of the three women.However, the ladies were reprimanded by Lengel for their inappropriate clothing which he deemed should only be worn in a beach. Seeing that the ladies of his interest were embarrassed, Sammy willingly resigns from his job in order to stand for what he feels is right. On a personal note, although his decision to quit his job as a store clerk in order to protect the ladies’ interests is notable, I do not agree with Sammy’s actions simply because it w as immature and irrational.At the beginning of the story, Sammy fantasizes about the ladies, who enter the grocery store in bikinis, like any young boy would. He observes their clothing and bodies in a very detailed manner as if he wanted to remove them himself: â€Å"There was this chunky one, with a two-piece. It was bright green and the seams on the bra were still sharp and her belly was still pretty pale† (Updike, 1961).He also comes up with his own opinion of their personalities: â€Å"There was this one, with one of those chubby berry-faces, the lips all bunched together under her nose, this one, and tall one, with black hair that had not quite frizzed right†¦. You know their kind of girl other girls think very ‘Striking’ and ‘Attractive.’ She was the queen with ‘Long white prima-Donna legs’† (Updike, 1961). In short, his vivid descriptions of the three ladies no doubt show that he has a profound interest in them, which taints the moral justification of his decision to quit his job.Initially, it would appear that his resignation was mainly to protest the undue embarrassment that his boss, Lengel, caused the ladies. However, as shown in the end, Sammy’s move was primarily for the purpose of appearing as a hero to the three women.When he decided to quit his job, Sammy said, â€Å"The girls, and who'd blame them, are in a hurry to get out, so I say ‘I quit’ to Lengel quick enough for them to hear, hoping they'll stop and watch me, their unsuspected hero.† Meaning to say, although he pointed out that he resigned in protest of his manager’s harsh actions towards the ladies, his actions were simply meant for show.Clearly, Sammy’s actions were signs of immaturity, which is arguably common among people his age. One does not simply quit a job in order to show off to women. His decision can be likened to a young boy desperately trying to impress a girl he likes, but fails in his attempt. He is a classic case of acting first without thinking and only realizing the folly of his actions after seeing the end result, which is expectedly not what he desires. Sammy obviously acted on impulse and as a result, the consequences were severe.As implied in the story, Sammy’s job as a clerk in the A&P grocery store is very important to his parents, who possibly partially depend on his income. As Lengel said in his attempt to convince Sammy to reconsider his decision to quit, â€Å"Sammy, you don’t want to do this to your Mom and Dad† (Updike, 1961.). It can then be deduced that Sammy was not only working for himself but also helping his parents augment their family income.Meaning to say, Sammy’s decision to resign from his job possibly had a greater impact than what he imagined. And he realized this in the end, as he knew that his parents would not understand and accept that the reason behind his sacrifice to protest the actions o f Lengel, whom he believes was very harsh towards the girls.Furthermore, despite his belief that what he did was heroic, Sammy cannot, in any way, be conceived as a hero in the context of the story simply because his efforts were fruitless. Although it can be argued that Sammy symbolizes a revolt against the prejudicial mentality epitomized by Lengel, in the end, the former still gained nothing out of his actions and therefore, cannot be considered as someone who fought for a justifiable cause.

Compare and contrast the different conception Essay

Compare and contrast the different conception - Essay Example However, there are more profound explanations and awareness that karma includes and this also varies in the three religions of Jainism, Hinduism and Buddhism that all adopt it. The similarities among these important religions as well as their differences give a more insightful explanation of the different dogmas that they carry. Yuvraj Krishan writes that there are three essential features of karma. First, it is an ethical law where good would yield happiness and evil will generate suffering. Second, the soul through the person who does an act has moral responsibility over its consequences and in this sense it has the effect of retributive justice. Third, justice in the second feature is carried through punarjanma or rebirth. This is the most appropriate religious explanation on why there is inequality in the world and why some men had to suffer more from others (3). It is an effect of karma that a person may be born of a lower stature in life or even be reborn as an animal or some other life form as a consequence of karma he had amassed in his past life. Thus, one who has not merited what equates to eternal life will be reborn time and again until he reaches being worthy of such state. In Jainism, the concept of karman is refined where the mind is a product thereof. The tapas or austerity is an important aspect that is considered to be material such that it can be exhausted. â€Å"It is a consequence of the material character of the karmas that intent is not the only ingredient in committing a lapse or offence; the Jainas recognize unintentional lapses† ( Krishan 50). The Jainas are stricter in their observance of the right conduct. They practice penance as the ordinary course of life and this is the most distinguishing feature of Jainism from Hinduism and Buddhism. There are five practices in Jainism that are different for monks and for laymen. For monks they are called mahavratas consisting of what

Rewrite the first draft of the business plan Essay

Rewrite the first draft of the business plan - Essay Example Those who had dealing with us in the past need no more elaboration about us. That which is evident requires no introduction or appreciation. Our clothing selections and exclusive personal style services would make it an attainable reality to own a special dress for every woman. Beauty, to a great extent, is God-given. But we shall certainly make one more presentable and admirable. Our Style Assessment will be done by an experienced specialist, and we have specially designed a questionnaire aimed to reveal your projections as to the type of dress needed by you. We have a unique album that gives minute details/measurements of thousands of patterns, and an exclusive photo album. You will be shown an exclusive range of fabrics in different color/patterns, which is specially created for us by the experts and you won’t find this range in any other boutique during the season for which it is intended for. This is the guarantee and the entire range is copyrighted. Take our assurance to your exclusiveness. Women assess it better and men understand it well. Fashion is such a unique concept. I head the think tank (management) of our designers group consists of 4 women and 1 man. This is no ordinary paper partnership. Each one of us is an expert, and thinks much ahead than what is available in the fashion world today. Our sole concern is our customers are well and exclusively dressed. Step into a right company, and we look forward for a long and happy association with each of our client. People come to us with an enquiry and end up being our permanent clients. We have a purpose in everything we do—to work for the entire satisfaction of our customers. Patrick Lencioni writes, â€Å"An organization that has achieved clarity has a sense of unity around everything it does. It aligns its resources, especially the human ones, around common concepts, values, definitions, goals, and strategies’, thereby realizing the synergies that all great companies

Human service integration Essay Example | Topics and Well Written Essays - 2500 words

Human service integration - Essay Example scale." Historically, pilot programs and studies of best practices have not been widely replicated, not because they were "bad" strategies, but rather a critical component was missing: high-performance leadership. (Atkinson, 1999) Although we traditionally associate "leadership" with the work of the chief executive, the missing component in successfully integrating services is leadership work performed throughout the agency. An agency with sufficient leadership capacity to integrate services is made up of employees who all perform components of leadership work, management work, task/technical work, and team skills. (McLennan, Caza, 2003) Why Has Service Integration Been So Elusive We know why we need to integrate services, we know what we've learned from our successes and failures, and we know that we must build leadership capacity throughout the organization. Why, then, have we been unable to make service integration a reality In a nutshell, we are trying to get integrated performance from a hierarchical system that was designed for standardized production. There is no "standard" customer; each needs different things in different combinations at different times for different reasons. Nor are we doing production work. The hierarchical organizations we work in were designed 100 years ago for standardized production under drastically different economic, technological, social, and political conditions. The rate of change during that time was relatively slow. Service integration has been elusive because it requires that we create flexible, performance-based, integrated organizations despite our hierarchical history and structure. In a survey of APHSA members, today however, 86 percent of the respondents said they envision their agencies integrating or consolidating its... The need for public human service agencies to integrate services is well established. A large number of human service agencies be aware of that in order to achieve positive results for vulnerable families and children, they must focus holistically on the customer.Although service integration is well established in theory, making it an operational reality has remained elusive over the last 20 years, but not for lack of effort or creativity some agencies have made phenomenal progress toward service integration, despite complex and ever-changing political, economic, demographic, and technological conditions. Service integration is the ultimate transformational change for public human services. It will become a broadly exhibited reality only when the leadership work is done at all levels. We will not wake up tomorrow morning to find that service integration has "happened." Creating human service agencies that fit this description relies upon our ability to build and sustain the capacity to do leadership work throughout our organizations. Unfortunately, leadership development has historically been done "in the margins" as an add-on to our already busy schedules. As we have learned in 20 years of attempting to integrate services, we cannot fundamentally change the way we do business in the margins. We must view leadership development as the critical component it is because leadership for high performance is the bottom line to making service integration a reality.

Functional Area Interrelationships-Kuddler Fine Foods Essay

Functional Area Interrelationships-Kuddler Fine Foods - Essay Example Collaboration among the departments can be improved if the company introduce Balance Scorecard (BSC) as a part of management control system. Unlike traditional management strategy it not just focus on the financial performance; rather it also takes other non-financial prospective into consideration. First of all financial prospective should be used determine how financially the company should appear in front of the shareholders like the ROI, profit margin, annual growth in the revenue and so on . The second prospective should be internal business processes. This will assist the company to understand that for satisfying the customers and the stakeholders which processes should be improved. It means the core competency of the company. The third one should be learning and growth. To retain competitiveness, a company should pay attention towards learning and growth of its human resource through training and development program. Finally, the customer prospective should be used to identify that how the company must appear in front of the customers so that it can achieve its vision and mission. This can be done by better customer relationship management, following relationship management strategy and improving customer satisfaction level. ... With the guidance of top management, objective should be selected, the measures should be pointed out, to achieve the objective required targets should be assigned and finally the initiative should be assigned. Managers of different departments should share their view with each other while developing the BSC for the organisation. Once the plan is over, the human resource should be encouraged to participate in the implementation process. They should be given required training as this will motivate them to be part of the whole process. The plan should be executed in part by part manner so that it can be monitored effectively. The BSC system should be evaluated on regular interval to make required changes as this will retain its utility in the organisation. Some of the vital steps are discussed below: Figure 2: Steps to be followed while developing BSC in the organisation (Source: Kaplan & Norton, 2002, p.275) Part-2 Use of lateral collaboration and vertical collaboration within the org anization, and the action plan to use lateral and vertical collaboration Companies take into account vertical as well as horizontal integration to use its resources effectively and to gain synergy (Camarinha-Matos, 2002, p.28). Kudler Fine Foods should also collaborate both vertically as well as horizontally to improve its competitiveness in the market. Through vertical integration, Kudler Fine Foods will bring together all the parts of value chain under its control. For backward integration, the company should invest in the farmers that supply the fresh products. Kudler Fine Foods can also purchase some of the bakery whose products are sold in the stores. In this manner the company will have better control on its supply of material. For foreword integration, Kudler Fine Foods should

Biol 232 Human Physiology - Answers to questions Essay

Biol 232 Human Physiology - Answers to questions - Essay Example In this case, the concentration of solute inside the artificial cell is equal to the solute concentration outside; hence, there is no movement of Na+ and Cl- ions across the membrane. b. Assume the membrane is permeable to both solutes; does the concentration of NaCl affect the movement of glucose through the membrane? Explain your answer. No, the concentration of NaCl will not affect the diffusion of glucose across the membrane. Solutes diffuse through the permeable membrane due to the difference in concentration per kind of solute (Saladin, 2009). That is, Na+ and Cl- ions will move across the membrane if there is difference between the NaCl concentration inside and outside the artificial cell. In the same manner, glucose molecules will move across the permeable membrane due to concentration difference of glucose inside and outside the artificial cell. Since Na+ and Cl- ions are different from glucose molecules, the NaCl concentration will not affect the diffusion of glucose across the membrane. c. Assume the membrane is permeable to both solutes, will we detect osmotic pressure in the cell after 1 hour? Explain your answer. Yes, an osmotic pressure will likely be detected due to the different concentration of glucose inside and outside the artificial cell.

Healthcare Management - SWOT analysis Essay Example | Topics and Well Written Essays - 750 words

Healthcare Management - SWOT analysis - Essay Example They have made three locations in their community area to cover all people of the community. This strengthens up their organization as people will be able to access them easily and effectively and the availability of services will be fast and sure. The first weakness which every new emerging company can face is the lack of customer flow towards it as the existing organization in the market makes up their credibility with time in people. And especially when the matter comes to health, people prefer and become more fastidious in trusting an organization. The other common weakness the company faces is lack and unavailability of facilities and experienced staff. The weakness of any organization is basically internal; which exist within the organization .So such weaknesses and internal defects can be overcome with time and proper strategies. The factors like professional environment, proper medical treatments, proper administration and caring and responsible working staff can lead in forming a good respectable image in community. And with a strong mission of the organization Group, the outcome of the organization can be expected to be good. The internal setup of the company also makes an impact on management and efficiently of workers. The proper training program organized by The Group would provide the staff a professional training and will train them in performing their work properly. The competitors around the community with more established and experienced setup are huge threats. These threats can include more specialized and experienced doctors, more capacity of indoor patients, latest technology treatments, availability of doctors and specialist in emergencies etc. Every organization faces external threats which aren’t in control of the organization. One can not remove these threats from the environment but can deal and fight with

Transnational IT Operations Essay Example | Topics and Well Written Essays - 1250 words

Transnational IT Operations - Essay Example Understanding how the organizational environment has to function because of virtual needs as well as what the constraints and opportunities are when working with a global network changes the perspective of how many can work within the transnational IT industry. The results which are currently being applied to the industry are based on creating new work environments that enhance quality, culture and the building of an international network. The first components that are providing a change with the transnational IT industry is the work and quality that is within the environment. The transfer of work which has to be created is offering opportunities to explore new ways of developing a system while providing complexities in an environment that can work internationally and through IT processes. The social and institutional conditions that are created are required to transfer work in a different manner while creating conducive levels to working. If the social needs aren’t met or if policies within the institution are not regulated, then gaps with the transfer of work occur. However, the ability to develop a smooth transition for the institution and social components provide better strategies to find the best resources for both work and the implementation of a different product process. More important, the industrial restructuring which takes place may change the position of the company either positively or negatively , dependent on the way in which the work is transferred through the corporation (Carrillo, 2004). A second component that is related to the work and quality that is provided is based on service levels that are taken into account across different regions. The service levels are dependent on new ways in which the IT sector is used for the fast pace and demand that is in the environment. The industry is required to have a different level of flexibility and innovations that are a part of the corporation. More important, the service

Risk Management and Policy Decision-Making Essay - 1

Risk Management and Policy Decision-Making - Essay Example the fear of the resiliency of the breaks in the weather condition and even the managers of the manufacturers of the machine, Ferrari, refused but the persuasion by the officials ensured that the cars were launched according to the plans and previous schedules of launching. The decision to launch the first Ferrari was arrived at after numerous hours of debating which involved both the management of the rallying event, the makers and all the external political forces. All this were influenced by numerous bureaucracies in the handling of the actual decision of whether to proceed with the launch or not to proceed. Since the decisions were being made from a multifaceted approach, the heroic engineers tried to avoid the accident by cancelling the launch but the administrators due to their lack of the actual knowledge and evidence that could lead to disastrous outcome of the launch; they went ahead and initiated it. However there is the actual lack of evidence that portrays previous accidents correlating the slippery road surface and the rainy weather as having disastrous effects on the brakes of the super road machines. There is clearly a missing evidence of previous accidents in relation to the brakes resiliency due to variation in the rain drizzles. However the indication of the failure of the car breaks is explained as indicated by the Ferraris explanation using their chats does not show the evidence of similar accidents or disasters with a cause that is due to the correlation with drizzles variability and the physical conditions of the roads post the rainy event. Even though some of the previous launches under similar conditions indicated the possibility of the failure of breaks , but there was no evidence of cause in relation to the crushing of Ferrari one. This accident had an impact in the future management of the high speed rally cars launches in relation to the weather of the day. In relation to the management approaches and the ideologies of the engineers,

Why Cell Phones Should Be Allowed in Schools Essay Example for Free

Why Cell Phones Should Be Allowed in Schools Essay Cellular devices should be allowed to remain on during class time. The primary reason is if a student has an unexpected family emergency, their parent, or guardian should be capable of contacting them. In addition, some students must be able to get a hold of their parents, or friends that drive them home to confirm that they still have a ride, or if sudden adjustments with rides occur. If the students are not allowed to keep their cell phones on and something terribly serious takes place at home, or various other places with family members or friends, the school may perhaps be held responsible for the student not knowing. Cell phones should unquestionably be allowed to stay on in class. Students hold the right to keep their cellular phones on for the entire period of class time. The students are mature enough to uphold their rights as human beings. You take our cell phone liberties away, what other freedoms will strip from us? As American citizens we must come together and protest for our cell phone rights. It is our right and sovereignty to have our cell phones on in class. It is extremely wrong that our school and district requests that we the students be mature adults, although they will not permit us to make the decision if we should be on our cell phones or not. I recognize that numerous students are not grown-up enough to attain having the right to use or cell phones in class. However, that is why we include consequences. There is no equality in confiscating the rights away from those who can handle being a responsible adult because of the few who cannot. The majority of the students can identify when it is an acceptable time to utilize their mobile phones. Works Cited: 1. http://findarticles.com/p/articles/mi_qa3617/is_200402/ai_n9408441

The Influence Of Internet On The Music Industry

The Influence Of Internet On The Music Industry Internet has made the world into global village and the growth occur in internet technology in a short spare of time brings out huge changes in world. The new trend of business comes as an E-Business and no one would have thought that it will become the most powerful tool of business. There are many positive and negative changes made due to internet vast technology. Companies get involve in E-Business and online trading creating new opportunities to explore the world and with rapid changing in technology. Companies and organizations startup their business in B2B, B2C businesses with help of internet excess and digitalization. Literature on the History of Digital Music and changes in Music industry: According to the International Trade Union release the trend in using the internet has rapidly increased in last few years especially in EU-countries and now a days internet is affecting almost all industry in positive and negative change in transitional countries. Great impact we can see in industries dealing with goods which can be distributed and digitalized online. In 80s digital revolution took place and affected every aspect of human life and developed a new human behavior. Thomas Beecham has said musicologist is a man who can read music but cant hear it. Music digitalization and distribution is one of them and this report will discuss the interference between technology changes in music industry. The first ever released music album on internet was back in year 1998 and it was a direct released by Chuck D with label Def Jam, this brings out the storm in music industry with a new change. This was a bad news for the mainly major companies of industry ruling on the world for almos t century. The another launch on internet did by the Peter Fanning in 1999 and a millions of people start getting the exchange of music files and it was a threat for the industry. In step with the development of new music formats because of the increasing use of internet (www, emails, FTP chat etc.) their potential usefulness in everyday of life, users started using internet for a wide range of need like everyday communication, entertainment, education and conducting business online. Music industry needs to get explore and brings out changements and to process and adapt new situation, and the major reason was the unfair partition of the money between the artists and his label. The biggest improvement which came with internet that an artist can reach his audience with no barrier and filter as in early 60s many musicians try to find out ways to expose their talent but they couldnt get succeed and the talent remains hidden from the world. The independent labels always exist in the industry and being managed by people who loves music. In my essay I will explain with my example that the first ever album and band using the internet technology to promote their label and name was from United Kingdom. In Britain there are lots of bands releasing their music albums everyday and they sell in millions also but the ARTIC MONKEY band from UK understood how to use internet very well for their promotion and marketing and create a huge fan. They released the album and made many burnt CDs with demos of their music and gave away in public freely with their MySpace address and they got succeeded in building their reputation without releasing anything. The news reported that thousands of fans singing the lyrics of songs and the band creates and achieve hysteria every time they put a new song on MySpace page and these all were not official release, they also provides their future releases on MySpace. The first song released by the Arctic Monkey was the hit and hit the first place in charts suddenly and their album broke the selling record in first week (beating Oasis, Spice Girls, Beatles) and Arctic Monkey proven that internet can be the strength not the threat for industry of music. MySpace have helped various artists and musicians to target their audience in their own style of music regardless of label demands. Experts admitted that illegal downloading of music can never get stop and it messes up the system which is unfair with artist and who paying for albums. BPI (British Phonographic Industry) has joined with IFPI to take legal action against internet file sharing. Research on the Positive Effects on Music Industry: 81.87% of the entire industry of music was controlled and ruling by four record companies as you can see with the figure shown Fig.1 Warner Music Group, Sony BMG Music Entertainment, Universal Music Group, EMI Group and These are the labels who have money to promote artists through the medium of radio, TV shows, and music videos, most of the artists are not signed or in a contract with these labels but small labels do have to promote their music as they dont have enough money for promotion. MySpace: Performing Right Society is the United Kingdom association of composers, music producers and songwriters, they have announced a strategic partnership relationship with MySpace and both organizations will be working together throughout year 2010. The main aim is to support, share, and discover music for promoting MySpace as the online aim. There is another importance of PRS Music membership for the music on my space generation is one of its kind deals in the music industry. Over a million of bands registered in UK and MySpace is the most popular medium and channel for the new and upcoming artists and music to promote their work. PRS music as go up to more than 65,000 members representing UKs people related with music industry in means of songwriters, composers, and publishers and we have seen a rapid growth in young songwriters. This deal comprises of three core themes building the partnership: Using MySpace service to communicate to new writers and musicians and promote the importance of the PRS Music membership. Benefits to PRS Music members: exclusive offers for the classes of songwriting and competitions and across country promotional activities and campaigns. MySpace Usage: existing PRS Music members value the usage of MySpace to engage more fans and wider the industry. There is a partnership between PRS music and My space music and it is connected for 12 months contract and it has the objective and aim to promote and it follows to the latest completion of a PRS music license for to launch a music of MySpace music, and this will provide a new platform the music lovers to download and stream music online and it will be having the catalogue of audio tracks and music videos in a comprehensive quantity. The partnership represents a genuine break to reach and to write lyrics on the new song albums by the writers who are already creating and sharing their music online. MySpace is an unbelievably powerful tool for the countries like UKs songwriting community and both organizations are fanatical about supporting new musical talent from all over the world. (Jezz Bell, Director Broadcast Online) Music Piracy: The positive part of the music piracy is that it allows listeners to download unknown artists piece of music from internet because they dont like to spend money and experiment with unknown artists. This kind hurt industry because most of the listeners download instead of buying but on other hand downloader may realize they like the music so they could buy the actual album or other albums of same artist will either to spread the music to their friends who then it can turn in to power to buy the album. Piracy is defined as illegal music theft. (Graham, Music industry finds new beat) In 1999 a new kind of service started which grows rapidly that was Peer-to-Peer (P2P) which was widely used by internet users to share music online. Napster was the leader in the field of P2P music sharing and he introduced this service for the sharing of mp3 music in its designed search engine. Walkman style was introduced and widely available in year 2000 and demand for mp3 format music increased in boom, and 70% of the music lovers used the format. Several issues which are considered by major players of music industry, some of them are People prefers to download individual songs not entire albums People search for popular music that is not possible to get in offline stores. People enjoys in sharing music and downloading at zero cost. Internet file sharing becomes the rapidly increasing trend. American idol can be given as example the contestants gone from TV star to superstar and makes potential money makers every year merely release song to iTunes and make their money and move and if artist doesnt have potential so it doesnt matter to recording company. Online Music Distribution: P2P technology led the rise in music piracy through internet and RIAA (Recording Industry Association of America) annual reports show the revenues of CD retail business declining since 2000 till present. In 2004 the global music piracy was estimated to be worth 4.8 billion dollars (Reece, 2004) and for the present music industry it is extremely important issue if the consumers continue to download free music and producers and distributors will not be able to recover their original cost even nor music retailers and recording labels, basically end of day they are out there way to make any money. Therefore the major recording companies have published their own online music sales websites but its not proven as successful idea for them. They changed their strategy making new partners which are specialists for distribution of online music (Graham 2004). Now it is not necessary to buy complete album and digital era is one of the reason for the crises of music companies. Websites like CDbaby.com, Tunecore.com are uploading digital albums for Napster, AMAZONMP3, Rhapsody. Online music stores made music availability easier and widely accessed by internet users, and there are thousands of online store which are working on free downloading system or pay-per-download service. In 21st century iTunes a free software piece developed by Apple company at Macword in San Francisco and iTunes Music Store (iTMS) is presently the most popular music provider having large music catalogue and it allows you to download digital music, videos, ipod games, tv shows, audio books, ringtones and feature length films and these can be used and transferred into iPod and iPhone making more accessible and easy, in year 2004 it exceeded 100 million downloads.. Saila-Ngita expressing the experience said that the sites allow music fans to spend much less money than in the past, and Jay Rosental have said Most of this substitutional people go to (the web) instead of buying records. Total industry sales were 10 billion dollar in year 2001 which was 14 billion dollar in year 2000 ( RAII ), revenues from services like Apple iTune and Amazon MP3 are still growing stronger and the spending on music will be sharp down by 4% as forecast in the report by Forrester Research. The Lala Business Model: Palo-Alto bases LALA, launched in 2007, this model was made and shows that its getting struggle for the music industry to make profit and crises it is going through in last few years and the change in new approach of music. Lala providing services to customer offering to download song in just 99cent or pay 10cent for web-hosted song, and it also offering streaming of music and upto 50 songs. Online Music Business: In the last decade there was startup of new business and that was selling music online, and this evolution is in no way complete as it moves towards a finish line with rate of one step forward and nine steps step back. The five major events which makes the online business shifted to rapid decline are: Legal version released by Napster. New download store with name Audio LunchBox. Music match added an online store to its music player. Apple computer made its iTunes player and music store available to all Users. EMusic added rules to its music services. The war of digital music stores started in mid of 1995 when an American New York based company Sonicnet started offering music singles for download. In that artists were suppose to put prices for the download, but that time the audio quality was not good enough and the internet speed very slow and it took too much time to download a single track. Sonicnet was not a moneymaker venture but the message they try to promote that internet can be the place for artists to promote their music and control their profit. The golden age of music downloading was summarized in a catchphrase All you can eat. Online music companies offering fans to access and download music by paying monthly fee but so far it is not successful as free unauthorized service available for the users to download without paying a penny and the reason the authorized services is not successful and accomplish goal is the lack in cooperation for record companies and publishers. With the success of iTunes Music Store other services also rushing and copying it but its difficult for them to get success, that hasnt stopped the competition Buymusic an online song store has going little far for it, and Musicmatch which has integrated like an Apple-store. But the greatest competition for iTunes is the new Napster legal version 2.0 which is providing services to PC users combines the selling of songs of iTunes and members can subscribe and access as many songs to download. The other competitor in Online music business is iPod but its format is different and wont be flocking with Napster. The biggest disappointment in recent trend of online was announcement from eMusic to limited download because of the financial, legal and technological pressure. It has the specialize site in independent and alternative for the music lovers offering their subscribers to download music. The other name involve in the business is Rhapsody have the best quality and selected songs collection. Ideas for future and Conclusion: In conclusion we see the music industry has a tie with new technology over the decades and internet music download can be advantage and disadvantage and there is a battle going illegal downloader and recording companies. In short internet has a big impact on the revenue of music industry. It has forced the industry to change and adapt (Blethen). Music downloading effects are clear visible on the music industry as only 15% of the music albums making money as report released by RIAA (2005 RIAA Consumer Profile), and there is no long term increase in album sales, exposure of music and artists are smaller known. The grow of smaller known artists can change the entire soundscape of industry as many of the artists are not concentrating on making good music and the big recording companies are forcing an artist to create music and they can know will sell and hiring their own producers. Lesser known artists are the artists experimenting new ideas, instruments and structure and they working with smaller labels generally so these can produce an influence on the rest of music industry and industry instead of attacking piracy they should realize new ideas to stop and benefit the industry. Instead of encrypting CDs and shutting down websites and spending millions lobbying, they should build up a new system where all music is accessible fo r free and very it can has the easy links to online stores of customer likes so he can buy it, and this even should be provided on cheap prices, quick and inexpensive way and this will help artists also to get promotion.

The Dairy Processing Industry In Mauritius Environmental Sciences Essay

The Dairy Processing Industry In Mauritius Environmental Sciences Essay Nowadays, the dairy industry is categorized into two distinct production areas. The primary production of milk is principally on farms, whereby cows and other animals, such as goats, sheep, and among others, are bred for the production of milk for human consumption. The processing of milk has for main objective of extending its saleable life and keeping quality. This can be achieved by a number of food transformation and preservation techniques. Milk can be heat treated, can be prepared variously in a dehydrated form like butter and milk powder, thirdly by freezing, for instance, ice cream and other frozen desserts and finally by fermentation like yoghurt, cheese, ghee, kefir and among others. 1.1.1 Profile of the dairy processing industry in Mauritius Mauritius has one of the strongest economies in Africa, with a per capita GDP close to U$3,900. Its economy has been heightened greatly over the past 15 years and the main sectors, which have driven the performance, were the textile, tourism and sugar industry. However, studies prepared by the Imani Development Consultants (2004), for the Regional Agricultural Trade Expansion Support Program, have demonstrated that the local dairy is a very small sector with only about 5000 dairy cows, producing about 4 million litres of milk, which represent only 5% of the total requirements. Hence, Mauritius does not have the resources and capacity to produce milk efficiently. About 1 million litres of the milk produced, through reconstitution from powder milk, is marketed as pasteurised milk by the Agricultural Marketing Board and other dairy industries. Likewise the Imani Development Consultants (2004) added that the consumption trend of most dairy products has considerably increased over the past 5 years from 12,800 tons in 1995 to 22,000 tons in the year 2002. This trend is expected to continue with the rising standard of living of the Mauritian population. There is now a growing market for UHT milk despite the fact that milk powder is widely preferred by the population. Australia and New Zealand remain the principal suppliers of dairy products to Mauritius. There are various renowned dairy products brands in most supermarkets and retail shops. Although Mauritius is not a milk producing country, it has three main dairy products manufacturers, namely Maurilait Ltd., INNODIS Ltd., and Laiterie de Curepipe, which are producing mainly yoghurt, ice cream, sterilised milk and flavoured milk, using imported raw materials. 1.1.1.1 INNODIS Limited INNODIS Limited is one of the main food and grocery distributors and producers in Mauritius. It is a large company engaged in different sectors, ranging from poultry, rice milling, consumer goods, frozen foods, dairy production and among others. The company has invested profusely to bring over a high performance in quality and reliability of its products and this has nowadays led to an annual turnover of Rs 2.5 billion (Anon2, 2010). The dairy Plant of INNODIS Ltd was set up since 1952, with an Ice Cream business activity, manufacturing Nestle products under the brand name Dairymaid. It has nowadays developed close partnerships with South African licenses and has integrated other production lines of yoghurt, nectars, and sterilized milks under the brand name of DairyVale, Ceres, Twin Cows and Ole respectively. Ice Cream production includes 45% of the total production, followed by 30% of yoghurt production and a remaining of 25% for nectars and sterilized milk (pers. comm., 2010). The dairy plant of INNODIS Ltd has adopted a food safety management system, for instance, the HACCP Codex Alimentarius Standards and adheres to the Nestle and Ceres Standards in order to keep up consistency in quality of products and work within the factory. The installed capacity of the dairy processing plant is 2million Litres of milk per year and is presently being used at 90% of its capacity milk (pers. comm., 2010). 1.2 Dairy Processing Waste 1.2.1 Water consumption Water is the principal raw material and cleaning constituent in the food processing sector. In the dairy processing industry, substantial volumes of water is used for cleaning equipment and work areas to maintain the hygienic conditions, in cooling departments like in cooling towers and in energy production for example in boilers. Water also accounts for a large proportion as raw material in the reconstitution of milk powders for the production of liquid milk, yoghurt, ice cream, butter, cheese and among others. Rates of water consumption can vary significantly based on the scale and capacity of the plant and type of processing, whether batch or continuous processes. The type of mix being generated, the methods and cleaning equipments being in use as well as considering the human factor with inference to the practices of the operatives on the production departments can also affect drastically the consumption of water in the dairy processing. A typical range for water consumption in reasonably efficient plants is 1.3-2.5 Litres water/Kg of milk intake (UNEP, 2000). In most parts of the world, fresh water is becoming scarcer with the evolution of climatic phenomenon like droughts and el lino and as such, the cost of water is rising and the true environmental costs of its supply are being taken into consideration. Water has thus become an increasingly valuable commodity and its efficient use is being now emphasized on drastically. There can be effective water management strategies for reducing water consumption and this can involve technological solutions or equipment upgrading. Moreover, a dairy plant waste load can be curbed down considerably by monitoring the amount of water used and reducing the amount of product lost into the effluent. This control will all depends upon the machine set-up and the operators practices. Stopping wastage at its source will therefore be less costly and more practical than end-of-pipe waste treatment. By doing so, the water expenditure can be declined up to 0.8-1.0 Litres water/kg of milk intake (UNEP, 2000). Techniques described in the publication made by the UNEP in 2000 are well defined accordingly: Continuous rather than batch processing is better to be introduced as it prevents frequent cleaning. Automated cleaning-in-place (CIP) systems allow less dismantling of equipments and therefore less use of water. Flow meters are placed at different spots of the processing line to control and monitor the flow of water for manual cleaning procedures. High pressure rather than high volume is preferred for cleaning surfaces. Compressed air can be used also. Re-circulating or re-using clean water which may have been used for rinsing to other activities which is not a commodity for cleaning and processing. 1.2.2 Waste water discharge Water discharges are produced mainly in the dairy industry by processing operations but also by clean water which are released from cooling water and steam and evaporator condensates. This discharge ultimately becomes the effluent, which contains predominantly milk and milk constituents which have been lost from the process. According to studies made by the UNEP (2004), milk loss can be as high as 3-4% with the main source of loss being residues which remain on the internal surfaces of vessels and pipes, draining of mix from machines before filling, spills during emptying tanks and overflowing of vats or hoppers. Likewise, the organic load of the effluent varies greatly with the type of cleaning practices being applied. Batch processes will normally require a greater and frequent cleaning. Thus, the COD level can reach up to about 8 Kg/m3 milk intake. 1.2.2.1 Characteristics of waste water and their impacts on the environment The characteristics of the waste water generally vary from different types of dairy products owing to their different constituents and ways of processing. Biological Oxygen Demand (BOD) and Chemical Oxygen Demand (COD) Organic components which is within the dairy waste water consists of mainly proteins like whey and caseins, lactose and fat and these can affect the ecosystem depending on their solubility and biodegradability to lead further to an organic pollution of the environment. These can be determined on a laboratory scale by using the BOD and COD factor. Microorganisms, specifically bacteria, require and degrade organic nutrients for their survival and simultaneously they consume oxygen. The oxygen used can be measures and the BOD and COD. BOD is measured as the amount of oxygen that is consumed by bacteria while decomposing waste over an incubation period of 5 days at a temperature of 20  °C. The COD can be enumerated as the oxygen equivalent for the decomposition of organic matter and oxidation of inorganic chemical such as ammonia and nitrite. One litre of whole milk is equivalent to approximately 110 Kg BOD5 or 210 Kg COD (UNEP, 2000). Moreover, mandatory regulations from the Environment Protection Act 2002 (EPA) have shown that there should be a minimum of 120 mg/ L of COD and 40mg/ L of BOD (Appendix 1). Hence, it is a must to abide by the legislation as prescribed. Whey loss One major contributing element to a dairy plants effluent load is the cumulative presence of high concentration of milk, which contains a large proportion of the salty whey. Whey is also added as an inclusion the mix composition of ice cream. Hence, with these losses occurring during pipe work is uncoupled during tank transfers or equipment is being rinse, there can be greater release of the whey concentrates and other isolates like lactose and caseins to the effluent system. The main concern with whey loss is that it increases the BOD level of the effluent system. Hence, it is a must that green manufacturing practices are taken so that milk or any other dairy products and intermediates are not drained out into the effluent system. Other measures currently being used now is that whey, being used as an additive in certain dairy products, can be re-processed from the dairy industry waste. An investigation carried out in 11 dairy plants by Ostojic and others (2005) have demonstrated that 78.5% of whey, in the form of milk, has been discharged into the waste water contributing to the organic pollution of the environment. This contamination can therefore be prevented by transforming the whey into food, animal feed and pharmaceuticals. Process of vacuum concentration and filtration needs to be performed to obtain the whey proteins. Table of waste water characterisitics -still compiling normative data 1.2.2.2 Waste Water Treatment Options Absorption Ponds Absorption ponds are popular for dairy wastewater disposal but as with the ridge and furrow systems they are not constructed as much today because of concern about compliance with environmental laws. Typically absorption ponds were used by the smaller dairies where there is small wastewater volume. As these small dairy plants have closed, many of these absorption ponds have been taken out of service. Absorption ponds can still be used; however, it requires internal treatment of the waste water. Activated enzymes can be added to degrade the organic waste. Then, the waste water is collected by waste water carries to be further treated by the public or municipal treatment plant. Biological Tower This could be considered a modern filter where wastewater is pumped down over a support covered with a media which allows microbiological growth. The microorganisms or bacteria consumes the organic waste of the wastewater as food and eventually sloughs off for collection into a clarifier. The biological tower is typically used as an initial treatment unit before sending the effluent for full treatment by the public authority. Activated Sludge Activated sludge is a conventional process for treating dairy industries waste water using air and a biological mixture composed of bacteria and protozoan. Air or oxygen is introduced in a primary treated effluent combined with the organisms used to develop the biological floc. In this way, organic matters like biological constituents of milk, ammonia, nitrates and phosphates are removed and converted into carbon dioxide and nitrogen eventually. The effluent is the clarified and is collected for disposal. The sludge or waste mud produced can be also treated. A typical activated sludge system can be shown in the figure below: Figure 1 An Activated Sludge Process (Beychok, M., 2007) Aerated Lagoons Aerated lagoons have been a common method of wastewater treatment for dairy plants that directly discharge to surface water like rivers and sea. Generally these systems are several large ponds connected in series with floating surface aerators or submerged air diffusers. 1.2.2.3 Treatment of waste water in Mauritius The effluent from the dairy plants should normally be treated at some extent on the site or sent to the local treatment systems. For instance, in Mauritius, the St Martin waste water treatment plant treats the wastewater from the Upper Plaines Wilhems as well as the regions of Lower Plaines Wilhems. The plant has a designed capacity of 69,000 m3 per day. The treatments consists of a primary step whereby there is screening of the effluent. Then, the secondary treatment constitutes of disintegration and removal of grit (Institute for Environment and Legal Studies, 2010). The final treatment phase is disinfection using ultra violet technology. Currently, the St Martin treatment plant has a capacity of approximately 25,000-30,000 m3 per day and this treated water is used mostly for irrigation purposes (Anon, 2007). 1.2.3 Energy consumption According to research carried out by the United Nations Environmental Program (2000), about 80% of a dairy plants energy is catered by the combustion of fossil fuels (coal, natural oil or gas) in a boiler system to generate steam and hot water for evaporative and heating processes. The remaining 20% is met by the public electricity for running electric motors, refrigeration and lighting. The age and capacity of a plant, the level of technology and automation and the number of products being manufactured, largely affect the energy consumption of a dairy industry. Processes, which involve intensive heating, concentration and drying, for instance spray-dried of milk powder, entail much energy. Nevertheless, milk, which needs partial heat treatment and packaging, requires less energy. A typical range for energy consumption in plants processing milk is 0.5-1.2 MJ/kg of milk intake (UNEP, 2000). A good energy management program will identify uses of energy for a dairy factory and can highlight areas for improvement. Substantial savings of energy can be easily made with no investment of capital, via simple housekeeping and green productivity practices. Energy savings of up to 25% are possible through switch-off programs and the fine tuning of existing processes, and an additional 20% can be saved through the use of more energy-efficient equipment and heat recovery systems. By doing so, energy consumption for the processing of milk can be reduced to as low as 0.3 MJ/kg of milk intake (UNEP, 2000). Some energy-saving initiatives are listed below, and these can represent a best practice for the dairy industry. An energy management circle can be set-up within the dairy plant to identify issues and monitor them. Energy-efficient lightning can be installed. Efficient refrigeration compressors can also be set-up. There should be regular tagging and measurement of energy consumption of each machine and this can easily help to indentify bottle-necks within the system. Steam and air leaks and other pipelines should be repaired as soon detected. 1.2.3.1 Greenhouses Gases (GHGs) With the profuse combustion of fossil fuels (coal, kerosene, fuel oil, diesel oil, etc.) nowadays to make power to run industrial machines, heat water and operate distribution vehicles, a potential amount of GHGs is being evolved in the atmosphere. leading to the so-called drastic environmental effect, Global Warming. According to the IPPC (1997), water vapour is the most important GHG, contributing 36-70% to global warming; carbon dioxide (CO2) and methane add to 9-26% and 4-9% respectively, while ozone contributes 3-7%. As related to fossil fuel combustion, CO2, methane and nitrous oxide are the most important GHGs. The problem with GHGs is that over the last few years the concentration of GHGs in the atmosphere, especially CO2, has greatly increased. Greenhouse gases are like a blanket around the earth, making the atmosphere warmer. They absorb the heat from the earth, and re-radiate it to space, and the other half goes right back to the earths surface. Thus, with the slight increase in temperature in the atmosphere, the circulation patterns of the ocean and wind currents are altered causing climatic changes. 1.2.4 Solid wastes and packaging Dairy products such as milk and yoghurt are typically packed in plastic-lined paperboard cartons known also as tetrapak, High density polyethene (HDPE) cups, plastic pouches or reusable glass bottles. Moreover, ice cream is known to be filled in HDPE tubs and cups as well as paper-lined cones. Other products, such as butter and cheese, are wrapped in foil, plastic film or small plastic containers. Milk powders are commonly packaged in multi-layer kraft paper sacs or tinned steel cans, and some other products, such as condensed milks, are commonly packed in cans. Breakages and packaging mistakes cannot be totally avoided. Improperly packaged dairy product can often be returned for reprocessing or recycling. However, the packaging material is generally discarded. At INNODIS Dairy Plant, it is known that bottles used for sterilized milk can be recycled, yet HDPE cups and tubs remain unprocessed and disposed at Mare Chicose Land Fill (Pers. Comm., 2010). 1.3 Life Cycle Assessment (LCA) Life cycle thinking is an essential element to sustainable development. It is about going beyond the traditional focus on production site and manufacturing processes so to include the environmental, social, and economic impact of a product or a process over its entire life cycle [United Nations Environment Program (UNEP), 2007]. The producer has therefore for responsibility for their products from cradle to grave and should aim at developing products, which have enhanced performance in all stages of the product life cycle. The life cycle management tools expand from Cleaner Production Assessment (CPA), Cumulative Energy Requirements Analysis (CEPA), and Life Cycle Costing (LCC) to Life Cycle Assessment (LCA). All these techniques helps in the implementation of the green concept, namely the 6 Re Philosophy, which are defined by UNEP (2007) furthermore below. Figure 2 6 Re Philosophy throughout the product lifecycle (UNEP, 2007) 1.3.1 Definition of LCA Life Cycle Assessment is a methodological technique that applies life cycle thinking in quantitative way on the environmental analysis of activities associated to products, processes or services. A holistic focus will be placed on products/ services by assessing the upstream to downstream activities of their process flow. Therefore, LCA determines the potential environmental sequentiae of products, processes or services, throughout its life cycle, i.e., from raw material acquirement to production, usage, and finally disposal. This is the so-called cradle to grave approach (Environment, Health and Safety Committee, 2005). The Society for Environmental Toxicology and Chemistry (SETAC) (Boudouropoulos et al., 1999), has well defined the Life Cycle Assessment as an important environmental management tool used to evaluate environmental burdens associated with a product, process or an activity, by identifying and quantifying energy and materials used and wastes released to the environment, to assess the impact of those energy and materials uses and releases on the environment, and evaluate and implement opportunities to affect environmental improvements. The assessment includes the entire life cycle of the product, processes, or activity, encompassing extraction and processing of raw materials, manufacturing, transportation and distribution, use/re-use/maintenance, recycling and final disposal. Hence, in all activities implicated during the life cycle of a product or service, resources are consumed from the environment and wastes are generated back into the environment. This can be illustrated in the schematic diagram below. Figure 3 The life cycle of a product with the input of resources and output of waste (Chen, 2008) LCA has its roots in the 1960s, when the scientists who became concerned about the rapid depletion of fossil fuels, established it as a move towards understanding the consequences of energy consumption. The concept of environmental LCA was further developed from the idea of comprehensive environmental assessments of products, which was conceived in Europe and in the USA in the late 1960s and early 1970s (Hunt, 1998). It is a relatively new and cutting-edge environmental decision support tool and young discipline, as it provides quantitative environmental and energy data on products and processes (Mwangome, 2009). Although still under development, LCA has been standardised by the International Standardisation Organisation (ISO) as an element in the ISO 14000 series. The principles and guidelines of the LCA are found within the standards of the ISO 14040; the ISO 14041 to ISO 14043 describes the methodology of the LCA process. 1.3.2 Principles of the LCA Generally, an inventory of relevant inputs of resources, like water, raw materials including packages, energy and fuels, and outputs of detrimental wastes such as carbon dioxide, nitrogen dioxide, solid wastes, nitrates and phosphates, released to the environment, are identified, quantified and compiled. Their potential burdens on the environment and ecosystem are determined and evaluated, and immediate measures and practices for improvements specific to the objectives of the assessment are found and assessed for use. Through such a systematic overview and perspective, the shifting of a potential environmental burden between life cycle stages or individual processes can be detected and possibly avoided. To be able to carry out the methodology of the LCA, a functional unit of the product should be taken and it is defined by the reference unit of the product being in study, for instance 1L of bottled water can be evaluated from cradle to grave. The sum of each impact at each specific step or stage of the process flow help to provide an assessment score to determine the hotspots of the entire life cycle of the process. Therefore, measures to mitigate environmental impact have to be prioritized and emphasized on the hotspots. 1.3.3 Life Cycle Assessment Methodology The life cycle assessment occurs in four main phases which fully explains the different steps and order for it to be carried out. Phase 1 Goal and Scope Definition The first stage is specifically the planning which implies defining and describing the product, activity, and process to be analyzed. The aims of the assessment are established and the life cycle steps and impact categories like energy or water use are identified and reviewed. Phase 2 Life cycle inventory analysis This stage involves identifying and quantifying inputs like energy, water, materials and land usage and the outputs releases to the environment like air emissions, solid waste, water discharge, energy lost during the entire lifecycle. Phase 3 Life cycle impact assessment At this phase, the consequences of the material consumption and environment releases to human health and the eco-system, like acidification, global warming and ozone depletion are evaluated. Table : Description of some lifecycle impact categories (Narayanaswamy et al., 2002) Lifecycle Impact Categories Description Global Warming The release of carbon dioxide and other greenhouse gases (GHGs) have a warming effect on the atmosphere is known as global warming. Acidification Acid gases such as sulphur dioxide and nitrogen dioxide have the ability to produce acid rains when condensed and this therefore increases the acidity of the land and soil and cause even damages of buildings and other infrastructures. Eutrophication Releases of phosphates and nitrates in the underground water or in rivers can cause algae to bloom out, endangering the freshwater ecosystem. Human toxicity Some pollutants such as dioxine or dichlorobenzene can be absorbed in food stuffs and cause the death or disability of humans. Dryland salinity Clearing of native lands can cause the increase of seawater logging catchments areas rising the salinity of the land. Phase 4 Life cycle Interpretation The findings from the inventory analysis and impact assessment are combined together so as to reach conclusions and recommendations which are consistent with the goal and scope of the assessment. The most significant impact and hotspot in the life cycle of the product, process or activity are simultaneously identified. 1.3.4 Applications of Life Cycle Analysis Life cycle assessment has had a wide application in the dairy industry and has started from farm to fork. In dairy farming, LCA has been used specifically in the quantification of greenhouse gases (GHGs), particularly in countries like New Zealand, Australia, Canada and Netherlands. Moreover, pertaining to milk processing activities like butter, yoghurt, sterilized and pasteurized milk, spray-dried milk, ice cream and among others, studies have not been done at a scientific level but also by reputated international industries, such as Unilever and Nestlà ©. The aim of these multi-national corporations is to mitigate their misuse of resources and pollution problems and have noticed several positive economic and environmental outcomes (Narayanasawmy et al., 2002). It has been utilized in different formats. Many companies have used LCA as for establishing an eco-labelling scheme and therefore communicating about the environmental aspects about a particular product or service to consumers and stakeholders. Likewise, it is a useful tool to develop business strategies and policies and amplify the market shares. When combined with strategic decision models, LCA can be applied as an important supporting tool for business managers. Moreover, Life Cycle Assessment can be applied as a product and process improvement and design and thus allowing companies to comply with their local environmental regulations and laws. 1.3.4.1 International Studies based on LCA A life cycle assessment was applied to the dairy industry in Mainland Portugal in 2005. The objective of the research was to evaluate the milk production and agriculture practices using the LCA. The goal of the LCA also consisted of identifying the relative contribution of each one of the different cow milk products, for instance, milk, yoghurt and curd cheese (Castanheira et al., 2005). The functional unit was 1L of raw milk. The boundary of the lifecycle flow was at raw milk processing, whereby packing and delivery to consumer were not considered. In the inventory analysis stage, the impact categories considered were mainly global warming, followed by photochemical oxidation, eutrophication and acidification. Results have shown that the production of milk for consumption has the greatest consequences on the environment due to 49% global warming, 51% acidification and 57% eutrophication with 60% release of ammonia (NH3) and methane (CH4). In the milk production process meant for consumption, there was also a great impact from COD and nitrates, which has been seen as the main source of contamination of underground rivers. As from the curd cheese production, there was high emission of carbon dioxide, which is normally the principal contributing factor of GHGs in Portugal. This is owing to the high consumption of different forms of energy during the milk transformation to cheese (Castanheira et al., 2005). Yoghurt production had the least burden on the environmental in the Mainland Portugal with only 6% contribution of COD to waterlines. In addition, it was seen that most burdens are found at the raw milk production in the lifecycles of all milk for consumption, cheese and yoghurt flows. Another study was performed in Italy by the ENEA (Italian Agency for new Technology, Energy and the Environment) and ERVET (Regional Agency for the Development of Emilia-Romagna), whereby the whole lifecycle of butter production was investigated (Masoni et al., 1998). The main objective of the study was to stress on the difficulties underwent by the Small and Medium Enterprises (SMEs) and try to establish a simpler methodology for LCA. Optimization or resources like water, energy and reducing wastes in terms of solid wastes, emissions of GHGs, and contamination of water were also focused. The functional taken was 5Kg butter delivered in 250g lot, under two alternative primary packaging, one by polyethene coupled with paper and secondly, aluminum foil integrated with a waxed greaseproof paper. The steps evaluated were from cream production to post-consumer waste management, using the Simapro software. The sensitivity analysis conducted by Masoni and others (1998) for polyethene packaged butter revealed less accurate data can be used for most ancillary material processes, without impairing the overall inventory results. For instance, it was found that about 80% of water and 55% of energy were wasted at the raw material stage, with a total emission of approximately 55% CO2 and 50% NO2, and released of 53% of solid waste and heavy metals in waters. The emissions and heavy metal contamination were greater at the butter production compared to raw material processing, distribution and waste management. The solid wastes disposal was however drastic during the raw material processing. Moreover, the LCA study has not been completed for the cheese in aluminium packaging. It has been finally observed that a shortage of resources like capital, technological levels and awareness to environmental management can be limitations for an approach towards LCA as a decision-making tool for SMEs. Whilst investigating the environmental impacts of the LCA in the Kenya, Mwangome (2009) has restricted her study to the energy consumption only. The importance of the research was upon aiming the operation efficiency based on the size of the studied dairy companies against the transportation process in the chain. The functional unit was allocated to 1Kg of processed milk. The LCA methodology was utilized to investigate the energy balances between inputs and outputs and from data obtained the environmental consequences were processed as carbon dioxide. The farming stage was observed to be the hot spot with the most consumed energy compared to the steps in the life cycle. It was therefore seen that Diesel was the main element contributing to the high emission of CO2, though wood and electricity were also a commodity for energy provision to dairy plants. Hence, this observation has helped to find measures to curb down the use of fuels and therefore bringing up eco-efficiency within food supply chains. Likewise, Netherlands is known to be a principal producer of milk for ready use. Observations have been made that the emissions of greenhouse gases and c