Research Topics: Fair Value Accounting

Accounting for Financial Instruments

Question 1  Current Value Accounting will solve all the problems relating to accounting for Financial Instruments With reference to the above statement (a) Discuss the problems encountered in the UK when Current Cost Accounting was introduced. (b ) Discuss the problems currently faced by the IAMB in determining how assets and liabilities should be measured. (c) How can Hicks and Fishers models of income help resolve this issue. (Your answer should include a discussion on the views expressed in the paper by Ryman, R. A Fair value accounting and the present value fallacy: The need for an alternative conceptual framework The British Accounting Review (Sept 2007) vol.39 pp211-225.) Question 2  Most commercially developed countries regulate the provision of published accounting reports. (a) With reference to empirical studies with which you are familiar discuss the market mechanisms that encourage firms to disclose financial information in the absence of regulation. (b) With reference to specific examples discuss the alternative approaches that can be adopted in regulating the provision of accounting information. Credit:ivythesis.typepad.com

Accounting for Financial Instruments

Question 1 Current Value Accounting will solve all the problems relating to accounting for Financial Instruments With reference to the a...

Current Value Accounting

Question 1 Current Value Accounting will solve all the problems relating to accounting for Financial Instruments With reference to the above statement (a) Discuss the problems encountered in the UK when Current Cost Accounting was introduced. (b ) Discuss the problems currently faced by the IAMB in determining how assets and liabilities should be measured. (c) How can Hicks and Fishers models of income help resolve this issue. (Your answer should include a discussion on the views expressed in the paper by Ryman, R. A Fair value accounting and the present value fallacy: The need for an alternative conceptual framework The British Accounting Review (Sept 2007) vol.39 pp211-225.) Question 2 Most commercially developed countries regulate the provision of published accounting reports. (a) With reference to empirical studies with which you are familiar discuss the market mechanisms that encourage firms to disclose financial information in the absence of regulation. (b) With reference to specific examples discuss the alternative approaches that can be adopted in regulating the provision of accounting information. Credit:ivythesis.typepad.com

Current Value Accounting

Question 1 Current Value Accounting will solve all the problems relating to accounting for Financial Instruments With reference to the ab...

Dissertation on Northern Rock and the Implication of the Sub-prime Crisis

Northern Rock and the Implication of the Sub-prime Crisis   1. Introduction             Unlike many other industries, banking and financial institutions are known to be more prone to crisis or issues. One of the most recent issues among banking and financial institutions is the issue of the sub-prime crisis which hits the United States and affects other international banks like Northern Rock. Primarily, the main goal of this paper is to evaluate the sub-prime crisis that heats the bank industry and how this implicates or affect the performance of the Northern Bank.   1.1 Background of the Study: Overview of Northern Rock Bank             Northern Rock Plc formerly known as Northern Rock Building Society is a UK bank which is currently owned by the government. The NRBC was established in 1965 as an outcome of the merger of the Northern Counties Permanent Building Society which is established in 1850 and the Rock Building Society which has been established in 1865.   In the 30 years of the company, the Northern Rock has expanded through the acquisition of 53 smaller building societies which include the North of England Building Society in 1994. Along with many other British building societies in the 90s, the Northern Rock opted to float and demutualise on the stock exchange so as to expand their business portfolio.             The Northern Bank was formerly established in 1997 when the UK society floated on the London Stock Exchange distributing portfolio shares to their members who held mortgages and saving accounts. The bank has joined the stock exchange being a minor bank and was expected to be taken over by its considered larger competitors; however, Northern Rock has still remained independent.  The company has gained their promotion in 2000 to the FTSE 100 index. However, because of some reasons, they have been demoted back to the FTSE 250 in December 2007 (BBC, 2008) and on the following months, Northern Rock has been suspended from the LSE because of the nationalisation of the bank. On September 14, 2007, Northern Rock sought and has received a liquidity support facilities from the Bank of England (Bank of England, 2008), following issues in the credit markets which is caused by the US sub-prime mortgage financial crisis. It has been said that this crisis has brought enormous impacts to the bank and their organisational performance.   1.2 Research Objectives             The main goal of this research is to analyse sub-prime crisis and its effects on banking and financial institutions. In particular, this paper attempts to achieve the following objectives: 1.    To analyse the concept of sub-prime crisis and how it emerged in the banking and financial institution? 2.    To determine the implications or effect of Sub-prime crisis with Northern Rock Bank. 3.    To provide sound recommendation and conclusion about the issue.   1.3 Research Questions             It has been noted that the emergence of international issues such as sub-prime crisis have affect various organizations and companies. In this regard, this evaluation and analysis will be conducted. Specifically, this paper attempts to answer the following queries: 1.    How does sub-prime crisis emerged and affect banking and financial institutions? 2.    How sub-prime crisis affects Northern Rock Bank and its current situation in the local and international market environment? 3.    How does Northern Rock Bank solve the issue?   2. Literature Review             To understand the sub-prime crisis or issue better, the following review will be discussed. 2.1 Concept of the Sub-prime Crisis             The sub-prime crisis is an ongoing economic issue which manifests itself through liquidity problems in the banking system that owes to foreclosures which accelerated in the United States which starts in latter period of 2006 and triggered a global financial crisis during 2007 and 2008. This economic issue started with the bursting of the US housing bubble (Moyers, 2008; Lahart, 2008) and intensive default rates on sub-prime and other adjustable rate mortgages (ARM) created to higher-risk borrowers with lower revenue or lesser credit history than those prime borrowers. It is noted that the reasons for the sub-prime crisis are complex and varied. Because of this, understanding and controlling the ripple impact through the global economy posts critical challenges for businesses, investors, and government institutions.              The sub-prime lending is regarded as the practice of making loans to borrowers that do not qualify for market interest rates because of different risk aspects, like size of the down payment, income level, employment status and credit history. The amount of US prime mortgages was approximately .3 trillions as of March 2007 (MSNBC, 2008), with over 7.5 million first-lien sub-prime mortgages outstanding (Bernanke, 2007).  More or less 16% of the loans of sub-prime with adjustable rate mortgages (ARM) were 90-days delinquent or in foreclosure process as of October 2007, nearly triple the rate of 2005 (Bernanke, 2007). By January 2008, the delinquency rate had increased to 21% (Bernanke, 2008).   2. 2 Factors that Leads to Emergence of Sub-Prime crisis The sub-crime crisis can be attributed to various factors. These factors include the incapacity of the homeowners to make their mortgage payments principally because of the loss of employment or health related aspects; insufficient mortgage i like short fixed term and buy downs adjustable rate mortgages couples with incentives fast rising adjustable mortgage values, poor judgement either by the lender and/or by the borrower. In addition, the declines of home prices have made the re-financing more complex. Due to the changes in line with securitization, it has been noted that the risks is related to the inability of the homeowners to attain mortgage payments had been distributed widely, with a series of consequential effects. Principally, there are four primary categories of risk involved with sub-prime crisis. These include credit risk, liquidity risk, and asset price risk and counter party risk. Specifically, the business organization is most interested in keeping counter party risk at low level since the volume of the bank’s total portfolio is largely determined by its trading activities. It was evident that counterparty risks associated with derivative trading activities are rooted among over-the-counter (OTC) transactions wherein additional expense or reduced revenue that would result from the replacement of the transaction by an equivalent position in the event of a default is evaluated and given necessary action. As such, there is a need for the people within Northern Rock organization to conceptualize means of minimizing the losses in terms of revenue and expenditure in over-the-counter transactions that the bank engages in. Moreover, counterparty selection is vital in order to maintain the strong hold of the business organization in the international banking industry.     The cross-product master netting agreements with business partners so as to reduce counterparty risks allowed all claims and liabilities not yet due to be offset against each other in the case of counterparty default. This served as contingency action in order to keep the expenses of over-the-counter transactions at minimum level while taking into account other factors and variables which causes loss in revenue.  The use of global multi-stage limit system to9 address credit risk exposure in credit and counterparty risk management by taking into account the replacement costs as well as other potential future price fluctuations will provide a comprehensive understanding and holistic view of the economic environment of the international banking industry guaranteeing safety nets among active participants in the business of global banking transactions. Other measures of unforeseen and emergent cases of loan loss allowances initiated by the management of Northern Rock include a value at risk procedure in quantifying collateralized transactions, and simulation procedure for unsecured transactions to assess the portfolio and correlations effects for calculating exposure.  Since it was revealed that the potential exposure could be reduced significantly in currency and interest rate transactions, succeeding business operations of the bank should be made to characterize these descriptions so as to contribute to the overall reduction of loan loss allowances.  In line with the credit risk, this risk is assumed by the bank which originates the loan. However, because of the major changes in securitization, credit risks are often transferred to third-party investors. Herein, the rights to mortgage payments have considered repackaging into a variety of complex investment vehicles, which generally categorized as collateralized debt obligations or mortgage-backed securities (MBS). Essentially, CDO is a repacking of present debt, and in previous years MBS collateral has generate a large proportion of issuance. In exchange of buying CDO or MBS and assuming credit risk, third party investors have gained a claim on the mortgage assets and related cash flows, which became collateral in the event of default.             On one hand, in line with asset price risk, CDO and MBS asset valuation is multifaceted and related fair value or mark to market accounting is subject ot broad interpretation.  The valuation is derived from both the existence of viable market and the collectibility of sub-prime mortgage payments into which such assets can be traded which are interrelated. The rising mortgage delinquency rates have decreased demand for such assets. Banking and other institutional investors have identified substantial losses as they revalue their mortgage-backed securities downward. Several industries which borrowed money through CDO or MBS assets as collateral have encountered margin calls, as lenders provided their contractual rights to get their money back.  There is a growing consensus about the view on whether fair value accounting should not be suspended or temporarily modified, as large write-downs of complex value MBS and CDO assets might worsen the crisis (Gross, 2008).             In line with the liquidity risk, many industry rely on access to short-term funding market for operations of cash, these include the commercial paper and repurchase markets. Industries and structured investment vehicles often get short-term loans by issuing commercial paper, CDO and pledging mortgage assets as collateral.  In this regard, the investors provide cash in exchange for the commercial paper, which receive money-market interest rated. Nonetheless, due to the concerns about the value of the mortgage asset collateral associated with sub-prime and Alt-A loans, the capability of various industries to issue such paper has been impacted (Barr, 2007).  Furthermore, the interest rate charged by some investors to give loans for commercial paper has substantially increased above the historical level (Unmack, 2007).             Since there is a possibility that Northern Rock might not be able to meet its current and future payment obligations in full or in time wherein the bank would need to settle its liabilities through refinancing when the company is at higher market rates or liquidating assets at a discount to the market risks, liquidity risks that the business that the organization may encounter should be fully accounted by the management. As such, risk management was addressed by the people within the company by integrating risk instruments in the form of daily preparation of a scenario-based run-off profile and an associated limit system. This provided the company with updated and ready back up plan in cases where the business organization might not be capable to handle some of its other responsibilities. In order to manage the risks of liquidity in the company, members of the business organization carry out clearly laid out terms of duties so that there is a systematic approach of handling shortcomings. The structure of the organization was designed so that internal committees are able to communicate effectively and efficiently. The Group Treasury, Regional Treasury units and the Risk Control committees are responsible for managing risks in terms of the company’s asset liquidity. The liquidity policies conceptualized by the Group Treasury and the Risk Control were made to meet the standards of both the regulatory requirements and the internal standards which consist the setting of liquidity risk limits as well as the establishment of an escalation process when limits were breached.  In this light, the company adheres for the organization’s internal and external economic system. Aside from the mentioned measures, the volumes of liquid assets, securities deposited as collateral with central banks and unsecured funding through banks and market for certificates for deposit are monitored on the daily basis.  As such, the company does not only take into account its economic interest as a business organization, but also makes sure that the trust accorded by the clients is met. Several liquidity inflow and outflow scenarios and stress tests are initiated by the Risk Control in order to monitor and analyze short-term liquidity mismatch limits as well as the long-term refinancing ratio limits. In this way, the bank is able to control a systematic system of observing the short-term and long-term plans and objectives of the company for growth and development. Securing the market position of the company will enable the bank to be internationally competitive in its aim to build a strong and diverse market base.  The last is the counterparty risk. Accordingly, major investment banks and other financial industries have considered significant positions in terms of credit derivatives transactions. In this, some serve as a kind of credit default insurance. Because of the impacts of the risks mentioned the financial health of investment banks have declined, potentially enhancing the risk to their counterparties, and generating more risks in financial markets.   3. Research Methodology 3.0 Methodology Basically, this study, as a whole, can be classified as a descriptive research, whose objective is to portray an accurate profile of persons, events or situations, and may be an extension or a forerunner to a piece of exploratory research, a research that tries to establish causal relationship between variables. (Robson, 2002; Saunders et al, 2003) Accordingly, with the descriptive research, it is necessary to have a clear picture of the phenomena on which a researcher wishes to collect data prior to the collection of the data. (Saunders et al, 2003)             Further, even if many project tutors are often wary or work that is too descriptive, and they will want a researcher to go further and draw conclusions from the data gathered, description in management and business research has a very clear place, although, it should not be thought of as an end in itself, but only as a means to an end. (Saunders et al, 2003). The research described in this document is based solely on qualitative research methods. This permits a flexible and iterative approach. During data gathering the choice and design of methods are constantly modified, based on ongoing analysis. This allows investigation of important new issues and questions as they arise, and allows the investigators to drop unproductive areas of research from the original research plan.   3.0 Methodology Basically, this study, as a whole, can be classified as a descriptive research, whose objective is to portray an accurate profile of persons, events or situations, and may be an extension or a forerunner to a piece of exploratory research, a research that tries to establish causal relationship between variables. (Robson, 2002; Saunders et al, 2003) Accordingly, with the descriptive research, it is necessary to have a clear picture of the phenomena on which a researcher wishes to collect data prior to the collection of the data. (Saunders et al, 2003)             Further, even if many project tutors are often wary or work that is too descriptive, and they will want a researcher to go further and draw conclusions from the data gathered, description in management and business research has a very clear place, although, it should not be thought of as an end in itself, but only as a means to an end. (Saunders et al, 2003). The research described in this document is based solely on qualitative research methods. This permits a flexible and iterative approach. During data gathering the choice and design of methods are constantly modified, based on ongoing analysis. This allows investigation of important new issues and questions as they arise, and allows the investigators to drop unproductive areas of research from the original research plan.             3.1 Secondary data  For this research design, the researcher will be using secondary data. Herein, the researcher gathered data, collated published studies from different local and foreign universities and articles about textile and apparel industries; and made a content analysis of the collected documentary and verbal material.  Afterwards, the researcher summarized all the information, made a conclusion based on the objectives posited and provided insightful recommendations for the issue. Accordingly, finding relevant secondary data involves two interlinked stages. The first stage is identifying whether or not the data that a researcher looks for are available as secondary data, while the second stage is finding the precise data that is needed for the study. (Saunders et al, 2003)             For this study, the researcher was able to establish that the pertinent data needed for the fulfillment of this research’s objectives are available through the literature review previously conducted. Because of the review, the researcher was able to gather full references to the sources of the needed data. Tertiary literature (like indexes and data archive catalogues) also helped especially those on-line indexes and catalogues of Universities, and organizations.   3.2 Effectiveness and limitations of secondary data             The researcher has opted to use secondary data to make sure that the information that will be used in this study is already proven and that all information has substantial evidences to justify the result of the study. In addition, the use of secondary data enables the researcher to gather only pertinent information relevant to the topic. However, secondary data has also some limitations. Since, most of the secondary data that will be gathered is not updated; this can affect the overall result of the study. In addition, data used in this study depends on the discretion of the researcher, hence, any other data that should be included might not be considered by the researcher. 4. Evaluation and Analysis             Based on the gathered data and the used of qualitative design, the findings of the study will be discussed in this section. Herein, the analysis will include the discussion of the emergence of sub-prime crisis and its effect on Northern Rock bank. In addition this will also provide details on how Northern Rock attempts to solve the issue with the help of the bank of England. Driven by low interest rates as well as liquidity, the boom of housing in the US has lasted for more than 10 years during which mortgage industries extended loans to borrowers which have poor credit records. In this regard, the brokers who were given big commissions attracted these borrowers for availing housing loans having a minimal down payment with lax documentation and credit checks.             As mentioned, these loans are referred to as the sub-prime mortgages, usually charge 2% to 3% points more than those individuals with less-risky credit profiles, and carry modifiable interest rates which can cause payments to jump in the coming years. While this process was good, homeowners have notices that housing prices escalates, which leads them to take out home equity loans which helped fuel consumer spending.             As noted, sub-prime mortgage simply means providing loans to borrowers with marginal or weak credit background to avail houses.           The existence of the sub-prime financial crisis has brought different effects on various institutions in the global market and one of these is the banking and financial institutions. The sub-prime crisis has impacted various banks, real estate investment trusts, mortgage lenders, and hedge funds. These institutions have suffered significant losses as an outcome of mortgage payment defaults or the mortgage asset devaluation. It has been noted that as of April 25, 2008 banking and financial industries has noted sub-prime related losses or write-downs which exceeds U.S. 0 billion. In this regard, the profits at the American banks insured by the FDIC has decreased from .2 billion to .8 billion comprising 83.5% of the total loss  during the fourth quarter of 2007 versus the present year, due to increasing loan defaults and provisions for loan losses. It is said that this phenomena has been the worst bank and thrift performance since the fourth quarter of 1991. In the year 2007, these banks have only earned 5.5 billion, which is lesser than 27.4% from a record profit of 5.2 billion in the previous year 2006. Other institutions from the global market including the IKB Deutsche Industriebank have also experienced significant losses and mortgage scores of lenders have already filed bankruptcy. Aside for the effect of the crisis to the company, it also affects top management performance as the CEOs of Merrill Lynch and Citigroup has been forced to resign from their respective industries. Different companies have considered a merger-deal to survive in the business market. Furthermore, Bear Stearns and Northern Rock have acquired emergency assistance from the Bank of England. The Crisis has also been felt in the Indian banking and financial institutions which have ventured into USA.             The problem with Northern Rock was compounded since the institution have received most of its fund in large values from institutional lenders rather than small depositors which are more stable source of fund than others (Lim, 2008). According to some sources, Northern Rock’s account holders have withdrawn about £1 billion or more than billion in 2007 after Northern Rock turned to the Bank of England for an emergent credit line.  However, this issue still remains unconfirmed (IHT, 2008).             Although the reasons for this apparent shortage of liquidity are not known, Northern Rock would have needed sufficient liquidity to adjust with a withdrawal of wholesale funding for more than a month so as to avoid needing assistance or help from the Bank of England.  It is not likely that a change to liquidity regulation would help the banking institution.             Some scholars have drawn attention to the sorts of transformation which would prevent banking and financial institutions to be affected by runs (King, 2007); In line with the Northern Rock, many of its account holders withdrew their deposits to deposit it to other banks. For the most part, these depositors did not ask for cash. If Northern Rock has been insured with other banks, then the insurance policies might have allowed the banks to make long-term loans, to provide them with enough funds which they need to adjust with the loss of account deposits. In this regard, liquidity insurance in effect would attempt to recycle deposits from the other banks to the institution which is Northern Rock.  With this, these insurance contracts would force the other banks to do what they did in times of the sub-prime crisis, to lend money wholesale for the Northern Rock.             In order for the system to presumably operate the entire banks, these institutions must be obliged to insure each other. It is unlikely that banking institutions could insure with bodies external of the banking system since non-banks do not usually have the liquidity needed to give the resources needed in a banking run. If banking institutions pay each other insurance premia, then, unless some industries can be recognised as more expose to liquidity issues than others, the profit earned by each industry from giving insurance to other banks, might be expected more or less to suit what the bank pays for its own insurance.  This is the outcome that liquidity insurance has become a mutual aid arrangement which is an agreement between banks to assist each other in financial aspects when the interbank market ahs continue to dry up.             It is noted that the problems of Northern Rock were also triggered by the announcement of Bank of England in providing aids for the bank. It is noted that the market Abused Directive limits the Bank from giving aid disjointedly because the banking institutions was a publicly traded industry. With this there are separate rules to be considered and these include the Exchange Rules which requires Northern rock would require making public that they had received help.  In this regard, one of the solutions for the Bank of England is to nationalise Northern Rock. The Northern rock nationalisation and the proposal for supporting other distressed banking institutions are said to be based upon the claims that such would safeguard the interests of employees and depositors.  However, even this solution has challenge the bank since depositors have withdrawn their accounts.              5. Recommendation and Conclusion Northern Rock faces issues and challenges which affects its performance in the market. The sub-prime crisis have affect become critical and detrimental to the profit-generating prospects of the company especially during economic fluctuations in the regional as well as the local social, economic, and political situations of the locations where the branches of the bank are situated. As such currency rates, foreign exchanges, as well as the unexpected changes in the trends that characterize the volatile nature of the international market will post issues and problems that the management of the bank should address immediately. The possibility that Northern Rock might not be able to meet its current and future payment obligations in full or in time, particularly in the business organization’s international deals, wherein the bank would need to settle its liabilities through refinancing when the company is at higher market rates or liquidating assets at a discount to the market risks, increases the company’s responsibility of handling risks. Inconsistencies in the operation system of the company due to lapses in the communication structure and the ineffective and inefficient flow of relevant information for the immediate needs of the management to provide aggressive solution to the problems related to the organization’s operations, post as a hindrance to the development and growth of the bank.  The fact that the bank is in the international business wherein operations are made complicated by the needs for preparation and other documentation processes to complete a transaction as well as to monitor the workflow and performances of the branches increases the risk of the Northern Rock.              Strategically implementing management measures to ensure that the interests of the bank is secured and the company’s need to conceptualize and design effective business plans are of primary consideration due to the complex structure of the organization and ever-changing economic environment of the international banking industry.  Compliance with international business principles and regulations calls for necessary means of adapting the policies and laws within the company to complement with the outside provisions of the industry.             Careful allocation of the business organization’s resources should be realized in the company’s quest to achieve productivity and profitability amidst the competitive international banking industry. Identifying the priorities and immediate needs of the bank should be immediately recognized and laid out to facilitate and conduct necessary actions that will adhere to the goals of the company.     Although the sub-prime issue is still ongoing, Northern rock should continue to think of possible ways to limit or totally eliminate the effects of this issue with their organisation. It can be concluded that the issue of sub-prime has affected the organisational performance of different banks in the global market. The inclusion of Northern Rock with this issue should be solved by the management without affecting how they perform in the British market. All in all, it can be said that the Northern Rock crisis is just a part of a much huge crisis in the international financial system. This issue for the banking and financial markets as well as ordinary people is that nobody knows where the next break in the system will be.  In addition, it can be said that if sub-prime issues would not be able to solve immediately, this would create extreme chaos for banking and financial institutions which would lead to various bankruptcies in the banking sector leading to turmoil in the international financial system.       6. Reference Bank of England (2008). Online available http://www.bankofengland.co.uk/publications/news/2007/090.htm.  Retrieve April 29, 2008.   Barr, A. (2007). Subprime woes infect commercial paper market: KKR Financial, Thornburg, Coventree among firms reporting disruptions. Online available http://www.marketwatch.com/news/story/subprime-mortgage-woes-infect-commercial/story.aspx?guid=%7B1989DE0D-9031-46A1-B3C5-8E07436CF37C%7D. Retrieve April 29, 2008.   BBC (2008). Northern Rock drops from FTSE 100. Online available http://news.bbc.co.uk/1/hi/business/7139241.stm.  Retrieve April 29, 2008.     Bernanke, BS (2007). The Recent Financial Turmoil and its Economic and Policy Consequences, Online available http://www.federalreserve.gov/newsevents/speech/bernanke20071015a.htm Retrieve April 29, 2008.   Bernanke, BS (2007). The Subprime Mortgage Market., Online available http://www.federalreserve.gov/newsevents/speech/bernanke20070517a.htm Retrieve April 29, 2008.   Bernanke, BS (2008). Financial Markets, the Economic Outlook, and Monetary Policy, Online available http://www.federalreserve.gov/newsevents/speech/bernanke20070517a.htm Retrieve April 29, 2008.     Gross, D (2008). The Mark-to-Market Melee: Did an obscure accounting rule cause the credit crunch? Online available http://www.newsweek.com/id/130029. Retrieve April 29, 2008.   International Herald Tribune (2008). Crisis deepens for Northern Rock. Online available http://www.iht.com/articles/2007/09/17/asia/17northern.php. Retrieve April 29, 2008.   King, M. (2007), ‘Evidence to the Treasury Select Committee’, http://www.publications.parliament.uk/pa/cm200607/cmselect/ cmtreasy/uc999-i/uc99902.htm. Q90. Retrieve April 29, 2008.   Lahart, J (2008). Egg Cracks Differ In Housing, Finance Shells. Online available http://online.wsj.com/article/SB119845906460548071.html?mod=googlenews_wsj. Retrieve April 29, 2008.   Lim, M. (2008). Subprime mortgage meltdown: Roots of the crisis. Online available http://opinion.inquirer.net/inquireropinion/talkofthetown/view_article.php?article_id=101568. Retrieve April 29, 2008.   Moyers, B (2008). Online available http://www.pbs.org/moyers/journal/06292007/transcript5.html.  Retrieve April 29, 2008.   MSNBC (2007). Will subprime mess ripple through economy? Q&A: Looking at the impact of the mortgage meltdown. Online available http://www.msnbc.msn.com/id/17584725  Retrieve April 29, 2008.     Unmack, N (2007). Rhinebridge Commercial Paper SIV May Not Repay Debt (Update1). Online available http://www.bloomberg.com/apps/news?pid=20601087&sid=aEacPeg9pmLg&refer=home.  Retrieve April 29, 2008.   Credit:ivythesis.typepad.com

Dissertation on Northern Rock and the Implication of the Sub-prime Crisis

Northern Rock and the Implication of the Sub-prime Crisis 1. Introduction Unlike many other industries, banking and fina...

Essay instructions on Advance financial reporting

Question 1 Current Value Accounting will solve all the problems relating to accounting for Financial Instruments With reference to the above statement (a) Discuss the problems encountered in the UK when Current Cost Accounting was introduced. (b ) Discuss the problems currently faced by the IASB in determining how assets and liabilities should be measured. (c) How can Hicks and Fishers models of income help resolve this issue. (Your answer should include a discussion on the views expressed in the paper by Rayman, R. A Fair value accounting and the present value fallacy: The need for an alternative conceptual framework The British Accounting Review (Sept 2007) vol.39 pp211-225.) Question 2 Most commercially developed countries regulate the provision of published accounting reports. (a) With reference to empirical studies with which you are familiar discuss the market mechanisms that encourage firms to disclose financial information in the absence of regulation. (b) With reference to specific examples discuss the alternative approaches that can be adopted in regulating the provision of accounting information. Credit:ivythesis.typepad.com

Essay instructions on Advance financial reporting

Question 1 Current Value Accounting will solve all the problems relating to accounting for Financial Instruments With reference to the ab...

The Current Value Accounting

The Current Value Accounting a. The term current values accounting or sometimes called the replacement cost accounting refer to the replacing cost of the current capacity of production as well as the existing inventory. This means that the managers need the replacement for the capacity of the replacement equipment to what are available in the market. This also suggest for the process of evaluation that are necessary for the determination of the purposes. On the other hand, it also ignores the historical prices and only focuses on the present values of the assets (Stretton, H 1999, p. p. 383). The current cost accounting had introduced UK in the year 1980 which notified that it had failed and cease it to only be mandatory. The country’s standard setters were burnt badly by the totally failed of current cost ratio. This incident due to firm’s lack theoretical base lacks of conviction by the users and preparers of financial statement, and the validity and adjustment of the political nature and debate (Ramazanoglu and Holland, 2002, p. 33). The reversion on the current cost accounting made adjustments when the nationalized industries in UK adopted it which requires being non-mandatory and the British Telecom had privatized. This implies that the investors received the less information regarding the BT’s maintaining capital. The objections also rose in CCA that concerns the impracticability of the embedded value which is the basis for the fixed asset. There are also tremendous doubts that rose for the value of CCA in the small companies. There are also dangerous effects on he planned disappearance and to the profit figures for the familiar figure of historical cost accounting (Nobes, 1992, p. 157).     b. There are certain issues that focused by the IASB in the measurement of the assets and liabilities. The organization is currently using the fair but the other accounting standards prefer to use the current value, deprival or the value of the business. Although the IASB used the fair value and it is easy to understand as well as it is less complicated. There are certain problems that the IASB is experiencing as the active market for some of the kinds of business asset. In this manner, if there are no active markets, the estimation need to be use which can be unreliable. This only anticipates the sales and the profits that can never happen. This can also distort the trends for the financial statements in market values in making difficult users in assessing the performance of entity (lfp, 2007, p.42-43).   c. Since it had identified by the IASB and the FASB that the function of company is the safety and custody of reporting for the resources of the company as well as the efficient and profitable reports, it had been formed their joint forces for the improvement of the financial reporting for the better performance of the functions and the conventional system use of fair value in accounting. Despite of the fact that the fair value disclosure can be recognized, the requirements in the changes of the fair value must be reported for the “gains” or the “losses” that appears that can rely in the concept of Hicks in the theoretical ideal income. The concept of Hicks also are discarded in giving way for the Fishers’ theory for income which are the two incomparable functions of financial reporting needs to be carried out independently as well as without compromise. The traditional way of the “hybrid” system with regards to the accrual accounting wherein the forward-looking and backward-looking measures of the volume are mixed together can be replaced into the system of segregation where they must be strictly apart. This only signifies that the logical extension of the theory of Fisher only suggests that the disclosure of the managers or the agents of the return of investment needs to plan the delivery in their owners and principal. This kind of information on decision-useful is ample for the efficient and effective operation of the capital market as well as the removal of the accounting incentives in short-termism (Rayman, 2007, pp. 211-225).   Disclose Financial Information   a. The company’s needs to keeps its close tab on the process wherein they are spending their money and where they make their money. The firms also disclose their losses, their profits, and their sales as well as the other financial measures. There are also markets mechanisms that involved in the way wherein the companies are encourage to file their information regarding their operations as investors and the potential investors can read all of the information. In this way, they can be able to assess the information for them to determine if the performance of the company is a warning or improving. The disclosed of the information can be released with the whistle blowing and can send back the price up. The incentives for the issuer therefore can be appropriately trade off for the cost of information regarding the value of information. Therefore, the incentives in firm for them to voluntarily disclose their financial information is for the matter of their significant interest with regards to the empirical and analytical accounting research (Roush, 2004, p.87).   b. The CMBV issued the new accounting standard for the reflection of the new guidelines of approximation into the general principles. The first corpus of buying binding standards will have some of the differences at the midst of the two sets of requirements. This means that the unrealized gains and losses in the financial instruments can readily be available whereas the sales can be handed through the capital accounts as compared to the requirements of Mex GAAP. There is also difference in the convertible premiums and the deferred taxes are all computed for the comparable basis so that it can past the rules of FASB and not the total provision and this had been seen in the feedback of Mexico as indicate in IASC and FASB. In this manner also, all of the subsidiary companies are consolidated and the carrying rules for the loan losses are different from the usage of US and it can also be considered an odd to the Mex GAAP (Staking, et. al., 1999, p. 46).   Bibliography Roush, C 2004, Show me the Money: writing business and economies stories for the mass communication, Rutledge, United Kingdom. Staking, K 1999, Financial Disclosure: A First Step to Financial Market Development, Inter-American Development Bank, United States. Rayman, R 2007, ‘Fair Value Accounting and the Present Value Fallacy: the need for alternative conceptual framework’, The British Accounting Review, vol. 39, pp. 211-225. Lfp 2007, Acca P2 (Int) Corporate Reporting, International Financial Publishing, United Kingdom. Nobes, C 1992, Introduction to Financial Accounting, Routledge, United Kingdom. Ramazanoglu, C and Holland, J 2002, Feminist Methodology: Challenges and Choices, SAGE, London. Stretton, H 1999, Economics: a New Introduction, Pluto Press, London.   Credit:ivythesis.typepad.com

The Current Value Accounting

The Current Value Accounting a. The term current values accounting or sometimes called the replacement cost accounting refer to the repl...

Research Proposal :Analysis of the Most Severe Economic Crisis since 1970

Research Proposal Analysis of the Most Severe Economic Crises since 1970   Introduction Since 1970, the economic and economic crisis faced in the global market, has faced major economic cries which brought different challenges for the economy and the economic stability of the industries and also the entire nation. It can be said that with the challenges brought by these crisis, the management of banking and economic sector are trying to transform their business approaches.  Primarily, the goal of this propose research is to analyze the most severe economic crises since 1970, specifically this paper will attempt to analyze the root of the economic crises faced in the global market today.   Background of the study The true origin of the economic crisis faced, specifically the credit crunch was due to the credit bubble as well as the under-pricing of risk at period when rapid economic transformation outpaced regulatory controls and made risk assessment more difficult. To be able to understand the beginning of the credit crunch, its background can be attributed to the recovery from the year 2001 economic slump when the international income growth has soared. In many nations, the credit crunches translated into harshly higher real estate prices as well as the abnormally sharp returns in equity markets. Being driven by the low interest rates and the liquidity, the US housing has boomed and lasted for more than a decade during the period in which mortgage companies have extended loans to borrowers that have bad or poor credit records. With this, the brokers who has been provided with bigger commissions has become attractive to different borrowers for availing housing loans that have a minimal down payment with credit checks and tax documentation.             It can be said that the loans are being regarded to as the  sub-prime mortgages, typically charge 2% to 3% points more than those people with less-risky and bad credit profiles, and carry customizable and amendable interest rates that can cause payments to jump in the forthcoming years. Even if such process was considered as efficient, homeowners have observed s that housing prices escalates, that leads them to take out home equity loans that also helps fuel consumer spending. It can be said that sub-prime mortgage simply referred to the provision of loans to borrowers with marginal or weak or bad credit background to avail housing loans. The emergence of the context of sub-prime economic crisis has brought to the credit bubbles and credit crunches that leads to the economic turmoil which have different effects on different institutions in the global market and the mostly affected sectors are the banking and economic institutions. The sub-prime crisis, leading to credit crunches has affected different banking and economic establishments, real estate investment trusts, mortgage lenders, as well as hedge funds. It can be said that this has made different institutions to suffer significant losses as the result of mortgage payment defaults also known as the mortgage asset devaluation.             In the latter part of the first quarter of the year 2008, particularly April 25, 2008, banking and economic institutions has noted sub-prime related losses and write-downs exceeding U.S. 0 billion. With this aspect, the profits at the American banks insured by the Federal Deposit Insurance Corporation has lessen from .2 billion to .8 billion which comprises 83.5% of the total loss  during the last quarter of the year 2007 versus the recent year because of the increasing loan defaults as well as the provisions for loan losses.  It can be noted that such phenomenon has been the worst bank and thrift performance in the history.             In the year 2007, affected banks have only earned earned 5.5 billion, which is lesser than 27.4% from their profit record of 5.2 billion in the year 2006. Banking institutions in the global market has also experienced such problem like the IKB Deutsche Industriebank which have also experienced relative losses and mortgage scores of lenders have decided to file bankruptcy. On the other hand, the effect of these economic crises has also lead to the resignation of different leaders like the Chief Executive Officers of Merrill Lynch and Citigroup Various industries have attended to consider merger-deal to survive the economic crisis. Moreover, Bear Stearns and Northern Rock have also acquired emergency assistance from higher banks like the Bank of England. Such economic issue has also been felt in the Indian banking and economic institutions which have ventured into USA.             Credit crunches has become an ongoing economic issue that shows itself through the liquidity problems in the banking system which owes to foreclosures.  Such economic issue began with the bursting of the United States housing bubble or the so-called credit bubble (Moyer, 2008; Lahart, 2008 and the intensive default rates in terms of the sub-prime and other adjustable rate mortgages which established higher-risk borrowers with lower revenue and lesser credit history than other prime borrowers.  It has been noted that the causes of the credit crunches can be attributed as varied and complex.  With this economic turmoil due to the credit crunches, the economic losses damaged balance sheets of various economic establishments, as assets were marked down but liabilities remain unchanged.   Aside from this, the credit crunch also reduced and lessens the willingness to lend between industries.     Research Objectives             The main goal of this proposed research is to study the most severe economic crises since 1970, specifically this aims on achieving the following objectives 1.    Identify the most severe economic crises in the global environment 2.    Investigate the roots and causes of these economic crises 3.    Analyze whether these economic crises have significant relationship in terms of the causes and the countries affected. 4.    Examine how companies and countries are able to cope with these economic crises.             Research Questionnaire To address the problem of the study, the following general research questions will be explored: 1.         What are the most severe economic crises since 1970? 2.         Does these economic crises have significant relationship with each other based on the following:             The cause of the economic crises       Countries affected 3.         How do companies and countries adjust to these economic crises?   Significance of the Study This study may be useful in gaining insights on the future of the economy based on the economic crises encountered by different industries and countries. The term ‘future’ is very general and many factors should be involved to determine the general future of the economic sector.             Understanding the roots, causes and effect of these economic crises can help the government and industries to determine ways on solving the challenges posts by these economic crises.             The economic crisis faced by companies and nations is considered as an ongoing economic problem that manifests itself with the liquidity issues in the banking system and other economies in the global market. It has been realized that one of the reasons for this economic crisis are very varied and complicated. In this regard, controlling and comprehending the ripple effect through the global economy as well as the management and marketing implication post critical challenges for investors, insurance companies, businesses, banking and economic industries as well as government institutions.    Literature Review Concept of the Sub-prime Crisis               The sub-prime crisis is an ongoing economic issue which manifests itself through liquidity problems in the banking system that owes to foreclosures which accelerated in the United States which starts in latter period of 2006 and triggered a global financial crisis during 2007 and 2008. This economic issue started with the bursting of the US housing bubble (Moyers, 2008; Lahart, 2008) and intensive default rates on sub-prime and other adjustable rate mortgages (ARM) created to higher-risk borrowers with lower revenue or lesser credit history than those prime borrowers. It is noted that the reasons for the sub-prime crisis are complex and varied. Because of this, understanding and controlling the ripple impact through the global economy posts critical challenges for businesses, investors, and government institutions.              The sub-prime lending is regarded as the practice of making loans to borrowers that do not qualify for market interest rates because of different risk aspects, like size of the down payment, income level, employment status and credit history. The amount of US prime mortgages was approximately .3 trillions as of March 2007 (MSNBC, 2008), with over 7.5 million first-lien sub-prime mortgages outstanding (Bernanke, 2007).  More or less 16% of the loans of sub-prime with adjustable rate mortgages (ARM) were 90-days delinquent or in foreclosure process as of October 2007, nearly triple the rate of 2005 (Bernanke, 2007). By January 2008, the delinquency rate had increased to 21% (Bernanke, 2008). The sub-crime crisis can be attributed to various factors. These factors include the incapacity of the homeowners to make their mortgage payments principally because of the loss of employment or health related aspects; insufficient mortgage I like short fixed term and buy downs adjustable rate mortgages couples with incentives fast rising adjustable mortgage values, poor judgement either by the lender and/or by the borrower. In addition, the declines of home prices have made the re-financing more complex. Due to the changes in line with securitization, it has been noted that the risks is related to the inability of the homeowners to attain mortgage payments had been distributed widely, with a series of consequential effects. Principally, there are four primary categories of risk involved with sub-prime crisis. These include credit risk, liquidity risk, and asset price risk and counter party risk. Specifically, the business organization is most interested in keeping counter party risk at low level since the volume of the bank’s total portfolio is largely determined by its trading activities. It was evident that counterparty risks associated with derivative trading activities are rooted among over-the-counter (OTC) transactions wherein additional expense or reduced revenue that would result from the replacement of the transaction by an equivalent position in the event of a default is evaluated and given necessary action. As such, there is a need for the people within Northern Rock organization to conceptualize means of minimizing the losses in terms of revenue and expenditure in over-the-counter transactions that the bank engages in. Moreover, counterparty selection is vital in order to maintain the strong hold of the business organization in the international banking industry.     The cross-product master netting agreements with business partners so as to reduce counterparty risks allowed all claims and liabilities not yet due to be offset against each other in the case of counterparty default. This served as contingency action in order to keep the expenses of over-the-counter transactions at minimum level while taking into account other factors and variables which causes loss in revenue.  The use of global multi-stage limit system to9 address credit risk exposure in credit and counterparty risk management by taking into account the replacement costs as well as other potential future price fluctuations will provide a comprehensive understanding and holistic view of the economic environment of the international banking industry guaranteeing safety nets among active participants in the business of global banking transactions. Other measures of unforeseen and emergent cases of loan loss allowances initiated by the management of Northern Rock include a value at risk procedure in quantifying collateralized transactions, and simulation procedure for unsecured transactions to assess the portfolio and correlations effects for calculating exposure.  Since it was revealed that the potential exposure could be reduced significantly in currency and interest rate transactions, succeeding business operations of the bank should be made to characterize these descriptions so as to contribute to the overall reduction of loan loss allowances.  In line with the credit risk, this risk is assumed by the bank which originates the loan. However, because of the major changes in securitization, credit risks are often transferred to third-party investors. Herein, the rights to mortgage payments have considered repackaging into a variety of complex investment vehicles, which generally categorized as collateralized debt obligations or mortgage-backed securities (MBS). Essentially, CDO is a repacking of present debt, and in previous years MBS collateral has generate a large proportion of issuance. In exchange of buying CDO or MBS and assuming credit risk, third party investors have gained a claim on the mortgage assets and related cash flows, which became collateral in the event of default.             On one hand, in line with asset price risk, CDO and MBS asset valuation is multifaceted and related fair value or mark to market accounting is subject to broad interpretation.  The valuation is derived from both the existence of viable market and the collectibility of sub-prime mortgage payments into which such assets can be traded which are interrelated. The rising mortgage delinquency rates have decreased demand for such assets. Banking and other institutional investors have identified substantial losses as they revalue their mortgage-backed securities downward. Several industries which borrowed money through CDO or MBS assets as collateral have encountered margin calls, as lenders provided their contractual rights to get their money back.  There is a growing consensus about the view on whether fair value accounting should not be suspended or temporarily modified, as large write-downs of complex value MBS and CDO assets might worsen the crisis (Gross, 2008).             In line with the liquidity risk, many industry rely on access to short-term funding market for operations of cash, these include the commercial paper and repurchase markets. Industries and structured investment vehicles often get short-term loans by issuing commercial paper, CDO and pledging mortgage assets as collateral.  In this regard, the investors provide cash in exchange for the commercial paper, which receive money-market interest rated. Nonetheless, due to the concerns about the value of the mortgage asset collateral associated with sub-prime and Alt-A loans, the capability of various industries to issue such paper has been impacted (Barr, 2007).  Furthermore, the interest rate charged by some investors to give loans for commercial paper has substantially increased above the historical level (Unmack, 2007).   Research Methodology             This proposed research is to determine the most severe economic crisis since 1970.  To achieve the objective of this study, descriptive approach will be used. Although both the qualitative and the quantitative research methods were used for the completion of this research activity, the study operates primarily under the qualitative research approach wherein the quality of the information gathered rather than the quantity of sources that are available to the researcher, is highly recommended so as not to compromise the quality of the data (Snijders, 1992; Faugier & Sergeant, 1997). Because the highly relevant aspects of the research study are characterized and classified as qualitative elements, standard measures that enabled quantification of the concepts will not meet the information needs of the project. These include the analysis of each of the economic crisis that hits the world. The exploratory research design served as the guiding framework for the execution of the entire research project. Exploratory research normally involves open-ended study, unguided by theory and intended to provide a new body of empirical knowledge from which theories might be postulated (Yin, 2003:22, Robson, 2002:59 & 399). As such, the case study research approach provided the most ideal methodology since the study calls for the need to conduct a holistic, in-depth investigation of the topic presented (Feagin, Orum & Sjoberg, 1991). This contributed to the knowledge of individual, group, organizational, social, political, and related phenomena being studied (Yin, 2003). Since the research project aims to enlighten identify the most sever economic crisis, assessment of each of the financial crisis will be considered. As such, the research activity employed means and measures to provide valid and reliable analyses of the economic crisis under the qualitative research approach. Hence, the entire research activity was composed of three data gathering procedures in order to identify the most sever economic crisis. These data gathering procedures include (a) interviews among economists and informed individuals (b) the interdepartmental ranking of economic crisis based on its major effect. and (c) in-depth case study of each of the economic crisis.   Coding and Data Interpretation The qualitative data collected through the key informant interview method were used and manipulated by utilizing the open-coding and axial coding procedures (Fico, Lacy & Riffe, 1998). This facilitated easier analysis of the qualitative information gathered as patterns, similarities and differences of the responses made by the informants of the study were classified and categorized to form logical data analysis and presentation. As such labels, words, and statements that were used by the participants to denote or connote similar concepts and themes were grouped and analyzed accordingly to summarize the core findings of the study (Kerig & Lindahl, 2001; Fairclough, 2003). Each of the concepts that were discussed during the key informant interview method were analyzed and related to the research questions and objectives so as to come up with sensible findings and results. Moreover, to facilitate the qualitative data analysis of the concepts of the study, content analyses of the responses of the interviewees were conducted. Defined, content analysis is the systematic, replicable technique for compressing many words of text into fewer content categories based on explicit rules of coding (Markel, 1998; Fico, Lacy & Riffe, 1998; West, 2001). It is not restricted to the domain of textual analysis but could also include the categorization of illustrations or drawings (Wheelock, Haney & Bebell, 2000) as well as behaviours of individuals that are video tape recorded (Stigler et al, 1999). These characteristics of the content analysis enable researchers to sift through large volumes of data with relative ease in a systematic fashion (Markel, 1998; Fico, Lacy & Riffe, 1998; West, 2001). Content analysis is a useful technique that allows the discovery and description of the individual, group, institutional, or social attention or focus of the study  (Kulm, Dager Wilson & Kitchen, 2005) which opens opportunities  to correctly interpret the collected inferences and data and can be corroborated using other methods of data collection. This particular systematic qualitative data processing has been very useful in the entirety of the study since the content analyses facilitated organized and logical sorting of large data from interviews in order to arrive at simpler concepts for analysis and discussion. Moreover, in-depth interpretation of the specific cases that were explored was made possible so as to come up with holistic analysis of the findings of the study. As such attributes, constructs and other similar connotations of the topic of the study were grouped together to synthesize the results of the study as well as to mange the data more effectively and efficiently. In the case of the quantitative data collected in the interdepartmental website ranking, the descriptive statistics in the form of frequency through tallies was primarily used so as to present quantitative data descriptions in manageable forms.   Validity and Reliability This study employed qualitative research method (key informant interview) as the primary data collection procedure. Thus, ensuring the validity of the accumulated data is considered to be the most crucial stage of the research endeavor. This aspect of research was attended by the researcher because the validity of the data dictates the quality of the outcome of the accomplished procedures. Since a methodology is always employed in the service of a research question, validation of the inferences made on the basis of data from one analytic approach demands the use of multiple sources of information through validation study built into the design. In qualitative research, validation takes the form of triangulation which lends credibility to the findings by incorporating multiple sources of data, methods, investigators, or theories (Kaplan & Duchon, 1998; Foss & Ellefsen, 2002; Mingers, 2001). However, content analysis itself is only valid and meaningful to the extent that the results are related to other measures (Markel, 1998; Fico, Lacy & Riffe, 1998; West, 2001) which necessitated the use of triangulation method. The triangulation research strategy in which the use of multiple sources to enhance the rigor of the research (Robson, 2002:174) helped in the in-depth case analysis of the paper conglomerating three different aspect of the study which includes the (a) background information regarding the new initiatives and characteristics of the Dubai municipality governance while (b) classifying the structure of the organization into huge, middle and small department categories and (c) and the e-Governance practice in the United Arab Emirates focusing on its online services. Moreover, the interdepartmental ranking of the websites supported the researcher’s aim to present accurate and truthful findings following the principle of triangulation.   Reference   Faugier, J & Sargeant, M 1997, ‘Sampling hard to reach populations’, Journal of Advanced Nursing, Vol. 26, pp. 790-797. Feagin, J, Orum, A & Sjoberg, G (Eds.) 1991, A case for case study, Chapel Hill, NC: University of North Carolina Press, pp.20-26. Fico, FG, Lacy, S & Riffe, D 1998, Analyzing Media Messages: Using Quantitative Content Analysis in Research, Lawrence Erlbaum Associates, Mahwah, NJ Flick, U 1998, An Introduction to Qualitative Research, London: Sage. Foss C, & Ellefsen B 2002, ‘The value of combining qualitative and quantitative approaches in nursing research by means of method triangulation’, Journal of Advanced Nursing, vol. 40, no. 2, pp. 242-8. Gliner, JA & Morgan, GA 2000, Research Methods in Applied Settings: An Integrated Approach to Design and Analysis, Lawrence Erlbaum Associates, Mahwah, NJ. Green, JJ 2005, Design, Methods and Measurement for Applied Research, (PowerPoint Presentation) Institute of Community-Based Research, Division of Social Sciences/Centre for Community and Economic Development, Delta State University. Guba, E & Lincoln, YS 1998, ‘Competing paradigms in qualitative research’, In Denzin, NK & Lincoln, YS editors, The Landscape of Qualitative Research: Theories and Issues, Thousand Oaks, CA: Sage. Lahart, J. Egg Cracks Differ In Housing, Finance Shells. Online available http://online.wsj.com/article/SB119845906460548071.html?mod=googlenews_wsj. Retrieve December 13, 2008, 2 Lim, M. Subprime mortgage meltdown: Roots of the crisis. Online available http://opinion.inquirer.net/inquireropinion/talkofthetown/view_article.php?article_id=101568. Retrieve December 13, 2008. Moyers, B. Online available http://www.pbs.org/moyers/journal/06292007/transcript5.html.  Retrieve December 13, 2008, 1. Yin, Robert K. (2003) Case study research: Design and methods (3rd Edition), Sage.   Credit:ivythesis.typepad.com

Research Proposal :Analysis of the Most Severe Economic Crisis since 1970

Research Proposal Analysis of the Most Severe Economic Crises since 1970 Introduction Since 1970, the economic and economic crisis faced i...