Research Project Paper Example | Topics and Well Written Essays - 2000 words - 2

Project - Research Paper Example However, research has shown that local members of the community are not benefiting much from the resources that are mined in their area. It has also been found that the working conditions of the employees are not favourable since the mine has been recently hit by a spate of strikes over pay issues. It has also been found that people who were protesting over improved working conditions were harshly treated and 34 lost their lives after the police opened fire on the protestors. In principle, organizations that extract natural resources in different places should plough back to the members of the community. It has been recommended that the company involved in this case should make efforts to empower the employees in particular so that they can also directly benefit from the natural resources that are obtained from their areas. This can be done through increasing their wages as well as creating community share trusts. This action is designed to fulfil the corporate social responsibility (CSR) concerns of the company. Overview of the topic In most cases, natural resources like minerals are exploited for various reasons. Minerals contribute towards economic growth and development if they are sold to other countries. Through exploitation of mineral resources in a particular area or country, employment is created and the welfare of the people is likely to be improved. There are many benefits that can be derived from extracting natural resources in a certain area. Development of infrastructure can also be promoted if a natural resource that is of commercial value is being mined in a particular area. Essentially, informed companies should make an effort to ensure that their activities also positively contribute to the growth and development of the areas they would be operating in. This can also help to create trust among the local members since they would stand to benefit from the wealth obtained from their backyard. However, this is not the case in some places that are rich in mineral resources since the people living around the area where the minerals are being mined live in abject poverty. This is in stark contrast to minerals millions of dollars extracted in these people’s background but they do not benefit from these resources. This is ironical because local residents in the communities where the precious minerals are mined are poor and they do not directly benefit from the wealth extracted from their backgrounds. This calls for organizations involved in this business to be more accountable and socially responsible for their activities. Essentially, the concept of â€Å"CSR maintains that businesses are part of the larger society in which they exist and are accountable to the society for their operations,† (Strydom, 2004 p.11). This means that organisations should strike a fine balance between the needs and interests of customers, needs of the environment and the need for businesses to realise their financial goals. This goes han d in hand with the concept of business ethics which tries to make a distinction between something that is morally good from bad (1994). Apart from inequalities in the distribution of wealth obtained from extraction of natural resources in a particular area, it can be seen that the local community members are also exposed to dangers such as environmental pollution that are directly caused by the activities of the company extracting the

Fair Value Essay Example | Topics and Well Written Essays - 1250 words

Fair Value - Essay Example Thus, the AASB framework provides the general guidelines, establishing the way a company should measure all its assets. The aim of the act is to avoid inconsistency of the various methods of measuring fair value, providing a more rigorous framework, for all companies. Thus, the market value of any current asset will be measured by the replacement cost of the services or benefits currently embodied in the asset. One very disputed and problematic point concerned the market value of different assets that weren't commonly traded on the open market, such as buildings or other possessions of this nature. The conclusion reached by the AASB researchers and specialists was that the best way to measure the market value of such assets would be by comparing the selling-prices of other buildings in the area. Although controversial at first, this rule was, seemingly, the best one to follow in establishing the potential selling price of any asset held by a company. The concepts of "current assets" and "current liabilities" are also defined by AASB, as being "an asset that is expected to mature or be realized within a 12 month period", while current liabilities are those liabilities that are "expected to be paid, settled or extinguished within a period equal to or less than 12 months from the reporting date". FASB and IASB board members met on 12th of May, 2006 to discuss and establish the revenue recognition methods that should be used. In doing so, there were some factors that had to be acknowledged as important to the recognition of any revenue. First on the list was customer acceptance, which lead, after thorough examination and in-depth discussions, to the conclusion that: "Revenue shall be recognized if the customer must accept performance to date. That is, the contract's legal remedy for breach is, or is like, specific performance or in the event of customer cancellation, the customer is obligated to pay damages reflecting performance to date." (see http://www.fasb.org/board_meeting_minutes/04-27-06_rr.pdf) "We're hoping that there will be more consistency in the way companies approach fair value measurement, and less diversity in practice from the user's perspective. Users should have more confidence that when they look at those disclosures about what is being shown at fair value and the methods used, they'll have better information to use to assess the quality of earnings and how they view the reliability of the estimates being made.", stated FASB board member, Leslie F. Seidman (Glenn Cheney, "FASB standard clarifies fair value measurement", 16 Oct, 2006,). From this point of view, the AASB framework provides rigorous guidelines, avoiding misunderstanding and inconsistency. Still, as all regulations were changed and revised, many companies complain that they have a difficult time in applying them, and that many criteria provided by this statement have been so frequently changed and discussed that the danger of misinterpreting or failing to respect the newest changes is real and impossible to ignore. Given the fact that the market value is mainly based