Discuss the role of demand Essay Example for Free

Discuss the role of demand Essay In this paper we discuss the role of demand and supply in determining equilibrium price and quantity in the market, in a free market the demand and supply determine the equilibrium price and demand, in this case we consider 2,500 apartments which are to be leased out at a rate of 1,100 per month. If we assume that this is the equilibrium price and quantity in the market we can derive our demand and supply curve to determine the various factors that will affect the equilibrium price and quantity. From the above diagram the intersection of the demand curve and supply curve give us the equilibrium quantity and the equilibrium price, if the price was to rise then the demand for the apartments would decline, if the price was to decline then demand would be high for these apartments. The adjustment of the free market is automatic because when the supply rises then prices decrease, when prices decrease then the demand increases forcing the prices to rise, therefore in the long run the free market is at equilibrium, the factors that affect this equilibrium therefore include demand, supply, prices and charges by other competitors. Change in demand: When demand increases there will be an increase in the level of prices, this is caused by the fact that as the demand increase then the demand curve shifts to the right as shown below, when the demand increases then the prices increase, when prices increase then more apartment builders will be encouraged to increase supply of apartments resulting into increased supply, increased supply will shift the supply curve to the left leading to a decline in prices, therefore in the long run the curves will adjust into a new equilibrium, this is shown in the diagram below: When the demand for houses increase then the demand curve shifts from demand curve 1 to demand curve 2, this increases the prices, as the price increase investors are encouraged to invest more and provide more apartments, this results into increasing supply, when supply increases due to the increased prices the supply curve shifts downwards from supply curve 1 to supply curve 2, the new equilibrium now is where demand curve 2 intersects with supply curve two. Our new equilibrium is at a lower price yet a higher quantity. This clearly shows how the market shifts as a result of change in the demand for apartments. Changes in supply and demand: Changes in the supply is caused by the price, when the price rise then the supply level increases, when the price declines then the supply level declines. On the other hand the demand is also affected by prices, when prices decline then the higher the demand and when the price rise then the lower is the demand. Shifts in the demand and supply curve will affect decision making, this is because as economists we will aim at producing at the most optimal position, the optimal point will be determined by the maount of revenue derived from the apartments, the higher the price the higher the revenue per aprtmetn yet the lower the revenue the lower the revenue per apartment, however total revene will be calculated by multiplying the demand with price. Four points emphasized: When demand increases prices will rise, When the prices rise then the higher the supply, The higher the supply the lower the price and The lower the price the higher the demand Application: This concept of demand and supply can be used to determine the result of an increase in the price of product or even a reduction in the price, however our above analysis is that of a normal good, therefore in the workplace we can determine what wll happen to the demand and revenue after an increase or decline in prices. Elasticity of demand: Price elasticity of demand is the responsiveness of demand to a change in prices, the hgher the price elasticity then the hgiehr the demand wil respoind to a change in prices, however the lower the price elasticity then the lower is the responsiveness to a change in price. Results: From the above discussion we have summarized the law odf demand and supply for a normal good, it is evident that for a normal good when demand increases prices will rise, when the prices rise then the higher the supply, the higher the supply the lower the price and finally the lower the price the higher the demand. References: Brian Snow (1997) Macroeconomics: Introduction to Macroeconomics, Rout ledge publishers, London Philip Hardwick (2004) Introduction to Modern Economics, Pearson Press, New York Stratton (1999) Economics: A New Introduction, McGraw Hill Publishers, New York

Changes in Class and the Labor Force within Society :: History Marx Communism Essays

Changes in Class and the Labor Force within Society Introduction: Though the Industrial Revolution changed the course of modern history, the consequences that accompanied it divided society. The radical change in the division of class and labor within society because of industrialization disgusted many who witnessed it, including Karl Marx. Their contempt for the new composition of class and labor led to intellectuals proposing improvements and reversing changes, through their writings to the masses, introduced by the Industrial Revolution. The Communist Manifesto and writings by Karl Marx and Frederick Engels are specific in their views on the class and labor structure in Europe and abroad. Class Structure Marx saw three classes emerge from Capitalist industrial society: labor power, ones who possessed the means of production, and those who owned the land. Their incomes consisting of wages, profit from industry, and rent collected from their land. Industry created by the Bourgeois revitalized society into two separate classes, the bourgeois and the proletariat. Communism offered the opposite, no division of labor or class. Marx believed that by eliminating personal gain from society, the class structure of Capitalism would be broken. Marx proposed the individual would receive from the greater society an equal amount of the shared commodities in comparison to his production of work benefiting the whole. There is an exchange of equal values. Each person receives equal share in the possessions of the whole for equal work. The bourgeois dissolves as personal profit is eliminated. Thus, granting rule over society to the proletariat. Class disappears because everyone is the sam e. Everyone is a worker. Free economic markets separates the means of production and the labor force. The result is the formation of an economically ruling class. The ruling class finds that labor equals only the means of production. Thus, the bourgeois pays the workers only the amount needed to sustain life. The proletariat is reduced to a life whose sole purpose is to find work. They only find work if their labor increases capital. Communism's Answer to Class Structure Communism offered the opposite, no division of labor or class. Marx believed that by eliminating personal gain from society, the class structure of Capitalism would be broken. Marx proposed the individual would receive from the greater society an equal amount of the shared commodities in comparison to his production of work benefiting the whole.

Assignment one Organisations and environment Essay

Discuss how an organisation’s competitive advantage can be enhanced with the introduction of new technology. In this day and age with almost all markets being highly competitive it is at top of businesses agendas to ensure they have a firm competitive advantage. 1 .The term competitive advantage is the ability gained through attributes and resources to perform at a higher level than others in the same industry or market. If a business can ensure that they have a competitive advantage it enables them to be one step ahead of their competition, this is curtail for a business’s success especial given the economic climate as it stands. One of the main examples of competitive advantage is pricing/cost. We see these most frequently in supermarkets, as most firms compete for the lowest prices this is because their consumers all want to find the best price for the product they want to buy. We also see this in other markets as consumers always look for a better offer therefore th e firm with the lowest prices generally has the higher demand. Another example is quality. When consumers look for witch product or serves to purchase quality is key element witch influence their diction. We see this on the high street time and time again as consumers consistently go to big brand names such as apple because they know that quality will be ensured in their purchase. As a result of this apple or able to boost prices and in turn create a higher profit margin for products. From these simple examples we can see how important competitive advantage is because of the additional finical gain it can bring to a business. These examples are basic as a competitive advantage can come in many forms as long as it befits a business and their competitors do not have it. A competitive advantage can prove extremely important to a business, for this reason it is just as important to maintain the advantage and enhance it if possible. One way to do this is by the introduction of new technology. If a firm is willing to invest in new technology it can be seen as a competitive advan tage in itself. This is because the technology is brand new and competitors do not have it yet. This gives the firm a unique advantage and will in turn attract customers. The introduction of new technology can also be used to enhance a firm’s competitive advantage. If we take the manufacturing industry as an example the firm’s competitive advantage may be there product and the way that it functions and the price that it is made for. If the firm then  introduces some new technology to its production line (machinery) their competitive advantage may be enhanced as the quality of the product is now better due to the new technology. This will make customer chose that firm over its competitors. The introduction of the new machinery may mean that less staff is now needed in that area of the production line. This in turn will enhance the firm’s competitive advantage as unit costs for the product will become lower due to the reduction of staff. This means that firm can charge less than their competitor’s causing a higher demand for their product. Another example of how firm can use new technology to enhance their competitive advan tage is in the researching of consumer information. A firm can only be successful in the long run and have a competitive advantage if it knows their consumers’ needs and wants. From this information the firm can devolve a product portfolio and brand that matches the consumer’s needs and wants, in turn giving them a massive competitive advantage. An example of this could be Tesco. Tesco are using new technology in order to help them understand their consumers more and in turn enhance their competitive advantage. They have done this by introducing their club card scheme. This is a reward scheme for customers as an incentive to make them more loyal to their supermarket; however this also offers Tesco’s the opportunity to see exactly what their customers are buying how often and at what times. This is very useful as it enables them to develop sales strategies and obtain the correct products to complement their consumers’ needs and wants. This will then improve customer loyalty and in the long run make more money. This is another example of how a firm can you new technology (in this case a database and swipe card) in order to enhance the firm overall success and competitor advantage. 2. To gain competitive advantage a business strategy of a firm manipulates the various resources over which it has direct control and these resources have the ability to generate competitive advantage. This quote reinforces the idea that firms are able. This quote again highlights the fact that in order for a firm to enhance their competitive advantage they need to look at the resources in their direct control and look at how to manipulate or enhance them in order to give them a better competitive advantage. One of the most popular and most successful ways of doing this is by the introduction of new technology to a business. A common example of this found in the retail industry is stock control. A resource under the  direct control of all retailers in on the high street is their own inventory/stock. Over the last ten year there has been a massive change in the way businesses handle the problem of stock control. Instead of the now old fashioned way of stock ordits and counts, most retailer now have a database system which shows all their stock including how much they have on the shop floor as well as in back-up storage. They also know when they have sold any given product and can be told by a computer alert that stock needs to be replenished on the shop floor, or that stock should be order as they have ran out. This system combined with the JIT (just in time strategy of stock control) has lead retailer to be more efficient saving money and time and overall improving their competitive advantage. Other ways that businesses can use new technology to enhance their competitive advantage is via their websites. Many firms underestimate the value of using their websites to gain significant competitive advantage in their given markets. With firm simply using their websites as a means to explain what their business is and show off their product portfolio. However if businesses invest in new web design technology they may be able to enhance your distribution networks. This may include using the web portal to enhance logistics, create new marketing channels (for example affiliate channels) or provide better or faster product access for customers. It is imperative that businesses use new technology in order to change and grow as a business as well as improving its competitive advantage. If this does not happen the business may be felt behind as the market progress and grows with new technology along with their customers. A great example of this could be Woolworth with left the high stre et in 2009 leaving 27,000 people unemployed. Woolworth downfall lied in its inability to change and grow with consumer demands. 3. Professor Alan Wilson, from the city’s Strathclyde Business School, said one reason Woolworths did not survive was because it didn’t offer the quality of some other stores. â€Å"And it couldn’t offer the prices that the discount stores such as Primark, Lidl and others could actually offer,† This ultimately shows the impact of what can happened to businesses that do not change or put enthuses into new technology in order to enhance their competitor advantage. Although I have mentioned many examples of how new technology can be used to enhance a firm’s competitive advantage there is some disadvantages when it comes to the introduction of  new technology. Firstly any firm that is considering the introduction of new technology will first have think about the initial investment. New technology is never cheap and can be quite expensive and time consuming to install. T herefore businesses most think carefully about if the investment is worth it and will it pay for itself in the long run. Also the introduction of new technology can bring de-motivation into the workforce. For example in the case that I mention early about manufacturing firms where staff could be laid off because of the introduction of new technology, this would a prime example of staff being de-motivated as they are worried about their job and think they could be the next one to go. However even though there are some small drawbacks new technology is still a very important factor when it comes to the enhancement of a firm’s competitive advantage and should be looked into carefully by all firms that want to be successful and grow. References; 1. Christensen and Fahey 1984, Kay 1994, Porter 1980 cited by Chacarbaghi and Lynch 1999, p. 45 2. Reed and Fillippi 1990 cited by Rijamampianina 2003, p. 362 3. Professor Alan Wilson thoughts on Woolworths- http://news.bbc.co.uk/1/hi/business/7811187.stm

5 Ways to Make Your Diversity Workshop a Success

Organizing diversity workshops is a challenging undertaking. Whether the event takes place among coworkers, classmates, or community members, the likelihood that tension will arise is high. The point of such a workshop is to help participants understand diversity’s significance and how to relate to each other more respectfully as a result. To achieve this, sensitive subject matter will be shared, and issues will be raised that not everyone sees eye-to-eye on. Fortunately, you can take several steps to prevent your diversity workshop from flopping. They include setting ground rules, fostering team-building and consulting diversity experts. Let’s begin with the most basic element of presenting a diversity workshop. Where will it be held? In-House or Off-Site? Where you hold your diversity workshop depends on how comprehensive it will be. Will the program last a couple of hours, all day or longer? The length depends on how much information needs to be given out. Is this the most recent in a series of diversity workshops you’ve held? Then, perhaps a shorter program is more appropriate. On the other hand, if you’re presenting the first diversity workshop at your organization, consider planning for the event to take place all day someplace off-site, such as a nearby hotel or lodge in the woods. Holding the workshop in another location will keep people’s minds off their daily routines and on the task at-hand—diversity. Taking a trip together also creates opportunities for your team to bond, an experience that will be of use when it’s time to open up and share during the workshop. If finances are an issue or a day-trip just isn’t feasible for your organization, try holding the workshop somewhere on site that’s comfortable, quiet and can accommodate the necessary number of participants. Is this a place where lunch can be served  and attendees can make quick trips to the bathroom? Lastly, if the workshop isn’t a school-wide or company-wide event, make sure to post signs letting those who aren’t participating know not to interrupt the sessions. Set Ground Rules Before you begin the workshop, establish ground rules to make the environment one in which everyone feels comfortable sharing. Ground rules don’t have to be complicated and should be limited to about five or six to make them easy to remember. Post the ground rules in a central location so that everyone can see them. To help workshop attendees feel invested in the sessions, include their input when creating ground rules. Below is a list of guidelines to consider during a diversity session. Personal information shared during the workshop remains confidential.No talking over others.Disagree respectfully rather than with put-downs or judgmental criticism.Don’t give feedback to others unless you are asked specifically to do so.Refrain from making generalizations or invoking stereotypes about groups. Use Ice Breakers to Build Bridges Discussing race, class, and gender isn’t easy. Many people don’t discuss these issues among family members, let alone with coworkers or classmates. Help your team ease into these subjects with an ice breaker. The activity can be simple. For example, when introducing themselves, everyone can share a foreign country they’ve traveled to or would like to and why. Content Is Crucial Not sure what material to cover during the workshop? Turn to a diversity consultant for advice. Tell the consultant about your organization, the major diversity issues it faces and what you hope to achieve from the workshop. A consultant can came to your organization and facilitate the workshop or coach you on how to lead a diversity session. If your organization’s budget is tight, more cost-effective measures include speaking with a consultant by telephone or taking webinars about diversity workshops. Make sure to do your research before hiring a consultant. Find out the consultant’s areas of expertise. Obtain references and get a client list, if possible. What kind of rapport do the two of you have? Does the consultant have a personality and background that will suit your organization? How to Wrap  Up End the workshop by allowing attendees to share what they’ve learned. They can do this verbally with the group and individually on paper. Have them complete an evaluation, so you can gauge what worked best about the workshop and what improvements need to be made. Tell the participants how you plan to instill what they’ve learned in the organization, be it a workplace, classroom or community center. Following through on the topics raised will influence attendees to invest in future workshops. In contrast, if the information presented is never touched on again, the sessions may be considered a waste of time. Given this, be sure to engage the ideas brought forth during the workshop as soon as possible.

The And Evolution Between Creationism And Creationism

Providing students with an open-ended approach to stimulate learning and encourage exploration is ideal, especially in the science classrooms. So what is the answer to how to present our students with the opportunity to make their own decisions? According to the laws and court decisions as of today, it is highly unlikely that Creationism will be granted equal time in the biology classroom any time soon. The Ohio standards for science include evolution as a core component mandating that biology teachers incorporate natural selection and the history of life on earth as part of the curriculum. One strategy, presented by the National Center for Science Education is teaching the information and the positions that are held by people as a†¦show more content†¦Gap Creationists believe that there is a large gap between the first two verses in Genesis which allows for a second creation. Day-Age Creationism takes Genesis 1 a little less literally than other views and believe that the à ¢â‚¬Å"days† could have been much longer than 24-hours and may have even stood for millions of years. Progressive Creationism is considered to be held by the majority of those believing in Old Earth Creationism. Proponents incorporate parts of modern biological science such as the big bang theory and the fossil record, but use merge the information to include Biblical references as well. The thing that separates them from an evolutionist perspective is that they still hold to the belief of separate kinds evolving. Evolutionary Creationism and Theistic evolution are considered indistinguishable my many scientists. In these positions, God is seen as the Creator of everything by using evolution to accomplish the plan. Agnostic Evolutionism is the view that accepts evolution as it is commonly presented and does not consider the issue of God s existence or involvement to be a central concern as they believe it is impossible to know if God truly exists. The final viewpoint on the con tinuum, Materialist Evolutionism, is broken down even further into three categories: Methodological Naturalists, Philosophical Materialists, and Atheistic Materialists. Only a small percentage of scientists supporting evolution fall into the philosophicalShow MoreRelatedThe Debate Between Evolution and Creationism1648 Words   |  7 PagesIf the question was posed as to what is the debate between creationism vs. evolution consist of, the thought that it is ‘â€Å"God did it† vs. â€Å"Natural processes did it,†Ã¢â‚¬â„¢ (Scott, 2004) may arise. Science cannot absolutely prove or disprove Creation or Evolution. Yet scientist and the remainder of society use creationism and evolution to prove our existence. Creationist believe in the Christian account of the origin as recorded in Genesis. Creationism is the belief that statements such as â€Å"In the beginningRead More Must Christians Chose Between Evolution and Creationism? Essay3322 Words   |  14 PagesMust Christians Chose Between Evolution and Creationism? The debate of evolution and creationism has extended since the beginning of time. In fact, it is not even as simple as these two opposing views. Each person seems to have formed their own theory which has a unique list of beliefs and dimensions. This makes a complex and difficult task when trying to find agreement between each of these unique theories. However, many Christians are finding it necessary to discover an alternative to theRead MoreShould Religious Education Be Public Schools?1719 Words   |  7 Pagesbackgrounds. Creationism is thought to be a great asset to the education curriculum. Creationism is composed of parts equally religious and science (evolution). It is disadvantageous to exclude this based on its involvement with religion. Additionally, to not include the idea of a creator in our idea of the world’s conception is deemed unconstitutional and senseless. According to the First amendment, no law should prohibit the practice of religion nor should it affect freedom of speech. Creationism shouldRead MoreThe Creationism Debate Essay examples698 Words   |  3 PagesCreationism being taught in public schools is not right because there are many beliefs about how the earth was created. Many science teachers have different beliefs on this particular subject. Some believe it should not be taught in public schools but on one’s own time at home, church, or another place. Other science teachers think students should be taught all the believable theories about evolution and cr eationism. Some science teachers have gotten in trouble with the law by not obeying otherRead More Creationism and Public Schools Essay example960 Words   |  4 Pages Creationism and Public Schools nbsp;nbsp;nbsp;nbsp;nbsp;The issue of whether creationism should be taught in public schools, rather than evolution, is a new one. It has only been in the past fifty years that it has even been in debate. Public school science classes, when discussing the origins of life on Earth, coincided with Sunday school classes. Students learned that the Earth, universe and everything else was created in seven days, by God, as stated in the Old Testament. It was notRead More Do Creationism and Intelligent Design Have a Place in the Classroom?1280 Words   |  6 PagesSurveys show that fifty percent of adults in Turkey, forty percent in the USA and fifteen percent in the UK reject the theory of evolution and believe that life on Earth came into existence as described in the religious texts (Jones and Reiss, 2007; Miller; Scott and Okamoto, 2006; Lawes, 2009). President G. W. Bush commented as follow: Both sides ought to be taught properly...so people can understand what the debate is about....Part of education is to expose people to different schools of thoughtsRead MoreCharles Darwin s Views On Evolution And Evolution1275 Words   |  6 Pagestwo or more events, in which the occurrence of one, precludes the occurrence of the other. Creationism and evolution are two notions that can be viewed as mutually exclusive or non-mutually exclusive, depending on the evidence that you are provided with as well as one’s personal beliefs. In order to appreciate this concept it is important to understand the meanings of both opposing arguments. Creationism is the belief that the universe and living creatures originate from specific acts of divineRead MoreCreationism Isnt Science but Belongs in Schools Essay849 Words   |  4 PagesCreationism Isnt Science but Belongs in Schools The origin of life has been a point of discussion for as long as history has been documented. Ancient Egyptians believed that the sun god Ra took another form, created land from a watery abyss and created everything, including gods and humans. The Iroquois, a tribe of Native Americans, told a story of god to human lineage that resulted in twins, one being evil and one being good. The good twin creates a picture perfectRead MoreCreationism vs. Evolutionism in Public Schools1538 Words   |  7 PagesDebate: Creationism vs. Evolution in Schools: 1st Affirmative Constructive Speech Creationism and Evolutionism by definition are very different topics. Currently, evolutionary naturalism is the most widely taught view of origins in America. In schools in the modern day, only evolutionism is taught and condoned. But before the 1920s, only creationism was taught, and evolution was forbidden. Then, on February 20, 2008, the Florida State Board of Education voted to revise the public school guidelinesRead MoreEvolution Of Creationism And Creationism907 Words   |  4 Pages Evolution and creationism The debate about whether evolution and creationism be taught in schools has existed for years. Some parents are allowing their religious beliefs hinder the education of their children. According to Phy-Olsen, â€Å"American students have lower scores in mathematics and the sciences than comparable students in other industrialized nations.†(9). Many people feel that science goes against religion and they don t want this taught in the schools. If you teach just

There’s no Frigate like a Book by Emily Dickenson - 715 Words

Dickenson’s â€Å"There’s no Frigate like a Book† takes the soul on an epic journey around the world and magical portals, while escorted by a royal entourage as if by a personal chariot. Considerable ingenuity is found in Dickinson’s metaphorical and figurative literature. She uses metaphors, denotation, connotation, and figurative language in a persuasive way which will be examined line by line. It is truly a book lover’s poem for it is a celebration of the joy and infinite power of reading. Although the poem is of few words, within the mind’s eye it paints thousands and the journey taken is subjective. In examination of the structure of the poem it is evident that there are two stanzas and two quatrains. In the first two lines of the first stanza; a book is compared to a Frigate taking one to lands far away. A Frigate is â€Å"A warship with a mixed armament, generally heavier than a destroyer (in the US Navy) and of a kind originally introduced for convoy escort work† (Oxford Dictionary, 2014). Frigate is one of the four striking metaphors used to convey the sheer pleasure of reading a book. In Dickenson’s time a frigate was a Grande ship; thus, comparing a book to this type of grandeur dictates that a book is of far more value and significance, taking the reader further than the finest sea worthy vessel of the time. Frigate has a connotation and a simile; consequently, the lands have a connotation as well. Additionally the term frigate could imply that power can be

Conceptual Framework In Financial Reportingâ€Myassignmenthelp.Com

Question: Discuss About The Conceptual Framework In Financial Reporting? Answer: Introduction The title of the report Prudence and Conceptual Framework in Financial Report suggests the aim of the report. The purpose of this report to analyze the importance of Conceptual Framework in preparation of the General Purpose Financial Reports and to investigate the effects of Conceptual Framework in Accounting which has been used by different stakeholders in their decisions about the company. The report will help in understanding the impact of Prudence over a period of time so that it enhances the outcome of conceptual framework. The report will help in finding out the recommendation for improvement in conceptual framework together with prudence. The main body of the report has been bifurcated in three different sections. First section details as to how conceptual framework of accounting is required for general purpose financial statements. Second section is dealt with the concept of prudence and it has been described with their importance in the conceptual framework of accounting. Lastly the close scrutiny of the general purpose financial statements has been made with reference to the different heads of the financial statements. The purpose of report has been achieved by using and analyzing the Annual report of Qantas Airline which is ASX listed company for the year 2016.The report is prepared using primary and secondary data available on different sources and references has been made from different journal article available online. Conceptual Framework In General Purpose Financial Reports Whenever any work or task is required to be done, it shall be done within the defined structure and according to the needs and requirements of the task. The structure itself determines as to how the particular work or the task is to be done and it also defines the different criteria against which the task will be monitored and evaluated. This defined structure is known by the name of the framework. The framework provides the platform upon which the accounting of the company and thereby the financial statements of the company can be prepared in easy manner. The framework is not only made up of the defined structure but also contains the legal requirements which the company has to comply while finalizing the financial statements of the company. Thus, in this manner the framework is the factor which drives the motivation of the workers and the employees of the company towards the attainment of the organizational goals and that too within the legal limits and requirements. If the framewo rk is not present then the employees and workers of the company will perform their work in the haphazard manner and will come out with the zero results (Anastasia, 2015 and Capital Marketing Advisory Committee Meeting, 2013). In the terms of the financial matters, the framework up on which the accounting is based is known as the conceptual framework of accounting. The conceptual framework of accounting consists of the two major wings. First wing deals with the presentation and the measurement of the heads of the financial statements. In other words it deals with measurement and the presentation of the assets and liabilities on the particular date and the measurement and the valuation of the expense and the income so incurred and earned during the period end. The second wing of the conceptual framework of accounting deals with the preparation of the financial statements of the company with correct disclosures. The second wing has provided three different characteristics: Faithfulness In the common parlance faithful means the act of being an honest but in an accounting area, the term faithful is itself a subject and provide various kind of information to the users of the financial statements. The first characteristic that is provided by the conceptual framework of accounting is the faithfulness. It entails that the financial statements of the company so prepared by the company shall be faithful and presented accordingly. Faithful is not the single word rather it includes the gamut of terms which in itself explains how the financial statements are presented and details how much useful information is delivered by the company within the definition of this term. The faithfulness is the broad term and includes the different features - neutrality, error free and objective. It entails that the financial statements so prepared shall be neutral which envisage that the financial statements are not under the pressure of someone or something and secondly the fin ancial statements shall not contain any statement which can misled the users of the financial statements to take the wrong decision. The third one objective which means that then it should be free from any bias. If these three features are present then it is clear that the financial statements so prepared are faithfully presented (Weiss, 2014). Relevancy The second characteristic of the conceptual framework of accounting is the relevancy. The term relevancy denotes that the financial statements of the company so prepared shall be useful for the users of the financial statements. Being useful and relevant means that the users of the financial statements shall be able to take maximum information about the company so as to take an effective and an efficient decision. In case the financial statements are not found relevant then decision of the users of the financial statements will get mutilated and thus the importance of the conceptual framework of accounting will decline. Reliability - The third characteristic of the conceptual framework of accounting is the reliability. The term reliability denotes that the financial statements of the company shall be reliable enough upon which the users of the financial statements can take their decision and the other stakeholders can take maximum benefit out of the information made so available. In case the financial statements so provided by the company are not so reliable then it will be interpreted that the conceptual framework of accounting of the company is not sound and fair (IASB, 2010). The above three features describes how far the conceptual framework of accounting has been From the above, it is very clear that if the conceptual framework of accounting plays the key role in the preparation and the presentation of the financial statements of the company. In case it is found weak then the decision of the users of the financial statements will be ineffective and inefficient. Inclusion And Exclusion Of Prudence In Conceptual Framework As already apprised, conceptual framework of accounting plays very important role in the preparation and the presentation of the financial statements of the company. New concept has been introduced within the framework which has increased the worth of the conceptual framework of accounting. The new concept is commonly known by the name of Prudence. The concept of prudence is known by the different titles and is there from the beginning of the year nineteen hundred and eighty nine. The work prudence means, in accordance with the oxford dictionary, the state of being active and cautious. In the beginning of the concept the same meaning has been assigned to the word and it has been said that the employees and the other workers of the company shall take care and shall be attentive, active and cautious while performing and recording of transaction or events in the accounting books. It is because if the employees and the workers of the company are not so attentive and cautious then there m ay be the situation where there will be undervaluation or overvaluation of the assets or liabilities. The prudence concept has been criticized on the ground that it is very traditional and does not take into account the current changes and scenario of accounting as it talks about only revenue and assets and does not consider liabilities and expenditure which are more essential parts in GPFRs in current time period. Without considering the liabilities and the expenditure no financial statements can be prepared in the effective and efficient manner. The results so provided will be null and void as the users of the financial statements will be aware about the assets and the revenue but not the liabilities that the company has as on that date and also the expenses that the company has incurred during the year. The concept of prudence was removed in 2005 as part of conceptual framework. But after exclusion in 2005, the scholars started arguing that GPFRs without the prudence policy of conceptual framework are thoughtless for its users (Cooper, 2015). And after the arguments in favor of Pr udence it has been again included in conceptual framework of accounting in 2015 as it will create the situation of impartiality in GPRs for its users. With the inclusion of the prudence, the conceptual framework of accounting has become more and more strong. The prudence allows the finance department of the company to be cautious while accounting for each and every managememt whether it relates to the revenue or relates to the expense or relates to the assets or relates to the liabilities. The financial statement of the company reflects the true and fair view of the state of affairs of the company and financial performance of the company. Scrutiny Of General Purpose Financial Report With the knowledge and recognition of conceptual framework and prudence inclusion, the General Purpose Financial Reports has been analyzed to know the concept better. Both the concepts have helped the users of the financial statements to understand the financial statements in the much better manner. For this Qantas Airline has been selected and its Annual Report for 2016 has been taken into account to assess the practicability by companies in their GPFRs (Annual Report of Qantas Airline, 2016). From the below mentioned factors it can be assessed the use of conceptual Framework along with Prudence has been followed by the company under consideration:- Key Managerial Personnel Remuneration: - The Remuneration Report shown in Appendix as a part of companys GPRs shows that the company is following framework for remuneration to reduce the labor turnover and to retain the maximum no key personnel for long period. Also the framework shows that the company has linked the remuneration to pay of the personnel by categorizing the same into three components basis pay, short term incentive and long term incentive. This can be useful for different stakeholders to assess the productivity of Key Managerial Personnel to the company but on the other hand this framework can enhance the chances of manipulation. Debtors/ Trade Receivables: - The Company has debtors amounting to $ 929 m in the year 2016 in comparison of $ 1079 m in previous year as depicted from Appendix. The companys management is recording the debtors after making provision for doubtful debts or impairment. It shows that the company has following the framework for recording and estimating the debtors. Tangible Fixed Assets Property, Plant Equipment: - The Tangible fixed assets for the company worth $ 11,670 m in 2016 which has been recorded in the books of account after taking into consideration the depreciation and impairments. The company is following the framework for recording the assets in the GPFRs. Also the company is recording the capital expenditure commitment in the base currency in which the GPFRs are prepared and presented to users after converting the commitment amount from foreign currency. This also concludes that the company is following the framework rules for recording and presenting the GPFRs. Advance Revenue: - The Prudence concept says to record all the Assets and revenues according their occurrence and benefit given to company. The company is recording the Advance Revenue as their Liability under the head Current Liability showing that the company has to provide the service for the received amount as revenue and it does not relate to current period. This shows that The Company is following the Prudence Concept with Conceptual Framework. Revenue and Other Income: - The conceptual framework of accounting says that the company shall account for all the revenue in accordance with the accounting standard and in case of any specific deviation, the same shall be reported in the notes to the accounts or in the financial statements of the company. Qantas Airlines has booked the revenue for $16200 million in the year of two thousand and sixteen. Note has been given regarding the disclosure as the company has not booked the Other Revenue in this head as it is difficult to account the other revenue at different geographical locations. Net Finance Costs: - As per the conceptual framework of accounting under the accounting standards, the finance cost can be shown as net off which means the finance costs can be set off from the finance income and the balance can be shown as the Net Finance Costs or the Net Finance Income as the case may be. In the given case, the company has account for the net finance costs and disclosure has been given that the borrowing costs have been capitalized during the year and has not been counted here. Assets Classified as Held for Sale: - The assets which have been held for sale has been classified under this head instead of Property Plant and Equipment. As per the accounting standard and the generally accepted accounting principles, the asset has been valued at the fair value and this value pertains to the amount that the asset would fetch if sold in the market. In this sense, the conceptual framework of accounting has been followed with great caution. Intangible Assets: - Intangible assets have been valued at the cost less accumulated depreciation and has been done in accordance with the accounting standards issued by the accounting standards board. It includes goodwill, trademarks, patents and other contract intangible assets. The note has been given in the valuation that the interest of $3 million has been capitalized. Further the impairment of assets has been done. Through this valuation it is ensured that the due caution has been taken while valuing the assets so that the assets are neither been overvalued or undervalued by the company. This assurance has been served with the conceptual framework and the concept of prudence. Deferred Tax Assets As per the accounting standard issued by the accounting standard board, every company is required to account for the tax on the timing differences that the company has encountered over the year. The timing differences either results into the deferred tax assets or the deferred tax liabilities. Deferred tax asset is created when there is the certainty that the company will have the future tax liability against which the tax assets can be adjusted. Deferred tax liability is created when there is the certainty that the company will have future income against which the liability will be set off. In both the cases, the term certainty is related to the term prudence in the sense that it ensures not to result in either the undervaluation or the overvaluation of the assets of the liabilities. Provisions - As per the concept of prudence, every company shall provide for all losses and expenses and not for gains and income. With this concept the company has been able to provide for all the expenses and losses and therefore, the company has been able to provide $1287 million as provision. Conclusion Framework is very important for any kind of work. In this report the framework of accounting has been discussed and it has been named as the conceptual framework of accounting. Throughout the report, two concepts have been detailed one is conceptual framework of accounting and another one is Prudence. The second concept has been discussed in detailed as to why the same has first been included in the framework then excluded and then again included. The history has been given as to how the prudence has been developed and how the same concept has been criticized. With these understandings the financial statements of the Qantas Airlines Company has been analysed and discussed. Major Head of the annual report of the company has been analysed and has been related to the conceptual framework given by the accounting standards and different statutes. To conclude, the conceptual framework of accounting is very important for every company to survive. From the analysis of the report and the financial statements of the Qantas Airlines, it is recommended that the every company shall follow the conceptual framework of accounting and that too with prudence. Its our recommendation to treat prudence as part of the conceptual framework. References Anastasia, (2015), Financial Statement Analysis : An Introduction available on https://www.cleverism.com/financial-statement-analysis-introduction/ accessed on 04-05-2017 Capital Markets Advisory Committee Meeting, (2013), Conceptual Framework available on https://www.ifrs.org/Meetings/MeetingDocs/Other%20Meeting/2013/March/AP%203%20conceptual%20framework.pdf accessed on 04-05-2017 Cooper S, (2015), A Tale of Prudence, available on https://www.ifrs.org/Investor-resources/Investor-perspectives-2/Documents/Prudence_Investor-Perspective_Conceptual-FW.PDF accessed on 04-05-2017. International Accounting Standards Board, (2010), Conceptual Framework for Financial Reporting 2010 , pages 16-21 Qantas Airlines Official Website, Annual Report 2016 available on https://www.qantas.com.au/ accessed on 04-05-2017 Weiss D, (2014), Faithful Representation available on https://bschool.huji.ac.il/.upload/Seminars/Faithful%20Representation%20October%202014.pdf accessed on 04-05-2017..