Analysis of Japan’s Economic Structure

Analysis of Japans Economic Structure The Japanese economic structure has always been perceived to be both stable and reliable. Despite periods of difficulty, the rules and regulation surrounding the Japanese banking industry have always attempted to deal with any potential problems and to manage them both on an international and national level. However, there is an argument that the stringent nature of the regulation in itself has caused some problems for the sector, with many banks finding themselves in distressed positions having followed the approaches advocated by the central Ministry of Finance. Prior to the difficulties faced in the 1980s, which will be discussed in greater detail later, the Japanese banks largely followed the guidance of the Ministry and felt safe in the knowledge that there was a safety net in place should they fall into financial difficulties. Japanese banking, as a whole, was not particularly profitable and instead operated a cautious, yet extremely stable service. Despite this approach, the Japanese banking sector hit a substantial crisis in the 1980s, shocking not only those within the Japanese banking system, but also those involved in banking arond the globe. By studying the events that caused this period of difficulty and looking more specifically at the activities of one banking group, in particular, it is hoped that lessons can be drawn from the scenario that will prevent similar events happening again. Background to Japanese Banking The bursting of the bubble in the 1980s did not just come from nowhere; in fact, when the banking system within Japan is studied, for many decades before the bubble burst, it is clear to see that the foundations for this difficult time had been laid some considerable time in advance of the events themselves. Post war Japan took a very segmented and internal approach to banking. Very few transactions were conducted internationally, with almost all financing products being offered to Japanese corporations. This worked in the main due t o the mentality of the Japanese people; they were keen savers, therefore, the banks in Japan had a steady flow of funds available to offer financing to Japanese corporations. As a general rule, city banks offered financing to larger corporations, whereas regional banks offered financing to smaller and more local businesses. In fact, international trading was so low down on the agenda that the government used the Bank of Tokyo in the 1950s and 1960s to deal with the foreign exchange needs of the country and to act as the main foreign representative. Banks within Japan worked together, with the long term credit banks offering completely different services to the commercial banks. The banks were very customer orientated, offering financing at incredibly cheap rates to stimulate the economy, often at the expense of the banks’ profitability. All elements of the banking sector were managed closely by the Ministry of Finance which was largely responsible for all rate setting and ban king relationships. Mergers between banks rarely happened and when they did they were often unsuccessful due to the segregated nature of the different banks, thus making it difficult for companies to merge successfully in terms of culture, administration and ethos.

Genetically modified organisms safe or unsafe Research Paper

Genetically modified organisms safe or unsafe - Research Paper Example In this regard, these practices seek to ensure that there was continuous supply of food and other important products to the world’s population, which improved food security. With advancements in technology becoming the order of the day, it is prudent to note that scientists are using technology to improve on food security and ensure the availability of other important products that satisfied human wants. However, some of the approaches that humanity is using technology to produce food and other products have become controversial with some issues dividing the world along two opposing sides with these sides making strong arguments for their case. In the contemporary world, scientists are increasingly advocating for the use of genetically modified organisms (GMOs) to increase on the production of food and other important products that satisfy human wants. Despite the role played by genetically modified organisms in producing food and products that enhanced food security, there is evidence that GMOs are unsafe, and their use comes with disastrous effects on both animal and human life. A number of controversies surround the production of GMOs, including the ethical nature regarding their production. However, the most controversial issue regards the safety of GMOs with their effects on human life remaining the most dividing issue. In line with this, evidence available through various researchers suggest that GMOs, and especially genetically modified foods, are unsafe for human consumption. First, research carried out by scientists on rats that fed on GMO food indicates that rats became sick after feeding on GMOs. In this case, a study conducted by Seralini observed that rats fed on GMO products developed brains tumors quickly than rats that were in the control group of the study (qtd. in Committee for Research & Independent Information on Genetic Engineering). In effect, this indicates that GMOs were unsafe, and their use by human beings put them at a risk of health related complications. On the other hand, evidence suggests that GMOs production involved the addition of chemicals that produced pathogens that were on the same level as viruses. According to a research study conducted by Huber, the virus produced by GMOs contributed to infertility issues on human and animals that feed on the GMOs as well as other health related complications (qtd. in Krudtaa, â€Å"Dr. Huber†). Based on the two safety issues provided above, the use of GMO products poses major risks that affected human life. Nonetheless, the study by Seralini provides the best solution to the question regarding the safety in the use of GMO products by human beings since the study involved the use of rats while the study by Huber linked the production of GMO products with pathogens that contributed to infertility without conducting any research. In line with this, Seralini relied on rats in a study that was thorough and longer than any other previous research conducted by scientists and fed rats with genetically modified maize since the study followed 200 rats for two years (Pollack). In support of this study, another research study conducted by Gallagher indicated that rats that fed on an eggplant produced through GMO technology â€Å"experienced organ and system damage† (qtd. in Krudtaa, â€Å"GMO Eggplant†). Furthermore, these eggplants affected the reproduction organs of rats with ovaries reducing their normal weight by half while the spleen enlarged and the white blood cells

Impairments of intangible (including goodwill) Research Paper

Impairments of intangible (including goodwill) - Research Paper Example Under the USA GAAP principle, the methodology used for the determination of the impairment of long lived assets is based on the two step approach. In the two steps approach, the first step requires test of recoverability. In this test, the comparison of the carrying amount and future amount of discounted cash flows from the using and disposing. In case, the assets are determined to be not recoverable than impairment testing conduct becomes mandatory. Contrary to this, in the IFRS system one step approach is employed. Under this system, the existence of the impairment indicators makes it mandatory for the application of the impairment testing (EY, a). The second major difference in the treatment of intangible assets in US GAAP and IFRS exist in calculation of the loss in the impairment of long lived assets. Under the system of US GAAP using FAS 157 entitled Fair Value Measurement is employed and the loss calculation is difference between the carrying amounts to the fair value amount. On the other hand, the IFRS system of financial reporting, the calculation of the loss is conducted by measuring the difference between the carrying amount and the recoverable amount. The recoverable amount is measured as either the fair value net of cost of selling or value in use or value indicating future value of discounted cash flow including the amount received after disposal. ... Additionally, the reporting unit can also be accounted in the level under operating segment or the component. In the IFRS financial reporting of corporate accounts, the allocation of goodwill is conducted differently. Goodwill in the IFRS system is allocated either in the group of Cash Generation Unit (CGU) or CGU itself. Allocation of the Goodwill in the group of CGU represents lowest level from which the internal management monitors goodwill for internal assessment IAS 36.6. Importantly, this group, by law of IFRS 8 (Operating Segment) cannot larger than operating segments (EY, a). In addition to the goodwill allocation carrying differences in the two internationally followed systems of reporting of corporate accounts, methodology for the determination of impairment of goodwill also varies. Corporate accountants using US GAAP system of reporting has to imply the two step approach or methodology for the determining the requisite impairment. Under two-step approach requires performin g the recoverability test at the level of reporting unit in which the allocation of goodwill is conducted. In this initial test, the net amount of difference of the reporting unit’s carrying value to the reporting unit’s fair values is conducted. Positive difference between the carrying value and the fair value of the reporting unit makes it mandatory to perform the impairment test for the goodwill. Companies using IFRS system of developing the financial accounts apply the one step approach. Under the IFRS system it is simply mandated to conduct the impairment test. The impairment test of goodwill is conducted at CGU unit. Under this approach, the comparison of the carrying amount at CGU level with recoverable amount is conducted while carrying amount