Explain How the Solow Growth Model Would Analyse the Effects of a Fall in the Household Saving Ratio

In this essay, I will focus on two important aspects. The first is to give a brief historical outline of the Solow growth model. The second thread runs express how the outline on the Solow growth model might explain the effect of a fall in the household savings ratio. My essay will be guided by the diagram provided on which I have to make specific references and to think through as well as explain the various steps of the Solow growth model and what this would mean for economic growth. Without dismissing earlier attempts, the foundations upon which modern economic growth theory rests on the foundations put by US economist Robert Solow (1924-) in the 1950s and 1960s. The Solow growth model is very neoclassic in that it focuses primarily on the supply side. The Solow model seems to implicitly assume that, as long as the supply of goods increases, economic growth can be attained. In this way it is apparently different from Keynesian models of which focus is on the demand side of the economy such as inflation and unemployment. One of the major central reason by Solow to come up with the Solow model came from the desire to know what happens in the long run to an economy in which capital accumulation is taking place. In pursuit of an answer to this question Solow came up with a degree of mathematical and analytical work. Solow pursued a model of an economy in which one has a single good that can be consumed or invested, and he says the total output in the economy Y to the total labour supply L and the stock of physical capital K. When Solow talked of physical capital he meant things like machinery, buildings, equipment, things used by labour to make products. The aggregate measurement of output is symbolised by (Y), labour (L) and capital (K). This means that Y,L and K are variables describing the whole economy. The Solow growth model tells us that in the long term, the development of a closed economy will remain at a steady state, where there is no more growth. In figure 2, the economy has settled down in point E. Here, the fraction of an average worker output that is being saved, equals the average required investment to account for the depreciation and decay. This being achieved with k1 amount of capital per worker, the economy produces an output of y1 per worker, the economy produces an output of y1 per worker. A sudden fall in the household saving ratio to s*< s leads to negative net investments F minus E: workers only save a fraction s* of still the same y1, and therefore there is not enough being saved in the economy to be able to finance the decay of the capital stock at k1. As the level k1 cannot be retained by the average worker which is (negative net investments), the output per worker y has to start to decrease. In a dynamic process, the economy will move along the curve y=f(k), that means the amount of output per worker y will decrease, until it settles at a new steady state, where the net invstements equal zero. This being achieved at point E*, the resulting capital intensity is k*, with which an output of y* can be produced with y* being smaller than y1. In other words, a fall in the household ratio leads to a decrease of the amount of capital stock, a closed economy is able to to retain in the long term. The decay in the existing capital stock cannot anymore be completely replaced by investments, as there is not enough money being saved in the economy due to the fall in the household saving ratio. These resulting negative net investments will force the economy to decrease its output to the level y*. Only here, the amount being saved in the economy can again replace the complete decaying capital stock, which means the economy settles at a new long term equilibrium, a new steady state. The fall in the household saving ratio has therefore reduced the productivity of the average worker in the economy. PART B How far do models of corporation and bargaining alter our understanding of the potential for corporation between states. In this essay, I will focus myself on two models of cooperation and bargaining. The first model is called realism and its thrust is to say that the international political systems as a whole is anarchic in so far as there is no world government but what exists are multiple competing sovereigns. In terms of cooperation and bargaining between states realism poses real challenges to interdependence and specialisation. The second model is called liberalism and like realism it begins by acknowledging that the system is of course anarchic but it goes a bit further to argue that the interests that states seek to pursue in conditions of anarchy are shaped very much by the nature of the society, domestic, and transnational over which they seek to rule and particularly liberals stress the role of dominant powerful groups within society in shaping the nature of the national interests and this is clearly illustrated in a story about the development of India`s national interest in chapter 6. The fundamental difference between the two models is that liberalism says it is not just anarchy plus the distribution of power, it`s anarchy, and the distribution of power plus interdependence. The prospects for cooperation between states under conditions of both anarchy and interdependence bring to fore three aspects of the game. The first, the game is positive-sum when states are concerned purely with their absolute gains but the chance for bargaining and cooperation to mutual advantage are real and if the positive-sum is changed negatively it results in zero-sum games in which neither will be prepared to move from the original position hence blocking cooperation. The third is when states care about both their absolute gains and their relative positions giving us an indeterminate outcome and it very much depends on how the nations weigh the one against the other. In answering the question topic therefore, I am diving into a web of complexity. The realists`philosophical thrust claims that in an anarchic system, what then differentiates states are rather their capabilities as compared to their functions. In short it is the power of states, not their common purposes (survival), that differentiates one international political system from another (Bromley, 2004 p113) In the Realist mode therefore, the state will seek to avoid as necessary as possible forms of interdependence that create vulnerability in relation to issues of security, so they will avoid all forms of subordination with relation to other states in terms of power, since the superior power of some may also threaten the security of the weak. An example in our world today could be United States with the killing of Osama Bin Laden, where the US Navy SEALS are accused of transgression and trespassing into Pakistan without sovereign rights. In just some few words one could say that the international political systems between and among states according to realists comprise an anarchy of similar, competing political authorities in which each strives to maintain or improve its relative power base. Mexico epitomises this concept in the 1910 revolution and the subsequent creation of the PRI in 1929 which fostered a strong nationalistic ideology geared toward maintaining the independence of the country from foreign economic and political influences. Having outlined in short the essence of realist philosophy, there is need therefore, to ask what implications does this realist thinking have on cooperation and bargaining between states? The realist thinking has very essential implications in the fact that cooperation between states have to be severely limited even with big organisations like WTO because what should be avoided at all costs are dependencies. Even if there are benefits that accrue from cooperation with another state, you simply cannot depend on another country since this can create vulnerabilities lets say in cases of diplomatic fallout or cases of war. Another recent example is the treacherous diplomatic fallout between United Kingdom and Malawi with consequences on bilateral relations and especially the impact it will have on a largely dependent country Malawi. That limits considerably the scope for cooperation. According to Huysmans the other element that restrict cooperation between states, or even regional blocks in this case, sometimes like the European Union, â€Å"they are not calculating primarily their benefits from cooperation in terms of what they would gain in comparison to their major competitors, because what matters is not how much richer I become as a state, what matters is how much richer I become as a state compared to you, because then I`m more powerful, can translate to military power, economic power and so on† (Huysmans, Audio CD, 2010) In short state actors have to guarantee their own self-preservation, that is to say individuals in a state of nature or states in an anarchic international system will not willingly cooperate if the result is an increase in vulnerabilities and/ or decrease in relative power. Paul Hirst, a sociologist and political theorist served a blow to to realists`arguments by going against the view that sovereign control of territory is forged purely internally by arguing that states need to interact in the anarchic realm of international politics with other states. The achievement of sovereignty therefore, is at least partly the product of agreements between states in the form of recognition of each others`sovereign rights (Bromley 2004, p120) In this case therefore one dependents on the other. This then is the best chance to bring into play liberalism which argues that what we need to look at is the way in which the different national interests of states, that are shaped by the societies over which they rule, are configured together when put together at an international system. What we have are states all interacting with one another, all chasing national interests, as defined by their dominant groups, and those interests configure in different ways sometimes states interests are conflictual, sometimes cooperative and at some points mutually beneficial. Trade liberalisation is an example where arguably, the interests of states that are mutually engaging in trade liberalisation are not in conflict. They can both benefit from trade. States may come to view their position in relation to the others in a much more absolute terms and as a consequence of that, with full understanding of the fact that the structure of international system is interdependent as well as anarchic, enduring cooperation is at least a possibility. The states according to Bromley face an environment of what is called â€Å"strategic inter-dependence† to mean the strategies that one can champion are conditioned by their anticipation of the strategies that others will pursue (Bromley CD 2010). Unlike, the realists, the assumption is that when states`interests interact internationally, it is not always the case that states will focus on their position or be worried about dependence, and the argument pursued is that security is only one value among others, that security will be balanced alongside other considerations like economic welfare, promotion of cultural values, or whatever. In this regard Mexico is a perfect example, in so far as Mexico joined NAFTA, not worrying so much about its position vis-a-vis its dominant neighbour, the United States but increasingly focusing on the absolute gains that Mexico might make through those policies. Chapter 9, says states sometimes interact in positive-sum ways, meaning when they interact they both gain from cooperation and bargaining, sometimes they interact in ways that are zero-sum; if I gain you lose or otherwise it is negative-sum in which both sides lose. The realists model that Jef outlines seems to advocate or assume that all cooperation because they are relative ains, are zero-sum; if I gain you lose but according to liberal thinking there are situations when it is a win-win situation (Bromley CD 2010) The Liberal model also argues that there are many situations where mutual dependence does not imply vulnerability vis-a-vis security or even worry about their relative position vis-a-vis other states and an example could be that as a country, we can come to define our national interest in terms, not of how we are progressing vis-a-vis another country but how we are coping vis-a-vis last year, focused only on our growth rate. The core claim of liberal model is that once you recognise the strategic nature of interdependence and once you recognise that the national interest is socially shaped by society and not just deriving from your position in the state system, then the possibilities of cooperation are far much greater. Concluding remarks draws three general conclusions, the game is positive-sum if states are geared solely with their absolute gains, there is chance for co-operative bargaining to mutual advantage. Anarchy is no danger to cooperation in this world. Secondly, if states evaluate their positions purely in relation to others, then all games even positive-sum ones are turned to zero-sum ones where neither will be prepared to move away from the original thereby blocking cooperation as was seen between the superpowers during the Cold War. Thirdly, when states care about their absolute gains and their relative positions, the outcome is indeterminate and depends on how they weigh the one against the other. If relative considerations do not weigh too heavily in their calculations, states may still find themselves in a positive-sum game.

Information System Proposal

Information Systems Proposal BIS/220 Computer Information Systems Table of Contents Introduction3 Understanding the market challenges3 Internal operations and External operations3 Information Technology Comparison chart4 Technology and Information systems benefits and drawbacks4 Bullets of successful strategy5 References6 Thriving as a small business in a competitive market calls for many ingenious strategies to remain afloat. As companies enter into the market they can become easily consumed, overwhelmed and sometimes unnoticeable.Opening business doors as a nostalgic record store immediately identifies a consumer demand, in efforts of remaining competitive and ultimately in business. As many internal operations are facets to efficient workplace process equating to fiscal conservatism, there are also many external factors that are paralleled. This proposal shall outline the effectiveness and detriments of many technologies and information systems that remain current in the market fo r small businesses today.After reviewing the consumer market drive for record store inventory, results have demonstrated the most effective method to liquidate the product inventory would be marketing. By streamlining an effective marketing campaign and a competitive edge strategy the company would have the ability to target specific audience within the context of the company’s products. With the multitude of genres that would be cataloged into inventory, marketing demographics would contribute to the localities, regions and venues in which the marketing campaign would be presented.Although this level of marketing efforts may appear to be complex and over budget. Information systems and technology have streamlined the process and paired cost effectiveness and efficiency into a user friendly simplistic process. As the internal operation of the process weigh heavily- on and rely-on the bottom-line, these operations should be developed and created on strategies of efficiency. Es tablishing a sustainable approach to developing an efficient process begins with a technological platform. From the inception of the business to stages of growth, massive catalogs of data will be compiled, retrieved and ultimately stored.The process to disseminate information, transmit and receive will determine how efficient internal operations are performing. The performance of these operations will also determine the growth or decline of the bottom-line. The approach to offset any negative trending prior to the occurrence would be found within the interest of a database. The database technology can maintain many functions of time and attendance which may offset many incurred cost through payroll and processing. A time and attendance database will also prevent human error through automated recording and time monitoring updating.Many of these databases also provide ad hoc reporting cataloging inventory and summarizing accounts payable and receivables. This method of reporting saves a tremendous amount of time and possibly salaried positions. This maintains inventory and process determining a more accurate bottom-line to produce more accurate accounts sales and inventory purchase orders. These databases provide cost saving measures through staff reduction, lowered overhead and fiscally accountable approaches. The table below (table 1. 1) identifies a comparison of the benefits of a system delivery of benefits. Table 1. 1Information SystemReal-time UpdatePromotional SalesReviewer ControlsMicro BloggingDirect User interfaceAd Hoc ReportingTime and AttendanceEmployee Record Retention Twitter Facebook Web-site KRONOS Legiant Information systems and technology comparison chart Twitter is a technology that has revolutionized the means in which businesses can interact with their clients. It has reduced the cost of marketing campaigns and has given clients more personalized customer service. The Twitter platforms functions as a micro blog whereas users can share thoug ht, ideas and opinions on a real-time display.This has connected companies, employees, client and customers to understand up –to-date news and reviews. This form of technology is of optimal cost effectiveness requiring no fees for registration. With Twitters massive member base, it also holds great opportunity for business advertising for a nominal fee; however, your adverting is in your message. When you post your Tweet (micro blog), its free of charge and the substance of your message will attract followers. Facebook is an excellent technological marketing platform with optimal cost effectiveness and efficient process to monitor the marketing content for the business.This platform is designed to collaborate through group sharing on a intergraded network that will allow users to view current genres of music selections, upcoming events and allow customers to post reviews directly to an individual Facebook webpage designed exclusively for the record store. Facebook will limit the cost of print materials, postage and customer service inquiries by capturing marketing analysis onto this massive database. For more strategic approaches to marketing efforts, the record store can post a professional advertisement to the massive member base, for a nominal fee, and attract customers from many different platforms.Website is information systems and technology merged and stored onto one computer system called a server that host all activity which is posted for the store. This serves as the ultimate platform for marketing, databases and record retention. There is an immediate cost for the server; however, it can be proven to be very cost effective for long-term usage. The computer server will assist in efficient correspondence through creating e-mails accounts for employees. Customer inquiry e-mail accounts can be established in addition to websites for internet use.With purchase of this system the company will save from hosting fees, web page management fees, spacin g and trafficking fees. Computer servers are also an excellent technology to host other databases that may require large amounts of storage space on a computer system and also serves as a repository for internal record retention and centralized databases on share drives. Capturing the essence of what will make this business successful is: †¢Interfacing with clients †¢Business to Business †¢Business to customers †¢Internal Business ProcessWith these aspects in mind it brings us to the internal operations of efficiency. KRONOS time and attendance information system database allows the company to maximize its time when human resource operations are of use. This database captures the time and attendance of all employees and salaried workers that report to the office within an automated process. KRONOS features ad hoc reporting which allows the administrator (authorized account user) to draw information that reports how many hours where worked within pay cycles.It als o maintains employee records to synchronize their worked time and post accrued vacation leave and generates payroll information for check processing. KRONOS is based upon licensing term and can impact the bottom-line during it interim use; however, this system can also reduce staff positions which can off-set the incurred fee. For a more conservative approach to the bottom-line while still attending to the features of KRONOS, LEGANT is a more cost effective solution of time and attendance information systems.Although it features are more limited than KRONOS it still serves as an excellent source of information system that can off-set impact to the bottom-line and time effectiveness. Information systems and technology ultimately maximizes the efficiency and productivity of a company and to the success of all companies I would recommend the implementation of these systems. The technologies and systems outlined in this proposal represent strategic measures for successful engagement to a customer client base which collaborate customer services to product and company quality.

Accounting for Research and Development Deals Activities

The accounting for research and development deals with activities that improves the processes and product. The terms of research and development is used in the standard with the following meaning. Research is the planned and the original investigation, which is undertaken by the entity to gain technical and scientific knowledge and understanding. On the other hand, development is the application of the knowledge gained or using the finding from the research for producing improved or new product, processes, services and material. The development is undertaken prior to the commencement of the usage and commercial production. The activities encompassed in the research and development is difficult to identify (Barge-Gil & Là ³pez, 2014).    The definition provided assist the reporting entities in classifying their activities under the research and development. The distinction of the activities are based on the organization types, types of the project undertaken and the types of business. The medium sized firm had confusion about the formal definition of Research and development while the small firms understood the concept of R & D in an informal way. The FRS – 13 deals with the accounting for the activities related to the research and development. The activities related to research and development are distinguished from those activities that are non-research based because of the absence and presence of ‘appreciable elements of innovation’ (Bebbington et al., 2014). The core accounting rule in the area of research and development are the expenditures that is to be charged as an expense when incurred. The expenditure, which is incurred on research, is not directly related to the future economic benefits and capitalizing the ‘cost that does not comply with the accrual concept’. The expenditure related to the research, development is written off to the account of profit and loss, and this is because the expenditure on the research does not provide the entity with the direct future economic benefits. The expenditure on the development cost has to be written off as the expense incurred to the profit and loss account. However, there is the option of deferring the expenditure incurred in development and it can be carried out as the intangible assets on the entity meeting some criteria. The research and the development costs are need to be separated in order to achieve the reasonable degree of comparability between the accounting period of the same entity and between the entities (Bowen et al., 2013). For sustaining the dynamic economy of New Zealand, the research and development is an important concept. The socio economic issues of New Zealand is addressed sing the accounting for R & D. The literature review is provided on the expenses relating to R & D. The harmonization in the accounting treatment of the research and development is unlikely to happen. The capitalization of R & D has always remain a controversial issue. The revised International accounting standard 38 make the distinction between the development and the research phase. The expenditure of carrying out research should be treated as an expense (Deegan, 2013). A reporting entity cannot demonstrate during the research phase of the project that whether the intangible assets are capable of generating the probable future economic benefits or not. The expenditure on research should be recognize as expense and there is the need to recognize the assets arising from the research. The intangible assets needs to be recognized in the development phase if the entity is able to demonstrate the ability to sell or use the assets. The entity also needs to demonstrate the whether the intangible assets are technical feasible for using or selling purpose. The ability to measure the expenditure related to the development to of the intangible assets should also needs to be demonstrated. The treatment of research and accounting provides for the flexibility between the choice of capitalizing and expensing. As a result of which, the companies that are more leveraged are encouraged to activate their cost related to R & D rather than expensing them. The managers ar e motivated to prevail such accounting decisions over the other. It is argued that the high debt level forces the company to capitalize on the expenditure of R & D. The choice available to the company because of this decreases the debt ratio and increases the accounting profit. The firms are encouraged to make the accounting decisions that are income increasing (Daske et al., 2013). The accounting for research and development has the implication on commercial environment in terms of the accountability initiatives. The development and the research makes the strategic focus rather than the university accounting and the professional curricula. The developments provide the platform for the wider interest of public and this improves the relevance of the information to enhance the process of decision-making. The various business leaders and the accounting profession has embraced different types of corporate reporting. This is known as the integrated reporting. The research and development would enrich the appreciation and understanding of the accounting academics of New Zealand for the achievements and efforts of the early builder sin the accounting field (Dinh et al., 2015). The basic issue concerning the accounting for research and development is the expenditure. The expenditure associated with the research and development is that there is no certainty in the future benefits and it makes it difficult to treat and record the expenditure as an asset. Because of this, the GAAP has made it mandatory to charge the expenditure as an expense incurred. However, this cannot be regarded as entirely pervasive as there are some limitations to it (Mynatt & Schroeder, 2012). The current tax treatment about research and development is uncertain. The measures of taxation does not have anything to address the uncertainty. The uncertainty over the treatment of taxation of research and development is not addressed sing the current measures. The main area of concern is the revenue and capital R & D expenditure. The ambiguity in the treatment of taxes comes from whether the cost are classified as capital or revenue. If the taxpayer has enduring benefit, then the cost is classified as expenditure and otherwise it is classified as the revenue expenditures. It is not clear in the tax law of New Zealand when the expenditure related to the R & D is immediately deductible and when the expenditures are not immediately deductible. This comes with the risk of disputes that are potential in nature. This risk of disputes exist with the Inland Revenue. When the taxes are underpaid, this comes with the risk of use of money interest and penalties (Healy & Palepu, 2012). The method of accrual accounting in New Zealand is faced with a number of issues. The reporting entity encounters with a number of issues when they intend to correctly identify the cost related to the research and development. The accounting treatment of the cost for the purpose of tax is also the major issue faced by the reporting entity. The financial reporting standard relies on the accounting treatment for the amortization of the development expenditure at the end of the process of research and development. The development of the New Zealand equivalent to the IFRS for the purpose of application by the entities of New Zealand. This would also include references to the regulatory environment. The harmonization of the financial reporting standard by liaising with the Australian accounting standard Board. There are also new development in the business environment (www.ifrs.org, 2016). The tax rule concerning the research and development is about the cashing out off the losses from taxes. The companies building the service or product would make the expense until the development of the product and it will make losses until the revenue is being generated. The losses attributable to the development would be carried forward to the next year when the company starts making profit by selling the developed products. The changes allows the tax loss due to research and development to cash out their loss, which arises from the expenditure of the research, and development. The new development focuses on the newly started companies who are engaged in the intensive research and development. This is intended to reduce the exposure of the startups to the market failure and the distortion in the taxes, which arises for the treatment of the losses attributing from taxes in the current scenario (Kelsey, 2015). Expenditure accruing to certain types of expenditures are not included in the measurement and the cost that are claimed by the company must be related to the research and development. The cost might include office cost relating to R & D, wages, salaries and the contractors cost. It also include the depreciation of the assets that are solely used for the purpose of research and development. The newly developed regime allows cash out losses. However, there are some limits imposed by the regime. The cost related to the research and development shall comprise of all the activities that are directly attributable to the activities undertaken under the research and development.   The cost needs to be allocated to such activities on a reasonable basis. The research and development costs between the entities should be separated to make a reasonable degree of comparability. The distinction should be made between the development cost and research cost. The proposal is to address the uncertainty by clarifying the revenue or capital boundary. This is done by allowing the taxpayers to follow such accounting treatment where the expenditure related to the R & D is immediately written off for accounting. This will immediately deducted for the taxation purpose. Any types of expenses incurred in undertaking and carrying out the research are deductible immediately for the taxation purpose. There are some criteria for the treatment of the expenditure on development and this decides whether it will be immediately deductible or not. This will provide the payers of taxes with more certainty and the result would be the fewer disputed between the Inland Revenue and the taxpayers. This will help the businesses to focus less on the tax affairs and enable them to concentrate on their businesses (Knechel et al., 2012). The adoption of International reporting standard in New Zealand has reassessed the role of financial reporting standard board (FRSB). The FRSB needs to add material, which would describe the applicability and the scope of the standard in New Zealand. Some of the arguments can be made about the future developments. Due to the cost incurred in the research and development, the economic benefits are expected to flow to the entity; therefore, it can be argued that rather than treating the cost as an expense, it should be treated as assets. This is so because it is align with the assets definition prescribed by the International accounting standard framework for the preparation and the presentation of the financial statements and with the statements of principles. There is a need to provide accountants in New Zealand with more information so that the situation is clarified. The development and the adoption to the international reporting standard will make possible the comparability and th e universality of the accounting treatment of the research and development internationally and regionally (Samkin & Deegan, 2012). The accounting standard board of New Zealand issues the accounting standard in New Zealand. The profit entities reports under the International financial reporting standard (IFRS) of New Zealand. These are the standards developed by the accounting standard board of New Zealand. The External reporting board does the approval of these standards. The entities are adapting their financial function as per the standard to achieve the efficiency for long term and met the requirement of the standards. The entities, which are currently reporting under the old GAAP, will need to be adapt to the New Zealand International financial reporting standard. However, the International financial reporting standard of New Zealand and International financial reporting standard are different (Naranjo et al., 2015). The former also deals with the domestic standards and this deal with the areas that are not dealt under the IFRS. The transitional requirements of both the standard are different (Nobes 2014).The framework of accounting standard at the current scenario is implemented in three stages. In the first stage, the entities which mainly involves changes to the profit entities accounting standard. The second stage involves changes for public entities. Thirdly, the changes to the accounting standard of the profit and public entities. The companies that is the reporting entities are significantly affected by the accounting of the research and development. However, it is more confined to the entities engaged in the research and development. The purpose of the report is to provide the insight into the accounting for the research and development in New Zealand. There are some gaps as per the literature review. The analysis presented in the reports suggest that the financial reporting regime of the international accounting standard is viable and is an alternative to the existing financial regime of New Zealand. Adopting to the International Financial reporting standards would provide the country with the long-term net benefits. The country should adopt to the IFRS in a manner, which would preserve their commitment to such financial reporting standard, which is sector neutral for New Zealand. New Zealand should look forward to ensure the high standing in the long term and should not be complacent. The country can be an important contributor in the development of the internationally accepted financial reporting in the accounting of research and development. Barge-Gil, A., & Là ³pez, A. (2014). R&D determinants: Accounting for the differences between research and development.  research Policy,  43(9), 1634-1648. Bebbington, J., Unerman, J., & O'Dwyer, B. (2014).  Sustainability accounting and accountability. Routledge. Bowen, R. M., Jollineau, J., & Margheim, L. (2013). Corporation's Intellectual Property: Accounting For Research And Development Under US GAAP Versus IFRS.  Journal of Business Case Studies (Online),  9(4), 321. Daske, H., Hail, L., Leuz, C., & Verdi, R. (2013). Adopting a label: Heterogeneity in the economic consequences around IAS/IFRS adoptions.  Journal of Accounting Research,  51(3), 495-547. Deegan, C. (2013).  Financial accounting theory. McGraw-Hill Education New Zealand. Dinh, T., Eierle, B., Schultze, W., & Steeger, L. (2015). Research and development, uncertainty, and analysts’ forecasts: the case of IAS 38.  Journal of International Financial Management & Accounting,  26(3), 257-293. Dinh, T., Kang, H., & Schultze, W. (2015). Capitalizing Research & Development: Signaling or Earnings Management?.  European Accounting Review, 1-29. Healy, P. M., & Palepu, K. G. (2012).  Business Analysis Valuation: Using Financial Statements. Cengage Learning. IFRS - Home. (2016).  Ifrs.org. Retrieved 6 November 2016, from https://www.ifrs.org/Pages/default.aspx International Accounting Standards Board (IASB). (2016).  Iasplus.com. Retrieved 6 November 2016, from https://www.iasplus.com/en/resources/ifrsf/iasb-ifrs-ic/iasb Kelsey, J. (2015).  The New Zealand experiment: A world model for structural adjustment?. Bridget Williams Books. Knechel, W. R., Sharma, D. S., & Sharma, V. D. (2012). Non?audit services and knowledge spillovers: Evidence from New Zealand.  Journal of Business Finance & Accounting,  39(1?2), 60-81. Mynatt, P. G., & Schroeder, R. G. (2012). The comparative reporting impact of the FASB and IASB treatments of research and development expenditures.  Journal of Business and Accounting,  5(1), 50. Naranjo, P. L., Saavedra, D., & Verdi, R. S. (2015). Financial reporting regulation and financing decisions.  Available at SSRN 2147838. Nobes, C., (2014).  International Classification of Financial Reporting 3e. Routledge. Reeve, J. M., Warren, C. S., Duchac, J. E., Du, X., & Yu, Z. (2012).  Principles of Accounting. South-Western Cengage Learning. Samkin, G., & Deegan, C. (2012).  New Zealand financial accounting. McGraw-Hill Education Australia.

Terrorism Case Study Example | Topics and Well Written Essays - 750 words

Terrorism - Case Study Example Player et al. provide a more broad-based definition, saying that terrorism is â€Å"undertaken to influence a government for the purpose of advancing a political, religious or ideological cause. Such act shall be certified as an "Act of Terrorism† (Player et al, 2002). However, this stance denies that there may be other causes for terrorism (or, in the case of anarchists, no cause at all). Personally, I would propose that Player et al.’s definition is acceptable, if it is amended to include more purposes. Terrorism is an abstract notion to begin with, a non-concrete and non-specific term that expands through the interpretations of various people with differing ideas of adding concreteness to the word. In other words, one person’s terrorist is another person’s freedom fighter. It is not a simple matter of translation when the word to be defined is something like terrorism. There are many perspectives to consider morally, politically, and in terms of point of view. â€Å"Some stress the psychological flaws of terrorist, flaws that attract them to a life of violence. Others argue that terrorists are relatively free of psychiatric problems and become involved in terrorism because they perceive they have no other option for survival† (Cleveland, 2004). Paterson and Brown define a just war as one which is not aggressive or preemptive, and, particularly in Brown, the author advocates the use of mediation rather than force in international affairs. The authors call for a re conceptualization of just war. noting that one must consider the use and impact of force in an international situation as a crisis reaction, and highlighting the dynamism and flux of the current world environment, in which force should be the last resort, not the first (Brown and Glass, 2004). I agree that a re conceptualization of just war is necessary, especially after the Iraq war. The US did not have any certifiable and truthful

Assignment III Example | Topics and Well Written Essays - 750 words

III - Assignment Example By the time of the end of the 19th century, the days of horses were over and around 2 million mustangs were roaming across the North American range. They now became a cash crop. A period known as ‘the great removal’ started and countless mustangs were packed in tin cans and send back to Europe or serve in foreign wars. Passing of Burro Act in 1971 was an important event for animal lovers. The act was passed by efforts of Wild Horse Annie who once witnessed bleeding mustangs carried to slaughterhouse and began a drive to defend them2. It is unfortunate that illegal helicopter roundups are being conducted in present time that defies animal rights. It is true that mustangs often sneak staples from other grazing animals. However, cruelty, such as frightening wild horses with rustling noise, is unacceptable to animal rights activists as they come out to watch hundreds of mustangs being chased by noisy machines. According to Smith, over 100 wild horses had to sacrifice their l ives in Nevada in 2009 during such round ups. According to officials, as wild horses have almost no natural killer, their number has increased excessively. Although claims are made that round ups with their relocation are for the welfare of horses, those who have watched round up operations say it was the most distressing sight they have ever seen during their lifetime3. It is unfortunate that cruel means are employed to safeguard interests when there are other ways to deal with the situation. If wild horses are really a threat to neighboring farms, building fences or other such deterrents can prevent such lands. US as a nation can certainly afford spending dollars on such creative projects that give message of kindness and empathy. It would obviously not cost amount anywhere near the money spend on going to war on Iraq or Afghanistan. On the contrary, such gestures by state authorities together with citizens would make the nation as beholder of strong values. Deanna Stillman, recou nts that that during the 16th century when European explorers were crossing the sea entering the new world, their ships across the equator often faced a situation in which it became stranded when the winds stopped blowing. In order to lighten their ships, horses were thrown overboard. It is believed that about half of the horses expired because of this. The horses that persisted helped in the Spanish conquest of the new land. Interesting to note is the comment by Stillman that horses, unlike explorers, were not newcomers to this land. They had a common DNA link with the horses in this region before the ice age4. Wild horses are not a direct threat to human beings. They may periodically harm in terms of sabotaging farming lands etc., but eliminating mustangs for such reasons is barbaric. One finds it difficult to agree with Peterson, who has herself narrated about bleeding mustangs and then agreeing with the policy of rounding up for better land management5. In US, the approach shoul d no more be Spanish explorers’ opportunistic ways of lightening things by eliminating under provocation6. Let there be resilience on state’s policies by looking beyond economic interests. I would suggest finding every other way of addressing problems raised by mustang population other than eliminating or inflicting cruelty on this vegetarian breed.

The Impact of Culture on Conservatism Assignment

The Impact of Culture on Conservatism - Assignment Example l with the presentation of those principles encompasses judgment yet cultural dissimilarities may result in alterations in the submission of those criterions. For instance, in relating a regulation that needs acknowledgment of a dependent damage when its realization is â€Å"plausible,† accountants in more highly traditional countries might make a mistake on the side of traditionalism by instituting a lower possibility verge as compared to bookkeepers in less traditional nations. Different segments in which values might result in dissimilarities in the use of monetary recording regulations include segments in which approximation and decision are involved, guarantee cost, irrecoverable outstanding, income recognition, asset damage checks, outdated portfolios, etc. Cancan’s in-house inspectors are required to remain conscious that bookkeepers in these diverse nations might entertain value-oriented prejudices in the manner in which they relate the company’s bookkeeping rules. Bookkeepers in Korea and Brazil may be increasingly traditional (higher UA, lower IND) in relating Cancan’s accounting rules than the bookkeepers in Sweden (lower UA, higher IND). The in-house inspector needs to draw a timetable to do checks to define whether this prejudice is operative. Exigencies, guarantee amount, doubtful outstanding, income appreciation, asset weakening tests, and outdated portfolios are all segments which need significant decision-making capacity. Bookkeepers in Korea and Brazil may be increasingly traditional (higher UA, lower IND) in relating Cancan’s accounting rules than the bookkeepers in Sweden (lower UA, higher IND). The in-house inspector needs to draw a timetable to do checks to define whether this prejudice is ope rative. Exigencies, guarantee amount, doubtful outstanding, income appreciation, asset weakening tests, and outdated portfolios are all segments which need significant decision-making capacity. Besides, the bookkeepers in Brazil and Korea may be less inclined to give evidence demanded by the in-house inspectors due to of an upper range of confidentiality.

MGMT670 Week 3 Conf Essay Example | Topics and Well Written Essays - 250 words

MGMT670 Week 3 Conf - Essay Example I have found the managers of all departments working with full dedication and commitment to meet customers’ demands because they a complete understanding of the company’s vision statement. The top management has designed a very competitive business strategy that aims to gain profit, customer satisfaction, and competitive edge in the software industry of the United States. As employees, we have just one thing in our minds, which is to develop excellent quality products for our customers. I think the vision statement of our company has refined our approach towards work. Every department of the company, such as, quality control department, quality assurance department, human resource department, and customer care department feels the responsibility to move the company towards the top rankings in the field of software manufacturing. Therefore, I would say that vision of a company has direct connection with the overall business strategy, as well as the work approach of all employees and

Raymond Carver, Cathedral Essay Example | Topics and Well Written Essays - 1250 words

Raymond Carver, Cathedral - Essay Example Indeed â€Å"blindness and sight† is embedded within both the structure and the content of the story. The author essentially propounds that, though blessed with eyesight; the crust of individualism does not let modern man see what lies beneath the surface or appearance. Indeed Carver’s narrator is one of those commoners who never want to go through the stress to interpret mindfully what they are attached to. Ingenue Simplicity in the story’s Plot Indeed the plot of Carver’s story is ironically simple. It is endowed with a great fluidity of expression that enables the readers to read the story palatably. Apparently it details a homely dialogue between a narrator and his guest Richard, a blind man who is paying visit to Richard’s house. Like any other homely conversation the story’s plot also continues having no apparent predestined goal. But elements like the blind guest’s success in bonding a relationship, in opposition the narratorâ⠂¬â„¢s failure, etc make this apparent simplicity ironical and provoke Carver’s readers to delve deep in what lies beneath the surface level of the story. Regarding the ironical simplicity of the story, Carol Simpson Stern says that like other stories of Carver, the Cathedral’s plot is â€Å"about people who work mindlessly, drink, have broken marriages, and take in life, not directly, but through an immersion in mediated images† (1). Indeed the ‘blindness’ of the narrator has been used as an irony in the structure of the whole story. The narrator relates the story in his own way that provides the readers with the opportunities to look into the communicational incapability in his character. Analysis of Major characters All the two major characters of the â€Å"Cathedral† are those who do not stand alone in the society; rather they are submerged in the society and fraught with all the characteristics of a modern man. In the story, the unnamed narrator, the only developing character, is self-doubting, introvert, and self-absorbed. At the beginning of the story, he lacks communication skills. But as the story progresses, he, breaking his comfort zone of â€Å"nonchalant detachment†, gradually learns to decode the unfathomable meaning of the blind man’s long-lasting relationship with his wife and eventually forges a true connection with him. One of the stories’ themes is to unearth and uphold the root cause of modern man’s failure to forge a successful relationship and to perceive what lies beneath the materialistic existence, coming out the crust of individualism induced by materialism. This theme has prudently been applied in the literary relationship that exists among the three characters of the blind man, Robert and Robert’s wife who are the characters in focus. These three characters uphold the three themes of religion, public relations and composition. The author cautiously and sensi bly engages these characters to explicate and, at the same time, explain the theme. Internal and External Conflicts in the Story In the story the narrator is in conflict with his blind guest Richard. He is quite annoyed at the blind man’s visit and a bit jealous of his relation (Richard’

International Monetary Economics Essay Example | Topics and Well Written Essays - 1500 words

International Monetary Economics - Essay Example One of the main fields of research which has attracted the attention of the researchers worldwide is the exchange rate and the trade balance relationship (Liew, Lim & Hussain, 2003, p.1). The elasticity model which is one of the most important models of balance of trade throws light on the prevalence of theoretical relationship between trade balance and rates of exchange of a nation (Stucka, 2004, p.22). There are a number of ways in which exchange rates can influence the trade balance of nations which provides valuable inputs to the nation’s policy makers to undertake exchange rate policies like devaluation policies etc in order to being about balance in the nation’s foreign trade. Devaluation increases the prices of foreign currencies making imports more expensive in the home nation till the foreign suppliers reduce their prices in order to compensate (International monetary economics-a, n.d., p.4). The reason why countries devaluates is to attain a competitive positi on in comparison to its competitors through the reduction of prices of goods produced domestically below the level which is compatible with the purchasing power parity (International monetary economics-b, n.d., p.5). ... This would be followed by a critical analysis through the presentation of a critical literature on the above aspects through which it tries to present the impacts of exchange rates adjustments on the balance of payments of nations. The monetary approach This approach is based on the fact that the disequilibrium in the balance of payments is based on the monetary disequilibrium which is the difference between the amount of money that individuals want to hold and the amount of money that the monetary authorities supply. In case the people want to hold more money, which exceeds the amount supplied by the Central Bank, then this would be met by a greater money inflow from abroad (Malik, 2006, p.2). The elasticity approach As per the views of Marshall, trade deficits lead to devaluation. Exports become more attractive in other nations. On the other hand the imports are made costlier in the domestic nation and this leads to the squeezing of the import bills. Trade deficits are thus elimina ted in the process (Sharan, 2011, p.121). The traditional approach The traditional approach deals more with the current account or the trade balance of nations. However, the approach does not consider the other components of the international accounts other than the current account. The balance of payments goes up along with the current account. However, since 1960s and the 1970s the traditional views have changed after studies emphasizing on factors determining the capital account flows (Arize, 2000, p.35). Critical Analysis Previous research reveals the importance of exchange rate fluctuations as a tool for international monetary regime. The comparison for seven of the largest non

Implementing EMS Recommendations Essay Example for Free

Implementing EMS Recommendations Essay Introduction After an audit had been performed for Riordan Manufacturing, faults were found in current procedures and solutions created to make them more sustainable. Listed below are some barriers that may occur when implementing Riordan’s new strategies and the necessary steps needed to overcome those barriers. Identified as well are methods currently in place to ensure systematic monitoring of the new sustainable practices that have or will be put in place. Identify Barriers Riordan Manufacturing has to identify the barriers they must overcome to become a sustainable organization. The barriers must be broken into two parts, external and internal barriers (Ruark, 2013). External barriers are those that Riordan must follow because of federal laws, state laws, and local policies. Another external barrier is the suppliers the organization contracts to do additional work whether in the United States or another country. The organization is responsible for those non-sustainable issues that the contractor creates. Internal barriers are the ones that the company creates, but can control. The organization will have to hire Subject Matter Experts (SMEs) that understand the issues, create a plan to overcome those issues, and maintain the progress. The SMEs must have the funding in place to start doing their work. They must communicate their findings and provide solutions to Riordan Manufacturing management. Communication is the largest barrier to overcome. The SMEs must establish a target and conduct a plan. Another internal barrier is change, and people don’t like change. The leadership must work hard to get the employees on board to help with the changes. Creating an  additional department supervised by the SMEs that handles these barriers will make Riordan manufacturing a success. How or why they might occur Barriers occur for many reasons, and some of the reasons they occur is the lack of communication from the management down to the lowest level. Communication must flow up and down to understand the organizations target and intents. The communication flow will allow the employees to understand the policies and procedures that Riordan Manufacturing has put in place. Another reason barriers occur are due to the lack of training that the employees do not receive. Having properly trained employees will assist with the proper flow of communication as well as the process and procedures that Riordan will implement. The cost to Riordan Manufacturing to implement any new sustainable plan will be a short term profit lost for the organization. The last important reason barriers occur is because resources are not in place as well as the SMEs to provide the guidance to become sustainable and maintain sustainability. Consider financial, social, ethical, technical, and practical aspects of business Financial cost, social concerns, and the environment are important aspects to the approach in becoming compliant with any legal requirements. The practical aspects barrier Riordan Manufacturing will encounter will be trying to improve their facilities with new pipes, air vents, and drainage systems. Implementing the new measures will have an impact on the technical barrier in the operations of the facilities to produce a product that can cause delays in production. Ethical and social issues are important to any organization that is trying to create and maintain their Environment Management System (EMS). The organization cannot allow anyone to use products or change manufacturing processes as that will be unethical. Describe methods currently in place or necessary to ensure systematic monitoring of new sustainable practices.   Riordan Manufacturing will implement some of the new processes recommended to deal with the oil, ink and the solvent issue. They will make sure to measure the air quality in the factory, recycle the oil keeping track of how  much oil is been used, and how much solvent is been separated from the water. They have several measures of monitoring the three areas in the different facilities, but will need to improve in reporting and making changes when needed. How are they measured or monitored? Updating the existing reporting process for all the areas and conduct meetings with the leadership, employees and stakeholders to see what the best approach to any situation is. Adding additional measures to analyze any situation will allow Riordan Manufacturing to understand what is working and what is failing. Monitoring the air pollution and pounds of waste in all the Riordan Manufacturing facilities will allow them to keep track in monthly bases to improve sustainability. What happens if a recommended practice is not working as it was intended? Different courses of action (COA) must be completed for any one task. This COA allows the organization to decide on the best approach when dealing with any issue. The COA will outline the process, produces, and cost to the project. This different COA also provides the leadership with the different solutions to one issue. If the COA selected is not working they have other COA for the same situation they can quickly implement to solve any problem. Conclusion Riordan manufacturing will implement new solutions to help make them more sustainable. Of course, Riordan will need to identify their internal and external barriers to overcome, and once found putting strategies in place to overcome and avoid them. One of the biggest barriers is communication. Having a barrier of communication prevents the flow of understanding of policies and procedures as well as the targets and intents put in place by Riordan. Updating the reporting system as well as adding an additional measure to analyze situations, will allow Riordan to see which processes are successful and which ones failed. Failed processes will be dealt with by putting together multiple courses of action so that solutions can easily be switched if one is not working as well as anticipated. Business organizations have an obligation to help sustain and preserve the environment for future generations. Riordan has taken the initiative in  developing strategies that will incorporate sustainable business practices to ensure that the company and the employees leave less of a carbon footprint for future generations. Reference Ruark, C. A. (2013, August 9). Eliminating Barriers to Small Business Sustainability. Retrieved from Triple Pundit: http://www.triplepundit.com/2013/08/eliminating-barriers-small- business-sustainability/

Is Compost Tea Fact Or Fiction Environmental Sciences Essay

Is Compost Tea Fact Or Fiction Environmental Sciences Essay Horticulturists, scientists, teachers, gardeners, practioners and farmers all rave about compost and the benefits to the soil, like improving soil structure, reducing water use, improving aeration, attracting earth worms and many more. I want to believe the same thing holds true for compost tea, is it the cure all for damping off disease, will it make my tomatoes luminescent(6), will it make my lawn greener, will my plants have less disease and eliminate pest problems, will it make my soil a better place for my plants, the claims for compost tea are numerous, does it really work? Compost tea has been around for thousands of years perhaps as far back as the Roman Empire (6). Somebody noticed that plants grew better around manure or on manured ground. But solid manure was hard to work with. So it went into a container of water to let it steep for awhile and we can be sure that it got stirred. When used as a drench, plant growth improved. In the late 1990s aeration was first introduced into the compost tea.(4) Aeration claims to increase beneficial microbes and accelerate the process by creating optimum levels of oxygen for growth and reproduction of beneficial aerobic microorganisms. So there are now numerous definitions of compost tea. Compost leachate which is the runoff of water from compost or worm bins. The material is a brown colored water that runs out of compost or worm bins when the bins or piles become too wet. The liquid is a product of compost or worm casting that has not completely finished the compost process. Most likely rich in soluble nutrients; but in the early stage of composting it may also contain pathogens(11) Compost extract is what was originally called compost tea. Compost is wrapped in coarse fabric and soaked in water for days. The primary benefit of the extract will be a supply of soluble nutrients, which can be used as a liquid fertilizer(11) Compost tea is an aerated mixture of compost and food sources for microbes; such as kelp, molasses, fish hydrolysates, rock dust and humic acids. The compost-tea brewing technique and aerobic process extracts and grows populations of beneficial microorganisms. (11) Compost tea can be added to soil to improve soil life and impacts plants more quickly than a composted mixture. (7) The reasoning behind compost tea is that once the mixture has completed and is applied as a soil drench it will add microbes to soils which in turn help to break down organic material in the soil and can then be used for food for plants. And the need for synthetic fertilizers becomes less. There are many different recipes for compost tea based on your needs, there are fungal teas which are good for acid loving plants and trees and shrubs, there is some evidence that beneficial fungus will help with some diseases like powdery mildew and downy mildew. And there are bacterial teas which are good for vegetables, annuals, perennials and grasses. What is compost tea? The soil food web defines compost tea as: essentially, is a brewing process that extracts microorganisms from compost followed by microbial growth and multiplication. This includes beneficial bacteria, fungi, protozoa, and nematodes. When compost teas are sprayed onto the leaf surface, these beneficial organisms occupy spatial niches on the leaf surface and gobble up leaf exudates that pathogenic organisms would otherwise feed on to prosper; other microbes directly interfere with pathogenic organisms through antagonism. A more simple definition: Compost tea, in modern terminology, is a compost extract brewed with a microbial food source-molasses, kelp, rock dust, humic-fulvic acids. The compost-tea brewing technique, an aerobic process, extracts and grows populations of beneficial microorganisms (11) based on the ingredients that you use you will either have bacterial tea, fungal tea or a combination Compost Tea has been field tested to be effective in suppression of the following diseases: black spot, mildew (downy), needle cast on pine, vertilcillium wilt, white flies, mealy bugs, rust, aphids, tent caterpillars, mites, leaf curl, red thread (early and late), fungal diseases in ornamental cherries per the website http://www.simplici-tea.com/disease_suppression.htm. However, I have not found any science based information to back this claim. What about the science? A trial at the University of Oregon conducted on black spot on roses showed Roses in locations with shade suffered from powdery mildew. Compost tea did not seem to affect powdery mildew. One private location observed that the roses sprayed with tea at that location seemed healthier overall than those that were not sprayed. They had glossier leaves and more blooms overall. Two of the three test groups in 2007 showed a slight improvement in incidence of disease over plants that were not sprayed. The difference was not statistically greater. The average between 2006 and 2007 still showed control group doing better than the experimental group. (8) In comparing the matched pairs of eight Prunus spp., the compost tea extract was not significantly different from the water application for any of the eight cultivars tested. In fact, for some trees it made the problem worse. (9) An excerpt from a study on aerated compost tea to suppress dampening off disease While further work is needed to directly quantify the residual sucrose concentrations in aerated compost tea produced with molasses-based additive to determine the effect on damping-off suppression, there are strong indications that the use of simple sugars as additives should be avoided when producing compost tea for disease suppression. In addition to the potential of residual nutrients increasing Pythium damping-off, the use of simple sugars in producing compost tea has been linked to growth of E. coli in aerated compost tea makers when compost contaminated with E. coli was used. (1) Turf quality ratings initially were very low for the tea drenches, therefore it was decided to apply liquid fertilizer over the tea treated plots to maintain acceptable turf quality. This addition masked any further differences in turf quality. The foliar tea applications suppressed dollar spot 40 to 60 percent when compared to untreated plots in one of three years. It is unlikely that due to the variability of brewing results, little microbial benefit, and the labor required for brewing tea that this technology will see widespread adoption in its current form. (2) However a trial at Harvard University (Prepared by Harvard Facilities Operations Maintenance) which used a combination of compost tea, compost and organic fertilizer, increased the depth of turf roots, decreased water usage, and increased available nitrogen, since they were using a combination of organic methods there is no definite proof that the compost tea was a main contributor. When asked if they had done any studies on compost tea, they said We only use compost tea as a portion of our organic program so unfortunately we have not done any studies on compost tea alone. Dr Linda Chalker-Scott PH.D. WSU states that clearly the science is not strong for aerated tea use on crop plants, much less on lawns, shrubs and trees. (3) After twelve weeks of compost tea treatment, there are evident responses among the microbial community, however, its too early to draw conclusions about the efficacy of the compost tea treatment. (5) The production and application of compost tea is primarily focused on: disease suppression, supplementing plant nutrients, and increasing soil microbiology to improve soil structure, water percolation/retention, rooting depth and consequently improved plant growth. The research conducted worldwide on compost tea is scarce and the results are highly variable. Results vary from suppression of some diseases to no effect in disease suppression at all, or in few cases increased incidence of diseases. Where compost teas are compared with conventional fungicides, in most instances compost teas have been relatively ineffective. Compost tea producers estimate that up to 5,000 farms are using compost tea in New South Wales, Australia these are mainly organic farms. Use of compost teas is based on faith or anecdotal evidence rather than based on replicated scientific research at this stage. Researchers acknowledge that there are significant limitations in our knowledge of compost teas and its u se, and hope that an increased understanding of compost tea microbiology and the survival and interactions of microbes on plants surfaces will enable compost tea production practices and application technology that optimizes disease suppression. (15) Lee Reich PhD in horticulture wrote in Fine Gardening Magazine January 2007 an article titled The Jury is Still Out on Compost Tea where he says Benefits from compost teas are on even shakier ground when the tea is used to improve the soil. Compost has been shown to improve soil tilth, help soil retain nutrients, enhance nutrient availability, increase rooting depth, and suppress root diseases. Compost tea, by extension, is credited with providing these same benefits. Therein lies part of the great appeal of compost tea. Who  wouldnt rather improve an acre of soil with the recommended 15 to 20 gallons of compost tea rather than have to heave around 2 to 5 tons per acre of compost? But compost and compost tea are not the same. They differ quantitatively and qualitatively in microbial makeup, and most dramatically, one is a relatively small volume of liquid and the other is a relatively large, mostly solid mass. Composts bulk comes mainly from carbon compounds, which are the major fo ods for beneficial microorganisms. Compost tea contains relatively little of these carbon foods. The beneficial microorganisms of composts and compost teas are already present in most soils and will multiply rapidly if food supplies permit. If your soil does not have beneficial microorganisms, it probably means the conditions arent hospitable to them. Unless you improve those conditions, any added microorganisms will die.   This article provided a lot of discussion on the internet when it was first published and now includes a new string of posts on http://www.redwormcomposting.com/worm-tea/is-compost-tea-just-a-fad/ dated January 13th 2011 since that date there have been fifty eight posts. Most of the posts favor the use of compost tea and the major opinion is no compost tea mix is the same and if it works for you continue to use it. If you have good soil conditions and your plants are healthy there may be no reason for compost tea. But if you have a small amount of compost and need a vast improved soil, when plants are struggling, showing signs of stress or when you want to apply composts benefits to a lawn these might be good reasons to use compost tea (Plesand). With so many claims about compost tea, in 2003, the National Organic Standards Board convened a Compost Tea Task Force to review the relevant scientific data and report their recommendations on compost tea. The Task Force was composed of 13 individuals with knowledge and expertise in organic farming practices, organic certification, EPA pathogen regulations, compost, compost tea production and analysis, plant pathology, food safety and environmental microbiology. The final report can be found at http://www.ams.usda.gov/AMSv1.0/getfile?dDocName=STELPRDC5057213. They came back with ten steps to be used in making compost tea, found a lot of practioners that use compost tea and also established there was not a lot of science based evidence behind the use the compost tea, and a possibility of contaminating crops. In conclusion there could be benefits from compost tea but there have not been a lot of scientific studies on the use as prevention for diseases and pests or that it increases dramatically the growth of plants. Compost tea has a lot of different variables by the type of compost used; vermicompost, manure compost, leaf and grass clipping compost, and any other possible compost mix. Another variable would be the additives to the tea molasses, kelp, humic acid, granite dust, fish hydrolysates, fungal foods like oatmeal and powdered baby oatmeal. And then there is the time and temperature of mixing with aeration. There appears to be some advantage of using compost tea but a lot more studies need to be done to prove the claims of the some websites and even some famously written books. The question has been asked why not more research on compost tea? Compost teas are highly variable in their microbial and nutrient content from batch to batch. This translates to high variation within data sets and often leads to inconclusive results. Unfortunately, these results are often not published even though they are just as important as positive outcomes. In other words, if a particular treatment doesnt work well under controlled experimental conditions, its unlikely to work consistently anywhere else.(18) With that being said, there is no harm in trying to make your own compost tea and doing your own experimentation. There has been some back and forth discussion on the use of molasses and e coli in compost tea, so if one uses molasses read the scientific data before applying to edible plants. Per Dr. Linda Chalker-Scott, PhD While the scientific evidence is certainly lacking for Aerated Compost Tea activity in disease control, there is a serious, documented concern with these types of compost teas, says Dr. William R. Schneider, a research scientist in the Biopesticides Pollution Prevention Division (Office of Pesticide Programs) of the USEPA. He continues it is very difficult to do a microbial pesticide risk assessment on a mixture of unidentified microorganisms that could easily contain human and nontarget organism pathogens. Indeed, this risk is significant in ACTs that have been enhanced with molasses, kelp, and other high-nutrient additives. Such ACTs have been documented throug h scientific research to contain E. coli and Salmonella populations, both of which are human pathogens. The recent deaths due to E. coli-contaminated spinach illustrate how dangerous compost tea applications can be, particularly on food crops. Even though there have not been any reports of problems from compost tea make sure you read all the reports. The use of compost tea as part of an integrated plant health management strategy will require much additional whole systems research by a cohesive team of farmers and experts in composting, plant pathology, phyllosphere biology, molecular microbial ecology, fermentation science, plant physiology, plant breeding, soil science, and horticulture. From the Organic Agriculture Centre of Canada posted April 2010 (13) A controversial name in compost tea is Dr Elaine Ingham with Soil Foodweb who has published The Field Guide I for Actively Aerated Compost Tea, Compost Tea Manual 5th ed. and a number of other books, CDs and offers seminars on compost tea. She has done a lot of research on soils, and helps farmers all over improve their soils; but has not published a lot of peer reviewed research on compost tea. In January 2011 the Rodale Institute a non-profit dedicated to pioneering organic farming through research and outreach named her Chief Scientist; and will be in charge of research at the institute, hopefully now, there will be more research on the benefits of compost tea. So despite all the hype, compost tea is not the silver bullet everyone is looking for.   Unfortunately, nature is not that simplistic.   But its fun to experiment.   (I do lots!) If you do experiment, and come up with a formula that you think works-try replicating it in a scientific way (16) per the Whatcom County Master Composter Recycler Program. How do I make compost tea? The USDA suggests using a sump pump to bubble air into the extract for 24-36 hours (Sac Bee). First you need a brewer you can purchase a brewers which makes 500 gallons for around $11,647.00 to $50.00 for a 5 gallon brewer. And then purchase packaged mixes and just add water. You can also buy brewers and make your own mixture, using your own compost or vermicompost. Another option would be to make your own brewer using a five gallon bucket, an inexpensive aquarium pump, an air stone, some aquarium tubing and a porous bag of some type. There are numerous directions on the internet. Once you have a brewer to make the tea; there are numerous recipes on the internet. One simple recipe is five gallons of chlorine free water, six cups of compost or vermicompost, three tablespoons unsulfured black strap molasses. Cover the container Brew this for twenty four to forty eight hours at 75à ¢Ã‚ Ã‚ ° let rest ten minutes and then use immediately.(Remillard) The compos t tea should smell good (earthy) and have a brownish tea color. If the tea smells bad it has gone anaerobic it could contain ammonia and dangerous bacteria and should not be used. Once the tea is made it can be diluted one to three, one to two or used full strength. It can be used as a soil drench on a wet soil any time of the day. It can be used as a foliar spray in the early morning or evening. If you are using a foliar spray it would be a good idea to filter the tea first so you do not clog your sprayer. When making compost tea make sure you start with good smelling compost or vermicompost the better the compost the better the tea. Another easy recipe for compost tea Home-size compost tea recipe comes from W.F. Brinton at Woods End Laboratories Inc., Maine. 1) Use well-aged compost, at least 4 months old. 2) Put in a large pail or barrel outdoors between 59à ¢Ã‚ Ã‚ ° and 68à ¢Ã‚ Ã‚ °C. 3) Add water, 1 part compost to 5 to 8 parts water (i.e. 1 cup of compost to 5 cups of water). 4) Stir daily for five days. The strong smell should slowly dissipate. 5) On the fifth day, pour through a sieve or a cheese cloth. 6) Spray on plants in periods of disease outbreak, or drench the soil at the base of the plant. 7) Do not spray edible plant parts to be harvested in the following 2 to 3 weeks. CalRecycle (a CA.gov website) on their website says But why go to all the trouble of brewing and spraying this tea instead of just working the compost into the soil? Two reasons: To inoculate microbial life into the soil to feed the foliage of plants, and to add soluble nutrients to the foliage or soil in order to feed your plants. Compost tea is a readily available form of compost that will impact the plant more quickly than compost mixed into the soil. I am not sure how they came up with this information as no scientific evidence has been found that all this is true. When it comes to state Master Gardener programs there is also a lot of different opinions. The state of Pennsylvania tells you how to make compost tea at http://www.dep.state.pa.us/dep/deputate/airwaste/wm/recycle/tea/tea1. Arizona state university extension tells you how to make compost tea at http://ag.arizona.edu/yavapai/anr/hort/byg/archive/composttea.html. However, Washington state master gardeners cannot recommend compost tea. Because Washington State University Master Gardeners are volunteer educators who rely on science-based information, they cannot recommend a practice or product that lacks a legitimate scientific basis. Furthermore, it is illegal to sell unregistered substances for use as pesticides. There are no compost tea products registered as pesticides within the U.S. Environmental Protection Agency. Neither WSU Master Gardener volunteers nor Web sites may encourage the use of compost tea as a pesticide. (9) Then Oregon State University extension tells you how to make compost tea on their website and their Master Gardeners sell compost tea as a fund raiser . In California per Pam Geisel Statewide University of California Master Gardener Coordinator We dont recommend compost tea because we do not have science based information on it at this time.   Also, compost tea is so variable in terms of content that making a generalized recommendation would be impossible as to the quality and the plant response. Organic Gardening senior editor says he is convinced that There is the potential for a health hazard from its use (compost tea) that being the possible presence of E. coli.   And hes concerned that some Cooperative Extension Service websites happily provide the recipe for making compost tea at home with no warning about the health risks if its applied to food crops. Finally, I think the Extension Horticulture Agent, in Anchorage Alaska, Julie Riley sums it up best, Compost tea is like a religion-you have to have faithà ¢Ã¢â€š ¬Ã‚ ¦ I know there are Anchorage Master Gardeners who feel they get good results with compost tea. Ive always said to gardeners if you are happy with your results, keep doing what you are doing' Bibliography and Citations (1) Scheuerell Steven J. and. Mahaffee Walter F First author: Department of Botany and Plant Pathology, Oregon State University; and second author: U.S. Department of Agriculture- Agriculture Research Service-Horticulture Crops Research Laboratory, Corvallis, OR 97330. Compost Tea as a Container Medium Drench for Suppressing Seedling Damping-Off Caused by Pythium ultimum Accepted for publication 14 June 2004. Web March 2011. (2) Rossi Frank, Cornell University, Cornell University, 134a Plant Science Bldg., Ithaca, NY 14853 Effects of Compost Tea on Turfgrass Performance, Disease Incidence, and Soil Microbial Populations. Nov. 8, 2007 Web March 2011. (3) Chalker-Scott, PhD. Linda, Extension Horticulturist and Associate Professor, Puyallup Research and Extension Center, Washington State University www.MasterGardenerOnline.com à ¢Ã¢â€š ¬Ã‚ ¢ MASTERGARDENER winter 2007 pages 8-10, Web March 2011 (4) Moore, Robert C; History of Compost Tea thesoilguy.com N.p, n.d web March 2011 (5) Stevenson, Emily; Yale School of Forestry, Alexander Felson and Mark Bradford Environmental Studies Advisors, Closing the Loop: Alternative Land Management at Yale, Hixon Fellowship 2010, web April 2011 (6) Remillard Marc, Compost Tea Making, Ascension Press, April 2010 (7) Author unknown, What Is Compost Tea, and Why Use It? CA.Gov CalRecycle, California Department of Resources Recycling and Recovery, March 24, 2005, web April 2011 (8)Wise, Cindy, Compost Specialist Compost Tea Trial 2007, OSU/Lane County Extension Service Compost Specialist tea trial, December 2007, web April 2011 (9) Chalker-Scott, Linda Ph.D., Extension Horticulturist and Associate Professor, Puyallup Research and Extension Center, Washington State University The Myth of Compost Tea Revisited: Aerobically-brewed compost tea suppresses disease, April 2001, Web May 2011 (10) Lanther, Mario, Compost Tea and Its impact On Plant Diseases, BC Organic Grower, Volume10, Number 2, spring 2007, Web April 2011 (11) Diver, Steve, NCAT Agriculture Specialist Notes on Compost Teas The National Sustainable Agriculture Information Service ATTRA 2002 Web March 2011 Ingham, Dr Elaine, Rollins, Carole Ann ed., Sustainable Studies Inc. and Natural Technologies, The Field Guide 1 for Actively Aerated compost Tea (AACT) April 2001-June 2003 Second Edition, Second Printing March 2007 Pleasant, Barbara and Martin, Deborah; The Complete Composting Guide, Storey Publishing, LLC February 13, 2008 Arrington, Debbie, Now theres distinction between compost tea, extract', Sacramento Bee, Saturday, February 26, 2011, page D5. Geisel, Pam, Personal interview May 10, 2011 (12) Harvard Facilities Operations Maintenance, Harvard Yard Soils Restoration Project, 2009 President and Fellows of Harvard College, February 2009, Web March 2011 (13) Scheuerell S. and Mahaffee W., Compost tea: Principles and prospects for plant disease control Organic Agriculture Centre of Canada, April 2010, Web March 2011 (14) Aerated Compost Tea Oregon State University Extension Service Douglas County, November 14, 2009, Web April 2011 Chalker-Scott, Dr. Linda PhD Associate Professor and Extension Urban Horticulturist WSU Puyallup Research and Extension, Compost Tea: Examining the science behind the claims N.d., Web April 2011 (15) Overview of Compost Tea Use in New South Wales. Recycled Organics Unit (2006). Recycled Organics Unit, internet publication: 2007 second edition, Web March 2011 (16) To Tea or Not to Tea Whatcom County Master Composter Recycler Program, Bellingham, WA, N.d. Web May 2011 (17) Harris, Susan, Still confused about compost tea, I turn to Rodale Garden Rant, Uprooting the Gardening World, February 25, 2010, Web May 2011. (18) Reeves, Walter, The Georgia Gardener, Compost Tea Does it Work? N.d, web May 2011 Martin, Deborah L. and Gershuny, Grace, Ed., The Rodale Book of Composting, Rodale Press, 1992