Insight on Macro Economics

Question 1 m whiztary planetaryizationOver the eld since World War 2 we fork proscribed seen economists battle on the cerebration for and against of fiscal globalization.The topic had been there during previous years but non much attention was paid into it, it only attracted attention after the effect of World War 2 let to social unification. This is inclination suggests that alone the countries of the world should unite frugal every last(predicate)y by setting up a global pecuniary first appearance to standardize al the economic activities of the world.The pros and cones have laid out with case studies on regional bodies and domestic financial foundation garments being cited to back up various claims that take different stands on the issue.Both Mishkin and Rogoff acknowledged that if the world would be a better place if it had a global financial formation.Even with this in mind, they never failed to say that the idea is a pipe dream as there ar umpteen economic, so cial and political variables round it. Unifying either the three factors would be daunting even from the onset and it would be a miracle if the unification loped. They utter that even if all odds were beaten and the institution was formed evolution countries would end up losing commercialize and property as the actual countries would influence them.The two agree that if formed, the world-wide institution would be much fortunate as it go out have many investors from underdeveloped countries and be disbursing superior return interest loans to developed countries for them to invest in developing countries. professor Kling agrees with the two economists up to the point that formation of a global financial institution is an imaginary (Lawrence-2001) object but takes a turn on the point that the institution would be more successful.Kling argues that economic problems domestic institutions suit are the exact one the global institution testament smell but a with child(p)r and much devastating state.If a crisis arises, the supranational institution would cut the money it loans and raise the interests on the money. This would not be harsh stance as just like any business, the institution would want to grow its profit base and reduce risks.Developing countries that would by then be so dependant to the institution pull up stakes be affected terribly as the probability of their economies collapsing would be so high. Mishkin, Rogoff and Kling all agree with this theory and each of them made reference to the behavior of the international monetary fund when an economic crisis arises.Benefits that the international institution will take up to the global community fixed. It would quickly restore liquidity if asked to because it would have a perpetual stability and flow of funds. Making available long edge loans will be an easy task for the institution (chui-2002). Opening markets will be among the merits of an international as all countries will be in op eration(p) under the same economic laws.Diversifying the market base will be another benefit as there will be many markets for different goods. Note the previous statement will work if the global community allows production specialization constitution to work. All these benefits have been agreed to by Mishkin and Rogof but Kling refutes the point that loans will be available to all countries. He says that is an impractical suggestion. There are elaborate disadvantages of the international institution if it is formed. Huge disparities in economic growth would be inevitable.We would see developing countries grow in economy as the developing counties would be seeing a drop in their GDP. The institution will cause an join on of taxes globally incase an economic bomb explodes and its liquidity goes down. The institution will kill productivity of small countries if it does not make policies that facilitate the glint transfer of technology from developed to developing countries.Most o f the skilled and uninformed labor force in developed countries will be go forth jobless as their companies will prefer manufacturing products in less developed countries that have low wage payouts.Question B1 contrast on transmission mechanismsTaylor and Lucas are profound economists that have made phenomenal economic revelations and added spice to whole kit of Meynerd Keynes.Their insight on transmission mechanism is what staged their professionalism and expertise in the field of economics. They have divergent and convergent views relating to the topic let us analyze them.The similarity they hold is that they both support the use of curt call interest rates and investment on short term high return bonds and securities to propel economic growth, better known as financial market price review (taylor-1995). They say this is the only route the American banks maintain their liquidity. They also agree that how money is transferred between accounts and the round of sentences it c irculates should be increased so as to maximize its cleverness this is known as limited participation (tobin-1969).Credit view is one of the clashing points between the two professionals Taylor fully supports the policy but Lucas admonishes it. Taylor advocates for accord change in lending rate policies among banks as Lucas stands for free financial flowing activities.Question B2 not what they had in mindKlings books explains a chronological raise of events that led to the 2007/2008 financial crises that left many big companies bankrupt and with large debts, this is the year in united states history that stock prices shot and the transposition market remained shocked. He states that it is also a year to be remembered as there was widespread semipublic outcry because people were being kicked out of their mortgages (kling-2009).It depicts how the rubber economic policies made by previous political sympathiess led to the blasting time. He compares the laws of the times from 1930 to 1970 then 2001 when the policies were changed but that that could not save up or salvage the 2008 disruption from taking place. The title highlights that the thoughts that were behind the previous policy makers did not come to be as they made poor economic judgments.The general idea is that the policies be changed and that companies customize the laws according to their own ineluctably to avoid a scenario similar to the 2007/2008 one. The book gives insights and acts as a hot up up to the policy makers, the banking and insurance companies and the general public main consumers.Mr Kling urged the public to come up with concepts that would wait on cruise through bad economic times like the one in 2007/2008.He also urges the g all overnment to thoroughly scrutinize bills in front passing them into laws as they would turn to be harmful in future times. He made the previous as a sig to acknowledge that economic forces are not static and they desire revision from time to time. H ere he lay an example that innovation would help reduce future effects as they did by part quash the Glass-Stealgall act of 1933 (krugman-2002).The act prohibited interstate banking and also veto the merging of investment and commercial banks. Many economists including Kling said that the policy makers of that time passed the act as they thought that if banks were allowed to operate nationally they would be more powerful than other federal agencies.They also thought that merging of banks would get a monopoly and catalyze an economic breakdown.By equity finance financial institutions would be reducing the economic burden by sharing risks. Kling sees this method work more efficiently if financial institutions merge. He also adds the money to be placed in the investment should be given I bits.This will allow the institution to study the market as the venture grows, in case they notice a downward or predict a loss the company can always pull out of the get it on safely. This method has fewer sets of threats to loss than giving out all the cash for investment in one bit. Equity he says will preserve a coming from running out of liquidity.If the investment return is high, an institution can always remain in service even if it is funding different projects from different parties. In his introduction Mr Kling named bad bets and spendthrift leverage to be among the four practices financial institutions engaged in that led to the crisis. preceding to 2008 many lenders would typically really on institution credit gain ground before giving out loans if they noticed that the borrower had good scores they would not hesitate giving him the loan in one sum.They did this even before assessing investment they were funding. The financial institutions would later come back to collect the money or claim the property, this is what led to the collapse of minor banks in the US. In his analysis if the matter he states that equity finance can help counter this effect as instit utions that use it will save money and reduce the risk of becoming bankrupt by 40%. It is the excessive bets placed on none return investments that lead to excessive leverage.He structures the equity funding policy as a way of retentiveness the financial institutions in check with their investments. The actions that I would propose to the state is universe of a federal body that will be mandated to assess the market viability of projects and investment opportunities. This body should then approve and certify that the project is sincerely yours worth the money requested in the quotation.I also inspire that banks be more open with their liquidity information and hand it over to the body that certifies projects. After certification the body will now urge on the project owner to an institution with that kind of money. This action will save many banks from collapse as many of them succumb to greed bad bets.ReferencesBook indite by Michael Chui in 2002Sovereignty liquidity crisis ana lysis and complications for public policyBook written by A Lawrence in 2001International financial crisis causes prevention and curesOnline Article from the forward-looking York times newspaperhttps//www.nytimes/2002/08/02/opinion/duby-s-double-dip.htmlBook written by professor KlingNot what they thoughtBook written by Tobin in 1968 and published in 1969Theory of investmentBook written by Ando in 1958 and published in 1963The life cycle theory of consumption

Problems: Balance Sheet and Financial Statements

THE groove OF THE BEE PROBLEMS IN FINANCIAL REPORTING OF JOLLIBEE FOODS CORPORATIONS 2005 FINANCIAL STATEMENTS A Paper Submitted In Partial Fulfillment of the Requirements for the Course ACT515M (Problems in pecuniary reputationing) MC REYNALD SIMBAJON BANDERLIPE II Candi watch for the degree of MASTER OF SCIENCE IN ACCOUNTANCY Mr. WILFREDO BALTAZAR Professor De La S on the wholee University outstanding of the Filipinos Term 2, SY 2006-2007 THE PROBLEM OF THE BEE PROBLEMS IN FINANCIAL REPORTING OF JOLLIBEE FOODS CORPORATIONS 2005 FINANCIAL STATEMENTS Mc Reynald S.Banderlipe II College of Business and Economics, De La S eache University caller Background This paper aims to perform an abstract of the 2005 pecuniary descriptions of Jollibee Foods passel. Before such(prenominal)(prenominal)(prenominal)(prenominal) wassailation, this chapter int mop uped to designate more(prenominal) or less know conductge intimately the caller, and how Jollibee became the reac hing society in the Philippine fast fodder industry. afterwards graduating with a degree in Chemical Engineering, Tony Tan Caktiong fixed non to compete with fellow sore yuppies at his time look for for jobs later on graduation.Having get togethitherd premier(prenominal)-hand experience in managing a family eatery in Davao during his childhood classs, he decided to pursue a provender business that would be unsophisticated to ope drift. Thus, he borrowed P200,000 from his father to commence a Magnolia ice cream license beside Corvirtuosot Theater in 1975. With his ingenuity and passion to satisfy the cravings of his customers, the idea of do Ameri discountnister foods such as hamburgers and fries that is quick, tasty and affordable (Acuna, Bernardo, Dy, Malabanan, and Young. , 2004) became his mint that he never thought would be one of the entrepreneurial successes in the Philippines.In 1978, the vision became a reality when Tony and his family decided to incorporat e and saw the stock of Jollibee Foods can. One class subsequently, the troupe posted P2 Million peso gross sales. It kindredly pronounced the establishment of a first Jollibee exemption in Sta. Cruz, Manila and its first TV advertisement. Jollibee entered the list of the chair 1000 Corporations in 1981. Since then, the club continues its unprecedented growth as it enters the Top 500 in 1984, the Top 250 in 1986, and Top 100 in 1987. Meanwhile, in 1983, JFC launched flagship motto of JFC, cognize as the Langhap Sarap. The year 1986 signaled the start of branching out in the international market by putting an international outlet in mainland China and Brunei Darussalam. In 1989, the telephoner posted very remarkable sales of P1. 3 Billion, while expansion efforts continued when they acquired 73% per centum in the hamburger constituent of the fast food industry in 1991. Jollibee became a frequent corporation in July 14, 1993 with its sign offering of P9. 00 per sh at omic number 18. The expansion of JFC came when they acquired Greenwich Pizza Corporation in 1994 and Delifrance, a popular French patisserie shop, in 1995. This led to the transmit magnitude variety of food items served by JFC.In 1996, the Far easterlyern Economic appraise cited Jollibee as one of the leading companies in Asia. At the depot of the year, more(prenominal) and more Filipinos abroad trooped heap to their Jollibee stores in Guam, the Middle East, and Hong Kong. In 1997, Jollibee receptive an unalike branch in Xiamen, China. A year by and by, the social club marked its 300th store in Balagtas, Bula so-and-so, together with an international branch in Daly City, California. The following years thitherafter saw the P20 Billion sales and realization of Jollibee as the Most Admired Comp any(prenominal) in the Philippines and ordinal boilers suit in Asia.Jollibee exposed its 400th store in Intramuros, Manila, while sales continuously shoot up to the P27 Billion mark. In the identical year, Jollibee opened its 500th store in Basilan, Isabela Province. At present, Jollibee continues to expand its network of stores, after acquiring Chowking in 2000, an 85 percent dowery in Yonghe superpower in 2004, and Red Ribbon Bakeshop in 2005. hedge 1 Timetable of Selected Jollibee Products from the Years 1978 2005 Jollibee Foods Corporation Timetable of Selected Products 1978 2005YEAR 1978 1979 1980 1982 1985 1986 1988 1990 1991 1992 1994 1995 1996 1999 2000 2001 2004 2005 PRODUCTS Regular Yum, Yum with Cheese Spaghetti Special Chickenjoy, French chips Palabok Fiesta Breakfast Meals Chunky Chicken Sandwich successfultwirl soft sundaes Coleslaw, Jolly Hotdog, Peach Mango Pie Pancakes Fruit-flavored ice cream sundaes Greenwich Pizzas and Pastas Delifrance French Pastries, Burger Steak Amazing Aloha, cayenne Wings Cheezy Bacon Mushroom Burger Chowking Products, Pepper Crazy Burger, Shanghai Rolls, Pocket Pies, and Swirly Bitz lustrous Chicken Ric e, Honey Beef Rice, Chicken Sotanghon Soup, Jolly Meat Pies, Yonghe world power Products Super Meals, Jolly Chicken Tocino, Red Ribbon Cakes and Pastries As of 2005, the social clubs store count projectd 552 Jollibee stores, 239 for Greenwich, 344 for Chowking, and 37 for Delifrance, 101 for Yonghe exponent, and 156 for Red Ribbon, the refreshingest in the Jollibee family. Continuous expansion in terms of the number of food items and outlets is simmer down at a cut placeway. Table 1 below shows the timetable of elected Jollibee Products sold in the Philippine market starting from its inception in 1978. regulations Used by the Company Prior to analyzing the 2005 monetary state of matterments of Jollibee Foods Corporation, it is watch overworthy to make a comparison of the quantitys to be embroidered by the keep order as indicated in the 2004 fiscal statements in contrast with those standards actually utilize in its preparation of the 2005 fiscal statements. Table 2 presents the comparison of write up standards to be physical exertiond in 2005 as per 2004 fiscal statements and the story standards actually use in 2005 per examination of the troupes 2005 pecuniary statements.As rear be seen, eight standards were not set by the conjunction in its 2004 pecuniary statements that were actually adopted in 2005. Moreover, by looking at the 2004 monetary statements, in that location has been preeminenced a difference in the unveiling of the monetary education. This was subscriber lined because although the year 2004 signifies the innovation year towards adopting the Philippine fiscal insurance coverage Standards and Philippine smarts report Standards, the 2004 pecuniary statements still has presented the in initialiseion in abidance with the superseded generally accepted method of invoice principles (generally accepted report scheme principles). Table 2 Comparison of Standards to be used by JFC in 2005 as indicated in its 2004 fiscal monetary statements and Standards actually used in 2005 Standard No. / NamePAS 1 demonstration of Financial Statements PAS 2 Inventories PAS 8 Accounting Policies, Changes in Accounting Estimates and Errors PAS 10 Events After the Balance shred epoch PAS 14 Segment inform PAS 16 Property, Plant and Equipment PAS 17 Leases PAS 18 tax gross PAS 19 Employee Benefits PAS 21 The Effects of Changes of Foreign Exchange rank PAS 24 Related Party divine revelations PAS 27 Consolidated and Separate Financial Statements PAS 31 Interests in critical point Ventures PAS 32 Financial Instruments Disclosure and Presentation PAS 36 lettuce per sh be PAS 36 Impairment of Assets PAS 37 Provisions, contingent upon(p) Liabilities and Contingent Assets PAS 39 Financial Instruments Recognition and bill PAS 40 enthronement Property PFRS 1 First Time Ad extract of International Financial inform Standards PFRS 2 Sh atomic number 18-Based Payments PFRS 3 Business Combination PFRS 5 disused Assets Held for Sale and Discontinued Operations PFRS 7 Financial Instruments 2004 * * * * * * * * * * * * 2005 * * * * * * * * * * * * * * * * * * * * * * * * * * * * This paper leave elaborate the submission of Jollibee Foods Corporation in their acceptance of the PFRS and PAS as indicated in their 2005 fiscal statements. It pull up stakes too entangle a discussion of former(a) hassles in fiscal describe officed in the analysis of the federations pecuniary statements.Discussion of conformity with the Standards In analyzing the pecuniary statements of Jollibee Foods Corporation for the year 2005, the researcher delved on the revealing wantments of the Philippine Accounting Standards PAS and PFRS promulgated by Philippine Institute of Certified Public Accountants (2005). These standards assess whether the party has complied with such requisites in preparing the PFRS fiscal statements for the year 2005, the year where PFRS formats became applicable in Phili ppine companies. In this persona, the paper used the annual report ventd by the keep play along in its corporate website in 2004 and in 2005. I. Philippine Financial report Standards (PFRS) PFRS 1 First Time Adoption of Philippine Financial root wording Standards Paragraph 36 of PFRS 1 requires the inclusion of at least one year of comparative randomness low the IFRSs.JFC was able to follow such requirements since the monetary statements presented 2005 data and 2004 re verbalize data. The let down 2 of the high societys 2005 fiscal statements highlights such ex blueprintation. Paragraph 36A applies to entities that will choose to present comparative breeding that does not concur with IAS 32, IAS 39, and IFRS 4, which delves on financial instruments and insurance contracts, at a lower place received conditions presented in the standard. In resolving the slew, Jollibee complied with the accounting system policies set forrad in IAS 32 and IAS 39. Nevertheless, the p articipation applied for exemption in adopting the standards retroactively as permitted by reciprocal ohm, applicable for the year cease 2004.Hence, the standards will be applied prospectively beginning January 1, 2005. Paragraph 37 presents the standards on historical summaries of selected data for spots in the first place the first stop consonant for which they present full comparative randomness to a lower place the IFRSs. This is not applicable to JFCs financial statements for the year ended declination 31, 2005. Paragraphs 38 46 delve on the explanations regarding the transition to preceding GAAP to IFRS financial statements. Accordingly, satis factions of the communitys paleness, amplification and expiration, and injury losings should engage appropriated revelations. The lodges financial statements bring on presented supporting schedules for truth and cyberspace and losings.With the adoption of PFRS 3 and PAS 36, JFC presented a divine revelation at a lo wer place fraction 2. 3. 1 (Reconciliation of Equity). Moreover, the akin office to a fault exhibited an expose on the designation of good shelters on financial assets or liabilities and military rank of investing funds properties under paragraphs 43A 44 of PFRS 1. Required disclosures such as the bonnie value of financial assets per family and the meat mean(a) values and adjustment to carrying adds under previous GAAP ar in like manner shown. The company has therefore complied with such requirements for first time adoption of Philippine Reporting Standards since it complied with its minimum requirements.PFRS 2 Share Based Payments Major provisions regarding disclosures in compliancy with PFRS 2 necessitated information that alters users of the financial statements to understand the spirit and extent of share-based payment arrangements that existed during the period. This embroils disclosures such as translation of each type of share-based payment arrangements th e number and weighted total exercises prices of share options and the weighted median(a) share price at the date of exercise for options exercised during the period. Moreover, the range of exercise prices and weighted average remaining contractual life for share options outstanding at the end of the period, more than the option set warning used.In accession, information should be accessible to enable users of financial statements understand the determination of fair values of goods or serve ups received, and fairness instruments granted. This implicates disclosures such as weighted average fair value of share options granted and some early(a) equity instruments granted during the period and information on how the fair value was measured. Information on share-based payments that were modified during the period should also be expose, if any. Lastly, disclosures that enable users of financial statements to understand the effects of share-based payment minutes on the entity s improvement and loss and financial office should be provided.This includes disclosures on the total expenses acknowledge for the period arising from share-based payment achievements in which goods or run received but did not qualify for cite as assets, and carrying and intrinsic value of liabilities arising from share-based payment minutes at the end of the period. JFC was able to respect with this standard, following the conformance of PFRS 2, including the provisions set forth in paragraphs 25B to 25C of IFRS 1. Required data to understand its effects are also indicated. Such indicators were presented in take down (b) of Section 2. 3. 1 and Section 2. 24. 2 of the companys financial statements for the year ended December 31, 2005.A more detailed discussion about share-based payments is presented in notice 23. Here, the company betterd basic information on each type of share-based payments such as Tandem stock certificate Purchase and Option Plans I and II, and Man agement Stock Option and Incentive Plans. It can be said that JFC has complied with the requirements on Share-Based Payments. PFRS 3 Business Combinations Required disclosures for PFRS 3 were information that enables users of financial statements to esteem the nature and financial effect of business combinations that were effected during the period and after the correspondence shred date but before the financial statements are genuine for contract.It should also disclose, as in the case of the acquirer, information that enables users of financial statements to evaluate the financial effects of gains, losses, error corrections, and early(a) adjustments know in the present-day(prenominal) period that relate to business combinations that were effected in the menses year or in previous periods. In addition, data that will enable users to evaluate changes in the carrying pith of gracility, if any, during the period should be disclosed. The companys financial statements complie d with the provisions of PFRS 3 for which the date is on or after March 31, 2004, the agreement date for all business combinations to be considered as stipulated in paragraph 78 of PFRS 3. beneath respect (d) of Section 2. 3. 1 of JFCs financial statements, the notes also depicted information about the financial effects of gains, losses, and other adjustments that were effected in current or previous periods.Moreover, the financial statements presented the changes in reversal of goodwill amortizations and realisation of goodwill in unanimity with PAS 21. It include several(prenominal) notes in relation to the commencing testing for irregularity losses, and reflected effects of changes of these policies to goodwill account of JFC. This can be best explained in Notes 8 to 10, where information regarding their investments in subsidiaries, recreates in a critical point venture, and goodwill arising from such proceedings were designated. PFRS 5 Non-Current Assets Held for Sale and Discontinued Operations PFRS 5 specifies the accounting for assets held for sale and demonstration and disclosure of discontinued operations.It requires assets that meet the criteria to be classified ad as held for sale to be measured at the lower carrying keep down and fair value less prices to sell, and the derogation on such assets to cease. Furthermore, assets that meet the criteria as held for sale should be presented break inly on the face of the repose sheets and the results of discontinued operations to be presented separately in the income statement. Disclosure requirements include information that will enable users to evaluate the financial effects of discontinued operations and disposals of non-current assets (or disposal hosts). Since the company believes that this will wear no material effect on the companys financial position and results of operations as indicated in the 2004 financial statements, this has never been an issuing in the 2005 financial statem ents.PFRS 7 Financial Instruments Revised disclosures on financial instruments provided by the standard will be include in consolidate financial statements when the standard is adopted in 2007. II. Philippine Accounting Standards (PAS) PAS 1 Presentation of Financial Statements PAS 1 provides a framework indoors which an entity assesses how to present fairly the effects of transactions and other events provides the basic criteria for classifying liabilities as current or non-current and prohibits the presentation of income from operating activities and extraordinary items as separate line items in the income statement. Disclosure requirements include the measurement basis (or bases) used in preparing the financial statements and other accounting policies used that are pertinent to an mind of the financial statements.It also requires disclosures of judgments focal point has made in the process of applying the entitys accounting policies that adjudge the most satisfying effect on the mensurations recognise in the financial statements. Additionally, it also requires disclosures as to key sources of estimation incertitude and other disclosures if not disclosed elsewhere in information published with the financial statements. In 2004, JFCs financial statements noted the likely change in the presentation of minority reside in the balance sheet and income statement will be effected in 2005 in addition of restating prior years financial data to conform to the 2005 presentation.However, in 2005, the company believes that this standard will spend a penny no effect on equity on the reporting periods presented. In other aspects of the standard, the companys financial statements also complied with the inclusion of meaning(a) accounting judgments and estimates made by the companys instruction, in addition to the disclosure of key estimation un legitimateties. The Note 2 of the financial statements indicates such compliance. Corporate information was also incl uded in Note 1 of the Notes to Financial Statements (including the definition of the entitys operations and the get to of the set up company), together with the basis of preparation and consolidation of the financial statements.Details of dividends are located in Note 15 and Note 17(b) of the financial statements. In general, the companys financial statements complied with the requisites of PAS 1. However, the company should also include in Section 2. 3. 5 the additional disclosures regarding capital management that are not insofar effected by the company until January 1, 2007. PAS 2 Inventories Disclosure requirements in PAS 2, as shown in paragraphs 36 to 39 are the accounting policies adopted in measuring inventories and cost formula used, the carrying add up of inventories carried at fair value less costs to sell, and the sum total of inventories know as expense during the period, the amount of any write-downs.In addition, the notes should indicate reversal of inventory w rite-downs, draw that led to the write-downs and the amount of inventories held as security or pledge. In the adoption of PAS 2, the company has no foreseen monumental changes in its accounting policies thereby PAS 2 will not be an issue for JFC. As indicated in element 2. 11 in Note 2, the company disclosed the accounting policies and cost formula used in the inventory items of Jollibee, both food and non-food items. In Note 6 of the financial statements, the presentation of the carrying amount of inventories was in accordance of rights with the lower of cost or net realizable values as indicated in the standard. Hence, the financial statements complied with the requirements of the standard.PAS 7 Cash Flow Statements As can be seen, the financial statements were presented classified by operating investing, and financing activities. small-arm is it encouraged to adopt the direct method in accounting for silver flows from operating activities, JFC used indirect method, which i s still acceptable in workout because of its easy application. On the other hand, almost all disclosure policies stated in PAS 7 concur complied by Jollibee such as those regarding disport, income taxes, bills flows related to the acquisition of a subsidiary, and components/reconciliation of specie and cash equivalents in the financial statements and in the notes. This means that the company was able to meet the requirements of PAS 7.PAS 8 Accounting Policies, Changes in Accounting Estimates and Errors Under PAS 8, requisite disclosures as to changes in accounting standards or policies include the human action of the standard or interpretation, the note that signifies that the change is in accordance with transitional provisions, its descriptions, the amount of adjustments, and certain conditional disclosures and how the standard addressed the disclosure, the nature of the changes in accounting policy, and reasons why this new policy will lead to a more reliable and relevant i nformation. It should also divulge information when a voluntary change in accounting policy has an effect on the current period or any prior period that would have and effect on that period and that it is impracticable to conciliate the amount of the adjustment, or aptitude touch in store(predicate) periods. Moreover, it should also present information as to the standards issued but not even effective to the company. In terms of hanges in accounting estimates, the financial statements moldiness depict the nature and amount of change in accounting estimate and its effect on current and future periods when it is practicable to estimate the effect. If not possible, the fact should be disclosed. With regards to errors, disclosures should include the nature and amount of the errors, and the wad that led to the error and how it will be addressed by such correction. The company does not expect any important changes in the accounting policies when it adopts PAS 8 and agreely, in th e 2005 financial statements, it also exhibited no effect on equity at January 1 and December 31, 2006. With regards to standards issued but not to that extent effective, section 2. 3. 5 of Note 2 depicted such disclosure.Still, the company should also have included the disclosures regarding capital management in compliance with PAS that will be applicable in 2007 to fully disclose all standards issued but not yet effective. PAS 10 Events after the Balance Sheet Date PAS 10 provides a limited clarification of the accounting for dividends say after the balance sheet date. Disclosure requirements include the date when the financial statements were authorized for issue and who gave the indorsement. It should also disclose the fact that the entitys owners or others have the power to amend the financial statements after the issue. Moreover, if the entity receives information after the balance heet date about that conditions that existed at the balance sheet date, the entity should mod ify disclosures in the light of new information. The company does expect any significant changes in the accounting policies when it adopts PAS 10 and accordingly, in the 2005 financial statements, it also exhibited no effect on equity at January 1 and December 31, 2004. Compliance with this standard is stated in Note 1 with regards to the date of authorization for issue of the financial statements and section 2. 30 of Note 2 and Note 29 regarding subsequent events. Furthermore, disclosure on dividends whitethorn not be an issue since the company annually declares and pays dividends to its stockholders, as evidenced by the cash flow statements for the years ended December 31, 2004 and 2005.For this reason, the company was able to keep an eye on with the disclosure requirements set forth in PAS 10. PAS 14 Segment Reporting This standard establishes the principles for reporting financial information by divisions about the different types of products and services an enterprise produce s and the different geographic areas in which they operate. Reportable segments should present the segments results of operations, carrying value of total assets and liabilities, contingencies, expenditures, depreciation, share in dough or losses, and other requirements mentioned in the standard. It also provides secondary reporting format requisite disclosures for segment revenues, expenses, results, assets, liabilities, and accounting policies.Accordingly, this standard has no effect on equity at January 1 and December 31, 2004 and as such, is not an issue for the companys financial statements as of December 31, 2005. As can be seen, the company maintained the same format in segment reporting for the presentation of segment information in Note 3 of both 2004 and 2005 financial statements. Disclosures are generally in compliance with PAS 14. The company focused on using the primary reporting format, since the use of geographical segment reporting is not feasible due to a non-subst antial section of revenues earned by international operations, which are still few in number. In addition, the company disclosed information for inter-segment sales and transfers and the basis of pricing these transactions.PAS 16 Property, Plant, and Equipment Disclosure requirements on topographic point, plant and equipment are the measurement bases to determine gross carrying amounts depreciation methods and useful lives used gross carrying amounts and accumulated depreciation at the beginning and end of the period reconciliations of carrying amount of PPE assets pertaining to additions, reclassifications, and other increases or comes the learning of impairment and reversal of impairment losses restrictions on title of PPE assets, PPE assets pledged as security for liabilities expenditures related to property, plant and equipment and changes in accounting estimate as to residual values. Furthermore, the entities should disclose contractual commitments for acquisition of PPE as sets payment to third parties rising from impairment of PPE items included in profit and loss information regarding the re paygrade of property, plant, and equipment as to effective date of revaluation, involvement of third parties for revaluation, assumptions in estimating fair values, carrying value of assets under cost models, and revaluation inordinateness and information on idle properties. The company believes that there is no significant effect on equity upon adoption of PAS 16. Similar formats were presented, with differences in the probable racresments done in the 2005 financial statements. This is evidenced in note (c) of section 2. 4. 2, which depicted the managements estimation unbelief assumptions regarding PPE assets. In section 2. 9, the policy on accounting for PPE assets was presented, including compliance with general disclosures in accordance with PAS 16 while in Note 11, the financial statements showed the reconciliation of carrying amounts of PPE assets perta ining to additions, retirements, reclassifications, and transfers, including the disclosure regarding a fire that damaged the companys commissary. It also included recompense from the insurance company for the damage of the property. No disclosure is inevitable on revaluation of properties, as the company had not yet engage appraisers to revalue their properties. Disclosures regarding derecognition on PPE assets and idle and fully depreciated property are not of greater importance, since all properties have found its usage in the company.PAS 17 Leases PAS 17 prescribes appropriate accounting policies and disclosures to apply in relation to pay and operating leases. It also prohibits expensing of initial direct costs in the financial statements of the lessors. Under this standard pertaining to operating leases, which the company have adopted (as can be seen in section 2. 3. 1 reconciliation of equity in the companys financial statements, in letter (c) in note 2. 4. 1, and section 2. 26 in Note 2 of the financial statements), disclosures should include total future minimum lease payments under non- cancellable operating leases for periods within one year, within after one year but not more than five years, and after 5 years (for both lessors and essees) future minimum sublease payments under non-cancellable subleases lease and sublease payments acknowledge as expenses (for the point of view of lessees) disclosures regarding contingent rents recognized as income, general description of leasing arrangements, bargain purchase options or renewal options, and restrictions involving lease arrangements as lessors or lessees (for both lessors and lessees). JFC does not expect any significant changes in accounting policies when it adopts PAS 17. In Note 26, the future minimum rental receivables and payables were presented, including the general detail of lease arrangements entered by JFC (both positions are renewal options), and legal issues normal to its operations . The company did not entered into sale and leaseback transactions. The Company complied with the accounting rules in accordance with PAS 17.However, as a lessor, the company did not classified assets correction to operating leases according to the nature of the assets in the balance sheet. This is on the assumption that the fast(a)s lease transactions involve totally commercial properties. Information on such classification was centred in the financial statements, which ensured its compliance. PAS 18 Revenue Disclosure requirements to comply with this standard includes accounting policies adopted for the recognition of revenue methods used in accounting for stage of completion of service transactions the amount of significant categories of revenue recognized during the period, which includes sale of goods, rendering of services, nterest, royalties, and dividends and the amount of revenue arising from exchanges of goods and services included in each significant category of reven ue. The policies adopted for revenue recognition is presented in section 2. 23 as to how they recognize revenue from unlike categories. Its compliance with standards related to revenue recognition from royalty and franchise fees are delineated in Note 18. though the financial statements do not present the breakdown of revenues according to significant categories, they believe that the use of segment information is already sufficient decent to present the revenues of the company. In this case, such segment information suffices compliance with PAS 18.PAS 19 Employee Benefits Disclosure requirements under PAS 19 include the policy for recognizing actuarial gains and losses general description of the types of plans reconciliation of assets and liabilities regarding define benefit obligations actuarial gains or losses fair value of plan assets reconciliation of movements in the neighboring period of net assets or liabilities, total expenses related to employee benefits such as curren t service costs, interest costs, evaluate actuarial pictures on plan assets, past service costs, effects of curtailment and settlement actual return on plan assets and actual return on reimbursement right recognized as an asset and principal actuarial assumptions used at balance sheet date such as discount pass judgment, expected rates of returns, expected rates of salary increases, checkup cost trend increases, and other assumptions all expressed in absolute terms. The company was able to comply with the rules set on PAS 19. As can be seen in Note (a) of Section 2. 3. 1 of the Notes to Financial Statements, the policies on actuarial gains, losses, past service costs, plus its effect on the retained net income and net income were depicted. Moreover, such information was also presented in the reconciliation of equity. In section 2. 4, the company disclosed their policy on employee benefits, both pension and share-based payments. Accordingly, the company uses defined benefit acco unting. They also used defined contribution accounting to some extent for employees of Chinese domiciled subsidiaries of the company, as seen in Note 22 only a limited disclosure regarding the use of this plan was indicated. It also provided information as to actuarial gains, actual returns on plan assets, plan liabilities, reconciliation of movements in the present value of obligations and fair value of plan assets, fair value of plan assets, the date of actuarial valuation, the actuarial assumptions such as salary increase rate, rate of return on assets, and discount rates.Termination benefits and other long-term benefits are not considered issues to the company. Other disclosures such as medical costs, schedules of contributions by employers and employees, and the recognition of actuarial gains and losses not presented in the financial statements will not affect the companys compliance with the standard. PAS 21 The Effects of Changes in Foreign Exchange Rates Disclosure requireme nts under PAS 21 referring to functional money of the parent includes the amount of exchange differences recognized in profit or loss except for those arising on financial instruments measured at fair value through profit or loss in ccordance with PAS 39 and net exchange differences classified in a separate component of equity, in addition to the reconciliation of the amount of such exchange differences at the beginning and end of the period. Moreover, reasons for using presentation bills rather than functional money should be indicated if such is the case or if there is a change in the functional money of either reporting entity or a significant unconnected operation, that fact and the reason of change should be disclosed. It will only be deemed complying with the IFRS if all the requirements of each applicable accounting standard and interpretations are followed including the method of translation. The company disclosed its adoption of PAS 21, and they will be applying it pro spectively.They also noted that goodwill arising from acquisition of a foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition are now treated as assets and liabilities of the foreign operation and are to be translated at a closing rate. However, this new policy will have no significant impact to the company. As seen in letter (d) of note 2. 4. 1, the company has determined the Philippine peso as the functional currency of the company. Additional information regarding functional currency and translation method is provided in section 2. 5. There is no issue as to the use of functional currency, since both parent and subsidiaries will use the Philippine peso.But as can be noticed, although there is a presented amount of exchange differences resulting from translation as indicated in the Statement of Changes in Equity, there is no reconciliation of the amount of such differences at the beginning and end of the period . PAS 24 Related Party Disclosures Relationships betteensyn parents and subsidiaries shall be disclosed regardless of whether there have been transactions between those related parties. An entity shall disclose the urinate of the entitys parent and, if different, the ultimate controlling party. If neither the entitys parent nor the ultimate controlling party produces financial statements available for public use, the name of the next senior parent that does so shall also be disclosed. Moreover, disclosure requirements include key management personnel ompensation in total and per categories presented in paragraph 16 regarding short-term employee benefits, post-employment benefits, other long-term benefits, termination benefits, and share based payments the nature of related party relationships and information on the amount of transactions and outstanding balances, provisions for doubtful debts, and expenses recognized during the period in respect of bad and doubtful debts. The pare nt shall make separate disclosures, in addition to their interests in a union control or significant influence over the entity, information regarding the parent companys subsidiaries, associates, joint ventures, key management personnel, and other related parties.JFC finds this standard to have no effect on its equity but they are amenable to adopt the new standard. In note 24, the company noted that the transactions with members of the Jollibee group are eliminated while intercompany advances are major transactions with joint venture. They complied with the presentation of outstanding balance of advances as indicated in the standard. The company was able to apologise such presentation in Notes 8 and 9. Yet on the other hand, there is no information regarding key management personnel and their compensation schedule. Accordingly, since JFC, as a parent, runs its business independently of its subsidiaries and other related parties, there is no dependence on the companys related part ies.PAS 27 Consolidated and Separate Financial Statements In this standard, the entitys compliance of the standards depends on their disclosure of the nature of the relationship between the parent and the subsidiary, reasons that will not constitute control of an investee in the entity, differences in reporting dates, and a inclination of information regarding significant investments in subsidiaries, jointly controlled entities or associates. In note 8, the companys financial statements presented its required disclosures of investments in subsidiaries, although information with their compliance to paragraphs 41 and 42 of the standard is not that material for their presentation regarding separate financial statements. Hence, the company managed to comply with the disclosure requirements of PAS 27.PAS 31 Interests in Joint Ventures PAS 31 delineated several disclosure requirements such as the heart and soul amount of specified contingent liabilities, unless the probability of loss i s remote the pile up amounts of capital commitments of the parties with respect to their interest in the joint venture a listing and description of their interests in joint ventures and accounting methods in recognizing interests in joint ventures. JFC was able to comply with the disclosure provisions of the standard, having presented its description of their interest in a joint venture and the accounting method for its joint venture, as seen in section 2. 18 in Note 2 and the good Note 9 of the financial statements. The first two items are not applicable in the company at the moment. In this case, the company was able to comply with the requirements of PAS 31.PAS 32 Financial Instruments Disclosure and Presentation To farm the understanding and significance of financial instruments of the entity, the firm should describe its financial adventure management objectives and policies, including hedging policies for each main type of forecast transaction for which hedge accounting is used. The firm should also disclose a description of the hedge financial instruments designated as hedging instruments including their fair values, nature of take a chances cosmos hedged, and for cash flow hedges, the period in which cash flows are expected to occur. Information about the nature of financial instruments and basis for accounting recognition moldiness also be divulged.The firm should disclose the amount of gain or loss on a hedging instrument recognized in equity, removed from equity, and the amount removed from equity and was included in the initial measurement of acquisition cost or carrying amount of non-financial assets or liabilities. Information about their exposures to credit gamble and interest rate risk are also mandated. Furthermore, the standard requires information regarding fair valuation of financial instruments, de-recognition of financial instruments, financial assets held as collateral, compound financial instruments with duple enter derivatives , reclassification and presentation of income, expenses, gains, and losses resulting from financial assets and financial liability transactions, and impairment and defaults/breaches. Under Note (c) of section 2. 3. of the notes, JFC has embedded information on how the company place its financial assets, and how they precious those financial assets. These pertain to their investment in stocks, refundable deposits on leases and noninterest bearing car loans. These financial assets were explained in full detail in section 2. 6 of Note 2. In section 2. 16, information on de-recognition of financial assets and liabilities in accordance with PAS 32 were presented. Under Note 27, the company expressed its compliance with PAS 32, video display their risk management objectives and policies, and information on how JFC addresses the financial risks discussed in the standard.In Note 29, the financial statements presented the valuation of financial assets and liabilities, in accordance with th e valuation set by PAS 32, together with the information of multiple embedded derivatives. However, detailed information about the maximum degree of risk exposure must be presented. PAS 39 Financial Instruments Recognition and Measurement PAS 39 has no disclosure requirements since they were moved to PAS 32. However, to comply with IAS 39, information about the decrease in retained earnings and carrying amounts of financial assets was disclosed. In note (c) of Section 2. 3. 1, they also disclosed unrealized loss in the companys AFS financial assets as part of compliance with the standards. Section 2. 6 provided a description of financial instruments held by JFC.In Section 2. 10 the company disclosed information on the impairment of financial assets in accordance with the requirements of PAS 39. Section 2. 22 presents information on the impairment of non-financial assets. Information on Notes 27 and 28 are still applicable in compliance with PAS 39 regarding measurement of financial assets and liabilities. PAS 33 Earnings per Share In presenting the financial statements in accordance with PAS 33, the standard requires the presentation of amounts used as numerators in calculating basic and subjugated earnings per share and its reconciliations to profit or loss attributable to the parent entity for the period.It should also disclose the average number of ordinary shares used to calculate basic and diluted EPS, instruments that could dilute basic EPS in the future, and a description of ordinary share transactions that occur after balance sheet date. Jollibees compliance with the standard was indicated in section 2. 27 of Note 2 and Note 25, which presented the Earnings per share computations. As indicted in section 2. 3. 4, comparative information and disclosures have been presented as required. However, the adoption of PAS 33 has no effect on equity of JFC. The presentation of Earnings per Share of Equity Holders of the Parent was indicated in the Income Stateme nt of JFC.PAS 36 Impairment of Assets Disclosure requirements in accordance with PAS 36 include the amount of impairment losses recognized in profit or loss during the period in each class of assets and revalued assets, the reversals of impairment losses in each class of assets and revalued assets. For material impairment losses, disclosures as to the events that led to the recognition or reversal of impairments losses in assets, cash generating units and information on aggregate losses should be indicated. Such compliance by JFCs 2005 financial statements is indicated in letter (b) of section 2. 4. 2, section 2. 22 of Note 2, Note 3 regarding segment information on impairment losses, Notes 10 and 11. The company provided disclosures of their assessment of impairment losses on non-financial assetsPAS 37 Provisions, Contingent Liabilities, and Contingent Assets PAS 37 requires disclosures regarding contingent assets, liabilities, and provision. Contingencies are disclosed except when the possibility of an inflow or outflow of resources is remote. Information regarding the nature and estimated amount of such contingency, its financial effects, the uncertainties relating to the outflow and amount of reimbursements are also noted. necessary disclosures for provisions include carrying amounts, additions of provisions, provisions used, and unused amounts reversed during the period. Moreover, brief descriptions on each class of provisions are due for presentation in the financial statements.The company was able to provide information regarding the companys provisions, as stated in Note 14. While information on contingencies is not substantial, still, the assumptions are still presented in Note 2 of the financial statements. PAS 40 Investment Property PAS 40 identified the presentation requirements for investment properties. Disclosures under this standard are and extension of the requirements presented in IAS 17 (or PAS 17, Leases). Entities shall disclose whether t hey apply the fair value model or cost model in valuing investment properties. Should they apply fair value model, firms should indicate the heap property interests held under operating leases are classified and accounted for as investment property.If the classification is difficult, they should distinguish investment property from owner-occupied property and from property held for sale in the ordinary course of business. In addition, entities have to make out the methods and significant assumptions in valuation of investment properties. Amounts recognized in profit or loss such as rental income, operating expenses incurred from properties that are income and non-income generating, existence of restrictions on realizable characteristic of investment properties upon disposal, and contractual obligations regarding investment properties should be disclosed. Because JFC elected to use cost model in the valuation of investment properties as shown in note (e) of Section 2. 3. of Note 2, disclosures require the depreciation methods used, useful lives or depreciation rates used, gross carrying amount and accumulated depreciation, a reconciliation of the beginning and end point balances showing additions, assets classified as held for sale, depreciation, transfers, impairment losses, and fair value of investment properties. In the same notation, JFC presented the effects of adopting the policy in the financial statements, as evidenced by the reconciliation found in the same note. Here, the changes in retained earnings and net income were presented, in addition to the expressed carrying value of the property. In Section 2. 20, the company presented their significant accounting judgments and policies regarding the adoption of the new standard. In Note 10, since they are using the cost method of valuing investment properties, reconciliation was presented showing the cost and accumulated depreciation of investment properties.Moreover, it also showed information regardin g any transfers retirements impairment losses and depreciation were depicted. Yet, they did not disclose the accounting methods used and the estimated useful lives of investment properties subject to depreciation. Table 3 Financial Reporting Issues Presented in the Analysis of Jollibees Financial Statements for the Year 2005 Standard No Financial Reporting Issues Presented The non-inclusion under Notes 2. 3. 5 regarding disclosure standards regarding capital management that should be indicated even though the provisions are not yet effective The classification of Judgments a-c in Notes 2. 4. 1. Is that considered a judgment, or an estimation uncertainty? PAS 1 PAS 8 PAS 24 PAS 40 ADDITIONAL NOTESSame as the problem of application in PAS 1 regarding disclosure standards on capital management Information about key management personnel was not indicated in the notes to financial statements. Information about the persons, their salaries, etc. is found in the 2005 SEC Form 17A. Only the disclosure regarding accounting methods used and estimated lives of investment properties subject to depreciation were not described. The release of the financial statements in the annual report has produced several encoding errors in the production of the financial statements. In summarizing the entire discussion, Table 3 highlights all financial reporting issues noted in the analysis of Jollibee Foods Corporations 2005 financial statements. As can be seen, there has been an issue regarding the adoption of ten Philippine Accounting Standards.In addition, there was noted some encoding errors in the financial statements per examination of the annual report. Referencing regarding the reconciliation of equity upon adoption of the new standards is one example. Such errors, if noticed, may lead to some confusion in understanding the financial statement information. Other Problems in Financial Reporting This section tackles the problems that might have encountered by Jollibee in their pre paration and presentation of the financial statements other than disclosure requirements. In addition, this paper will address how the company may have resolved such setbacks to achieve a fair presentation of the financial information.Functional Currency and Translation This problem arose for the reason that Jollibee has been maintaining international operations in the United States, Hong Kong, Vietnam, Brunei, Guam, and Saipan. In addition, its Chowking stores are located in Dubai, while their Yonghe King restaurants situate in China. Red Ribbon had also expanded in the US even before it was acquired by Jollibee. Because these countries uses different currencies in their routine operations and in the preparation of financial data, it is wondered how Jollibee will address such problem in their consolidated financial statements, whose parent company is situated in the Philippines.The problem was resolved in Note 2. 5. As can be said, the companys management determined its functiona l currency to be the Philippine peso. In this case, the company measured these international transactions in Philippine peso at the transaction dates. Monetary assets and liabilities were measured using the exchange rate at balance sheet date. Non-monetary assets and liabilities wee measured at historical cost using the exchange rate at the date of initial transaction. Its foreign subsidiaries financial statements were translated into the presentation currency of the company. Exchange rate differences were presented in the financial statements, though in aggregate form.Receivables Although the companys main business is the development, operation, and franchising of Quick Service Restaurants (QSR), the company also maintains other operations in support of their QSR restaurants like franchising and leasing of facilities to other companies, it can be inferred that the company does not only depend on cash sales brought about by their restaurant operations. Receivables arose because fran chising and real estate are also revenue-generating areas of the organization which also forms part of their trade receivables. Moreover, they also have dues from the joint venture and other related parties, which were aggregated as loan receivables. To prevent confusion, the company presented in its segment information the operations of such segments and as such, users can find out those transactions under franchising and real estate operations may primarily cause such receivables recognition.Inventory Valuation Because the primary operation of Jollibee is the operation of QSRs, it is noteworthy that the major legal age of their investments are food supplies, novelties, packaging, store supplies, and processed inventories. The perishable nature of food supplies and processed inventories, and the obsolescence of other supplies due to the release of new packaging designs, the draw of periods where Jolly Kiddy meals come with novelties, and other time-based factors are the problems that Jollibee encounter in the valuation of its inventories. As such, the company maintained the policy of the First-In, First-Out (FIFO) basis of inventory system and in their valuation of inventories as of the balance sheet date.This is to prevent the worsening of goods that may be harmful if not used within a certain amount of time, and to maximize the usability of these items. Though designs change, its utility value is the same for packaging all Jollibee products. Cost valuation using FIFO allows the firm to value its unsold or unused inventories at more novel dates of acquisition, which is acceptable under the new standard. Revenue Recognition Jollibee recognizes revenue from various sources such as from sale of goods, royalty fees, franchise fees, dividend income, rental income, and interest income. While the policy of revenue recognition was presented in the notes to financial statements, certain question on how they recognize revenues from franchise fees.Accordingly, such revenues are recognized when all services or conditions relating to the transaction have been substantially performed. self-coloured may not be the total performance demanded to the company in providing such services. The question lies regarding new franchisee transactions that the companys services commence at one period and terminates on the other period. How will the company assess their substantial performance on such franchise services to its new franchisees on the first period? Segment Reporting As can be seen, Jollibee has presented its segments on the basis of the nature of operations. Specifically, the company presented the food service, franchising, and real estate segments of its business.Knowing that Jollibee has international operations in the USA, East and Southeast Asia, and even in the Middle East, it is of question why did the company did not presented information related to geographical segments. Be it noted that of the more than 1,000 outlets of the Jollibee cl assify, less than 140 of them were located outside the Philippines, including the 101 Yonghe King restaurants in China. Based on the combined performance of these stores, the international operations has yet to contribute more in the total operations of Jollibee, as almost 90% of their stores are located in the Philippines. Again, it should also boil down on the notation that Jollibee has other major operations.That could be the reason for segment information to be reported that way. Admission of Red Ribbon into the Jollibee Group In 2005, the company bought Red Ribbon, a company that sells cake products to Philippine consumers. Red Ribbons financial statements prior to acquisition are prepared for the fiscal year ending June 30. Since Jollibee and Red Ribbon have time differences in financial reporting, the stockholders and the Board of Directors agreed that the reporting period of the company should follow the calendar year presentation of Jollibee. Hence, the notes presented the summative position and performance of Red Ribbon for the fiscal year endedJune 30, 2005 and for the six months ended December 31, 2005, following the calendar year. Financial Instruments Due to the applicability of PAS 32 and 39, the company classified certain investments in shares of stocks as available-for-sale financial assets and valued at fair value, though these has been measured at lower of aggregate cost or market value in the previous GAAP. Refundable deposits on leases and non-interest bearing car loans were re-measured at fair value at initial recognition and subsequently at amortized value under the effective interest method. Prior to such adoption, these are carried at cost, less impairment in value under previous GAAP.Such adoption resulted in a decrease in retained earnings for the company, which may have brought adverse effects to the company from the point of view of layman financial statement reader. Realizations After analyzing the financial statements of Jollibe e Foods Corporations 2005 financial statements to identify the issues and problems in their financial reporting in accordance with the PFRS and PAS, this paper presents some realizations about the state of the company struggling to ensure compliance with the Philippine accounting standards under issue in the preparation of the financial statements. In addition, an insight regarding problems in financial reporting is presented. 1. Some judgments may not be considered judgments at all.While the company may have a point in identifying several issues to be as accounting judgments, it may be preferable if such judgments like impairment, leases, and asset retirement be presented under estimation uncertainties. This is because this transactions or events normally require estimations rather than judgments. 2. Keep abreast with the release of new standards. It can be assumed that the newest release of PAS 1 standards relating to capital management may not yet noted by the company. Jollibee m ust continuously upgrade its awareness of these new standards since it might have a significant bearing on how they will present the information to comply with such new standards. Such can be achieved through attention to seminars on PAS and PFRS, and continuous training and research. 3. Redundancy can lead to fair presentation.Standards have the say. Sometimes, the notes have to be redundant in stressing out the way out of applications, measurement, and valuation of items that are covered by a particular accounting standard (e. g. PAS 14, Segment Reporting and PAS 18, Revenue, where both standards require the presentation of similar information related to reportable and non-reportable segments). In such case, preparers of financial information have no option but to present the information more than once, as per accord with the standards. 4. Show reconciliations, when necessary. The use of such reconciliations may lead to a better understanding of the financial statements.Showing the movements in the beginning and ending balances may already be an important tool to understand the information related to such reconciliation. 5. Encode information with accuracy and with precision. Preparers of financial statements must exercise due care in encoding of information in the soon-to-be published financial statements. Errors resulting from such carelessness may mislead users of financial information in making economic decisions for the company. 6. Problems are immortal. New policies, new standards, new conventions. These lead to problems especially in dealing with the preparation of the companys financial statements. Instant compliance maybe difficult. Sometimes, resolving these problems might have adverse effects.It really depends on the company on how they are motivated to face these situations and eventually gear itself to imminent financial reporting problems in the future. References Acuna, C. , Bernaldo, R. , Dy, L. , Malabanan, R. , & Young, L. (2004). A compa rative study on the performance and financial position of Jollibee and McDonalds for the years 1999 2006. Unpublished undergraduate thesis. Manila, Philippines De La Salle University. Jollibee Foods Corporation (2004). Jollibee Foods Corporation Annual Report 2004. Pasig City, Philippines. Jollibee Foods Corporation (2005). Jollibee Foods Corporation Annual Report 2005. Pasig City, Philippines Philippine Institute of Certified Public Accountants (2005). Philippine Accounting Standards Vol. 1-5. Mandaluyong City, Philippines.

Advantages and disadvantages of mobile phones Essay

The 21st century has seen the advent of amazing technological advances, one of which is of the liquid phone. Nowadays, a unstable phone consists of camera, MP3 player, alarm clock,., or in another(prenominal) way, a lively phone is a combination of more than 10 items of our daily lives. And so a nimble is a basic accept and everybody has it. We buttocks all see clearly the advantages of a wandering phone, exactly not everybody recognizes the down side of having one. As mentioned and well acknowledged by everyone, convenience is an advantage of mobile phone.With a mobile phone, we are adequate to(p) to have instant contact with whomever we want, whenever we want, and also because it is a multi-functional device beside chat use, even more accurate for the new generations of smart phone. At present, a smart phone buns access the internet using 3G or Wi-fi. Therefore, it is not just a phone, but a mini computer. at any rate the obvious advantage, another comes to mind, and t hat is text editioning helping deal to overcome shyness and awkwardness. creation late for a meeting, apologizing, telling loved things to someone, are all sort of uncomfortable situations and speech can make things even worse. But text gets rid of those moments and replace it with a clean, logical and clear message. Furthermore, teenagers find mobile phones being an expression of their identity because they are beyond the control of parents. A mobile phone makes our lives quite easier, right? Not quite. As you can see, scientists have claimed that mobile phone produces a small amount of radiation sickness waves, resulting to brain cancer, so long usage can be perverting to health.And in terms of health, there have been a great flowerpot of traffic accidents caused by texting and calling while driving. So firstly a mobile phone can affect our health and probably our lives. Secondly, mobile phones can be great distraction at work and school. The internet, the games on smart phon es, the endless number of applications, those are temptations, creating lack of concentration for people working and studying, which is an activity being definitely less exciting by comparison. In addition, mobile phones are sometimes disturbance in our lives repayable to the wrong-number phone calls, draft messages, prank calls,. .These are very annoying and can lead to discomfort, especially if these are being made at night. because there are environmental issues involved with mobile phone usages. gibe to a survey, people on average use their phone 11 to 18 months, a short period of time. And when those old phones become trash, and with the call for of phones atpresent, which is a lot, it can lead to pollution due to computer hardware of mobile phones being hard to dispose of.In conclusion, we use mobile phones on a daily basis for theirs obvious advantages, but we also need to be aware of the not so obvious or simply ignored disadvantages. On account of the mass demand of mob ile phones, we need to know both sides of them in order to make the beat out out of a wonderful device.

Best Day Essay

Have you forever felt the emotion when you are going to see your favorite rope or singer alive in a project. This happened to me when I went to Sofia become year to see superstar of my favorite singers Enrique Iglesias. It was fantastic experience that I will neer forget.The solar day was near, it was ten days befor the project, and every day I asked my father for permission and money. One day he in the end said yes, and he gave me the money. He told me that it was the gift for my birthday. I was so quick-witted and immediately called my friend to tell her about the news. The next day we bought our tickets and we were postponement for the big day.We couldnt believe that we would be in the most waited concert on September 29th , we never thought that in any(prenominal) hours, we would sing all the song of our favorite singer.When we arrived,we sat in the chairs, and we were delay for Enrique. The lights turned off and all the auditory screamed like they were crazy. The o rchestra began to play one of my favorite songs. The best singer appeared in the scene. That moment was so awesome and exciting for me, and everyone was all of the songs.In conclusion, I will tell tha, the concert was a big experience for me and I was so happy. At the end, we bought some souvenirs from the concert, like a shirt, some posters and a cup. The concert finished at 12 p.m. and we came back to our town with an experience that I will never forget. I will remember this moment as if it had been yesterday.

Pills to Make You Smarter Essay

The canker of smart checks is rapidly growing throughout the World. methylphenidate, Adderall, and Provigil ar taking over college camp subprograms and business offices each day. Why attention deficit hyperactivity disorder pills though? The answer is that ADHD medication kick the buckets into your brain so that you can maintain focus. These pills are called cognitive-enhancing drugs, which elbow room that they access the brain to enhance. However, you have to have a prescription to arouse the pills.Many passel believe that gives people who have prescriptions an unfair reinforcement in deed on campuses and offices. Why should those people be given over the ability to focus and concentrate better? I believe as if it is unfair, also. I would like to be able-bodied to take a pill that can help me concentrate. A majority of people think the mien I doBased on government data gather in 2007, more than 1. 6 million people in the U. S. had utilize prescription stimulants non- checkuply during the previous 12 months. That is absolutely insane and it needs to change. tidy sum are using these drugs and some whitethorn be using it for hallucinations and to get a high but still, a majority of the people use these drugs for strictly concentration purposes. There are still many things that scientists use up about, though. Addiction is a big one. Users can get addicted to methylphenidate and Adderall over time, which really throws major concerns. Another concern is health problems. Ritalin and Adderall are not necessarily good for your health.Over time, they both cause health problems. However, many over-the-counter drugs today, cause health problems over time. Therefore, at the end of the day we have Adderall, Ritalin, Provigil, and Donepezil. The medical use for Adderall and Ritalin are stimulants that are part of treatment of ADHD and narcolepsy. However, also effective as an enhancer that increases cognitive performance on definite tasks under conditions of fatigue, may also improve planning and one type of working memory.The medical use for Provigil is a stimulant for narcolepsy and excessive sleepiness because of shift work or obstructive sleep apnea. However, it also serves as an effective enhancer to augment mental focus and better performance on a limited set of cognitive measures, such as recall of persistent strings of numbers.The medical use of Donepezil is for treatment for the cognitive deficits of Alzheimers distemper increases the neurotransmitter acetylcholine to improve cognition. Effective enhancer as it might aid in learning or memory, but overall results are not certain ay also take several weeks to work. All of these pills act on desoxyribonucleic acid in a way that triggers synthesis of proteins that strengthen the signaling conjunctive between the glutamate emitting and receiving neurons. A super smart pill that is made up of the basic ideas in each one of these drugs, is in the making estimable now. Scienti sts and Pharmacists are working e real day to make this drug, but it is very difficult with all of the downsides that Ritalin, Adderall, Provigil, and Donepezil provide.They are trying to find ways to gash out/reduce most of the downsides. If this drug is created, it will be a major win for the scientific world. It will also affect people in my community. If students are able to take this drug, they will be able to apply themselves towards schoolwork with aid from the drug. If students can concentrate, maintain sleep, and remember things, the huckster will be the limit. With the aid from the drug, students will be able to strain anything that they put their mind to and more.

Outlining an Informative Speech: Anabolic Steroids

Outlining an Informative Speechanabolic Steroids in Sports OUTLINE OF voice communication ATTENTION-GETTING OPENER An athlete is a some(prenominal)body who is trained or masterful in exercises, sports, or games requiring corporeal cogency, agility, or stamina. Athletes train and practice year-around to prep atomic number 18 for the competition and chall(a)enges. Most naughty school, college, amateur and professional athletes figure in sports for the opportunity to pit their abilities against those of their peers, and to fancy the satisfaction that comes from playing to their potential. Others do so to satisfy a craving for recognition and fame.Unfortunately all this creates some athletes who atomic number 18 determined to win at each cost. confirm you heard or know of whatsoeverone who has engrossd anabolic steroids? PREVIEW Today I will give you some raise facts about the spend of anabolic steroids in sports. I Description and description II Reasons for using III Famous Athletes IV Effects V Solutions BODY transformation To better hear my report, first we should know what anabolic steroids ar. I Description and definition A. A group of usually synthetic hormones that be derivatives of testosterone, are riding habitd medically especially to promote wind ontogeny B.Are sometimes ab spendd by athletes to increase the size and strength of their muscles and break endurance C. Non-medical habituate of anabolic steroids is illegal and banned by close major sports organizations D. In January 2005, the Anabolic Steroid Control motion was amended with the Controlled total Act that added anabolic steroids to the list of controlled substances and makes possession of the substances a federal crime TRANSITION You may be asking by now, what are the reasons that make athletes use these drugs? II Reasons for using A. To gain good B. Lack of self esteem C.Peer, agonistical, fan and media pressure TRANSITION Now, I will mention some famous a thletes that used, during their careers and competitions, anabolic steroids. Im sure you know nearly of them. III Famous Athletes who used anabolic steroids A. Heidi Krieger B. Ben Johnson C. scratch McGwire D. Florence Griffith Joyner E. Brian Bosworth F. Arnold Schwarzenegger G. John Kordic H. Danny Harris I. Lyle Alzado TRANSITION Ok, I will now snuff it to mention some of the harmful effectuate that this drug has on the athletes that use and abuse them. IV Effects A. Damage to the kidneys and liver B.Alteration of the isotropy of the immanent hormones C. about male users form breasts D. Serious acne problems E. When used by teens it squeeze out buzz off stunted growth F. Genital changes, urine retention, yellow eyes, coronary thrombosis artery disease, high blood pressure, and changes in cholesterin levels G. Ligament injuries and sterility H. Women buy the farm the fortune of male pattern baldness I. Coma and death J. human immunodeficiency virus transmission K. Wi thdrawal symptoms L. Depression TRANSITION aft(prenominal) mentioning the harmful do, I will explain some solutions that should be taken to reduce the use of this dangerous drug by all athletes.V Solutions A. Legal 1. Restrictive laws 2. Penalties B. education Change of athletes strength 3. Thorough knowledge of the sports bodily demands and requirements 4. Maintenance of a healthy lifestyle 5. Appreciation of the satisfaction that comes from elaboration TRANSITION After my presentation, you should now understand why some athletes use anabolic steroids and the effects this drug has on them. SUMMARY Now, you understand the almost important facts of anabolic steroids in sports. I Description and definition II Reasons for using III Famous Athletes IV EffectsV Solutions Concluding Remarks In conclusion, any athlete of any age should be educated in fall of the hazard and minus effects that the anabolic steroids has on a body. close to athletes persist in taking them, believing that these substances provide a competitive advantage. But beyond the issues of popularity or legality is the fact that anabolic steroids potful cause serious physiologic and psychological side effects. ACTUAL SPEECH INTRODUCTION I. An athlete is a person who is trained or skilled in exercises, sports, or games requiring physical strength, agility, or stamina.Athletes train and practice year-round to prepare for the competition and challenges. Most high school, college, amateur and professional athletes participate in sports for the opportunity to pit their abilities against those of their peers, and to experience the satisfaction that comes from playing to their potential. Others do so to satisfy a desire for recognition and fame. Unfortunately all this creates some athletes who are determined to win at any cost. Have you heard or know of anyone who has used anabolic steroids? II. Today I will give you some interesting facts about the use of anabolic steroids in sports.A. Descri ption and definition B. Reasons for using C. Famous Athletes D. Effects E. Solutions TRANSITION To better understand my report, first we should know what anabolic steroids are. BODY Anabolic steroids are any of a group of usually synthetic hormones that are derivatives of testosterone, are used medically especially to promote tissue growth, and are sometimes abused by athletes to increase the size and strength of their muscles and improve endurance. Non-medical use of anabolic steroids is illegal and banned by most major sports organizations.In January 2005, the Anabolic Steroid Control Act was amended with the Controlled Substance Act that added anabolic steroids and prohormones (a precursor to a hormone) to the list of controlled substances and makes possession of the substances a federal crime. TRANSITION You may be asking by now, what are the reasons that make athletes use these drugs? TRANSITION Now, I will mention some famous athletes that used, during their careers and compet itions, anabolic steroids. Im sure you know most of them. Over the years many professional athletes have been focus of the media, after being caught using anabolic steroids.To name only a few, here(predicate) are some examples. Heidi Krieger proved herself one of the worlds top athletes in the 1980s, pleasing medal after medal in the shot put for eastside Germany. Heidi Krieger, the 1986 European womens shot-put champion, became Andreas Krieger after a sex-change operation in 1997. He utter he had been fed so many steroids by his coaches without his knowledge that physical and emotional problems began. We remember when Ben Johnson was stripped of his gold medal in the 1988 capital of South Korea Olympics. Many athletes that were seen as heroes had their problems with anabolic use.Good examples of athletes that were made to look like heroes were Mark McGwire and Florence Griffith Joyner. Flo Jo was suspected of drug abuse when she won her gold medals in the Olympics. She was tim e-tested ten years after the Olympics and came up negative, but most steroids are out of a persons system within weeks. She was idolized by millions, so no other discussions came up on the topic of her drug use until her death. She was said to have mutterd in a fit of epileptic seizures. subsequently investigations showed she died of cardiac problems, a health problem that spate be brought on by steroid use.According to CBS News, other examples of professional athletes that used steroids were Brian Bosworth, Arnold Schwarzenegger, and John Kordic. Ameri stern Danny Harris ranked number one in the hurdles in 1991, failed a drug test, and was suspended for four years. The best known case of steroid use was Lyle Alzado. Lyle, the former defensive end, had an inoperable brain tumor that left(a) his once-massive body ravaged. He blames years of heavy use of steroids and human growth hormones. Alzado took steroids almost daily for nearly 20 years. This prolonged use killed him.TRANSIT ION Ok, I will now proceed to mention some of the harmful effects that this drug has on the athletes that use and abuse them. The negative effects of this drug are many. Some of the negative effects of the drugs are damage to the kidneys and liver. A person can also alter the balance of the natural hormones. This can cause detrimental affects to the body. The effects of your natural hormones being out of balance can last several years after being mangle the drugs. Some male users form breasts due to the use of steroids. Because of the increase in testosterone, steroids can cause serious acne problems.When used by teens it can cause stunted growth. Other side effects include genital changes, water retention, yellow eyes, coronary artery disease, ligament injuries, high blood pressure, and changes in cholesterol levels, sterility and liver disease. The list goes on and on. Women that use steroids run the risk of male pattern baldness. Some effects of steroids are even worse. Some peo ple fall into comas after injecting the drugs, some may even die from the injections. Sometimes, athletes who use anabolic steroids may share the needles, syringes or other equipment they use to inject these drugs.By sharing needles, syringes or other equipment, a person becomes a high risk for HIV transmission. HIV is the virus that causes AIDS. Athletes who use steroids can also experience withdrawal symptoms when they quit. The symptoms include mood swings, depression, fatigue and irritability, blemish of appetite, insomnia, and aggression. Depression can even lead to suicide attempts, if untreated. TRANSITION After mentioning the harmful effects, I will explain some solutions that should be taken to reduce the use of this dangerous drug by all athletes.The attitude of winning at any cost embraced by some athletes mustiness be redirected and replaced by personal dedication to the sport a entire knowledge of the sports physical demands and requirements maintenance of a healthy lifestyle and, an insight of the satisfaction that comes from participation. Our athletes should be educated since their early age about the effects and consequences of using anabolic steroids. There should be also restrictive laws and penalties for the athletes that are caught using this drug, no matter their fame or money.TRANSITION After my presentation, you should now understand why some athletes use anabolic steroids and the effects this drug has on them. CONLUSION I. Now, you understand the most important facts of anabolic steroids in sports. a. Description and definition b. Reasons for using c. Famous Athletes d. Effects e. Solutions II. In conclusion, any athlete of any age should be educated in light of the hazard and negative effects that the anabolic steroids has on a body. Some athletes persist in taking them, believing that these substances provide a competitive advantage.But beyond the issues of popularity or legality is the fact that anabolic steroids can cause serio us physical and psychological side effects. VISUAL AIDS 1. List of ideas a. Power lead presentation of pictures of anabolic steroids, famous athletes that have used the drug, and their pictures before and after using them. b. Short captions or tapes of the athletes during their performances. 2. Power point, because the captions or tapes can be inserted in the presentation. 3. The visual aid could be used as orient in each of the transitions.

A Comedy Without Substance by William Shakespeare Essay

Old and new waggery both advance during the take to the woods, they be only produced for delight purposes.Old drollery usually sees a speckle with a problem to overcome. This is attempted with a absurd plan, often spark advance to satire and buffoonery.These tell features of mature comedy argon sh induce when Hero has to falsify her death in order for Claudio to marry her and dogberry and verges court case to pucker respect and honour.New japery is also visible in the play, it is showcaseised by vernal man chasing a young woman, the protagonist has to overcome social difficulties in order to succeed in pursuit and even uptually ends with restoration.Claudio and Hero are clear examples of old comedy, that Benidick and Beatrice dont fit into this normal mold but are key romantics. The defective Exchange is a conversation which breeches usual rules of conversation (Grices Maxims) which are1.Be sincere 2. Be concise. 3. be clear. 4. be relevant. In oftentimes fuss r ound postcode, this is reflected through those who are out of step or disagree with night club.Dogberry and his companions of the stop number-middle-class are key characters of this.The example of breeching Grices Maxims in Much tizzy about zilch cause the play to become a comedy without substance.Dogberry breaks the maxims by not organism relevant as he says super C wilt be condemned into everlasting buyback for thisShakespeares character Dogberry says redemption instead of damnation, this is a malapropism.The fact that he means on the button the opposite of what he so passionately exclaims makes this a comical use of irony.This technique specifically used hither potrays this play to be a comedy without substance as this does not at all having every meaning behind it. However Grice Maxims are also broken by Benidick and Beatrice, Well, you are a rare parrot-teacher A bird of my tongue is dampen than a beast of yours I would my horse had the speed of your tongue, and so high-priced a continuer. But keep your stylus, i Gods discover I score done. You ceaselessly end with a jades trick I go to sleep you of old. Shakespeare uses Bendick and Beatrices merry war for the audition to percieve the characters confessedly feelings for one another, despite the characters not knowing so creating dramatic comedy.They are breaking the Grice Maxim of be truthful. Shakespeare covers these characters true feelings and mixes between genuine and bad roles of characters. Therefore this shows Much stir About Nothing is a comedy with substance as Shakespeare explores the geography of human soul. Shakespeare uses comic brotherhood to ca-ca comedy from their dialogue and interaction. Much ado about nothing because here is repre displaceed as only for entertainment so is a comedy without substance.Dogberry and his companions enter the play at a event of high drama. Come hither, neighbour Seacoal. God hath blessd you with a unattackable name. To be a well-fav oured man is the gift of fortune, butto save up and read comes by nature Both which, Master Constable You have. I knew it would be your answer. Well, for yourfavour, sir, why, give God thanks and make no squander of it andfor your writing and reading, let that appear when in that location is no need of such vanity Dogberry messes his words throughout all of his lines.He mistakes writing and reading as a sign of vanity which forfeits the earreach to purpose a glance of exactly how Dogberry views the world. To him, macrocosm a learned man is a good way to show off how refined you are.He attempts to use a wide range of speech to convince everyone thats hes a gentleman, even though he doesnt really have a grasp of the vocabulary he employs, he is trying to decieve those of upper class. This is purely for laughs and entertainment without any kind of meaning behind it, therefore proving the play is a comedy without substance. However the Beatrice and Benidck are comically diame trical by Shakespeare to create comedy, however this shows Much Ado About Nothing is a comedy with substance as there is a key heart behind this pairing.Why, then your uncle, and the Prince, and Claudio Have been deceived for they swore you did Do not you love me? Troth, no no frequently than reason. Why, then my cousin, Margaret, and Ursula.Are much deceivd for they did confirm you didThey swore that you were well-nigh dead for me Shakespeare potrays Benedick and Beatrice as having a view that everyone around them is deceived about their love for each other, but theyre only nonchalant themselves.Here Shakespeare expresses that despite Bendick and Beatrices clear intelligence and wit, they themselves are unable to show their true feelings. This shows the play is a comedy with substance.Their clever wit is used to decive eachother, however this produces dramatic irony as the audience know this is not the case.I would my horse had the speed of your tongue, and so good acontinuer . But keep your way, a Gods name I have done You always end with a jades trick. I know you of old.Shakespeare uses the two characters language as weapons, but they neer seem to be able to end or resolve their fights. Benedick backs out first, this creates a comedy with substance as women in the Victorian times were vatic to be seen and not heard. Shakespeare uses characters so the audience to laughing with and laughing at them.The audience laughs openly at Dogberry and the townsmen whereas they do not laugh unqualified at the people of the court, except in the case of Beatrice and Benedick and the way they are deceived and deceive themselves which suggests more respect is given for the higher class.This shows it is a comedy with substance as it is shown here the difference in which classes are taken as.Dogberry, a watchman is comical relief for the comedy itself. He is memorable in that he constantly uses malapropisms, or incorrect uses of words, in his dialogue. Goodman Verges, sir, speaks a little off the matter-an old man, sir, and his wits are not so blunt. Shakespeare uses malapropism here, instead of sharp he says blunt, this creates dramatic comedy as we are laughing at Dogberrys dialogue mistakes. This is only seen in the lower class characters. Despite Dogberry sussing out Don John he is still considered to be the almost clown of the play.Another low class character is Margret,, in contrast with Dogberry she is not trying to gain higher respect, she has no respect for herself..Of what, lady? of speaking honorably? Whilst talking to Hero dapple she is having doubts she mentions the word honourable this creates dramatic irony since the plot is about to turn back into a question of honourbaility due to Margrets actions.This part of the play is purely for entertainment for the build up to the plot so therefore Much Ado about nothing is a comedy without substance. Shakespeare uses the upper class to allow the audience to laugh with them.These charact ers are better educated and have more wit. Beatrice is one of these characters I had rather hear my dog bark0 at a crow, than a man swear he loves me. This creates dramatic comedy as men usually have that attitude towards love and women. Shakespeare uses Beatrice to portray a dominant,powerful woman who can fight her own battles compared to the steretypical woman role.This is purely just for entertainment to create comedy.However Bendick despite his higher education reads into things too much and is tricked into thinking Beatrice likes him which causes collusion Ha Against my will I am sent to bid you come in to dinner.Theres a retroflex meaning in that. I took no more strain for thosethanks than you took assiduity to thank me. Thats as much as to say, Any pains that I take for you is as easy as thanks. If I do not take pity of her, I am a scoundrel if I do not love her, I am a Jew. I will go bunk her picture Benedick convinces himself that theres to a lower placelying romanti c meaning in Beatrices words, even when thats obviously not the case.Love has the power to make us see what we want in conversation. Exclusion is taking place here as Shakespeare shows even higher classes are fooled and mistaken therefore,substance is clear as it shows there is not much difference between the two classes. Shakespeare uses mischief-making to make Much Ado about Nothing a comedy. Comedy has a substance here as it shows it does not expose plague just a lack of awareness.Hero tricked by Don Pedro as he is wooing Hero for Claudio.Tis once, thou lovest,And I will fit thee with the remedy.I know we shall have revelling to-night.I will assume thy part in some cover and tell fair Hero I am Claudio,And in her mash Ill unclasp my heartAnd take her hearing prisoner with the forceAnd strong clangour of my amorous tale.Don Pedro here manipulates gullible and innocent Hero into fall in love with Claudio. Its shady that Don Pedro will get Hero to fall in love with his words, thinking theyre Claudios words.Claudio and Don Pedro dont care if they manipulate Hero under falseness,as theyve only got their eyes on the prize of winning her even if she is deceived into being won by a guy she doesnt know and has never spoken to. Trickery creates substance as it potrays Shakspeares as evil being seen as a lack of awareness. Beatrice and Bendick are also tricked into loving eachother.Shakespeare creates this for the audience to laugh at their naivety and foolishness despite their typical wit.Much Ado About Nothing is a comedy with substance as the message behind this specific plot is anyone can be decieved and fooled since the wittiest and intelligent of characters get fooled. Don Pedro expresses this.Benedick that, in despite of his quick wit and his unbalanced stomach, he shall fall in love with Beatrice.If we can do this,Cupid is no longer an archer his glory shall be ours, for we areDon Pedro and Claudio create deception, but rather than tricking him into lov ing Beatrice, they are manipulating Benedick into making his own decision. Don Pedro also refers to them as being cupid despite lies and deciet taking place. This play is a comedy with substance as Shakespeare shows even the higher archery of society lie and deciet. Shakespeare critises marriage during the play through using the characters, yet the plot finishes its destination at the moment of resoultion where all is solved by marriage. This shows Much Ado about nothing is a play made purely for entertainment purposes with no substance.