Essay on Descartes - 1128 Words

Rene Descartes was one of the most influential thinkers in the history of the philosophy. Born in 1596, he lived to become a great mathematician, scientist, and philosopher. In fact, he became one of the central intellectual figures of the sixteen hundreds. He is believed by some to be the father of modern philosophy, although he was hampered by living in a time when other prominent scientists, such as Galileo, were persecuted for their discoveries and beliefs. Although this probably had an impact on his desire to publish controversial material, he went on to devise works such as the Meditations on First Philosophy and the Principles of Philosophy Aside from these accomplishments, his most important and lasting mathematical work was the†¦show more content†¦How can I doubt something if I do not exist. By the same token, maybe I am deceived into thinking I donamp;#8217;t exist by some other entity. But then I must exist for it is I who is being deceived. This is the basic pre mise of Descartesamp;#8217; famous Cogito Ergo Sum amp;#8211; I think therefor I am. Here Descartes is not saying anything about what we are here, just that we are. Next his desire is to find out exactly what he is. Well, Descartes states, if I exist, for how long do I exist? I exist for as long as I think, and if I cease to think, then I shall also cease to exist. Therefor, I am nothing but a thinking thing amp;#8211; that is, a thing that amp;#8220;doubts, understands, affirms, denies, wills, refuses, and that also imagines and senses.; Although saying he is all of these things is indeed a bold statement, Descartes feels that in his attempt to prove that he exists he has done all of those things, therefor they must be a part of what he is. nbsp;nbsp;nbsp;nbsp;nbsp;Descartes wants to show that amp;#8220;nothing can be perceived more easily and more evidently than my own mind.; He starts of with an example of a piece of wax. It seems that this piece of wax, or any corporeal thing for that matter, is more distinctly known by me than exactly what it is that I know. However, we do not really grasp what the wax(or any corporeal object) is through seeing, touching, or imagining, but rather by way of reason amp;#8211;Show MoreRelatedDescartes Vs. Descartes Philosophy1142 Words   |  5 Pages Rene Descartes’ begins to illustrate his skeptical argument as presented in Meditation l. Descartes basic strategy to approaching this method of doubt is to defeat skepticism. This argument begins by doubting the truth of everything, from evidence of the senses to the fundamental process of reasoning. Therefore, if there is any truth in the world that overcomes the skeptical challenge then it must be indubitably true. Thus, creating a perfect foundation for knowledge. The first Meditation is anRead MoreHitchcock/Descartes924 Words   |  4 PagesHitchcock/Descartes Am I really awake typing a paper for philosophy? Did I just watch the Hitchcock film Shadow of a Doubt or did the â€Å"not so supremely good God† plant a reel of thoughts in my head (Descartes16)? That would be ironic since the themes of the film are based upon human understanding of doubt, dreams, good, evil, ignorance and knowledge. The film portrays a neat staircase that leads into the house of an all American family and a rickety set of stairs off the side of the house thatRead MoreAnalysis Of Rene Descartes s The Descartes 2020 Words   |  9 PagesRene Descartes was a French mathematician who concurred with Plato and the early scholars about the significance of reason. Nonetheless, he found that his antecedents regularly settled their thoughts upon what he took to be a to some degree temperamental and dubious establishment. In this way, he starts his own venture by perceiving that all that he supposes he knows could be the consequence of sense involvement, which can mislead us, as when we think the street is wet when it is just a trap of lightRead MoreDescartes Epistemology1696 Words   |  7 PagesEpistemology ------------------------------------------------- Carefully explain Descartes’ cogito and his attempt to build his knowledge structure from the ground up. (Be as succinct as possible.) Does Descartes succeed or fail in that attempt? Justify your answer in full. Descartes’ Epistemology This essay attempts to explain Descartes’ epistemology of his knowledge, his â€Å"Cogito, Ergo Sum† concept (found in the Meditations), and why he used it [the cogito concept] as a foundation when buildingRead More Descartes Essay1269 Words   |  6 Pages In the early 17th century a philosopher named Descartes, questioned his existence. His life was dedicated to the founding of a philosophical and mathematical system in which all sciences were logical. nbsp;nbsp;nbsp;nbsp;nbsp;Descartes was born in 1596 in Touraine, France. His education consisted of attendance to a Jesuit school of La Fleche. He studied a liberal arts program that emphasized philosophy, the humanities, science, and math. He then went on to the University of Poitiers whereRead MoreDescartes vs. Locke1175 Words   |  5 PagesPhilosophy Essay (Descartes vs. Locke) Socrates once said, â€Å"As for me, all I know is that I know nothing.† Several philosophers contradicted Socrates’ outlook and believed that true knowledge was in fact attainable. This epistemological view however had several stances to it, as philosophers held different beliefs in regards to the derivation of true knowledge. Rationalists believed that the mind was the source of true knowledge, while in Empiricism, true knowledge derived from the senses. ReneRead MoreEssay on Renà © Descartes759 Words   |  4 PagesRenà © Descartes Renà © Descartes was a French philosopher and also mathematician. His method of doubt led him to the famous cogito ergo sum when translated means I am thinking, therefore I exist. This cogito was the foundation for Descartes quest for certain knowledge. He explored doubt and how we can prove our own existence, by taking the first steps of scepticism. His book Meditations On First Philosophy, was written in six parts. EachRead MoreObjections to Descartes’ Interactionism1431 Words   |  6 Pages In the following essay I will be offering some objections to Descartes’ interactionism as is primarily represented in his works The Passions of the Soul, Part I and Correspondence with Princess Elisabeth, Concerning the Union of Mind and Body. I will start by describing the basic features of how Descartes’ notion of interactionism works. Namely, that the pineal gland is the â€Å"principle seat† of the mind because it is the only singular part of the brain. The pineal gland also has a range ofRead More Rene Descartes Essay1094 Words   |  5 PagesRene Descartes was a famous French mathematician, scientist and philosopher. He was arguably the first major philosopher in the modern era to make a serious effort to defeat skepticism. His views about knowledge and certainty, as well as his views about the relationship between mind and body have been very influential over the last three centuries. Descartes was born at La Haye (now called Descartes), and educated at the Jesuit College of La Flà ¨che between 1606 and 1614. Descartes later claimedRead More The Meditations by Rene Descartes1003 Words   |  5 PagesIn Descartes’ Meditations, his goal to prove the existence of things could only be accomplished if he was logical, clear, and correct in his thoughts and writings. The most important issues he noted were the threat of being deceived and the potential of being incorrect in his judgments, both of which would lead him into error. Error exists as a problem that individuals encounter on a regular basis, and it also exists as a focal point in Descartes’ Meditations. Descartes defines error as â€Å"a privation

Financial Crisis And Its Effect On The Stock Crisis

BACKGROUND: The Global Financial crisis started with the burst of US housing bubble, which peaked in 2006. The main reason for this was the subprime lending, deregulation of the financial sector, off book financing and underwriting practices. Loans were issued to the customers with poor credit rating thinking that the price of houses will rise in the future and due to overvaluation. This resulted in decline in credit availability, damaged investor faith, and reduced international trade and an impact on the stock market. As European Union has high trade ties and financial ties with US, the European Union suffered the effects of this financial crisis as well resulting in the Global Financial crisis of 2008 or the Great depression of 2008.†¦show more content†¦In addition monthly allowances were given to the children of these employees. This resulted in increase in debt for every government that came by. (Krajewska, A. 2014) General Government revenues and expenses 2003 2004 2005 2006 2007 2008 2009 2010 General Government Revenues (% of GDP) 39.0 38.1 38.6 39.2 40.0 39.9 37.3 39.1 General Government expenditures (% of GDP) 44.7 45.4 44.0 45.2 46.6 49.7 52.9 49.5 Source: OECD data International factors: †¢ Due to the Global Financial crisis the exports from Greece reduced as it affected other Euro countries as well. The financial assistance from other countries was reduced. (Rady, D.M. 2012) †¢ Greece’s GDP growth rate came to -2.0%. †¢ Due to European integration, Greece was unable to devalue the Euro and reduce the amount of foreign debt and consequently lead to accumulation of debt. (Krajewska, A. 2014) †¢ The involvement of the â€Å"troika† i.e European Commission, European Central Bank and International Monetary Fund has helped Greece for two major bailout loan programs but in exchange has been dictating their domestic policies. Policies ranging from tax reforms, they have controlled wage cuts to the changes in regulations of even small domestic products. Failure to comply with Troika members may lead Greece to face a major default and may also lead to Euro exit but on the other hand upholding their policies is crushing the economic growth

How and When to Control Paper Wasps

Though paper wasps are beneficial insects, they tend to nest in close proximity to people, putting us at risk for stings. In some cases, it may be necessary to control paper wasps to minimize such risk. What Are Paper Wasps? Paper wasps construct the familiar, open-celled paper nests we often see suspended from eaves or porch ceilings. Most paper wasps  in North America belong to the genus Polistes. Although their tendency to sting in defense of their nests can be of concern, these wasps do serve an important ecological purpose as predators of other insects. They collect caterpillars, beetle larvae, and other insect prey to feed their young. Dont be too quick to get rid of a paper wasp colony if it isnt causing a problem.   Each year, the paper wasp queen must build a new nest, which she does by masticating wood fibers into a pliable pulp. After she raises her first generation of eggs, these offspring will assume the role of construction workers, expanding the nest to meet the needs of the growing colony. By summer, the paper wasp nest can be quite large, reaching a width of 6–8 inches. In fall, freezing temperatures will kill all but the queen, who seeks shelter and hibernates for the winter. The nest degrades over winter and is rarely reused the next year. As with any insect, its important to identify it before determining how and when control is necessary. Be sure you know the differences between wasps, yellowjackets, and hornets before taking action. Do Paper Wasps Sting? Paper wasps can and will sting in defense of their nest or when threatened. Unlike honeybees, which have barbed stings and can sting only once, paper wasps can sting multiple times. A paper wasp can call other colony members using alarm pheromones, chemical messages that tell other wasps to help defend the nest from a threat. Try to stay calm and avoid swatting at paper wasps. Consider Coexisting Peacefully Before you do anything to get rid of paper wasps around your home, ask yourself if you can tolerate their presence. Paper wasps help keep hungry caterpillars and other plant pests in check, benefiting your landscape and garden. If a paper wasp nest is located on your property but away from high-use areas, consider leaving it alone. Although they do sting, they do so only in response to a threat. Humans and paper wasps can often coexist peacefully. Obviously, when someone in your household has a wasp venom allergy, you may need to remove any nests to minimize the risk of an allergic reaction to a sting. Use Caution Around Wasp Nests If a nest is located near an entrance to your home or by a porch or deck where you spend a lot of time, you may need to take action to control paper wasps. Check eaves, shutters, and other high-traffic areas in your yard early in the spring, when paper wasp queens are first building their nests. If you find one early in the spring, before the first generation of workers has reached adulthood, you can simply knock the nest down with a broom to discourage the queen from nesting in that location. Larger nests, or those found later in the season, should be handled cautiously. Never attempt to remove an active wasp nest during the day, when the insects are actively flying in and out of the nest. Wait until evening, when the paper wasps have settled in for the night, to treat or remove any nest. During periods of cool weather, you may be able to treat wasp nests, as the insects become lethargic when temperatures dip down to 50 F or lower. Advice on Using Sprays Chemical pesticides should be used as a control method of last resort for any insect pest. In this case, the safest method of eradicating paper wasps in a problem area is, indeed, with a commercial wasp spray. Look for a product labeled for use on wasps and hornets, and remember, the label is the law. You must read the label and follow all directions for using any pesticide product. Wasp sprays usually come with a propellant that allows you to spray the pesticide from a safe distance. Coat the nest in the pesticide, covering all the cells of the nest. Never stand directly below a paper wasp nest while applying the pesticide. Wasps may drop from the nest, and you also risk getting the chemical in your eyes or on your skin. Check the nest the next day for any signs of wasp activity. Before you remove a nest, you must be sure that no workers survived the pesticide application. Wasp sprays kill on contact. Wasps that were absent from the nest at the time you sprayed may return to the nest site. If you dont observe live wasps near the nest, use a broom or other long-handled tool to knock it down. Dispose of the nest by putting it in a sealed baggie and placing it in your household trash. Sources Cranshaw, Whitney. Garden Insects of North America.North Carolina Cooperative Extension. Controlling Paper Wasps In And Around Structures.University of Minnesota Extension.  Wasp and Bee Control.

Swot Analysis Tesla Motors - 1501 Words

SWOT analysis of tesla motors Tesla motor is a car company that manufactures, design and sell electric car. The company named was named after a famous scientist and physicist Nikola tesla. Its headquarter is located in Palo Alto, California and it has a main production plant is in Fremont, California. Currently tesla motors have launched three models, the tesla roadster, model S, and model X. According to Elon musk, Cofounder and Ceo of tesla motors, â€Å"A Tesla motor was created to accelerate the advent of sustainable transport. Elon musk is a cofounder of PayPal and space exploration as well as chairman of space X and the solar city. Tesla factory in Fremont is currently manufacturing about 1200 to 1250 car per week. If we clear a path to the creation of compelling electric vehicles, but then lay intellectual property landmines behind us to inhibit others, we are acting in a manner contrary to that goal. Tesla will not initiate patent lawsuits against anyone who, in good faith, wants to use our technology.â €  Beneath the surface, however, there are opportunity and threats, strength and risks. OPPORTUNTIY Tesla motor has had a quite a brilliant climb into the automotive world. Cars are synonymous with the American dream but the politics of oil and environment are raising question on how to fuel that dream. JB Straubel founder of tesla motors said that, â€Å"we are solving problems for our children our grand children, oil is a finite resource and eventually we have to find aShow MoreRelatedSwot Analysis : Tesla Motors917 Words   |  4 PagesCOMM101 – Sec. 106 September 9, 2014 SWOT Analysis Tesla Motors Will (Xiaowei) Zhang #16928146 Strengths †¢ Innovative, inventive, unrestrained by traditional ideas; they effectively created their own market †¢ The connotation exists that Tesla is a premium brand that builds high quality vehicles (supported by their release of sports/luxury models before all else, and their pricing) †¢ Tesla Motors operates within a new niche with few competitors; this gives them pricing power.Read MoreTesla Motors External Analyis961 Words   |  4 Pagesï » ¿ SWOT ANALYSIS OF TESLA MOTORS SWOT analysis is an integral tool which helps management to identify the internal strength and weakness of an organization and make strategies accordingly to grab external future opportunities and fight against external threats (Kerin ,Hartley and Rudelius ,2012). The report here focuses on the external factors of a SWOT analysis of Tesla Motors (i.e. on Opportunities and Threats). Opportunities The future external opportunities available to Tesla Motors are discussedRead MoreTesla Motors, Inc.1172 Words   |  5 PagesTesla Motors, Inc. is an American automotive and energy storage giant firm that designs and manufactures electronically powered cars, their components and battery products. Tesla Motors is a public company that trades on the NASDAQ stock exchange under the symbol TSLA. Tesla reported profit in first quarter of 2013, which was first time ever in their history. Since its foundation in 2003, Tesla Motors has recorded most noticeable breakthroughs in the market of electric vehicles by their own developedRead MoreTesla Motors, Inc. Essay1614 Words   |  7 PagesAs a young automotive company, Tesla Motors, Inc. exhibits a list of strengths that has made the company successful with manufacturing and selling of their luxury electric vehicles (Eisler, 2016, p. 35). Tesla Motors, Inc. has a technological advantage in the battery market industry with their partnersh ip with Panasonic. Panasonic and Tesla collaborated in the development of the Gigafactory, which â€Å"is designed to churn out cells for battery electric vehicles (BEVs) with a combined energy storageRead MoreTesla Motors, Inc. Essay1578 Words   |  7 PagesTesla Motors, Inc. was founded in 2003 and joined the automobile industry out of Silicon Valley. The company is located in 30 different countries with 18 stores worldwide (Mangram, 2012, p. 296). Tesla Motors entered the automobile industry from a different approach in manufacturing automobiles. The company began designing, manufacturing, and marketing battery electric vehicles (BEVs) making Tesla the only manufacturer to sell a zero-emission sports car, the Tesla Roadster (Mangram, 2012, p. 296)Read Moretesla swot Essay1398 Words   |  6 PagesSWOT Analysis: TESLA MOTORS By Xin Xiong August 10th 2014 Company Overview Founded in 2003 and based in Palo Alto, Tesla Motors is one of the leading high-tech automobile companies, which produce the fully electrical vehicles and powertrain elements. The company runs operations in 31 countries and hires over 6,000 staff around the world. Tesla Motors has an increasingly high growth rate, recording its revenues of 2,013,496 in 2013 (See Figure 1). Sales of its current model, Tesla Model S, reachRead MorePestel, Porter s 5 Forces, And Swot Analysis1459 Words   |  6 Pagesthe organisation in the market, a situational analysis is conducted on the firm, describing its market and strategic strongholds, as well as weaknesses. For a clear explanation of the organisation’s situation, the PESTEL, Porter’s 5 Forces, and SWOT analysis will be conducted. It will provide a better understanding of the state of the firm, with a consideration of internal and external factors. 2.1 Pestle Analysis please see appendix 1 PESTEL analysis focuses on evaluating the external market throughRead MoreCompany Analysis : Tesla Motors1036 Words   |  5 PagesAlthough Tesla Motors product line could be considered a niche market they have plenty of opportunities to expand their product line globally, (Thompson et al., 2016). The firm’s vision outlines that they plan to expand their product line to promote growth and drive down the cost of their automobiles. Another important opportunity would be many countries are developing strong regulations that favor electric cars and the market is constantly growing due to increased fuel costs. Again Tesla Motors hasRead MoreTesla Motors Case Study. As Pressure Increases The Need1740 Words   |  7 PagesTesla Motors Case Study As pressure increases the need to develop alternative forms of powering the worlds petroleum powered vehicles a new company is attempting to disrupt to auto industry with a business model that challenges the status quo and force entrenched incumbents to alter their current vision for the future of the automobile market. Tesla was created to directly address the challenge of creating a viable alternative to the internal combustion engine. Tesla is the first company that commerciallyRead MoreNew Entrants : Teslas Ingenuity1419 Words   |  6 Pagesan influx of competitors out there that can roll with the Tesla such as the Dodge Circuit that has a 200-mile range which will make Tesla sweat a little bit (Mangram, 2012, pg. 300). Then again, Tesla is 100% electric where all other competitors are hybrids (electric and gasoline). IV. Internal Environment A. Corporate Structure Tesla vehicles are produced in Fremont, CA where they produce over 1000 cars per week (â€Å"About Tesla | Tesla Motors,† n.d.). It has a specialized production plant in Lathrop

Fundamentals of Speech Chapter 7 Assignment Free Essays

Fundamentals of Speech (Stiefel) CHAPTER 7 ASSIGNMENT Student Name: Below are arguments based on faulty reasoning. Identify the fallacy used (use a fallacy only ONCE): 1. Loaded WordsIt’s ridiculous to worry about protecting America’s national parks against pollution when innocent people are being attacked by terrorists. We will write a custom essay sample on Fundamentals of Speech Chapter 7 Assignment or any similar topic only for you Order Now 2. Red HerringThe proposal is likely to be resisted by the business-as-usual bureaucrats on Capitol Hill. 3. Celebrity EndorsementQueen Latifah promotes Cover Girl Cosmetics, so they must be good quality. 4. HearsayMy friend heard on the news the other day that the U. S. will declare war on Iran. . Question BeggingSince I’m not lying, it follows that I’m telling the truth. 6. Slippery SlopeIf we allow the school board to spend money remodeling the gymnasium, next year they will want to build a new school and give all the teachers a huge raise. Taxes will soar so high that businesses will leave and then there will be no jobs for anyone in this town. 7. Invalid AnalogyRaising a child is just like having a pet: you need to feed it, play with it, and everything will be fine. 8. Personal AttackI can’t support Senator Smith’s proposal for campaign finance reform because of all that time he spent in rehab back in the 1980s. . Hasty GeneralizationFred, the Australian, stole my wallet. Thus, all Australians are thieves. 10. False DillemaIf you don’t support the war in Iraq, then you don’t support the troops. 11. Authority FigureNoted psychologist Dr. Frasier Crane recommends that you buy the TurboSpa Hot Tub. 12. Either OrWe must either increase tuition or cut back on library services. 13. Arguing From IgnoranceSince you cannot prove that ghosts do not exist, they must exist. 14. Complex QuestionHave you stopped using illegal sales practices? 15. Prejudicial LanguageA godly person would agree that social programs must be maintained. 6. CoercionOnly those employees who want to keep their jobs should show up to the Saturday morning work session. 17. Straw ManSome people claim the â€Å"War on Drugs† is a failure, but I say they are wrong. 18. Unnamed AuthorityHealthcare insiders estimate there are more than 2 million needless surgical procedures conducted every year. 19. BandwagonI don’t see any reason to wear a helmet when I ride my bicycle. None of my friends do. 20. Cause and EffectThe Great Depression was caused by the Hoover administration. Herbert Hoover became president in March 1929, and the stock market crashed just seven months later. How to cite Fundamentals of Speech Chapter 7 Assignment, Papers

Busn Law free essay sample

The contract provided for an annual salary, insurance benefits, and other employment benefits. Another doctor, Dr. Quan, also practiced with Dr. Vranich. About nine months later, when Dr. Quan left the practice, Vranich and Winkel entered into an oral modification of their written contract whereby Winkel was to receive a higher salary and a profit-sharing bonus. During the next year, Winkel received the increased salary. However, a disagreement arose, and Winkel sued to recover the profit-sharing bonus. Under Montana law, a written contract can be altered only in writing or by an executed oral agreement. Dr. Vranich argued that the contract could not be enforced because it was not in writing. Does Winkel receive the profit-sharing bonus? Did Dr. Vranich act ethically in raising the defense that the contract was not in writing? Winkel v. Family Health Care, P. C. , 205 Mont. 40, 668 P. 2d 208, Web 1983 Mont. Lexis 785 (Supreme Court of Montana) In the matter of Winkel v. We will write a custom essay sample on Busn Law or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Family Health Care P. C. , the initial agreement and contract is not in questioned as there was no disagreement and Dr. Winkel proceeded to be employed for a period of at least 9 months. The Offeror of this initial contract was Loren Vranich aka Family Health Care P. C. and the Offeree was Dr. Winkel. A legally enforceable contract was entered into on that date. Yes! Because in the State that this contract is performed under, Winkel is entitled to the profit share bonus. The original written contract states nothing about the raise or profit-share. Unfortunately because FHC went into an oral modification of the written contract which is permitted in the State, FHC must hold to its oral obligation. At a later date after a fellow doctor had left an offer was made to increase Dr. Winkle’s salary and he would be offered a profit sharing bonus. This supplemental oral contract bared the form of a unilateral contract in that the Offeror’s offer could only be accepted by the performance of an act by the Offeree. (Cheeseman p 157) No! Dr. Vranich did act ethically by owning up to one part of the oral modification in paying Winkel the higher salary. By executing one portion of the oral modification she maybe felt she did not have to execute the other portion. Dr. Vranich did not act ethically in raising this defense because an oral modification was made and partially executed which in the State that this occurred allows an executed oral agreement. 10. 7 Acceptance Peter Andrus owned an apartment building that he had insured under a fire insurance policy sold by J. C. Durick Insurance (Durick). Two months prior to the expiration of the policy, Durick notified Andrus that the building should be insured for $48,000 (or 80 percent of the building’s value), as required by the insurance company. Andrus replied that (1) he wanted insurance to match the amount of the outstanding mortgage on the building (i. e. , $24,000) and (2) if Durick could not sell this insurance, he would go elsewhere. Durick sent a new insurance policy in the face amount of $48,000, with the notation that the policy was automatically accepted unless Andrus notified him to the contrary. Andrus did not reply. However, he did not pay the premiums on the policy. Durick sued Andrus to recover these premiums. Who wins? J. C. Durick Insurance v. Andrus, 139 Vt. 150, 424 A. 2d 249, Web 1980 Vt. Lexis 1490 (Supreme Court of Vermont) 11. 4 Preexisting Duty Robert Chuckrow Construction Company (Chuckrow) was employed as the general contractor to build a Kinney Shoe Store. Chuckrow employed Ralph Gough to perform the carpentry work on the store. The contract with Gough stipulated that he was to provide all labor, materials, tools, equipment, scaffolding, and other items necessary to complete the carpentry work. Gough’s employees erected 38 trusses at the job site. The next day, 32 of the trusses fell off the building. The reason for the trusses having fallen was unexplained, and evidence showed that it was not due to Chuckrow’s fault or a deficiency in the building plans. Chuckrow told Gough that he would pay him to reerect the trusses and continue work. When the job was complete, Chuckrow paid Gough the original contract price but refused to pay him for the additional cost of reerecting the trusses. Gough sued Chuckrow for this expense. Can Gough recover? Robert Chuckrow Construction Company v. Gough, 117 Ga. App. 140, 159 S. E. 2d 469, Web 1968 Ga. App. Lexis 1007 (Court of Appeals of Georgia) 13. 1 Unilateral Mistake Mrs. Chaney died, leaving a house in Annapolis, Maryland. The representative of her estate listed the property for sale with a real estate broker, stating that the property was approximately 15,650 square feet. Drs. Steele and Faust made an offer of $300,000 for the property, which was accepted by the estate. A contract for the sale of the property was signed by all the parties. When a subsequent survey (done before the deed was transferred) showed that the property had an area of 22,047 square feet, the estate requested the buyers to pay more money for the property. When the estate refused to transfer the property to the buyers, they sued for specific performance. Can the estate rescind the contract?

Advanced Financial Accounting for Lessee - MyAssignmenthelp.com

Question: Discuss about theAdvanced Financial Accounting for Lessee. Answer: Introduction Lease implies a contract between two parties in which one party agrees with the other to transfer the asset for use on payment of monthly lease rentals. The party which gives the asset on lease is called Lessor while the party which receives the asset for use is called Lessee (Nikolai, Bazley, Jones, 2009). The lease involves special financing arrangement therefore accounting for the Lessor as well as the Lessee becomes a hectic issue. The international accounting standard board had issued IAS 17 to provide for the accounting and financial reporting matters connected with lease accounting. This standard was in force till the time new standard IFRS 16 was issued by the international accounting standard board. The efforts for simulating the financial reporting process have been observed to be taken at the global level. All the countries are undergoing financial reporting convergence process wherein the local accounting standards of the countries are been endeavored to be converged wit h the international accounting standards (ACCA, 2016). As part of the financial reporting transformation process, the international accounting standard board has issued new standard in place of old IAS 17 which provides for accounting treatment of leases. The new IFRS would be effective from the accounting periods beginning on or after January 01, 2019. The companies would be required to carry out lease accounting in accordance with the provisions of IFRS 16 (Ernst Young LLP, 2017). Thus, it is important to gain the knowledge of changes that have been carried through promulgation of the new standard on lease accounting. In this context, a report has been prepared here to provide discussion on the changes in the requirement of IFRS 16 viz a viz IAS 17. Further, the report also discusses the effects of such changes on the financial statements and upon the listed companies. Changes to Accounting Requirements The international accounting standard board has replaced the IAS 17 with the IFRS 16 and the changes will be effective from the accounting period beginning on or after January 2019 (IFRS, 2016). The aim of replacing the old standard has been to curve out the lacunas and provide for better financial reporting framework in terms of lease accounting. The primary difference between the IAS 17 and IFRS 16 is in regards to accounting for operating leases. Under the old IAS 17, the operating leases were not shown on the balance sheet in the books of Lessee and Lessor (IAS 17, 2012). The Lessee were to charge the operating lease as expense in the profit and loss statement and similarly the Lessor were to take the lease receipts as income to the profit and loss statement. However, under the new IFRS 16, the operating leases are also to be classified on the lines of financial lease and thus, the assets and liabilities emanating from the operating lease would be taken onto the balance sheets of Lessee and Lessor. Further, the primary focus of IAS 17 in classifying the lease was on the aspect of transfer of risk and reward while the IFRS 16 focuses on transfer of right to use the asset. Thus, according to IFRS 16, leases are to be capitalized in the books even if the risks and rewards are not being transferred but the right to use the asset has been transferred (PKF International Ltd, 2017). Effects on Financial Statements The IFRS 16 has brought in new provisions, which are different from the provisions contained in the old IAS 17 in regards to accounting for leases (PWC, 2016). The changes in the provisions of lease accounting promulgated through introduction of the new IFRS have significant impact on the financial statements of both the Lessee as well as the Lessor. All the primary components of the financial statements such as income statement, balance sheet, and the cash flows statement would be affected by the changes in the lease accounting. As per the provisions of new standard, the Lessee now would be required to book the finance charge on lease rentals under the finance cost rather than operating expenses as was earlier done under IAS 17. Further, the Lessee would recognize asset in the balance sheet for right to use and liability towards payment of lease rentals at the present value of the minimum lease rentals (Deliotte, 2016). Figure 1: Effect on financial statements of Lessee (EY, 2016) The elimination of finance charge from operating expenses would increase the operating profits of the Lessee. Further, since the finance charges would now be recognized under the finance cost therefore the amount of finance cost would increase (Collings, 2016). The assets total of the balance sheet of the Lessee would increase by the amount of asset recognized for right to use and the liabilities would increase by the amount of liability recognized towards the lease payments. Further, the Lessee will now be required to charge depreciation on the right to use asset recognized in the balance sheet. The charge of depreciation would reduce the operating profits of the Lessee (Collings, 2016). Further, the cash flow from the operating activities and the cash flow from financing activities would also be affected in regards to cash flow statement. The lease payments whether for operating lease or financial lease would now be capitalized. Thus, cash payment of operating lease rentals would now not be part of cash from operations (Lechner, 2016). This will have positive impact on the cash from operations as the elimination of the operating lease payments from operating activities would increase the cash flow from operations. Thus, the cash from operations will increase but the cash from financing activities will decrease. The payment for lease now would be regarded as the financing activity and thus the cash from financing activities would be reduced. Apart from this, many lease contracts has non-lease elements, the Lessee would be required to identify those non-lease elements and treat them separately (Lechner, 2016). Thus, the IFRS 16 has altered the accounting for lease completely for the Lessee; however, the accounting for Lessor is still substantially the same. The Lessor is still required to classify the lease as operating or financing lease and treat them separately. The Lessor would recognize the finance lease the amount of net investment as was earlier done under the provisions of IAS 17 (EY, 2016). The IFRS 16 has also provided certain additional disclosure requirements for Lessee and Lessor. These additional disclosure requirements are expected to change the presentation of the financial statements. The IFRS 16 entails that the companies applying IFRS 16 in lease accounting are required to make all the objective disclosures which are necessary for the investors to understand the financial statements (EY, 2016). The changes in lease accounting carried out through introduction of IFRS 16 will affect the companies which usage the assets on lease basis because the IFRS has changed accounting for lease in the books of Lessee (EY, 2016). The company which gives asset on lease (Lessor) would not be affected by much because the provisions of IFRS 16 in regards to accounting for Lessor are substantially the same as that of IAS 17. However, despite that the Lessor would also be required to comply with the disclosure requirements of IFRS 16. Thus, though the figures may not be required to be adjusted by the Lessor in the financial statements but the presentation will still be required to be changed in term of additional disclosure requirements (Sacarin, 2017). Effects on Selected Listed Company Further, the IFRS 16 is substantially different in regards to accounting for operating lease in the books of Lessee. Thus, whether the IFRS 16 would affect the financial statements of a company would depend upon the fact that whether that company is a Lessee and has that company taken asset on operating lease basis (Bilgin et al., 2017). However, there are some industries which are expected to be affected more severely than the others. For example, the industries such as retail and consumer product, telecommunication, banking and other financial services, metals and mining, and oil and gas are expected to be affected more severely than the others. The provisions of IFRS 16 would be mandatory from the commencement of the financial year 2019; however, the early adoption of the standard is recommended (EY, 2016). In order to assess the impact of new lease accounting standard on the financial statements of a listed entity, UOL Group Limited has been selected. The UOL Group Limited is a leading company engaged in property development in Singapore. The company maintains a portfolio of properties which comprises development properties, investment properties, and hotels. In regards to accounting and preparation of the financial statements, it has been observed that the company prepares its financial statements under Singaporean GAAP (ISCA, 2016). The company applies Singapore financial reporting standard 116 in accounting for lease which contains provisions similar to old IAS 17 (ISCA, 2016). However, if the company adopts IFRS in preparation of financial statements, it will have to comply with the new requirements of IFRS 16 in regards to lease accounting. The primary activities of the company involve giving property on lease to the other entities for use. The company gives property on lease under the operating lease arrangement. The income from the operating lease is accounted for as revenue on straight line basis in the income statement. In regards to operating lease income, the application of IFRS 16 would not have any effect because it also contains similar provisions (UOL, 2016). Standing as Lessor, the company may continue to classify the leased assets as operating and financial lease depending upon the transfer of risk and rewards. Further, the company also has taken assets on lease from other parties. In this regards, the companys accounting policy states that where the company stands as Lessee, the lease is classified as operating or financing lease on the basis of transfer of risks and rewards (UOL, 2016). The lease accounting policy of the company states that in the cases where substantial risks and rewards attached to the asset under lease have been transferred to the company, the lease is classified as financial lease (UOL, 2016). Further, the cases in which substantial risks and rewards attached to the asset under lease are not transferred to the company; the lease is classified as operating lease. It has been observed that in the year 2016 the company had financial lease liability of $3.91 million. Further, it was observe that the company had shown $34.81 million under the non-cancellable operating lease commitments. The liability of $34.81 million under the operating lease commitment has not been recognized in the balance sheet rather it has been just shown under notes to accounts (UOL, 2016). Figure 2: Operating Lease Commitments In case the company adopts IFRS16, it will have to change the accounting policy with respect to assets taken on lease. The IFRS 16 requires classification of assets taken on lease only as finance lease. This implies that the operating lease earlier recognized will have to be changed. Further, the liability of $34.81 million as shown in the notes to accounts will have to be recognized in the balance sheet. The lease payments under operating lease earlier classified as operating expenses will now be required to be classified as financial lease liability. Thus, the charges of operating lease will be required to be eliminated from the income statement and only the finance charge would be debited to the income statement as part of finance cost. Conclusion This paper takes discussion on the requirements of new financial reporting standard viz IFRS 16, which provides accounting for lease transactions. The IFRS 16 has superseded the IAS 17. From the overall discussion, it could be articulated that the IFRS 16 differs from IAS 17 majorly in regards to accounting treatment of operating lease in the books of Lessee. Under the old IAS 17, the Lessee has option to classify the lease as operating lease if significant risks and rewards related to the asset are not transferred. However, this option is not available in the new IFRS 16. As per IFRS 16, the Lessee is required to classify all leases as financing lease. Reference ACCA. 2016. Convergence between IFRS and US GAAP. Retrieved May 26 2017, from, https://www.accaglobal.com/in/en/student/exam-support-resources/professional-exams-study-resources/p2/technical-articles/convergence-between-ifrs-and-us-gaap.html Bilgin, M.H., Danis, H., Demir, E., Can, U. 2017. 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