Matt Holmes & Cool Company Case Study Example | Topics and Well Written Essays - 1000 words

Matt Holmes & Cool Company - Case Study Example Assets would be written down if the company continues to use those assets. Lack of recoverability of the net carrying amount must be recognized as asset impairment and it occurs under certain circumstances such as changes in regulation and business climate, technology changes, usage rate decline, and forecasts of a notable decline it the asset’s long term profitability. It appears that the Cool Company must perform an impairment test as the firm experiences changes in business climate. However, it must be noted that every change in business climate would not indicate asset impairment. ‘A quoted market price in an active market’ would be the best evidence of fair value and it must be applied as the basis for measurement (â€Å"Goodwill and other..†). Market inputs such as credit data and yield curve are some of the alternative methods of estimating fair value. From an asset impairment analysis, the Cool’s department manager would get valuable informat ion that would assist him to determine whether or not those suspected assets should be written down. 2. King Company Good will is an account that can be seen in the asset side of the balance sheet. Often, good will arises as a result of acquisition of a company by another company. The amount paid for the acquired company over book value generally reflects the value of that firm’s intangible assets. Since the good will is not a physical asset as land and buildings, it is recorded as an intangible asset on the balance sheet. Intangible assets include good will, corporate intellectual property, and brand recognition. Typically, good will indicates the value of intangible assets such as patents, strong brand name, better employee relations, and better customer relations. US GAAP defines good will as the â€Å"excess of the cost of an acquisition price over the fair value of acquired net assets†; similarly, goodwill and some other intangible assets will no longer be subject ed to amortization (â€Å"Stock dividend). Therefore, the reported amounts of goodwill would not decrease and moreover, goodwill recorded on the acquisition will not result in a ‘drag’ on future earnings for goodwill amortization. According to Graham, when goodwill is recognized by a subsidiary, it should be tested for impairment at the subsidiary level using the subsidiary’s reporting units; and if goodwill at the consolidated level is impaired, it would be recognized at the consolidated level (116). In total, the King Company would not face issues that were pointed out by senior accounting staff because the goodwill accounting has changed. Ethics case 1 Marco Chemical Corp The government and public are the stakeholders involved in the situation specified in the Macro Chemical case. The director of the Marco’s R&D division would not be ethically liable even if the chemical caused any disaster because he had strongly recommended the chemical’s furt her testing for side effects. On the other hand, the Marco’s president has worked against his professional ethics. The president had been advised by the R&D’s director regarding the chemical’s further testing in the laboratory for its side effects on other insects, birds, animals, plants, and even humans. However, the president did not consider such warnings as he focused only on the improvement of company’s sales and profits. In other words, he did not take human values or

Abortion - Today's Contemporary Moral Issue Essay

Abortion - Today's Contemporary Moral Issue - Essay Example To date no convincing results could be procured rather it emerged as the most contentious of all the existing contemporary societal concerns of the present century (Ethics of Abortion: Is it Moral or Immoral to Have an Abortion). Abortion poses a ethical, societal, and therapeutic predicament that blend up poignant answers among disputants of the topic. Abortion is such an issue that carries two viewpoints encompassing choice and life. Life is present in the fetus right from the moment of conception, a fetus, or human embryo, is considered to be a living individual. Due to the act of abortion, the individual is divested from the survival and therefore for some abortion is considered to be equivalent to murder. The view is supported by the Catholic Church, as it is the moral responsibility to prevent every individual (Ethics of Abortion: Is it Moral or Immoral to Have an Abortion). On the contrary, decision to give birth to the young one is the right of the mother and there should not be any interventions. Thus it is a matter of fetal life but at the same time the issue is concerned with the upbringing of the child and also the consent of the mother who has to give birth to the baby (individual). The present article considers the philosophical facet of abortion, as it encompasses the ethical assessment of the proceedings. History reveals that abortion has always been a contemporary issue, the issue was prevalent even before the birth of Christ. Some traditional methods were prevalent to kill the unwanted fetus, although it was a legal as well as political concern. It was Plato (428- 347 BC) and Aristotle (384-322 BC) who maintained the outlook of abortion (Roos). Aristotle developed the thought of "delayed ensoulment" which had far reaching implications amongst intellectuals. He very well discriminated plants animals and humans and framed the view that the soul enters the human body once the body is fully formed. and also postulated the ensoulment as- for males it is forty days and for females it is eighty days. Roman law did not provide any legal standing to the infant till the family head accepts it (Roos). Later with the advent of Christianity life in womb was also considered to be sacred and therefore contradictions started which is prevailing even in the present situation (Roos). Abortion: a Cru cial Ethical Issue Abortion has been debated over the years on the political grounds to make a law and should be regarded as a murder of an individual or it should be left as a permissible issue leaving on the choice of the women. On the other hand it is believed by some that law must not legislate transience. It is also believed that all the laws must be made for good. A breakdown or stoppage to explicitly converse those morals and ethics could incomprehensible vital planning (Fetus, Humanity, Personhood: When Does a Fetus Become a Human Person with Rights). Could fetus be considered as an individual with rights? Debates related to abortion encompass the lawful eminence related to the fetus. Considering fetus as an individual, abortion is equivalent to the murder and therefore abortion is an illegitimate act. On the other hand, it is necessary to understand that it is the part of women's body and any state cannot compel a woman to continue with the pregnancy if the woman is not wil ling to maintain it to the complete term. Thus it should be an ethical choice and should not be a considered as a murder (Fetus, Humanity, Personhood: When Does a Fetus Become a Human Person with Rights). Female does possess Moral Responsibility towards the developing Fetus! In certain cases the contraception fails or the use of contraceptive means may turn out to be improper of