Environmental Law, Case Briefings Study Example | Topics and Well Written Essays - 1000 words

Environmental Law, Briefings - Case Study Example ach exemption were made, it was found that it failed to comprise of the consequences of the measurements; moving on it was found that the court could not review the specific legal conclusion and its reasonableness until and unless the EPA discussed the estimate of assimilative-capacity loss and went to clarify why it thought of them as insignificant; Further the approval of EPA of Kentucky's categorization of certain waters as appropriate for Tier I rather than Tier II protection was not arbitrary, contrary to law and capricious. Thus the case was remanded to the EPA and it was allowed to take into account of and then properly address the paucity in consideration the exceptions known as de minimis. The case involved a ruling under National Environmental Policy Act (NEPA) and there wee many defendants and plaintiffs. The case concerned the use of genetically modified crops which was a controversial practice and to be precise it was the use of hebicide resistance alfalfa which was produce by Monsanto. The facts concerned Monsanto Company which had been involved in large scale production of chemical products including the herbicides and pesticides. It developed a new genetically modified alfalfa in 1990s which was approved by the Animal and Plant Health Inspection Service (APHIS) in 2005. This is an appeal for injunction which pending the environmental impact statement(EIS) was sought by the plaintiffs Geertson Seed Farms and Trask Family Seeds (conventional alfalfa-seed farms) and environmental groups who argue that such cross-pollination may cause conventional alfafa to finish. Monsanto and its licensee have been on the side of the governments and acted as the defendants. The Court of Appeal cited the decision of injunction which had been given by the district court and it was stated that subject to the pending EIS assessment and the deregulation decision, the injunction would be upheld. Despite the fact that there was no sufficient evidentiary hearing which was present due to the fact that the district court had performed the traditional test of balancing, so the injunction would be acted upon till the completion the analysis of the APHIS. It needs to be pointed out that the Court clearly illustrated that there was no matter of law which was involved. Wong v. Bush, U.S. 9th Circuit Court of Appeals No. 07-16799 The plaintiff in this case were those who had taken active part in the protest which had taken place on August 26 and 27, 2007, which opposed the Hawaii Super ferry's(HSF) operation to the Nawiliwili Harbor in Kauai, Hawaii, by saying that it was illegal. The Appellants went on to appeal from the district court which denied them the motion for declaratory relief, restraining order for provisional period, a preliminary injunction and a permanent

Macro Economics - Supply Side Options Essay Example | Topics and Well Written Essays - 750 words

Macro Economics - Supply Side Options - Essay Example Classical economists therefore focus on endogenous supply-side causes of unemployment and will prescribe policies that affect the aggregate supply of labor such as reducing information asymmetries and removing constraints on worker's mobility to lower unemployment in the long-run. On the other hand, Keynesian economists view the labor market in the short-run assuming fluctuations in the economy; the Keynesian aggregate supply curve is horizontal where wages are "sticky" and not everyone in the labor force finds jobs. Thus, Keynesian unemployment is demand-driven and caused by variables exogenous to the labor market, such as economic recessions and decreases in output that alters aggregate demand causing disequilibrium. Keynesian economists who give importance to exogenous demand-driven causes of unemployment will therefore prescribe expansionary fiscal policies to stimulate aggregate demand such as increasing government expenditures and inducing consumption to restore equilibrium and lower short-run unemployment. Supply-siders focus on managing aggregate supply to stabilize short-run fluctuations, and increase output in the long-run. They begin with the implications that without structural policies to shift the aggregate supply curve outward, fiscal policies focusing on demand-effects cannot increase aggregate output in the long-run because of crowding-out effects; while at the same time causing inflation because despite the shift in the aggregate demand curve, the crowding-effect causes excess demand, thereby increasing prices. However, since structural policies are difficult to implement, supply-siders emphasize the supply-side effects of fiscal policies assuming that aside from demand-effects, fiscal policies have strong supply-side effects, which can shift both the short-run and long-run aggregate supply curves to the right, offsetting inflationary pressures while increasing aggregate output. Hence, supply-siders would advocate fiscal policies that reduce taxes affecting the labor force, such as an income tax cut because of its ability to stimulate aggregate supply by providing laborers greater incentives to work thereby increasing over-all productivity. Furthermore, the shift in aggregate supply offsets inflationary pressures in the long-run, such that if the supply curve shifts far enough, aggregate output can increase without increasing prices. Question 3: In reaction to Keynesian prescriptions that governments must take an active policy role in stabilizing the economy, Monetarists take a more passive stance regarding economic policy, advising that the Fed must simply allow money supply to grow at a constant rate, and make adjustments only if the rate which the full employment economy grows deviate from nominal targets. Hence, Monetarists prefer rules-based policy regimes as opposed to discretionary ones, where the margin for error is larger. The rationale for Monetarist prescriptions lies in the assumption that the economy is inherently stable, wherein disruptions within the economy are caused by wrong economic policies. Monetarists argue that the economy is better-off if policymakers, with their limited abilities, refrain from fine-tuning the economy. They emphasize the time lags present in implementing economic policie

Ratio Analysis Of British Airways Plc Finance Essay

Ratio Analysis Of British Airways Plc Finance Essay British Airways PLC is the largest international airline of United Kingdom. It is based at the London Heathrow Airport and the busiest airports in the world. It is serves 96 million passengers a year using around 441 airports in 86 countries and more than thousand planes. British airway is fiercely competitive, heavily regulated and highly exposed to changes in customer behaviour and consumer confidence. British airway has a total market capitalisation of approximately  £3299 million, Shares in Issue 1153 million and the current share price is 286p. The past economic environment creates a new challenge to the company they concentrate their efforts to seize long-term opportunities for growth. 2. Background Feb 2008 In this fiscal year, British Airways is targeting a 10 percent operating margin, which is said to be the highest in its history, as it taps demand for premium travel It once again declared that it is targeting a full-year sales growth of 3 to 3.5 percent. May 2008 British Airways Operational Environment to keep up with competitors and to incorporate fuel efficient aircraft to its ageing fleet, British Airways signed a firm contract on 28 May 2008 for two Airbus A138 British Airways Report on British Airways The airways has an Operational Environment in order to keep up with its competitors and to combine its fuel efficient aircraft to its ageing fleet, British Airways has signed a firm contract for two Airbus A138 on 28 May 2008. Jul 2008 Merger talks were started between British Airways and Iberia in the year 2008 due to the decrease in passenger demand, whereas on the other hand the pension fund deficit was around 3 billion pounds ($5 billion) and the outcome of the combined entity was striking. British Airways plans to reduce seating, raise ticket prices as there was a 90% fall in the first quarter which was three days after announcing merger talks with Iberia. Mar 2009 By March, 2009 its revenues rose to  £8.99 billion whereas it was  £8.75 billion a year agoBritish Airways revenues rose to  £8.99 billion for the year ended March 31, 2009. The same stood at  £8.75 billion in the same period a year ago. Reduced passenger and cargo demand and high fuel prices last summer contributed to our 220 million pounds . The introduction of Reduced passenger and cargo demand and high fuel prices helped in the contribution of the 220 million pounds operating loss in the last year. April 2009 during the global recession period, Europes third- biggest carrier, the British Airways Plc, gave an approval of a voluntary severance for a total number of 300 workers because the traffic of passengers extended to a great deal. Jul 2009 By John Bowker LONDON (Reuters) British Airways (BAY.L) has not ruled out a major rights issue to help shore up its balance sheet but analysts see such a move as an absolute last resort and one that could destroy management credibility. Sep 2009 On this day the first EMBRAER 170 jet was delivered by Embraer in Sà £o Josà © dos Campos, Brazil, the headquarters, to British Airways. This aircraft was configured with 76 seats and in a singleclass layout, which will be operated by BA CityFlyer, British Airways wholly owned regional subsidiary. Also to mention that the regional subsidiary operates international and domestic routes from London City Airport. Oct 2009 A new service is to be launched by the British Airways from Gatwick to Montego bay, Punta Cana twice in a week. Nov 2009 British Airways (BA) has operated for 23 years at London Heathrow and finally has bid farewell to the facilty. Jan 2010 British Airways has been operating Japan in the past 62 years and at present it operates 7 flights in a week between London Heathrow and Narita International Airport. British Airways Flying Club Piper PA-28-236 G-ODAK. Shoreham 6/3/ 2010. Sep 2010 British Airways provides an Increase in the number of Flights to the Caribbean Just the Filed in: Flight, Travel Campbell River Firm Restoring the Past DC-3 Called a Flying Time Capsule 3. Ratio analysis 3.1. Ratio Analysis- British Airways PLC RATIO 2010 2009 B/W Operating profit margin 231 7994 2.89% 220 8992 2.45% B Current 2674 3740 .71 2346 4142 .56 B Quick 2674-98 3740 .69 2346-127 4142 .54 B Fixed Asset turnover 7994 7973 1 8992 8142 1.1 W Return on capital employed 231 10677-3740 3.33% 220 10488-4142 3.47% W Return on equity 425 2113 20.11% 358 1846 19.39 % B Debt to equity 4824 2113 2.28 4500 1846 2.43 B Dividend yield 5.20 122.8 4.23% 5.02 150.9 3.33% B Price to earning ratio 250 38.5 6.49 137.5 32.6 4.21 W Earning yield 38.5 250 15.4% 32.6 137.5 23.7% W Return on total assets 425 10677 3.98% 358 10488 3.41% B Sales per employee 7994 79097  £ 518565.8 8992 72375  £ 490196.9 B Stock turnover 412 x 365 25842 5.819 days 417 x 365 21890 6.953 days W Dividend cover 38.5 5.20 1.123 32.6 5.02 2.502 W Account receivable turnover 499 x 365 7994 22.78 days 530 x 365 8992 21.51 days W Account payable turnover 3160 x 365 25842 44.63 days 2963 x 365 21890 49.41 days W Total Asset turnover 7994 10677 0.75 8992 10488 .86 W Gearing 4824 4824+2113 69.54% 4500 4500+1846 70.91% B 3.2. Interpretation and Explanations of ratios 3.2.1. Operating profit margin The  Operating Profit Margin measures the Operating Profit in relation to the Net Sales.   This reveals the operating efficiency of the company. The higher the Operating Profit Margin, then more efficient is the business. Operating Profit   Operating Profit Margin  = Sales   As a result of analysis, the operating profit margin of the year 2009 is 2.45% and that of the year 2010 is 2.89%. The operation margin of the year 2010 is higher than that of the year 2009, so it can be concluded that the company is performing an efficient operation. 3.2.2. Current ratio The current ratio compares all the Current Assets of a company to all the Current Liabilities.   What this ratio basically tells us is if the company had to sell all its readily available assets, would it be able to pay off its immediate debt? A ratio under  1 suggests that the company  would  be  unable to pay off  its obligations if they came due at that point. Current Assets Current Ratio = Current Liabilities As a result of analysis, the current ratio of the year 2009 is 0.56 and that of year 2010 is 0.71. Current ratio of both years is below 1 so it can be concluded that the company is not in good financial health. Also it can be said that the company is performing good since the current ratio of 2010 is higher when compared to that of 2009. . 3.2.3. Quick ratio Also called the Acid-Test Ratio, the  current ratio compares all the Current Assets of a company to all the Current Liabilities just like the Current Ratio, but the Inventories are subtracted from the Current Assets. Current Assets Inventory Quick  Ratio = Current Liabilities As a result of analysis, quick ratio of the year 2009 is 0.54 and that of the year 2010 is 0.69. Current ratio of 2010 is higher than 2009, so the company is in a favourable position 3.2.4. Fixed Asset turnover The  Fixed Asset Turnover is measure  a companys effectiveness in  generating  Net Sales  revenue from investments back into the company. The higher the Fixed Asset Turnover ratio, the more effective the companys investments in Net Property, Plant, and Equipment have become. Sales     Fixed Asset Turnover = Fixed asset   From the analysis of the last two years, fixed asset turnover of the year 2009 is 1.1 and the year 2010 is 1. Fixed asset turnover is low in the year 2010, so it can be said that the company is not as effective compared to the year 2009. 3.2.5. Return on Capital employed It is a ratio that indicates the  efficiency  and profitability of a companys capital investments. ROCE should always be higher than the rate  at which  the  company  borrows otherwise any increase in borrowing will reduce shareholders earnings. Operating profit     Return on capital employed = Total assets   Current liability As a result of analysis, the return on capital employed of the year 2009 is 3.47% and the year 2010 is 3.33%. Return on capital employed of the year 2010 is less than the year 2009, so it can be said that, profitability of the company is less when compared to 2009. 3.2.6. Return on equity The  Return on Equity measures the Net Earnings in relation to the Equity.   Return on Equity describes how well contributions from  stockholders  generated earnings for the company. Net Earnings   Return on Equity =   Equity   From the analysis of return on equity ratio, it is 19.39% for the year 2009 and 20.11% for the year 2010. In the year 2010 return on equity ratio is high, so profitability of the company is high compared to 2009. 3.2.7. Debt to equity ratio The Debt to  Equity  Ratio compares the companys dollar amount owed to creditors to the dollar amount supplied by investors of the company.   debt   Debt to Equity Ratio = Equity   As a result of analysis, the debt to equity ratio of the year 2009 is 2.43 and that of the year 2010 is 2.28. Ratio of the year 2010 is low, so it can be said that the company is at favourable position. 3.2.8. Dividend yield A financial ratio that  shows how much a  company  pays out in dividends each year relative to its share price.  In the absence of any capital gains, the dividend yield is the return on investment for a  stock. Dividends per Share   Dividend Yield = Share price As a result of analysis, the dividend yield of the year 2010 is 4.23% and the year 2009 is 3.33%, so it can be concluded that cash flow in the year 2010 is more than in the year 2009. 3.2.9. Earnings per share The  Earnings Per Share compares Net Earnings to the number of Shares, and is simply how much earnings has been generated per one share of stock during the period reported. Profit after tax   Earnings Per Share = Number of share   As a result of analysis, the earnings per share for the years 2009 and 2010 are 12.56p and 5.84p. Earnings per share in the year 2010 are less compared to the year 2009, so it can be said that the company is not performing good. 3.2.10. Price to Earnings ratio The Price to Earnings Ratio  compares the Share Price to the Earnings per Share.   This ratio is a quick measure of how expensive the stock of a company may be. Share Price     Price to Earnings Ratio = Earnings Per Share From the analysis of the price to earnings ratio, it is 6.49 for the year 2010 and is 4.21 for the year 2009. So it can be concluded that the companys share has gone down in the year 2010 when compared to the year 2009. 3.2.11. Earning yield It is the earnings per share for the most recent 12-month period divided by the current market price per share. The earnings yield shows the percentage of each dollar invested in the stock that was earned by the  company. Earnings Per Share     Earning yield = Share Price As a result of analysis, the earning yield for the year 2009 is 23.7% and the year 2010 is 15.4%. Investment percentage of the year 2010 is lower than the year 2009, so the company has not been performing well in the year 2010. 3.2.12. Return on total assets The Return on Total Assets  measures the profit before interest in relation to the Total Assets.   The Return on Total Assets identifies how well the investments of the company have generated earnings back to the company. Higher the ROA number, the better, because the company is earning more money on less investment. Profit before interest   Return on Total Assets = Total Assets As a result of analysis, the return on total assets of the years 2010 and 2009 are 3.98% and 3.41% respectively. Return on total assets in the year 2010 is higher when compared to the year 2009 and hence it can be said that the company has earned high with its investment in the year 2010. 3.2.13. Sales per employee The name indicates how the sales/employee ratio is calculated: a companys annual sales divided by its total employees. Higher sales-per-employee figures are generally considered more efficient than those with lower figures. Sales revenue   Sales per employee = Average number of employees As a result of the analysis, sales per employee of the years 2009 and 2010 are  £ 490196.9 and  £ 518565.8 respectively. Sales per employee of year 2010 are higher than that of the year 2009 and hence in the year 2010 the company has earned more profit with a fewer number of employees compared to the previous year. 3.2.14. Stock turnover (in days)   Stock turnover ratio  shows how many times over the business has sold the value of its stocks in terms of days. A high stock turnover is better, because money is then tied up for a lesser time in stocks. Sales x 365   Stock turnover (in days) = Cost of sales The result of analysis of stock turnover for the years 2009 and 2010 are 6.953 days and 5.819 days. Stock turnover in the year 2010 is lower than the year 2009. So turning the stock of the company to money in the year 2010 is better. 3.2.15. Dividend cover The dividend cover ratio tells us how easily a business can pay its dividend from profits. A high dividend cover means that the company can easily afford to pay the dividend and a low value means that the business might have difficulty paying a dividend. Earnings per share   Dividend cover = Dividend per share As a result of analysis, the dividend cover of the year 2009 is 2.502 and the year 2010 is 1.123. Dividend cover of 2010 is lower than the year 2009. Hence it is difficult for the company to pay dividend in the year 2010 compared to 2009. 3.2.16. Account receivable turnover This is the ratio of the number of times that accounts receivable amount is collected throughout the year. A high  accounts receivable turnover ratio  indicates a tight credit policy. A low or declining  accounts receivable turnover ratio  indicates a collection problem, part of which may be due to bad debts. Debtor x 365   Account receivable turnover = Sales Form the analysis of the account receivable turnover; it is 22.78 days for the year 2010 and 21.51 days for the year 2009. Account receivable turnover of the year 2010 is higher, and so, collection in the year 2010 is hard compared to the year 2009. 3.2.17. Account payable turnover The measure shows investors how many times per period the company pays  its average payable amount.   If the turnover ratio is falling from one period to another, this is a sign  that the company is taking longer to pay off  its suppliers than  it was  before.   Creditor x 365   Account payable turnover = Cost of sales From the analysis of account payable turnover it is 49.41 days for the year 2009 and 44.63 days for the year 2010. Account payable turnover of the year 2010 is less, so it can be concluded that the company is taking longer time to pay off  its suppliers than the year 2009.   3.2.18. Total Asset turnover The amount of sales generated for every pounds worth of assets. It is calculated by dividing sales in pounds by assets in pound. The higher value of asset turnover is better. Sales     Total Asset Turnover = Total Assets   As a result of analysis, the total asset turnover of years 2010 and 2009 are 0.75 and 0.86. In the year 2010, asset turnover is less, so the company was not effective as in the year 2009. 3.2.19. Gearing ratio Gearing is a measure of financial leverage, demonstrating the degree to which a firms activities are funded by owners funds versus creditors funds.  A company with high gearing is more vulnerable to downturns in the  business cycle. Debt     Gearing ratio = Debt + Equity   From analysis, the gearing ratio of the years 2010 and 2009 are 69.54% and 70.91% respectively. Gearing ratio of the year 2010 is less compared to that of 2009, so the company had a good financial strength in the year 2010. 4. The impact of current events Revenue of the company was decreased to 7,994 m in the year 2010 which was favourable for the company Earnings per share in the year 2010 and 2009 were 38.5 and 32.6 and hence the companys earnings from shares are high compared to the year 2008. Operating profit of the company is high in the year 2009 compared to the year before. This is good for the company. The company has failed to give enough dividends in the year 2009 compared to the previous year. So it has failed to attract the shareholders. Total equity of the company has increased in the year 2010 which is not a good sign for the company. Cost of sale of the company is raised in the year 2009 compared to the previous year. Thus the companys expenditure has been increased in 2009. Hence, cost of sale should be reduced by the company. Account receivable turnover is higher in the year 2010 when compared to the year 2009, which is not good for the company. Account payable turnover is high in the year 2009 compared to the previous year which is not favourable for the company. Fixed asset turnover of the company is almost equal in the last two years and hence this does not have any impact on the company. From the ratio analysis most of the ratios turned positive result. This is shows that the company performing well. From the above analysis and the financial data of the company, we can say that the companys performance is good in the year 2010 when compared to the previous year. 5. Prediction for the future The British Airways PLC Company has performed well in the last year compare that of past years. and this may be because of the financial crisis which occurred in the year 2009.as a result of the above analysis the company is expected to perform well in future in order to maintain its standard. For this it should enhance the services and offers given to the customers and also provide good and reliable service. This may help in attracting more customers. The company should offer more facilities compared to the other telecommunication companies and this will greatly help the company to develop and grow in the forthcoming years. Conclusion The Vodafone group PLC is a well-established international company in the telecommunication sector and has a good name in the market. The company has failed to perform well in the year 2009 compare to the year 2008 and this may be because of the financial crisis. But in spite of the crisis it had a good financial history in the past years. So there is a strong hope that Vodafone Group PLC will perform well in the coming years.

Marketing Plan for Kathon MWX :: Business Marketing Case Study Essays, solution

Marketing Plan for Kathon MWX 1. EXECUTIVE SUMMARY Rohm & Haas is a diversified chemicals company. Its industrial chemicals division manufactures maintenance biocide products to the metal working industry. The company enjoys a healthy 30% market share with its Kathon 886 MW in the Central Systems segment. Rohm & Haas has recently launched Kathon MWX to target 150,000 customers in the Individual systems segment where the market for biocides is underdeveloped and has little competition. A large part of the customers use substitute products such as deodorants and bleaches with little effect on microorganisms. The company estimates the market size for the individual segment to be at $20 million and aims to achieve $0.2 Million revenues from this segment in the first year. Despite a superior product, the sales of Kathon MWX reached a meager 6 % of the annual plan in first five months. Rohm and Haas wishes to re-evaluate its strategy in order to tap this huge segment to significantly increase sales volume and market share of Kathon MWX. Rohm and Haas plans to enhance its allocation for distribution and marketing spend of the Kathon MWX. This would result in additional revenue of 0.1 million. This target would be achieved by a combination of a revamped distribution network for Kathon MWX, focused promotion campaign and sampling. 2. PROBLEM STATEMENT Can Rohm & Haas increase its market share and revenues in the maintenance biocide market with its current product line? The sales of Kathon MWX have barely touched 6% of the annual targeted sales for 1984. Is this the right product to target the Individual Systems segment? Can the current marketing strategy for this product help achieve the company?s objectives in the long run? 3. SITUATION ANALYSIS 3.1. Context The product sales of the company?s newly launched product Kathon MWX are well below the target set in the marketing plan for 1984. Despite its superior quality, the consumers have shown little inclination to adopt this product. 3.2. Company Rohm and Haas is a strong player in the maintenance biocide market for Central systems. The product Kathon 886 MW has a 30% share of the 18 million market. The company enjoys 70-80% market share in the non-ferrous metals segment and about 20% share in the ferrous metals market. The company has launched its new product Kathon MWX, a biocide targeted at Individual systems consumers.

Social Life of Small Urban Space

It has been approved that people like to get involved in social life. They are interested of being a part of the universal. The study of Whyte agrees with that. Observing what other people are doing is a valuable tool used by the majority of people to understand the behavior of others. Public plaza is a good example to practice that so when isolating people and not allowing them to observe, the public place will not have any meaning. Forcing people to sit in certain way without any connection with other activity is boring so people try to avoid it (Almansoour). The direct area in front of a building should always communicate with the buildings form, entryways and design style. A building that lacks communication with the street level will be perceived of as cold and uninviting (Perry). The study of deferent plazas in New Yurok city by Whyte shows that people tend to sit whenever there is a place to sit. If a plaza is close to the street or in front of public place such as the library it becomes more occupied then others. The study indicates that observation is an important key when design a plaza(Almansoour). The amount of sitting area as well as width of sitting area should be adjusted based on context that urban part is in (Hirose). Also, it has become necessary to characterize open spaces in areas that have more density. As long as the open space is planned in the right place within its area it can provide such a positive effect to those people who use them (Alotaibi). Variety of factors would effects whole operation of designing sitting area such as occupants’ moral, culture, life style, physical size, and combination of above. Urban spaces are mixed areas of characteristic yet they have some distinguished characteristics from other spaces, therefore I agree with flexible zoning ordinances on designing sitting area in urban park (Hirose). Regulation is uncomfortable, but it may provide a more uniform approach to design. Why shouldn’t every building have plentiful and inviting exterior sitting spaces? But what would that regulation look like. The author’s data seems a bit confused. Analyzing light, square area, and open spaces did not seem to direct any relative findings. Even their data on amount of seating did not perform as the authors would have us believe. Plazas with large amount of seating were still often underused (Perry). Finally, the difference between good plaza design and poor plaza design is a combination of personal experience and trial and error. A designer may have good intentions, but if everything is to not look the same a designer has to be given the opportunity to experiment (Perry).

Intangible Assets †Woolworths limited Essay

Intangible Assets: An intangible asset, despite not having a physical form to it, has great value to a company and is to be disclosed in the financial reports. Some companies only disclose the brand and goodwill as their only intangible assets, while others include more such as software and the company trademarks (Loftus et al. 2012). The Accounting Standard AASB 138 advises businesses on the accounting treatment of these intangible assets, but only if the specific criteria have been met for an asset to be recognized as intangible. An intangible asset must encompass three characteristics: Identifiable: An asset has to meet one of the following in order to be considered identifiable. It has to be separable, so that it is recognizable to be different than goodwill. This means it is capable of being sold, licensed, rented, transferred or exchanged, resulting with separation from the business. Or it has to arise from contractual or other legal rights, whether it is separable or not (AASB 2010). Non-monetary in nature: The asset has to be non-monetary. This characteristic is required so that receivables are not considered as an intangible asset by businesses just because the money has been recognized but not received yet (Loftus et al. 2012). Lack of physical substance: This is required so that tangible assets of property, plant and equipment are not being recognized as an intangible asset (Loftus et al. 2012). Also, an asset is strictly only recognized as intangible if it meets both of the following in the recognition criteria: (a) It is probable that the expected future economic benefits that are attributable to the asset will flow to the entity; and (b) The cost of the asset can be measured reliably (AASB 2010) Classes of intangible assets: A class is a group of intangible assets that are of similar nature. Some examples of classes include Brand names, Computer software or Licenses and Franchises, just to name a few. Compliance with Accounting Standards: There is a set of disclosing rules that has been set out for Woolworths to apply to their reporting of intangible assets. It is stated in AASB 138 that for each class of intangible assets, the following shall be disclosed by a business: If the useful lives of the asset is either indefinite or finite and the useful lives or amortization rates if it is finite; Woolworths have clearly stated in their annual report a description on whether the useful life of each class is indefinite or finite. 4 out of 5 classes (excluding goodwill as it was reported separately from the other intangibles) were stated as assets with an indefinite useful life, so no amortization was charged (Woolworths Limited 2012). The method used for amortization on intangible assets with finite useful lives; The research and development class of intangible assets for Woolworths had stated that any spending on development activities where their research results are applied to a development for a new or improved product is to be capitalized if the plan is deemed to be commercially possible, and the business has sufficient resources to complete it. It is explained that this capitalized expenditure is expressed as cost less accumulated amortization and impairment losses (Woolworths Limited 2012), however no specific amortization rates were defined. The gross carrying amount and any accumulated amortization and impairment losses at the beginning and end of the period; The line item(s) of the statement of comprehensive income in which any amortization of intangible assets is included; A reconciliation of the carrying amount at the beginning  and end of the period (AASB 138); Woolworths Limited provided a reconciliation of movements in Intangibles (Appendix 1) from 2011 to 2012 in their 2012 financial report to shareholders (Woolworths Limited 2012). The report was presented with each class of intangible asset separated into their own headings with their own amounts written under it before the total amount of intangibles. This made the amounts of amortization and impairment more recognizable from where it had arisen. This reconciliation provided a carrying amount at the beginning and end of the period as requested by the Standards. Also included were the additions arising from acquisition of businesses, other acquisitions and disposals that were required to be shown in the reconciliation. 2011 ($M) 2012 ($M) Carrying amount at end of period $5236.6 $5282.0 (Woolworths Limited 2012) Woolworths had applied the relevant Accounting Standards, AASB 138, towards the treatment of their intangible assets and disclosure of them very well. Their intangible assets presented in the reports were separable, non monetary in nature and didn’t have physical substance. Woolworths could have explained the amortization rates used for their intangible assets, but that was the only limited information provided by Woolworths limited. The disclosure rules were applied into their financial reports, showing that Woolworths Limited’s treatment on their intangible assets conformed to the relevant accounting standards. Recommendations: The guidelines in the AASB 138 seem to already make companies scrutinize their intangible assets intensely and reveal every bit of it in their financial reports. An improvement could be to state in the guidelines which type of report and where in the report that this information should be  disclosed so users can have access to all the information in one go without having to search through many files to find certain information about a company’s intangible assets. AASB 2010, AASB 138 – Intangible Assets, Available on: http://www.aasb.gov.au/admin/file/content102/c3/AASB138_07-04_ERDRjun10_07-09.pdf [25 September 2013] Loftus, J, Leo, K, Picker, R, Wise, V, Clark, K 2012, Understanding Australian Accounting Standards, Wiley, QLD Woolworths Limited 2012, 2012 Financial Report for Shareholders http://www.woolworthslimited.com.au/annualreport/2012/pdf/WW_AR12_FinReport.pdf Appendices Appendix 1: