Publix Supermarket History Essay

Publix Supermarkets, Inc. is the largest employee supermarket chain and fastest growing company in the United States. It was founded in 1930 by George W. Jenkins and opened the first Publix store in Winter Haven Florida is a employee- owned privately held corporation. Publix is has over more than 1,061 supermarket stores, eight grocery distribution centers, twelve brand manufacturing facilities, and 820 Publix Pharmacies. The manufacturing facilities produce its dairy, deli, bakery, and other food products. Our stores are located in Florida- 752, Alabama-51, Georgia- 180, South Carolina- 45, and Tennessee- 33. Publix built its first distribution in Lakeland, Florida and moved its headquarters there from Winter Haven in 1951. At that same time, the All American were closed and replaced with Publix Supermarkets. The donut shops in each store expanded their bakery into full- service in 1957. Each Publix store provides specific services and products in its grocery, produce, deli, floral, bakery, seafood, and meat departments; some of the stores contain sushi bars, cafà ©Ã¢â‚¬â„¢s liquor store and pharmacy department. Publix created and introduced Greenwise Markets to increase awareness of nutrition providing organic and natural items. Publix mission statement is â€Å"Our Mission at Publix is to be the premier quality food retailer in the world. To that end we commit to be: Passionately focused on Customer Value, Intolerant of Waste, Dedicated to the Dignity, Value and Employment Security of our Associates, Devoted to the highest standards of stewardship for our Stockholders, and Involved as Responsible Citizens in our Communities. Publix’s slogan is â€Å"Where Shopping is a Pleasure†. We have more than 153,000 associates employed with Publix Supermarkets, Inc. A variety of services are offered by Publix. Services such as presto atms, gift card center, floral, special item request, online easy ordering, apron recipes and event planning, prescription refills, and Publix merchandise. They also have several fascinating clubs and programs; wine guide, baby club, preschool pals, family style magazine, Publix paws and upromise program. Publix states the nine reasons why you’ll feel great about working at Publix good, friends, benefits, ownership, stability, career growth, helping others, community spirit, diversity and planet earth. There are several services offered by the pharmacist to help manage your health. They offer a diabetes management system, free prescriptions on selected medications, flu and immunizations, health screenings, Medical I.D., prescription transfer, Flavorx, insurance plans, health center and generic drugs. The main competitors in the national grocery chain are Kroger, Whole Foods, IGA, and Supervalu; several regional grocery chains including BI-LO, Winn-Dixie, Ingles, Fresh Market, Sweetbay, Piggy Wiggly consolidated with warehouse and retail chains including Wal-mart, Costco, Kmart, Target, BJ’s Wholesale and Sam’s Club. Publix for 15th consecutive years has been named as one of the Fortune 100 Best Companies to work. It has never had any layoffs even though some stores have closed and new ones have opened. Each year, the company issues shares of its stock to eligible full- and part-time employees, and cash dividends earned on these shares are paid directly to employees. Publix is a highly established and successful supermarket with friendly service and an immense array of products. They offer â€Å"buy- one- get- one- free† deals which vary from week to week on several products within the store. Publix Supermarkets budget along with other facts are made available to the public. SEC documents contains several of Publix annual, quarterly, proxy, current and other reports where you can retrieve the specific report. Even through the terrible economic hardships we have had worldwide Publix has managed to make a good profit, offer promotions, still open new stores, and never layoff any employees. References http://www.publixstockholder.com/servlet/ProxyServlet?path=/stockholder/Document.do&seq=1&SECDocumentId=7958&curPage=1&selectedDocumentType=-99&selectedYear=-99 http://www.publix.com/careers/Home.do

Lessons from Enron: Bad Management, Negative Consequences

One of the classic examples of bad management, Enron's collapse according to the Economist (2002) was a result of bad management and poor decision-making of the auditing firm Andersen in handling the account of the company. The primary root of Enron’s collapse was bad management and the power of the management to delegate auditing and accounting responsibilities to a firm that they have chosen. The dependence of the auditing firm on the management in essence creates the break in the accounting and auditing ethics: in order not to lose an all-too important account such as Enron, they would need to abide by the decisions of the management.The lack of willpower of Andersen to question the unethical practices of Enron made it culpable in the same way as Enron’s managers. This led a domino and cascading effect in the corporate world of America: the government scrambling to look for other companies who are also hiding in their auditor’s books, the deterioration of the auditing and accounting profession, lack of trust in companies, and investor apprehension. The collapse of Enron was largely a decision by the top management which also involves its accountants to provide a bogus statement of finances to make Enron look like a profitable company.Auditors of Enron on the other hand, have sought to protect the company by shredding incriminating documents. From an agency theory perspective, the role of the Enron’s top management to that of the shareholders is one that is governed by the principle that managers will act in a way that will benefit the owners or shareholders of the company (Abrahamson and Park, 1994). In essence, what happened to Enron was that the managers or the agents gained too much power and the shareholders did not perform its function of overseeing the operations of their company.Fundamentally, what the shareholders and the managers who did not take part in the Enron scandal could have done was to have the government to appo int an auditing or accounting firm that will monitor the financial movement of the company. In this way, accountants and auditors will not be obliged to follow what the top managers would want them to do. Managers need to be wary of decisions made by the top management or their colleagues. To a significant extent, appointments should be made independent of the managers.In an era where auditing and accounting fraud are prevalent, managers can protect themselves by safeguarding their companies among their peers. References Abrahamson, E. and Park, C. (1994) Concealment of negative organizational outcomes: An agency theory perspective. Academy of Management Journal, 37: 1302-1334. Barefoot, JA. (2002). What can you learn from Enron? How to know if you are creating a climate of rule-breaking. ABA Banking Journal, 94. The Economist. (2002) The Lessons from Enron. 362, 8259: 9-10. Retrieved 1 July at http://www.csupomona. edu/~smemerson/PLS499%20Greed_Need/Enron. doc. Appendix 1. Enron Ar ticle Title: THE LESSONS FROM ENRON , Economist, 0013-0613, February 9, 2002, Vol. 362, Issue 8259 Database: Academic Search Elite Section: Leaders THE LESSONS FROM ENRON After the energy firm's collapse, the entire auditing regime needs radical change THE mess just keeps spreading. Two months after Enron filed for Chapter 11, the reverberations from the Texas-based energy-trading firm's bankruptcy might have been expected to fade; instead, they are growing.On Capitol Hill, politicians are engaged in an investigative orgy not seen since Whitewater, with the blame pinned variously on the company's managers, its directors, its auditors and its bankers, as well as on the Bush administration; indeed on anybody except the hundreds of congressmen who queued up to take campaign cash from Enron. The only missing ingredient in the scandal–so far–is sex. The effects are also touching Wall Street. In the past few weeks, investors have shifted their attention to other companies, m aking a frenzied search for any dodgy accounting that might reveal the next Enron.Canny traders have found a lucrative new strategy: sell a firm's stock short and then spread rumours about its accounts. Such companies as Tyco, PNC Financial Services, Invensys and even the biggest of the lot, General Electric, have all suffered. Last week Global Crossing, a telecoms firm, went bust amid claims of dubious accounts. This week shares in Elan, an Irish-based drug maker, were pummelled by worries over its accounting policies. All this might create the impression that corporate financial reports, the quality of company profits and the standard of auditing in America have suddenly and simultaneously deteriorated.Yet that would be wide of the mark: the deterioration has actually been apparent for many years. A growing body of evidence does indeed suggest that Enron was a peculiarly egregious case of bad management, misleading accounts, shoddy auditing and, quite probably, outright fraud. But the bigger lessons that Enron offers for accounting and corporate governance have long been familiar from previous scandals, in America and elsewhere. That makes it all the more urgent to respond now with the right reforms.Uncooking the books The place to start is auditing. Accurate company accounts are a keystone for any proper capital market, not least America's. Andersen, the firm that audited Enron's books from its inception in 1985 (it was also Global Crossing's auditor), has been suggesting that its failings are representative of the whole profession's. In fact, Andersen seems to have been unusually culpable over Enron: shredding of incriminating documents just ahead of the investigators is not yet a widespread habit.But it is also true that this is only the latest of a string of corporate scandals involving appalling audit failures, from Maxwell and Polly Peck in Britain, through Metallgesellschaft in Germany, to Cendant, Sunbeam and Waste Management in America. In the past four years alone, over 700 American companies have been forced to restate their accounts. At the heart of these audit failures lies a set of business relationships that are bedevilled by perverse incentives and conflicts of interest. In theory, a company's auditors are appointed independently by its shareholders, to whom they report.In practice, they are chosen by the company's bosses, to whom they all too often become beholden. Accounting firms frequently sell consulting services to their audit clients; external auditors may be hired to senior management positions or as internal auditors; it is far too easy to play on an individual audit partner's fear of losing a lucrative audit assignment. Against such a background, it is little wonder that the quality of the audit often suffers. What should be done? The most radical change would be to take responsibility for audits away from private accounting firms altogether and give it, lock, stock and barrel, to the government.Perhaps such a change may yet become necessary. But it would run risks in terms of the quality of auditors; and it is not always so obvious that a government agency would manage to escape the conflicts and mistakes to which private firms have so often fallen prey. As an intermediate step, however, a simpler suggestion is to take the job of choosing the auditors away from a company's bosses. Instead, a government agency–meaning, in America, the Securities and Exchange Commission (SEC)–would appoint the auditors, even if on the basis of a list recommended by the company, which would continue to pay the audit fee.Harvey Pitt, the new chairman of the Securities and Exchange Commission, is not yet willing to be anything like so radical. He has been widely attacked because, when he acted in the past as a lawyer for a number of accounting firms, he helped to fend off several reforms. Yet he now seems ready to make at least some of the other changes that the Enron scandal has shown to be ne cessary (see pages 67-70. ) Among these are much fiercer statutory regulation of the auditing profession, including disciplinary powers with real bite.Hitherto, auditors have managed to get away with the fiction of self-regulation, both through peer review and by toothless professional and oversight bodies that they themselves have dominated. There should also be a ban on accounting firms offering (often more profitable) consulting and other services to their audit clients. Another good idea is mandatory rotation, every four years or so, both of audit partners–so that individuals do not become too committed to their clients–and of audit firms. The most effective peer review happens when one firm comes in to look at a predecessor's books.The SEC should also ban the practice of companies' hiring managers and internal auditors from their external audit firms. In search of better standards Then there is the issue of accounting standards themselves. Enron's behaviour has co nfirmed that in some areas, notably the treatment of off-balance-sheet dodges, American accounting standards are too lax; while in others they are so prescriptive that they have lost sight of broader principles. Past attempts by the Financial Accounting Standards Board to improve standards have often been stymied by vociferous lobbying.It is time for the SEC itself to impose more rigorous standards, although that should often be through sound principles (including paying less attention to single numbers for earnings) rather than overly detailed rules. It would also be good to come up with internationally agreed standards. Although audit is the most pressing area for change, it is not the only one. The Enron fiasco has shown that all is not well with the governance of many big American companies. Over the years all sorts of checks and balances have been created to ensure that company bosses, who supposedly act as agents for shareholders, their principals, actually do so.Yet the cult of the all-powerful chief executive, armed with sackfuls of stock options, has too often pushed such checks aside. It is time for another effort to realign the system to function more in shareholders' interests. Companies need stronger non-executive directors, paid enough to devote proper attention to the job; genuinely independent audit and remuneration committees; more powerful internal auditors; and a separation of the jobs of chairman and chief executive.If corporate America cannot deliver better governance, as well as better audit, it will have only itself to blame when the public backlash proves both fierce and unpleasant. PHOTO (COLOR) ________________________________________ Copyright of The Economist is the property of Economist Newspaper Limited and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. Source: Eco nomist, 2/9/2002, Vol. 362 Issue 8259, p9, 2p, 1c. Item Number: 6056697

Cause and Effect: Unprotected sex Essay

In today’s society, many young teens have begun to experience unprotected sex. Having unprotected sex may result in sexually transmitted diseases (also known as STD) and/or pregnancy. Although some STD’s are curable, they would have to be cured immediately. As for the main focus, teenage pregnancy, many teenagers do not realize the responsibility, commitment, and hard work they have to put into raising a child. It is not only being there for them, but also having both parents being financially stabled. Teenagers must protect themselves properly in order to avoid these incidents at an early stage in life because they, themselves, have not yet fully developed. In my opinion, the three main causes that lead to teen pregnancy are unprotected sex, lack of sex education, and sexual crimes. Unprotected sex is probably the most well-known factor leading to teen pregnancy. The cause of this can be from highly aroused young kids who don’t want to stop having sex because th ey have to get a condom. A condom is the best teen pregnancy prevention item sold in the United States. A lot of other young adults think that they don’t need a condom so they move onto the â€Å"pulling out method† so that they don’t ejaculate into the female’s reproductive system that can soon lead to pregnancy. What most young adults don’t know is that this method isn’t always safe. It’s way better to just be prepared and be safe with a condom in hand. Unprotected sex is the main cause to pregnancy at a young age. In my opinion, and I’m sure a lot of other individuals will agree with me on this one, but it is way better to spend three dollars on a small pack of condoms than a lifetime expense on a baby because you didn’t â€Å"Wrap it Up†. Carelessness is a reason to unprotected sex leading to teen pregnancy. Sexual education is needed in the classrooms of young adults today. It teaches them how to be safe, and how to still have sex but prevent pregnancy. Lack of sexual education can lead to pregnancy and other things like sexual transmitted diseases. With more information about sex taught to these teenagers, the pregnancy rate in young adults will drop. Take Tony from â€Å"The Other Wes Moore† for example. He didn’t have the knowledge needed to prevent him from getting his girlfriend pregnant at such a young age. The cause of lacking education in sex leads to these young kids getting themselves into situations they shouldn’t be getting into. They need to be taught better to prevent this from happening. The crime rate in America constantly goes up and goes down depending on where you are located. Rape is another cause for the young pregnancy that is happening. Police need to do a way better job at locating these rapists to protect these young female teenagers from getting harmed. Rape is when someone forcibly takes an individual and obligates them into having sex, most of the time this is unprotected sex. These crimes usually take place in the cities. Because of rape, not only do these young females get pregnant but sometimes they either won’t know who raped them or they would have to raise a baby on their own.

The Effects of War and Peace on Foreign Aid Term Paper

The Effects of War and Peace on Foreign Aid - Term Paper Example Before a state donates I suggest its’ leaders consider carefully what goals it wishes o accomplish with their donation and assess critically the prospects for accomplishing these goals. For example, aid may be siphoned off by an elite and not reach the intended beneficiaries, or it may not be the best way to help the recipients develop their own resources. Or the provision of aid may have unintended adverse consequences. For example, Rwanda has received considerable foreign aid and although by some criteria it has benefited from this aid, much of the population has not profited. In fact, it has helped perpetuate and even exacerbate sectarian inequalities which could easily bring a return to the civil war and genocide of 1994. While there is no longer a genocide or overt civil war in Rwanda it can by no means be described as a peaceful country. Hostility and distrust continue to prevail between the ruling minority urban Tutsis and the majority impoverished rural Hutu. And overt civil war could break out at any time long after the 1994 genocide. Thus although Rwanda has received a massive infusion of foreign aid this has disproportionately benefited the elite Tutsis. On the positive side, Rwanda is the only country in sub-Saharan Africa on track to meet all health-related UN goals including reducing under5 mortality by two thirds. Also since 1994 per capita income has almost tripled and GDP quadrupled. ( Farmer 2013) However, these positive statistics hide significant disparities in ethnic aid beneficiaries. More than half of the aid received is distributed through Tutsi dominated government institutions so that it benefits mostly already comparatively better off Tutsis rather than the impoverished Hutus ( Farmer 2013)) Thus even though statistics indicate overall per capita income and GDP have risen rural Hutus who make up 84% of the population remain impoverished, (Endless and Hakizimana 2009).

Explain how culture and identity connect to or influence writing Essay

Explain how culture and identity connect to or influence writing - Essay Example By people having a unified way of writing which follows the same rules, people will not only be able to communicate much more effectively but they will be able to understand each other’s culture and identity and respect it rather than utilizing it only for problem solving and decision making. I am not a born English-speaker and English was my third language. In my initial years in school, we were taught in our native languages and even read from books written in the native language. We then relocated to the US and I had a hard time reading and writing in English as I had to be taught the language will all its rules which are instilled by the Anglo-American society who are the English speakers. I spent majority of my childhood years trying to learn and perfect the writing skills which was way harder than spoken English. The differences with the local students born in the US was quite obvious when it came to writing and I realized that without proper mastery of the language, I could not communicate properly and get people to understand the points I was getting across. One of my English tutors one day told me to just write what was in my mind without caring about the grammatical errors I would make. I made the composition I wrote which was about my favorite cultural cuisine personal and an individual task without any pressure to perform. It is during the marking that the tutor started pointing out my weaknesses in the language based on the influence of my culture but which in turn made it easy to correct. I understood that my culture had different way of relaying thoughts and ideas. The fact that we were a collectivist culture made me write everything in a plural kind of way instead of singular and hence I could not make the essay as personal as possible. I had not realized this mistake and this is what had made is so hard to communicate as it always seemed that I was going about it the

Obligation to family according to jane English Essay

Obligation to family according to jane English - Essay Example Some may find this argument demeaning to parents, especially those parents who go way beyond the extra mile in making sure that their child is well provided for. However, English (147- 154) is not arguing about whether or not children should help out their parents or if they should act positively in response to what their parents did for them. Instead, she is talking about the foundation on which such respiratory actions should be based. Her postulations are very important and should be looked at in a serious way because it could have serious implications. As the economy has become worse, younger people have to take care of their parents. In this regard, there is s slowly developing an attitude among young parents that when they grow old, their children will have to take care of them. This is risky attitude which can affect the society very negatively and lead to dire economic issues for a nation. Parents should learn how to provide for their children and at the same time secure thei r own future in order to benefit from them later children when the children grow up. Her arguments are therefore not just a social issue but an economic issue which must be looked at. She also argues that children are not in any way obliged to repay their parents in any way because anything that the parents did for them is supposed to have been done for friendship and not for any other reasons. To illustrate her point, she gives an analogy of two neighbours. She gives an analogy of a person named Max who has just arrived in a new place and asks a neighbour to take in his mail when he will be on vacation for a month. Jane English argues that in this case, the issue of owing can be appropriately applied because even if Max will not owe Nina anything, he is morally obligated to give a similar flavour for Nina in the future. However, in another scenario, if Nina mows Max’s lawn when max was away, despite that Max did not ask for this favour, Max will not owe or have any obligatio n to do such a favour to Nina, but because Nina’s lawn mowing was a friendly gesture, Max may want to return this by showing friendship to Nina such as by giving a friendly chat to her in the backyard or helping her catch her pet etc. She gives these two analogies as a way to indicate the parent-child relationship. Therefore, how the child and the parent should relate should be like the second analogy, where Nina mows Max’s lawn without him asking him, and therefore leaves Max with not moral obligation to reciprocate. Parents give to their children many things, including life, without expecting that the child will give them anything in return, but out of unconditional filial love. Anything less than this would them unable to relate well and would lead to it being unnecessarily restrained and constrained. By voluntarily giving birth to the child, educating the child, giving the child other gifts and other basic necessities, the parents are just doing their duty and crea ting a basis for mutual friendship with the child. The child will therefore not bear any moral obligation to pay back to his or her parents. In summary, her thoughts and ideas can be put this way; She points out to very important issues which regard to how the parent and the child should relate. She believes that a good parent should and must be motivated by the love of

Child Poverty and Guaranteed Income in Canada Research Paper - 1

Child Poverty and Guaranteed Income in Canada - Research Paper Example The disagreements around a guaranteed income seem to focus around the concepts of charity vs entitlement. These disagreements, rest upon differing perspectives of child poverty and guaranteed income. For the purposes of this paper, we will agree on a definition of poverty that has been cited by 111 books, from 1962 to 2008, according to the Google search listing of citations, for search phrase, â€Å"child poverty†. The poor shall be taken to mean persons, families and groups of persons whose resources (material, cultural and social) are so limited as to exclude them from the minimum acceptable way of life in the Member State in which they live (Vieminclox and Smeeding, p. 34). This is a fair definition when speaking about poverty in general, or world poverty, because it assumes differing living standards in all countries, differing national priorities, and the multiple aspects of resources rather than limiting the concept to money. Countries, of course, generally state a spec ific monetary level, below which is poverty, and above which is not poverty. This legalistic definition is less pragmatic, however, because people’s circumstances differ greatly and resources vary with a range of circumstances beyond income. For example, a healthy family living with three homeschooled children in a rural intentional community will require fewer resources, per capita, than a young executive couple with a staggeringly high mortgage, a parent with Alzheimer’s, maintained in a nearby facility, three family members in psychoanalysis, a high-interest credit card balance and two children in private school. The needs of each family are quite different. Highlighting the quoted definition for poverty, and adjusting it to focus on child poverty, is a suitable definition by Canadian standards also, because Canada does not specify an official poverty line but uses a lower income cut-off (LIC), relative to situational factors, below which the standard of living woul d be challenged, but not necessarily fitting the definition of poverty (Segal). The National Council of Welfare and most social policy researchers use the LIC as their preferred measure of poverty, even though it was never intended to be used that way and even though doing so gives a greatly inflated picture of people’s discretionary income (Goldberg). Considering this idea of poverty relativity, it is intriguing to note that Canada is one of the richest nations in the world, yet is ranked extremely low, by comparison with other developed nations, for child well-being. This is in spite of the Canadian government’s ratification of the 1991 United Nations Convention on the Rights of the Child (Free the Children; Howe and Covell), in which the elimination of child poverty was articulated as a foremost priority. Of course, ratification is not legally binding or enforceable, but it does indicate public and formal political agreement and obligation to cooperate with other na tions to eliminate child poverty, and focus attention and action on this issue. It has meaning. I will address questions of why Canada is still ranked low for child well-being; whether poverty is income based and what the key variables are in urban and rural poverty in Canada; which groups are most affected; and what are the outcomes of child poverty. I will discuss evidence of social and political motivation to end child poverty in Canada and will raise social change scenarios to direct

Literature review Essay Example | Topics and Well Written Essays - 2500 words

Literature review - Essay Example Marketers are offering opportunities to customize the products. People have a desire to be unique. They pursue self-uniqueness in characteristic ways. The variables associated with compulsive buying tend to be restricted to marketing variables related to mass media like advertising contents and television viewing, socio-environmental variables like family and peer influences, and personal characteristics related to personality traits and demographics (Park & Burns, 2005). Today consumer buying is more fashion-related. Compulsive buyers are very likely to be conscious of how they look and appear to others. Credit card usage has been found to be an influential factor in compulsive buying. High level of impulsive buying is also a form of compulsive buying. Shoham and Brencic (2003) contend that the higher the unplanned purchases, the higher the compulsive purchase tendency. The higher the tendency to buy items off their product list, the higher is the compulsive purchase tendency. Compulsive buying is influenced by demographic and behavioral elements. This helps to understand the dynamics of consumer behavior. Shopping for some is a relief from stress and pressures of everyday life. Getting involved in the entire process of buying helps to alleviate the consumer from the gloom and humdrum of life. Kwak, Zinkhan and Roushanzamir (2004) contend that compulsive buying must include two criteria – behavior must be repetitive and behavior must be problematic for the individual. Thus compulsive buying is a chronic repetitive purchasing that becomes a primary response to negative feelings. Initially people feel happy but eventually realize the harmful consequences when they are unable to stop. This is line with Gutman and Mills 1982 fashion oriented dimensions which suggests that ‘fashion leaders’ and ‘fashion independents’ describe themselves as different and standing out (Lynn & Harris, 1997). Such compulsive buyers will shop at departmental and specialty

Module 7 DQ 1 and 2 Article Example | Topics and Well Written Essays - 500 words

Module 7 DQ 1 and 2 - Article Example The medical staff feels that the technical aspects of EHR and following laws take away from their time treating patients. The HIT manager therefore takes that burden away from them and by doing his or her job; the clinical people can be free to concentrate on their main concern, the patient. Goetz et al (2013) published a survey in The American Journal of Managed Care in which she states under HIT, communication is the main benefit and that the physician’s records are more organized. As business people also, the medical personnel feel that the greatest challenge is the increased cost of the equipment and people required for implementation. The Journal of AHIMA (2013) has published a list of those items absolutely essential for good strategy planning. For one thing, the article states that IT should be involved in all facets of the brainstorming. Another is that the involvement and representation from all levels in the facility (all stakeholders) is likewise necessary for the plans to succeed. In the ongoing controversy between top down and bottom up philosophy in deploying a healthcare IT system, IBM has put together a white paper concerning the advantages and disadvantages of both (2005). Although almost eight years is an eternity in information technology, the points brought out are still very much relevant. The bottom up approach offers more clinical saturation early on. As initial costs are lower, benefits are realized much sooner, material and otherwise. As well, password security is managed better. Yet the main disadvantage is that later changes to the system are not necessarily very easily accomplished. Therefore, it can be said that top down is a mirror image of the bottom up method. Although initial costs are much greater, its main advantage is that the entire facility is not disrupted during the implementation process. Because of the higher costs, it will take a longer period to realize a payback. In addition, custom

PHP information technology essay Example | Topics and Well Written Essays - 750 words

PHP information technology - Essay Example Several important features of PHP will ensure that PHP remains the central instrument of application development in the nearest future. First, PHP is an open source language of programming that enables both the beginners and professional programmers to develop and deploy new open source applications. As a result, open source software is not only cheaper but much more competitive than the applications developed by commercial organizations. â€Å"It has a cheap, fast, reliable, and widely supported environment to run in, therefore it is mainly used in standard web deployment, not only large enterprises† (Anonymous). For the reasons stated above, large and small businesses can use PHP in the development of their own non-commercial applications. For example, small businesses that have just entered the market can apply to PHP and develop their own programs and applications without any major costs. Second, PHP is perfect for beginners (Anonymous). It is easy to use, and it will cont inue to dominate open source systems and applications created by non-experienced programmers and users. PHP is both flexible and diverse in the sense that it can be used in a variety of ways. PHP is portable and functional, and its promising future is predetermined. However, the issue of protecting property rights has the potential to reduce the usability and applicability of PHP in open source software. Actually, the rapid expansion of the copyright and intellectual property movements can destroy the very phenomenon of open source software, including PHP. As of today, open source software developers cannot be secured from the risks of violations and patent lawsuits from copyright and patent owners (Thomas 2). Thus, future programmers and legal professionals will have to work together, in order to find the most appropriate legal and software balance, while also letting PHP flourish in the open source landscape. DQ 2 Data warehousing provides numerous benefits but can become a major source of problems for organizations. Inherent in the use of data warehousing techniques within organizations are the issues of security in data management, security in data exploration, and the risks of abusing data encryption used to enhance data privacy (Agosta). It should be noted, that the data warehousing concept has already become one of the central innovations in the field of organizational data management (Ramamurthy, Sen & Sihna 976). Data warehousing is being widely used to support organizational decision making (Ramamurthy, Sen & Sihna 976). Data warehousing can be conceptualized as a unique and extremely effective way to store large volumes of information, which makes it particularly useful in organizations. Data warehousing holds a promise to enhance businesses’ information processing capacity and ability to access, collect, allocate, and share information with the goal of improving the quality of management and consumer relations (Ramamurthy, Sen & Sihna 976). Unfortunately, data warehousing is not without problems. Security and safety of business data remains a matter of continued professional concern. Business data can be extremely sensitive and require additional protection from the risks of misuse and abuse, but data warehousing systems may simply lack capacities and functions required to guarantee security and full protection of sensitive data (Agosta). Another problem is directly related

Produce a table of four profitability ratios, four efficiency ratios Assignment

Produce a table of four profitability ratios, four efficiency ratios and two liquidity ratios for each enterprise below. Written Report - Assignment Example Daley has a current ratio of 1.3: 1 which is lower than Macey’s despite having both, more current assets and liabilities. It is however, still enough to meet its short term obligations. Both companies have a good liquidity position, which prevents them from having to sell off their inventory in order to pay their short term debts. Without liquidating their inventories, both companies can easily manage their short term obligations through their most liquid current assets. Daley has a better inventory turnover ratio which indicates that it takes less time to sell off its finished products. With less cash tied up in inventory and considerably lower cost of goods sold, Daley takes approximately 10 days less than Macey to convert its goods into sales. Customers of Daley are taking twice as long to repay the company which means that the receivable collection is not timely. Compared to Macey, Daley has a lot tied up in the form of receivables, more than 1.5 times as much as Macey. Its sales are also approximately $300 million less than Macey’s. Macey’s receivable collection seems to be within their average length of time taken to recover cash. These figures indicate that both the firms deal in some sort of fast moving consumer goods to able to recover cash within 2-3 days. Daley’s utilization of fixed assets is better than Macey’s with a ratio of 8.9 times. For every $1 invested in fixed assets, Daley is making $8.9 in sales. On the other hand, Macey is making only $5.5 in sales for every $1 invested in fixed assets. Macey has higher sales than Daley but it also has approximately twice the amount of fixed assets. This signifies that Macey has too much invested in fixed assets. Daley, despite having higher current assets and lower sales than Macey’s, has a better total asset turnover. Macey’s investment in fixed asset seems to be unnecessary and is affecting its ability to generate sufficient sales with regards to the amount of fixed assets

Aci Financial Statement Essay Example for Free

Aci Financial Statement Essay The companies are now preparing this statement as an integral part of their financial statements. This paper examines empirically the current practices followed by sample companies in preparation of cash flow statement and concludes that the sample companies are in line (with few exceptions) with the requirements of International Accounting Standard (IAS)-7 or Bangladesh Accounting Standard (BAS)-7. It also proposes some suggestions for improving the presentation of the statement Key words: Cash flow statement, IAS/BAS, Listed Company, Disclosure. Introduction The purpose of a cash flow statement is to provide information on the cash flow from a company’s operating, investing and financing activities to enable the users of its financial statements to evaluate the ability of the company to generate cash and to use the historic cash flows to predict future cash flows. The cash flow information enhances the comparability of the operating performance by various companies, because it eliminates the effects that arise from the use of different accounting treatments for the same transactions and events. The use of cash flow information is gaining importance in the analysis of financial statements (Epstein 1991; Yap 1997; Jones and Widjaja 1998; Previts and Bricker 1994). Cashflow information is considered less open to manipulation than information on earnings, because it is based on the actual receipt and payment of cash only and not on the accrual and other accounting principles. Rees (1995:75) adds that the cash flow statement can be more informative than the other statements. However, he literature on the cash flow statement indicates that there are grey areas in cash flow reporting that are open to various interpretations (Everingham and Watson 2002). The perceived simplicity of the cash flow statement may therefore create synthetic confidence in the reliability of companies’ cash flow reporting and the comparability of various companies’ cash flow information. The acceptance of IAS-7: The Cash Flow Statement has added a new dimension to the preparation and present ation of financial statements in Bangladesh. This paper is an attempt to investigate into the state of cash flow reporting by the listed Bangladeshi * Lecturers, Department of Business Administration, ASA University Bangladesh 210 ASA University Review, Vol. 6 No. 2, July–December, 2012 Textiles and Clothing companies in general. The focus is not on the quality of the reporting of the companies but rather on what the reporting levels are in general. Objectives of the study The major objectives of the study are as follows: 1. to identify the current practice of cash flow statement of Pharmaceutical companies in Bangladesh. 2. o provide present cash flow statement format, structure and reporting on the basis of information provided in the annual reports of the selected listed Pharmaceutical companies in Bangladesh. Methodology of the study The study was conducted in accordance with secondary information obtained from various sources. The overview of standardization of financial reporting and the regulatory framework has be en based on laws, regulation, and guideline and also on various published sources of information taken from International Accounting Standard Board (IASB) and Bangladesh Accounting Standard 7 (BAS 7). A limited survey has also been made covering a total of 12 Pharmaceutical companies’ annual reports (2009) enlisted in Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE). These are selected on the basis of convenience sampling procedure. In order to make the study more revealing it also covers some research articles, textbooks, publications and web sites of various accounting bodies. Limitations of the study 1. Applied non profitability techniques have been used. 2. Due to limitation of the extensive materials, books and previous studies in Bangladesh literature review could not be extensive. 3. This study consists of only 12 listed Pharmaceutical companies due to time and resources constraints. Literature review Cash flow statement: A historical surroundings/background Cash flow Accounting (CFA) was the main system of accounting up to beginning of the 18th century (Watanabe, Izumi: The evolution of Income Accounting in Eighteenth and Nineteenth Century Britain, Osaka University of Economics, Vol. 57, No. 5, January 2007, p. 27-30). Till then, accounting allocation and profit measurement were relatively unimportant; the profit and loss account being used to close off ledger accounts at each period end. However, with the advent of concept and practices of business continuity, periodic measure and statement of financial position began to grow. Thus the basis of cash transaction becomes foundation for the allocation based systems of accounting today. Although there has been a reasonably sustained interest in fund flow statements (based on allocated accounting data) since the beginning of the twenty century, CFA appears to have received little or no support from accountants until the early 1960s. At that time there was little concern over the use of ‘cash flow’ data in the financial analysis- cash flow being interpreted as ‘profit plus depreciation (. Winjum, J. o, 1972). In 1961 AICPA recognized the importance of fund statement by publishing Accounting Research Study (ARS) Cash Flow Statement Disclosures in Pharmaceutical Companies 211 NO 2â€Å"Cash flow analysis and fund statements†. Before that, accountants had prepared funds statements primarily as management report. The Accounting Principles Board (APB) responded in October 1963 by issuing APB Opinion NO. : â€Å"the statements of and application of funds†, which recommended that a statement of sources and application of funds be presented on a supplementary basis. Because of the favorable response of the business community to this pronouncement, the APB issued Opinion No. 198: â€Å"Reporting changing in Financial Position† in March 1971. This opinion required that a statement of changing financial position be presented as a basic financial statement and be covered by the auditor’s reports. In 1981 the Financial Accounting Standard Board (FASB) reconsidered fund flow issues as part of the conceptual framework project taken in 1976. At this time the FASB decided that the cash flow reporting issues should be considered at the standard level. Subsequent deliberation resulted in Statement of Financial Accounting Standard (SFAS) No. 95: ‘Statement of cash flows’ in Nobember1987 (Weygandt, Kieso, Kimmel 1998: 1936). Fund flow statement Vs Cash flow statement Both fund flow statement and cash flow statement serve as a fundamental parts of the financial statements. In 1961, the AICPA issued ARS No. 2, â€Å"Cash Flow Analysis and the Fund Statements† which recommended that a fund statement covered by auditor’s opinion be included in companies financial reports. According to paragraph 5 of Preface to Statement of International Accounting Standard [approved by the IASC Board in November1982 for publication in January 1983 and supersedes the preface published in January 1975 (amended March 1978)], â€Å"the term ‘financial statements’ covers balance sheets, income statement or profit and loss accounts, statements of change in financial position, notes and other statements and explanatory materials which are identified as being part of financial statements† (IASC, 2000:32). As per paragraph 7 of framework for the Preparation and Presentation of Financial Statements (approved by IASC Board in April 1989 for publication in July 1989): â€Å"A complete set of financial statement normally includes a balance sheet, an income statements, a statements of change in financial position (which may be presented in a variety of ways, for example as a statement of cash flow or a statement of fund flows) and those notes and other statements and explanatory materials that are an integral part of the financial statements† (IASC : p. 3-44). As per paragraph 4 of the previous IAS 7 (October 1977), statements of change in financial position, the term ‘ funds’ referred to cash, cash and cash equivalents or working capital (IFAC, 1992: p. 813). Funds provided or used in operation of an enterprise should be presented in the statements of changes in financial statement separately from other sources and uses of fund. Unusual items, which are not part of ordinary activities of the enterprise, should be separately disclosed (IASC: Para 21). But many users of financial statements consider current practices of reporting fund flows as confusing because too much information is compressed in the statements of change in financial position, and because no single definition has been established (Mosich and Larsen, 1982; p. 935). In order to develop a conceptual framework for financial accounting and reporting, the FASB issued in December 1980 a discussion memorandum â€Å"reporting Fund flow, Liquidity and Financial Flexibility† which was issued for the following reasons: (1) for assessing future cash flow, and (2) current practices regarding the reporting of funds flow information are not entirely satisfactory. As a result of deliberation, FASB issued SFAS NO. 95 ‘Statements of Cash Flow’ in 1987. The statements require the inclusion of statements of Cash Flows rather than a statement of Change in Financial position when issuing a complete set of financial statements 212 ASA University Review, Vol. 6 No. 2, July–December, 2012 which was made effective for annual periods ending after July 15, 1988. The major requirements of the statements are of the following two areas: Basis of Presentation: The statement must focus on cash receipts and payments and must explain the change in cash plus cash equivalents. Classification of cash flows: Cash flows are to be classified according to operating, investing and financing activities. The basis of such classification is derived from the financial theory, which state that the enterprise derives the cash used for investing activities and settlement of outstanding financial obligation in an accounting period from internal and external sources. Internal cash sources emanate from the net cash generated from current operation and perhaps disinvesting and depletion of cash resources at the start of the period. External cash sources come from financing activities such as borrowing and receiving cash from the sale of equity shares to existing and new shareholders (Wallace et,al). Benefits of Cash Flow Information The information in a cash flow statement helps investors, creditors, and others to assess the following aspects of the firm’s financial position. Such statements serve as a mechanism for predicting the ability to generate future cash flows for the investors, creditors and others. This enables managers or management to plan coordinate and control financial operation in an effective manner. It gives an indication of the relationship between profitability and cash generating ability thus of the quality of the profit earned. It furnishes information to the management regarding the entities’ ability to pay dividend and meet obligations. Analyst and other users of financial information often, formally or informally, develop models to assess and compare the present value of the future cash flow of entities. Historical cash flow statements could be useful to check the accuracy of past assessment (ACCA Text book part 2. P. 324). It is free from manipulation and is not affected by subjective judgments or by accounting policies. Such a statement dictates situations when a business has made huge profit but has run out money or it has sustained loss but has enough cash availability. The extent of cash generated from operational activity and external finance in order to meet capital, tax, and dividend requirements can be obtained from such statements (Lee, T. A: 1972:27-36). It aids in the evaluation of risk, which includes both the expected variability of future return and probability of insolvency or bankruptcy ( Hendrickson, Eldom. S, 1982: 237). Such statements reveal the capability of an enterprise to pay its short obligation as and when due to the lenders. A cash flow statement in conjunction with a balance sheet provides information on liquidity, viability, and adaptability. The balance sheet is often used to obtain information on liquidity, but the information is rather incomplete for this purpose as the balance sheet is prepared at a particular point of time. Cash Flow Statement Disclosures in Pharmaceutical Companies 213 It may assists users of financial statements in making judgments on the amounts, timing and degree of certainty of future cash flows. This statement provides information that is useful in checking the accuracy of past assessment of future cash flows and in examining the relationship between profitability and net cash flow and the impact of changing price (IAS 7: Para 3 4). Information on cash flows classified by three groups of activities (Operating, investing and financing) that al low users to assess the impact of those activities on the financial position of the enterprise and the amount of its cash and cash equivalents. This information may also be to evaluate the relationship among those activities (IAS 7: Para 11). This statement is of special importance in assessing future cash flows, quality of income operating capability, financial flexibly and liquidity, and information on financing and investing activities. Using cash flows from operating activities from the cash flow statements, different ratios such as liquidity, ratio, solvency ratio, and profitability ratios can also be calculated to evaluate an enterprise’s liquidity, solvency, and profitability. Aziz uddin and Bala, 2001: p. 14) Overview of Cash flow statement The cash flow statement explains the changes that have occurred in the company’s cash and cash equivalents during the year by classifying the cash flows in its operating, investing and financing activities. The statement must focus on cash receipts and payments and must explain the change in cash plus cash equivalents. The classification is done in a way that is mos t appropriate to the company’s business. The following are the definitions of the components of the cash flow statement: Cash: cash on hand and demand deposits Cash equivalents: short term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Operating activities: the principal revenue-producing activities of the enterprise and other activities that are not investing or financing activities Investing activities: the acquisition and disposal of long-term assets and other investments not included in cash equivalents. Financing activities: activities that result in changes in the size and composition of the equity capital and borrowings of the enterprise (Epstein, p. 93). Objective and Scope of IAS 7 Information about the cash flow of an enterprise is useful in providing users of financial statements with a basis to assess the ability of the enterprise to generate cash and cash equivalents and the needs of the enterprise to utilize those cash flows. The economic decision taken by users requires an evaluation of the ability of an enterprise to generate cash and cash equivalents and timing and certainty of their generation. The objective of IAS 7 is to require the provision of information about the historical change in cash and cash equivalents of an enterprise by means of a cash flow statement that classifies cash flows during the period from operating, investing and financing activities. An enterprise should prepare a cash flow statement in accordance with the requirements of IAS 7 and should present it as an integral part of its financial statements for each period for which financial statements are prepared. Users of an enterprise’s financial statements are interested in how the enterprise generates and uses cash and cash equivalents. This is the case regardless of the nature of the enterprise activities and irrespective of whether cash can be viewed 214 ASA University Review, Vol. 6 No. 2, July–December, 2012 as the product of the enterprise, as may be the case with a financial institution. Enterprises need cash for the same reason however different their principal revenue- producing activities might be. They need cash to conduct their operations, to pay their obligations and to provide return to the investors. Accordingly this standard requires all enterprises to present a cash flow (Para 1 3). Presentation of Cash flow statement under IAS 7 Cash and cash equivalent: The definition of cash and cash equivalent are central to the preparation and interpretation of cash flow statements. Cash consists of cash in hand and demand deposits, coins and notes of an organization, etc. In our country deposits in postal accounts may be termed as cash (Cooper and Ijiri, 1984: 88; Ghosh, 2001). Cash equivalents are short-term, highly liquid investments that are readily convertible into known amount of cash and which are subject to an insignificant risk of change in value. According to the definitions of paragraph 6 of IAS 7 cash comprises cash in hand and demand deposits; usually ‘cash on hand’ includes currency, notes, and coin in the cash box of the enterprise. It also includes prize bond, negotiable money orders, postal orders, and under posited checks, bank drafts or pay- order. Demand deposits refer to deposits in checking accounts in banks and other financial institutions that may be withdrawn without notice usually subject to deduction of outstanding check. Thus cash equivalents – 1. are short-term investments but the ‘term’ ‘short’ not clearly specified, although a period of three months and less is suggested to be taken as short term period. 2. are highly liquid investments. Here ‘liquid’ means having in a situation where cash equivalents are available in sufficient amount to meet obligation of payments. . are investments that are both: (a) readily convertible, to known amounts of cash and (b) subject to an insignificant risk of change in value. According to SFAC No. 95, the risk categorically refers to risk of change in interest rate. The short-term investments are so near their maturity that they represent insignificant risk of changes in interest rate. Examples include treasury bills, commercial papers, a nd money market funds purchased with cash that is in excess of immediate needs. However, although by definition, cash equivalents refer to short term highly liquid investments, they are usually held for the purpose of meeting short term cash commitments rather than for other purpose. For an investment to qualify as a cash equivalent it must be readily convertible to a known amount of cash and be subject to insignificant risk of change in value. Therefore an investment normally qualifies as a cash equivalent only when it has a short maturity of, say, three months and less from the date of acquisition. Equity nvestments are excluded from the cash equivalents unless they are, in substance, cash equivalents, for example in the case of preferred share acquired within a short period of their maturity and with a specified redemption date (Para 7). Cash Flow Statement Disclosures in Pharmaceutical Companies 215 Preparation of Cash flow statements IAS 7 requires cash flows to be classified into operating, investing, and financing activities. Example of cash flows by cate gory Operating Activities Inflows Receipts from customers Outflows Payments to suppliers Advance deposits from customers Wages and salaries to employees Income tax refunds Income tax payments Interest received on customers’ notes or Other tax payments accounts Dividends and interest received from Interest paid on bank debt or bonds outstanding and investments and included in determining net included in determining net income income Investing Activities Cash received from sale of capital assets Payments for purchase of capital assets Cash from sale of debt or equity investments Cash flows capitalized as intangible assets, such as:  · development costs  · start-up costs  · capitalized interest  · exploration Costs Collection of principal on loans to others Purchase of debt or equity securities of others Interest and dividends received on investments Loans extended to others and not included in determining net income Financing Activities Net proceed of issuing debt or equity securities Payment of principal on bonds or bank loans Cash proceeds received from ba nk loans Purchase of the entity’s own shares Interest paid on bank debt or bonds outstanding and not included in determining net income Dividends paid to shareholders Variations in Reporting activities for Cash flows A. Operating or Financing activities Transactions with different categories included in cash flows are classified in a different manner. According to IAS 7, Para 12, â€Å"A single transaction may include cash flows that are classified differently. For example, when the cash repayment of a loan includes both interest and capital the interest element may be classified as operating activities and the capital amount is classified as financing activities†. B. Operating or investing and financing activities Some cash flows may be classified as arising from any activities such as ‘interest’, ‘dividend’ ‘income tax’. The detailed provisions of these types are as follows. 216 ASA University Review, Vol. 6 No. 2, July–December, 2012 Interest: a. For a financial institution, interest paid and interest received are usually classified as operating cash flows (para 33). b. For other enterprise, interest paid and interest received may be classified as operating cash flows because they enter into the determination of net profit or loss. Alternatively, interest paid may be classified as financing cash flows, because they are costs of obtaining financial resources. Interest received may be classified as investing cash flows, because they are returns on investments (para 33). Dividend: a. For a financial institution, dividends received are usually classified as operating cash flow (Para 33). b. For other enterprise, dividends received may be classified as operating cash flows because they enter into the determination of net profit or loss. Alternatively dividend received may be classified as investing cash flows, because they are returns on investments (para 33). c. Dividend paid may be classified as financing cash flows, because they are costs of obtaining financial resources. Alternatively dividend paid may be classified as component of cash flows from operating activities in order to assist users to determine the ability of an enterprise to pay dividend out of operating cash flows (para 34). Income tax: a. Taxes on income arise on a transaction that gives to the cash flows that are classified as operating, investing, and financing activities in cash flow statement. While tax expense may be readily identifiable with investing or financing activities, the related tax cash flows are often impracticable to identify and may arise in a different period from the cash flows of the underlying transactions. Therefore taxes paid are usually classified as cash flows from operating activities. However, often it is practicable to identify the tax cash flow within individual transaction that gives rise to cash flows that are classified as investing or financing activity as appropriate. When tax cash flows are allocated over more than one class of activity, the total amount of taxes paid is disclosed (Para 36). In the light of SFAS 95, â€Å"Transaction that enter into the determination of net income† are defined as operating activities and hence, interest received or paid, dividend received and taxes on income are rigidly treated to arise from operating activities. Dividend to stakeholders are treated as cash outflows classified as financing activities (Keiso and Weygandt, 1998: 1275-76) Cash flow statement Practices in Bangladesh Regulatory Framework, in the eyes of the Companies Act 1994 (Act no. 18 of 1994): According to Section 183 of the Companies’ Act 1994 (which came into effect from 1 January 1995), a company is required to present balance sheet, profit and loss account (income and expenditure account, in case of non profit companies). Under section 185, the balance sheet and the income statement have to be prepared according to the forms set out in Part –1 and Part –2 of Schedule XI respectively under which information on consecutive two years (concerned year and Cash Flow Statement Disclosures in Pharmaceutical Companies 217 preceding year) are to be provided. However according to note (g) of the general instruction for preparation of balance sheet (given in part –1 of schedule XI after the horizontal format of the balance sheet), â€Å"a statement of change in financial position shall be included as an integral part of the financial statements, and shall be presented for each period for which the profit and loss account is prepared†. However no specific format of cash flow statement has been prescribed in Companies Act 1994. In the light of the Security and Exchange Rule 1987 (S. R. O No. 237-l/87 dated on 28 September 1987): Under the provision of rule 12 (1) of the Securities and Exchanges Rules (SER) 1987(amended by the section notification No. SEC/ Section 7/SER/03/132 dated 22 october1997 published in the official gazette on 29 December 1997), the annual report to be furnished by an issuer of listed security shall include â€Å"a balance sheet, profit and loss account, cash flow statement and notes to the accounts collectively hereinafter referred to as the financial statement’. In the part III of the Schedule of the SER 1987, issues relating to interest paid on short-term borrowing, interest and dividend received income taxes are clearly guidelined. For example, interest paid on short-term borrowing shall be a cash outflow under operating activities; ‘interest and dividend received’ shall be a cash inflow under investing activities. And ‘interest paid on long term borrowing’ and ‘dividend paid’ shall be a cash outflow under financing activities. Under paragraph 35-36, ‘taxes on income’ should be treated as operating cash outflow unless they can be identified in financing and investing activities. Findings of the study To know the extent of cash flows statement reporting practices by Pharmaceutical companies, a survey has been conducted covering twelve annual reports (2009) (For detailed the name of the companies see Appendix-1). The major findings of the study are given below in terms of general variations in reporting and voluntary disclosure. General findings It includes the current format and structure of cash flow statement and the extent of compliance of IAS-7, followed by sample Pharmaceutical Companies in Bangladesh. All the sample companies prepare cash flow statement as required by IAS-7/BAS 7 adopted by the Institute of Chartered Accountant of Bangladesh and present it as an integral part of the financial statements. Notes to cash flow statement have been presented as part of the financial statements i n case of all the sample companies.  · The sample companies prepare cash flow statement in vertical form and shows figure of cash flows of the current year and the previous year.  · All the sample companies’ cash flow statement contains a classification of operational, investing, and financing activities.  · The sample companies did not illustrate the policy dopted in determining the formulation of cash and cash equivalents although this is required by paragraph 36 of IAS 7. 218 ASA University Review, Vol. 6 No. 2, July–December, 2012 Variation in Reporting Another objective of the survey was to determine which alternatives, permitted by IAS-7, are used most in practice by Bangladeshi pharmaceutical companies. It is found that there are not many differences between companies in their reporting of cash flow information. This is expected because the preparation of cash flow statement does not allow for many choices, differences of interpretation or different accoun ting treatments. The results are set out in table 1. Table-1 Variations in reporting [Cash flow statement (CFS)] Factors 1 Notes to CFS Options Separately, following the CFS Part of the notes to the financial statements Incorporated in the CFS Total Direct method Indirect method Total Operating activities or no interest Financing Investing activities Total Financing activities or no dividends Operating activities Investing activities Total Part of accounting policy note Nothing disclosed Total Operating activities or no tax Financing activities Investing activities Total Number of companies 0 12 0 12 12 0 12 12 0 0 12 12 0 0 12 12 0 12 12 0 0 12 2 Operating activities 3 Interest received and Interest paid 4 Dividend received and Dividend paid 5 Definition of cash and cash equivalents 6 Income tax Notes to table 1  · Refer to point 2 of Table 1. According to IAS-7 and SEC Rule 1987, the enterprises are encouraged to report cash flows from operating activities using the direct method. The direct method provides information which may be useful in estimating future cash flows which is not available under the indirect method. All the sample companies followed the direct method in reporting operating cash flows. One company (Pharmaceutical Mithun Knitting Dyeing Ltd. ) discloses cash flows from operating activities under indirect method in notes of financial statements as additional information. Cash Flow Statement Disclosures in Pharmaceutical Companies  ·  · 219 Refer to points 3 4 of Table 1. All the companies studied have shown ‘interest received and paid’ under operating activities and ‘interest paid on long term borrowing’ and ‘dividend paid’ under financing activities. Refer to points 5 6 of Table 1. All the companies studied have shown â€Å"definition of cash and cash equivalents† in the notes of accounting policy and â€Å"income tax† under operating activities. Voluntary disclosure The survey also included an examination of any additional information that is disclosed regarding the company’s cash flow which is not required by IAS-7, but which may be helpful to the user. For example, separate disclosure of cash flows increases operating capacity and cash flows that maintain operating capacity, disclosure of segmental cash flows, cash flow per share etc. The survey found no company to disclose such additional voluntary information in its cash flow statement. Conclusion and Recommendation A materially misstated cash flow statement, whether it is in terms of incorrect classification in the categories or numerical accuracy, can be misleading to the user and can lead to wrong decisions taken by the users of the statement. The survey has revealed that although sample companies prepare cash flow statement according to International Accounting Standard-7 (BAS-7), there is also a degree of non-compliance. It is, however, found that there are not many differences between companies in their reporting of cash flow information. This is expected because the preparation of cash flow statement does not allow for many choices, differences of interpretation or different accounting treatments. To make cash flow statement more informative and useful for users, the companies should disclose additional voluntary information such as cash flow per share in their cash flow statements. Items consisting of cash flows from operating, investing and financing activities should also be clarified in the notes of the financial statements. Due to the limited scope of the present study, a large number of research issues have not been attempted but are identified in the course of the study. Disclosure practices of additional items other than operating, investing and financing activities, disclosure practices differences between listed and unlisted companies, disclosure practices differences between financial and other institutions are some such potential issues for future research. 220 ASA University Review, Vol. 6 No. 2, July–December, 2012 References Annual Reports of Sample Pharmaceutical Companies Listed in Dhaka Stock Exchange and Chittagong Stock Exchange 2009. Aziz Uddin, A. B. M and Bala. , S. K. ( 2001), â€Å"Cash Flow Reporting in Bangladesh†, The Cost Management, Nov- Dec. ICMAB, p. 13. FASB Discussion Memorandum (1980), Reporting Funds Flow, Liquidity and Financial Flexibility, FASB, Stanford. Thomas H. Beechy. Joan E. D. Conrod, Intermediate Accounting, second Edition, Chpter 5, Exhibit 5-1 pp. 91 Ghosh, Santi N. (2001),â€Å"Workshop Material on IAS # 7 : Cash Flow Statements† compiled under the Institute of Chartered Accountants of Bangladesh (ICAB)Project, Development of Accounting and Auditing Standards in Bangladesh, The World Bank. Government of Bangladesh (GOB) (1994), The Companies Act 1994 (Act No. 18 of 1994). Gup, B. E. Samson, W. D. 1993. An analysis of patterns from the statement of cash flows. Financial Practice Education, 3(2):73-79. Hendrickson, Eldom. S(1982), Accounting Theory, Richard D. Irwin, Inc. , Illinois, p. 236. Hertenstein, J. McKinnon, S. 1997. Solving the puzzle of the cash flow statement. Business Horizons, 40(1):69-76. International Accounting Standards Committee (IASC) (2000), International Accounting Standards 2000 International Accounting Standards Committee, London, â€Å"International Accounting Standard IAS 7 (revised 1992): Cash Flow Statements† in pp. 139165. International Federation of Accounting (IFAC) (1992), IFAC Handbook 1992: Technical Pronouncements (New York: IFAC). â€Å"IAS 7 (October 1977): Statement of Changes in Financial Position† in pp. 812- 816. Khan, M. H. Akter, M. S. Ghosh, S. K (2005), â€Å"Cash Flow Statement Disclosures: A Study of Banking Companies in Bangladesh†. Available at www. pcte. edu. in/site/OJMR/Finance/cashflow. pdf Keiso, Donald, E. and Jerry. J. Weygandt (1998), Intermediate Accounting, John Wiley Sons, Inc. New York, 9th Edition, pp. 1275-76. Lee, T. A. 1982. Cash flow accounting and the allocation problem. Journal of Business Finance Accounting, 9(3):341-352. Lee, T. A (1972), â€Å"A Case for Cash Flow Reporting†, Journal of Business Finance, Vol. 4, No. 2, pp. 27-36 as quoted in Studies of Accounting Theory, Steyn, B. W. Hamman, W. D. 2003. Cash flow reporting: are listed companies complying with AC 118? Meditari, 11:167-180. Weygandt, Kieso, Kimmel, Accounting Principles, 9th edition, John, Wilely and Sons, Inc, pp. 732-733 Wallace, R. S. O. and Choudhury, M. S. I. And Pendelbary, M. 1997), â€Å"Cash Flow Statements: An International Comparison of Regulatory Positions†, The International Journal of Accounting, Vol. 32, No, 1, pp. 1-22 Cash Flow Statement Disclosures in Pharmaceutical Companies 221 Appendix-1 List of the twelve Pharmaceutical companies studied. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Gla xcoSmithKline Bangladesh Limited (2009) The IBN SINA Pharmaceutical Industry Ltd. (2009) BEXIMCO PHARMACEUTICAL LTD. (2009) ORION INFUSION LTD. (2009) ACI Formulation Limited (2009) Ambee Pharmaceutical Limited (2009) Square Pharmaceutical Ltd. (2009) Libra Infusions Limited (2009) BEACOM Pharmaceuticals Limited (2009) Rahman Chemicals Limited (2009) Renata Limited (2009) Therapeutics (Bangladesh) Limited (2009)

Education Systems Comparison: Australia and Mongolia

Education Systems Comparison: Australia and Mongolia COMPARISON BETWEEN MONGOLIAN AND AUSTRALIAN EDUCATION SYSTEM I would like to introduce comparison between Mongolian and Australian Education system in several areas such as general statement, access, quality and efficiency. First of all I would like to introduce general statement for both countries. Education in both countries follows preschool, primary and secondary education and technical education and vocational training and tertiary education. Both countries preschool education is non compulsory. Mongolian preschool education is offered to children agedÂÂ  2 to 5 in kindergarten, but Australian preschool education offered children aged 3 to 5. Mongolian preschool education is an instructional institution and by the Mongolian Preschool education law kindergartens shall provide preschool education to children of preschool age and ensure their school preparedness. Australian early childhood education has many types of preschool education such as kindergarten, child care center, Montessori center and act. Also, there are many similarities on primary and secondary education in two countries which means 12 year schooling system. The official enrolment age is 6 year old children in two countries. In addition, the Mongolian Government initiated transforming primary and secondary schools into a 12 year system in 2008. This transition will be complete by 2016. In Mongolia, that 6 years of primary, 3 years of lower secondary and 3 years of upper secondary schooling. In Australia that 7 years of primary and 5 years of secondary. In Australia, in the some states territories, primary schools often include a pre-school. In Mongolia, technical education and vocational training (1-2.5 years) sub-sector comprises specialized upper secondary schools as well as post-secondary diploma programs housed in higher education institutions. Therefore, in Australia, each state has a Vocational Education and Training or Technical and Further Education system. It is prepares people for work in a career that does not need a university degree. In Mongolia, higher education is awarded by colleges, institutes and universities. At the higher education level, bachelor programs usually last four to five years and six years for medical programs. Masters programs usually require one to two years and doctorate programs require three to four years to complete. Likewise, Australian higher education (6+) awards are classified as follows certificate, diploma and associate degrees, which take one to two years to complete, some aspects of higher education are the responsibility of States and Territories. In particular, most universities are recognized under the State and Territory legislation. Secondly, I would like to compare access of education in both countries. In Mongolia, 76.3 percent preschool age children attended in preschool education services. In 2009/2010 academic year, there are 785,8 thousand students enrolled in institutions of formal education. There were 102, 6 thousand children in 814 kindergartens. In 2009, 58.6 percent of pre-school children who are 2-5 year olds enrolled at institutionalized education programs and 17.4 percent of total pre-school children enrolled in alternative forms of educational services. In Australia 97.5 per cent of children attended for early childhood education the year before school. The year before a child is due to attend primary school is the main year for pre-school education. This year is far more commonly attended, and may take the form of a few hours of activity during weekdays. Preschool is in some states and territories relatively unregulated. In Mongolia, in 2009/2010 academic year, 557,3 thousand pupils in 710 primary and secondary schools. The primary and secondary education net enrollment rate was 91.5 percent. An addition, girls enrollment in primary and secondary cycle is greater than boys. In Australia, primary and secondary education is compulsory between the ages of 6 to 17, depending on the state or territory. The primary and secondary education net enrollment rate was 99.3 percent. In recent years, over three quarters of students stay at school until they are seventeen. Government schools educate about two thirds of Australian students, with the other third in Catholic and Independent schools. A small portion of students are legally home-schooled. Higher Education in Mongolia has universities and colleges. There are 146 universities, which is 42 are public, 99 are private and 5 are international. During the last 5 years number of students enrolled in higher education institutions increased by 70,1 per cent. The proportion of female students is 61.8% of total higher education enrolment. That data indicate an unusual reverse gender gap in higher education. This is particularly noticeable at the higher levels of education where typically female greatly outnumber male students. Last 5 years enrolments in occupational programs such as foreign languages, law, computer science, engineering, medicine, and tourism was more than double. Tertiary education in Australia provider is university self-accrediting provider, non self-accrediting provider. In 2009, the Australian higher education system consisted of 41 universities, of which 37 are public institutions, 2 are private, and 2 are Australian branches of overseas universities; 2 other self-accrediting higher education institutions; and non-self-accrediting higher education providers accredited by State and Territory authorities, numbering more than 150 as listed on State and Territory registers. These include several that are registered in more than one state and territory. Thirdly, in short, I want to compare and contrast quality of education both countries. The most important aspect for quality education is the learning achievement. According to the Program for International Student Assessment for 2006 ranks the Australian education system as 6th on a worldwide scale for Reading, 8th for Science and 13th for Mathematics. The Education Index, published with the UNs Human Development Index in 2008, based on data from 2006, lists Australia as 0.993, amongst the highest in the world, however Mongolia lists as 71, the medium level. In addition, many universities in Australia have gained international recognition. Two of the most acknowledged are the Academic Ranking of World Universities, produced by Shanghai Jiao Tong University, and the THES QS World University Rankings, which in 2006, had no fewer than 13 universities amongst the worlds top 200. That is why many foreign students wants to study in Australia at schools and universities. Quality in education is not good in Mongolia. Particularly, urban-rural gap in education quality still exist. According to some recent research, children attending rural schools perform significantly worse than children attending schools in aimag centers and Ulaanbaatar. Rural schools have limited access to resources needed to support higher learning achievements. Another main issue of qualitative aspects in education is teacher and children ratio. In Mongolia teacher and children ratio in the preschool is 25:2 and 30:1 is for secondary school.2 But 18:3 is for preschool and secondary is about 20:1 in Australia.5 It depends states and territories. Teachers are key players in implementing of the education sector, especially in classroom and teaching and learning quality, which is highly dependable on their professional capacity and supply. Two countries teacher qualification and professional knowledge and skills are similar, but teaching method is different. As I mentioned the last another issue of qualitative aspects in education is curriculum. The Mongolian Government approved a new set of competence based education curriculum/standards for pre school, primary and secondary education emphasizing the quality of education. These new curriculum is being introduced in the school year of 2005/2006. On the other hand, national curriculum /standard has renewed to be promoting a human development as develop pupils competence in terms of communication skills, self-confident, a critical thinking and problem solving abilities etc. In Australia there is a mandatory curriculum in addition to elective subjects. For the students are required to take state-wide external tests in English-literacy, mathematics, science, Australian history, geography, civics and citizenship and computing skills in. Finally, I want to write a few words about educational efficiency. The Mongolian Law on Education stipulates that at least 20 percent of the government budget is allocated to education. Government expenditure on education as a percent of GDP is 9 and a percent of GNP is 19.09 in 2004. Education expenditure has significantly increased over the last few years. Educations share of public expenditure has also remained consistently high, averaging 18.6 percent over the 2008-2010 period, although it has not quite reached more than 20 percent share as required by the Education Law, (revised in 2006). But the national education budget has increased by 2.5 times in 2004 as compared to 1996. The education sector is financed principally from two sources: the Central budget (81.7 percent in 2008) and the local budget (9.3 percent) with revenue raised at province and city levels. Other sources of revenue include tuition fees (4.1 percent), donations from individuals and organisations (1.6percent), project funds (0.1 percent) and others (2.7percent). In Mongolia, school and kindergarten financing is operated based on per child normative variable expenses with adjusting indexes. Indexes used to adjust the different situations in terms of population density, distance as remoteness of school location so on. However, some of remote and rural schools are still facing problems related with financial shortages due to not enough children attending in their kindergarten and school. Since 1997, state financing only fixed costs such as heating, electricity and water in higher education institutions. Student tuition fees constitute the major income source for universities, institutes and colleges. It makes up 80% of higher education income. In conclusion, it can be clearly seen that Australian and Mongolian education system are a few similarities some area such as general statements and accesses. However, the quality in education two countries is very different. Quality in education in Australia is the highest in the world, although in Mongolia, such as many indicators of the education quality and efficiency are not good enough and we have to change trends also, remind that there is need for policy and operational strategy reforms. Therefore, Mongolian education sector is undergoing new stage development reform. It has encountered new challenges created by poverty and social deprivation. The following issues are considerable in future development of education sector in Mongolia. Generally, Australian education system has a good policy, management, and sustainable development for every part of the education sub sectors. Finally, I believe that to improve relationship and to expand cooperation between Australian and Mongo lian education sector.

Errors And Failures During Oil Well Drilling Engineering Essay

Errors And Failures During Oil Well Drilling Engineering Essay This paper provides a general overview of errors and failures during drilling and tripping operations in the oil industry. The overview is presented in a tabular format for quick and easy reference. The work makes a clear distinction between errors and failures and how errors may possibly lead to drilling failures. A classification of drilling failures with their signs and symptoms as well as the possible causes of these failures is included in the overview. The overview may help during a thorough audit of failures that are encountered during a drilling operation. Developing a list of possible failures during drilling with a description of basic observatory signs and symptoms of their occurrence is the crucial first step in minimizing Non Productive Time (NPT) during drilling operations. Keywords: Drilling, Error, Failure, Tripping 1. Introduction The oil industry is unarguably one of the most complicated industries which face so many challenges yet functions as efficiently as possible. This assertion is true because the primary object of interest to the petroleum engineer cum the industry is located thousands of feet beneath the earths surface. This is accompanied by varying conditions of temperature and pressure as well as other geological factors. A combination of these factors makes the subject of understanding the process of getting at the object of interest complex to drilling engineers. The elusive nature of this understanding makes drilling operations encounter failures. These failures range from drill tool/equipment breakdown, wellbore or formation collapse, lost circulation, kicks and blowouts. Suffice it to say that these failures cost the industry valuable drilling time running into billions of dollars annually. It is against this background that this work on drilling failures is looked into. The primary focus of this work therefore is to improve the drilling process, by designing a good approach to identify all possible failures, how and when they occur, and most importantly their root causes. This would be done from a taxonomic perspective. This would involve classifying failures in the industry in their natural groups and isolating their possible causes, the key indicators to such failures as well as the errors leading to the failures. 2. Reported Cases of Failures in the Oil Industry To put the cases of failure in the right perspective, it is necessary to first define failure and error as it applies to oil well drilling operations. Schlumberger (2012) in their oil field glossary webpage defines failure in drilling as: Failure to meet the defined drilling objective. Deviation in the expected TD depth /run length Deviation in the expected performance (penetration rates, directional, power use) Error as defined by Oxford Advanced Learners Dictionary, is a mistake especially one that causes problems or affects the result of something. In todays error classification systems, error can mean several things: Error as the cause of failure. For example: This event was due to human error. Classifications rely on this definition when seeking the cause of operator error in, for instance, a supervisors failure to provide guidance (Shappell Wiegman, 2001.). Error as the failure itself. For example: The operators decision was an error (e.g. Helmreich, 2000). Classifications rely on this definition when categorizing the kinds of observable errors operators can make (e.g. decision errors, perceptual errors, skill-based errors) (Shappell Wiegmann, 2001). Error as a process, or, more specifically, as a departure from some kind of standard. This standard may consist of operating procedures. Violations, whether exceptional or routine (Shappell Wiegmann, 2001), or intentional or unintentional (Helmreich, 2000), is one example of error according to the process definition. Depending on what we use as standard, we of course come to different conclusions about what is an error. Based on the above definitions, the following are the reported cases of failures in the oil industry. The most recent case is the Gulf of Mexico oil disaster in 2010. Though the immediate and remote causes of the incident still remains a subject of controversy, the fact remains that the incident makes the subject of failures in the oil industry a relevant one. Shokir (2004) listed the following actual failure cases that occurred in Gulf of Suez Petroleum Company (GUPCO) in Gulf of Suez area and Western Desert area. These are cases 1 to 5. Case #1 This development well drilled in the Western Desert Concession in the onshore Abul-Gharadig area in 1991. Egyptian drilling company Rig No.8 (EDC-8) was used to drill this well to a total depth (TD) of 10,616 ft. While drilling 12.25-inch hole from 10,503 ft to 10,616 (TD) through the Limestone of Abu Roash formation with rotary bottom hole assembly and water base mud, lost 350 psi. When pulling out of hole, washout in Shock Sub was detected Case #2 This development well drilled in the Gulf Of Suez Concession in the offshore Ramadan area in 1993. Pyramid drilling Rig (Bennevis) was used to drill this well to a total depth (TD) of 12,504 ft. While drilling 12.25-inch hole from 10,805 ft to 10,823 through the Shale and Limestone of Mheiherrat formation with rotary bottom hole assembly and water base mud, lost 300 psi. Pull out of hole, found vertical crack in the top joint of heavy weight drill pipe. Case #3 This development well drilled in the Gulf Of Suez Concession in the offshore Hilal area in 1993. Sonat Offshore drilling Rig (Mercury) was used to drill this well to a total depth (TD) of 10,267 ft. While drilling 12.25-inch hole from 8,747 ft to 8,961 through the Limestone of Rudeis formation with rotary bottom hole assembly- and water base mud, lost 600 psi. Pull out of hole, found hole in the drill pipe near the surface. Case #4 This development well drilled in the Gulf Of Suez Concession in the offshore October area in 1995. Sonat Offshore drilling Rig (Comet) was used to drill this well to a total depth (TD) of 16,080 ft. While drilling 12.25-inch hole from 10,035 ft to 10,239 through the Anhydrite of South Gharib formation with rotary bottom hole assembly and oil base mud, lost 300 psi. Pull out of hole, found the short drill collar cleaned smooth cut 0.3 ft from the boxfish neck area. Case #5 This Exploratory well drilled in the Gulf Of Suez Concession in the offshore Badri area in 1995. Santa Fe International Rig No.124 was used to drill this well to a total depth (TD) of 12,480 ft. While drilling 12.25 inch hole from 12,417 ft to 12,480 through the Salt with Shale, Limestone and Sand Streaks of Ayun Musa formation with rotary bottom hole assembly and water base mud, had very hard back ream and very high torque, pump pressure dropped 1200 psi. Pull out of hole; found the drill string backed off at the short drill collar. CASE # 6 Horbeek et.al (1995), in their work cited Shell Expros effort in 1991 to tackle drillstring failures in their operations. This they did by carrying out autopsies. The autopsies confirmed what they had long been suspected: fatigue particularly BHA connection fatigue was the main cause of failure. Table1 briefly summarizes the autopsies carried out from 27/5/1992-1994. Failures in the BHA accounted for 79%, whilst drillpipe accounted for 21%of the total failures for this period. BHA connection fatigue alone accounted for 58% of the BHA failures and was attributed to poor inspection criteria, poor drilling practices and lack of stress relief features. Other learning points from the autopsies were: Majority of failures, 46%, occurred in the 12 1/4 hole section. Greater attention should be paid to rig torque gauge calibration; MWD shock logs can warn of impending drillstring failure. New drillstring components were not being specified to Shell specifications. Use of stabbing guide will reduce failures associated with connection damage. Avoid slip cutting drillpipe. Improved pipe identification system needed. Once a downhole pressure loss is established POOH immediately. From interviews they carried out during the autopsy process it quickly became clear that a general lack of understanding of cause, effect and cost of fatigue failures existed. The failures are summarized in the Table 1. Table 1: DRILLSTRING FAILURE AUTOPSIES 1992-1994 (Horbeek et al, 1995) DATE FAILURE ROOT CAUSE 27/05/92 Twist off at HDIS BHA connection fatigue 23/07/92 Twist off at crossover BHA connection fatigue 24/07/92 Twist off at MWD crossover BHA connection fatigue 02/11/92 Twist off at stabilizer Combination torsion/tension overload 05/11/92 Twist off at MWD Tensile overload 21/11/92 Washout at crossover BHA connection fatigue 22/11/92 Cracked mud saver sub Overtorque of new connection 26/11/92 Twist off at MWD BHA connection fatigue 08/12/92 Twist off at HWDP Accidental over-torque by top drive 02/01/93 Twist off at jars Tension/torsion overload 19/02/93 Twist off at bit sub BHA connection fatigue 24/02/93 Washout at HWDP Connection damage/bad handling 12/03/93 Twist off at shock sub Connection fatigue 19/03/93 Washout at HWDP Shoulder seal damage/bad handling 21/03/93 Washout at jars BHA connection fatigue 04/04/93 Washout at crossover BHA connection fatigue 10/08/93 Twist off at jar -intensifier BHA connection fatigue 20/08/93 Twist off at jars Insufficient hole cleaning 05/10/93 Twist off at mud motor BHA connection fatigue 23/10/93 Twist off at hole opener Poor hard banding application inspection 08/11/93 Washout at drillpipe connection Tool joint connection fatigue 24/11/93 4 washouts from split boxes DCs and HWDP Age condition of equipment 24/11/93 Washout at drillpipe connection Overtorqued connection DATE FAILURE ROOT CAUSE 02/12/93 Twist off at drill collar Torsion/tension overload when stuck 02/12/93 Twist off at jars BHA connection failure 03/01/94 Washout in HDIS Fatigue and vibration 05/01/94 Washout in drillpipe Fatigue and vibration 09/01/94 Washout in drill collar Fatigue and vibration 11/01/94 Washout in drill collar Fatigue and vibration 14/02/94 Washout in HWDP Age and condition 11/03/94 Washout in drillpipe Slip cuts 09/05/94 3washout in drillpipe Stabbing damage 28/06/94 Twist off NM drillpipe Stress corrosion cracking 23/08/94 Twist off SHWDP Brittle failure 23/08/94 Twist off in drillpipe Drillpipe tube fatigue 07/11/94 Twist off NB stabilizer Fatique/vibration 04/12/94 Drillpipe parted Tensile strength exceeded 04/12/94 Washout in jars Fatigue 3. Errors Contributing to Drilling Failure The error leading to a drilling or tripping failure may be caused by the abnormal state of either the formation being drilled, the wellbore itself or the equipment used in the drilling or tripping operation or caused by other external factors. It must be stated here that these errors may be attributed to either human, manufacturing or mechanical errors. Human Error Here are just a few generic definitions for human error: An inappropriate or undesirable human decision or behavior that reduces, or has the potential for reducing, effectiveness, safety, or system performance An action that led the task or system outside its acceptable limits An action whose result was not desired by a set of rules or an external observer To put things into context, there are three primary stages of cognition (planning, storage, and execution), which relate to the three error types (mistakes, slips, and lapses). The three human error types are: Mistakes: Mistakes occur when an intended outcome is not achieved even though there was adherence to the steps in the plan. This is usually a case in which the original plan was wrong, was followed, and resulted in an unintended outcome. Lapses. Lapses are associated with our memories (e.g., lapses of memory, senior moments, etc.). These are generally not observable events. Slips. Slips are generally externalized, observable actions that are not in accordance with a plan. These are often referred to as Freudian slips, in which a person may be thinking something but inadvertently says it so that someone else can hear it. Slips are most often associated with the execution phase of cognition. Manufacturing Error Variation caused by the manufacturing process that affects the size of the part. Manufacturing error is part of measurement value. From a design perspective the engineer or designer produces a piece of equipment or a system with intentions to function in a certain way. When it doesnt function that way (it breaks, catches on fire, messes up its output or is befallen of some other mishap) they try to find the root cause. Typically the cause can be identified as a: Design deficiency when the mechanical, electrical or other components of the design has a problem that caused the mishap Manufacturing defect when the material or assembly has an issue that causes it to fail Environmental hazard when an outside factor such as the weather causes the hazardous condition Mechanical Error Mechanical error is a deviation from correctness in computer-processed data, caused by equipment failure. This error can often be attributed to a range of different problems on both the manufacturer and the user side, as well as to the unpredictable forces of chance. When equipment malfunctions or falls short of its intended purpose, it may cause delays and lost funds. In rare cases, however, the results can be catastrophic. Serious injuries, loss of life and long-term negative repercussions can emerge from the failure of a seemingly innocuous industrial component. Such events may emphasize the importance of manufacturing standards and safety considerations, or highlight certain industrial concerns that influence the outcome of a project. These errors are related to drilling operations as shown in Table 2. Table 2: Errors during drilling tripping operations ERROR WHERE ERROR IS LOCATED SOURCE OF ERROR POSSIBLE CAUSE OF ERROR CONTRIBUTING FACTORS LEADING TO FAILURE Abnormal state of an Entity Formation Fractured faulted formations Natural fracture, geological fault, cavernous formation, permeable formation Human /Mechanical Errors Tectonically stressed formations Stressed formation Abnormal pore pressure Under compaction of shales Reactive formation Dissolving limestone, reactive shale Mobile formation Drilling salt fomations Unconsolidated formation Poor sediment cementation Naturally over pressured shale collapse Under compaction of shales Wellbore Material accumulation in the wellbore Cuttings accumulation,cavings accumulation Human/Mechanical Errors High hydrostatic wellbore pressure High pore pressure Low hydrostatic wellbore pressure Low pore pressure Crooked wellbore Doglegs, keyseat Equipment Hardware error Age of equipment, design errors Human Error, Mechanical Mechanical Errors Software error Limited knowledge of software by drilling crew members, typo errors Technical error Lack of technical know-how by drilling personnel 4. General Classification of Drilling Failures The classification of drilling failures in this paper is broadly categorized into three namely: equipment failure, wellbore failure and then formation failure. Table 3 lists these failures and their potential causes. Table 3: Summary of drilling and tripping failures, causes Errors Failure Type Observations Potential Causes Errors Leading to failure Error type EQUIPMENT FAILURE Failure class Failure sub class Drillstem failure Failure to acquire evaluation data, high torque drag Shocks vibrations Drillstem design Manufacturing error Drill pipe washouts Loss of hydrostatic pressure, Low SPP Deviated holes and doglegs, corrosive mud or gases,CO2 H2O in mud Running drill pipe in compression, in-correct make up torque of tool joints Human/operator error Drillpipe corrosion Contaminants in drilling fluids O2 in drilling fluids Human error Drillpipe fatigue Pipe leakage High cyclic loads Shallow doglegs in conjunction with high tension and slow penetration rates H2S CO2 in mud Drillstring buckling Compressive load in pipe exceeds a critical value Cracked pipes Sudden drop in pressure Over torqued threads Swelled or mushroomed box end shoulders,pin connection breaks When enough torque is not applied at the table When enough torque is not applied at the table Human error Pipe twist Torque exceeding pipes ultimate shear strength Pipe parting Ultimate tensile strength exceeded Galling Metal to metal contact b/w the pin box threads, stabbing Human error Failure Type Observations Potential Causes Errors Leading to failure Error type EQUIPMENT FAILURE CONTD. Failure class Failure sub class Casing failure Thermal failure High temperature during steam injection Sulphide stress corrosion cracking failure Stress corrosion by H2O H2,high strength steels Poor design of steels Manufacturing error External corrosion failure Exposure of casing to wet air and/or saline fluids Human error Helical buckling failure axial load and compressive forces exceeds the casings load carrying strength Casing collapse fail BHA hangs up when RIH, Calliper log shows collapsed casing high external formation pressure Centralizer failure Inefficient mud displacement Under-reamed wells, using an incorrect unit for the job Using an incorrect unit for the job Human error Mud motor failure Mud motor stalling A sudden severe increase in SPP , ROP ceases operating parameters exceeding the capability of the motor Motor Failure during reaming extended reaming operations Motor Failure during tripping key seats, ledges Motor failure due to downhole temperatures downhole temperatures increase beyond 225Â ° F FORMATION RELATED FAILURE Lost circulation Induced fracture LC Volume of mud in mud pit reduces High mud density, ,increase in annular pressure Failure Type Observations Potential Causes Errors Leading to failure Error type Failure class Failure sub class FORMATION RELATED FAILURE CONTD Lost circulation contd Natural fracture LC Volume of mud in mud pit reduces Natural fractures, high permeability formations, cracks,vugs, fissures Incorrect estimation of annular pressures Human error Kicks High pore pressure kick Geo-pressured formations Operational related kick Swab Surge during tripping Inefficient ROP Formation related Low ROP Cuttings accummulation Operational related Low ROP Low WOB,Bit balling WELLBORE FAILURE Wellbore wall related Cementing failure Stress cracking Appears as no cement on bond logs stress changes caused by casing expansion Gas migration un-cemented channel, low overbalance pressure before and during cementing Cement shrinkage Cement cracks Exposure to air of low humidity Micro annulus Inter zonal Communications, Well Leakage Hydrostatic Pressure Reduction inside the Casing, Cement Shrinkage Borehole caving Angular, Splintery cavings Highly tensional/compressive stress Failure Type Observations Potential Causes Errors Leading to failure Error type WELBORE FAILURE CONTD. Failure class Failure sub class Solids induced pack off Keyseating Sudden overpull Cyclic overpull at tool joint intervals on trips. High tensional side forces Underguage hole Pulled bit or stabilisers are undergauge. Sudden set down weight. Circulation is unrestricted. Bit stuck PDC bit run after a roller cone bit, When drilling abrasive formations Ledges and doglegs Sudden erratic overpull or set down Running an unsuitable BHA,changes in BHA Junk Missing hand tools / equipment. Circulation unrestricted. Sudden erratic torque. Inability to make hole. Poor housekeeping on the rig floor. The hole cover not installed Cement blocks Cement fragments. Erratic torque. Hard cement becomes unstable around the casing shoe Green cement Increase in pump pressure. Loss of string weight. Sudden decrease in torque. Green cement in mud returns, discoloration of mud. drill string is inadvertently run into cement Bit jamming Poor hole cleaning ,fluid is too thin Differential Sticking Bit balling Reduced ROP,Increased SPP, Overpull on tripping Swellable soft clays Failure Type Observations Potential Causes Errors Leading to failure Error type WELBORE FAILURE CONTD. Failure class Failure sub class Hole collapse Little or no filter cake Wellbore washouts Excessive hole fill,cuttings Swelling shale, hole erosion, insufficient mud weight Reactive formations Hydrated or mushy cavings. Shakers screens blind off, clay balls form. Increase in LGS, filter cake thickness, PV, YP, MBT When using WBM in shales and clays in young formations. When drilling with an incorrect mud specification When using WBM in shales and clays in young formations. When drilling with an incorrect mud specification Unconsolidated formations Increase in pump pressure. Fill on bottom. Overpull on connections. Shakers blinding Little natural cementation Mobile formations Overpull when moving up, takes weight when running in Drilling salt formations Fractured faulted formations Hole fill on connections. Possible losses or gains natural fracture system in the rock Tectonically stressed formations Pack-offs and bridges may occur. Cavings at the shakers (splintery). Increase torque and drag highly stressed formations are drilled Naturally over-pressured shale collapse Cavings (splintery) at shakers. Increased torque and drag. Hole fill. An increase in ROP. Cuttings and cavings are not hydrated or mushy. under-compaction, naturally removed overburden 5. Conclusions This work has been a modest attempt at classifying downhole failures and errors during drilling and tripping operations. Though not exhaustive, the work has been able to group failures and errors into their natural groups and then elucidated their symptoms and their potential causes. Finally, it is concluded that: Failures during tripping and drilling operations may be naturally classified into: wellbore related, equipment related and formation related failures That errors leading to these failures may be broadly classified into errors located in the formation, errors located in the equipment or errors located in the formation or wellbore being drilled That these errors may result from misinterpretation of test data, improper use of hardware or software, ineffective monitoring of events, under maintenance of equipment Nomenclature BHA = Bottom Hole Assembly BOP = Blowout Preventer CO2 = Carbon (IV) Oxide H2O = Water H2S = Hydrogen Sulphide HWDP = Heavy Weight Drill Pipe LC = Lost Circulation LGSC = Low Gravity Solids Content MBT = Methylene Blue Test MWD = Measurement While Drilling O2 = Oxygen PDC = Polycrystalline Diamond Compact Bit POOH = Pull out of Hole RIH = Run in Hole ROP = Rate of Penetration SPP = Stand Pipe Pressure TD = Total Depth WBM = Water Based Mud WOB = Weight on Bit YP = Yield Point Acknowledgement A work of this magnitude must have been culled from other writers work; hence I wish to express my sincere gratitude to all the authors whose works were consulted in the course of writing this paper. This acknowledgement would essentially be incomplete if I fail to extend my deepest appreciation to the Almighty God-Jehovah, for without Him, there would have been no me. To others whom I have not mentioned due to space or the lack of it, I remain your debtor in gratitude.