Advanced Financial Reporting and Regulation Essay - 1

Advanced Financial Reporting and Regulation - Essay Example The problem with this approach arises when the market for the asset becomes illiquid. This sets in the use of complex models that the company must come up with through the help of a specialist. These assets are grouped as Level three assets. During the financial crisis, there was a fall in the prices of mortgage and related securities. The result was illiquid markets for them and banks marked down their assets largely. This made banks have a great problem in meeting up their capital requirement. The critics claim that money could have helped solve the crisis that existed at that time. However, banks obtained cash through the sale of assets that further made a downward trend in the prices of assets. This led to an economic downturn and became a cycle. This is the main reason, critics of fair value accounting claim that it had a hand in the financial crisis that occurred. Most critics have distinguished mark- to-market accounting a mechanism through which fair accounting can contribute to the financial crisis. There is a link between bank regulation and fair value accounting when trying to evaluate how fair value accounting can lead to a crisis. Fair value depends on the market prices, which are not consistent and sometimes can deviate due to some reasons. The distorted prices can cause a bank to write down its assets to match the distorted prices. As a result, the regulatory capital of the bank would be depleted and it may force the bank to sell assets at lower prices. If the lower prices in the distressed bank become relevant to other banks, it can result to regulatory capital problems and write-downs even for sound banks (Laux and Leuz, 2009). Laux and Leuz (2009) found out that by the management paying attention to the company’s earnings might create the contagion problems. The management can sell their assets at relatively low prices that result to a contagion effect to the other banks. This makes other banks price their assets

Career management in business Essay Example | Topics and Well Written Essays - 750 words

Career management in business - Essay Example These consequently affect the performance of an organization. These contracts are in a moment of transition. In this way, organizational relationships are turning into transactional contracts. In transitional contract, security of assets is ensured by creating safe returns from uncertain returns. There are examples of these contracts which include intermediaries offer insurance to their customers. Others include commercial paper markets working together with intermediaries likened to money market mutual funds. These changes in relationships have interfered with labour market within organization. Understanding intrapersonal and interpersonal relationships in organizations affects the means through which career management can be understood. It will influence individual career management and organizational career management (Kase and Zupan, 2007, 16-17; Gorton and Pennachi, 1988, 1-3). According to Adekola (2011, p100), a career is a lifelong process that constitute of a pattern of unde rtakings and related perspectives or conducts that happen in the life of a person as long as they are working. It is also perceived as a sequence of experiences during work, such as work related decisions; job positions, duties, and work related events as interpreted subjectively by individuals, for example, values, aspirations, things hope for, needs and feelings work that prevail within the time an individual is working. The plan and execution of organizational processes that facilitate the careers to be intended and controlled in a way that satisfies completely both the what a person prefers as per their capabilities and they are also designed to meet requirement of an organization (Yahya, Othman and Meruda 2004, p75). With the changing nature of work, it has become important for individuals and organisations to manage their careers. This is because every individual is expected to produce results that are meeting the needs of the organization. The realisation that effective usage of skills and knowledge can cause a great improvement in performance has caused many people and organisations to device ways to manage human capital. Career management is a continuous process that involves preparation, development, implementation, and tracking career plans and means to achieve career goals. Career management can be done by an individual or by an organisation. Individual Career Management (ICM) is done personally and it involves data collection about how to solve emerging challenges of the work and plans to develop their career. In this kind of career management, a person is responsible for decision making affecting their career development (Dargham, 2011, p4). Organizational Career Management implies effort an organisation put to improve the quality of life of an individual who is an employee. It involves policies, activities and programmes that are put in place to ensure that an organisation or employers facilitate the development strategies and designs of their e mployees’ careers (Adekola, 2011, p102). Career management requires analysis of the changing trends of jobs and careers in the present time. Both the organization and individual should carry out an analysis of the strengths and weaknesses they have so that they can focus on development (GMP, Not dated, p1-3). In the past, organizations could ensure job security even with changing environment. In the current days because of the competitive nature of the external market,