Financial Accounting principles Essay Example | Topics and Well Written Essays - 1750 words

Financial Accounting principles - Essay Example In actual practice, if a business is to be run at profit, it has to sell goods at such a price as will enable it to meet out not only expenses on account of cost of goods sold but also other numerous expenses like rent, salary, cartage, freight, commission , electricity, etc. Thus for making a profit, sales must be kept sufficiently high to meet all the other expenses. To emphasize the necessity of accounting, it can be said that accounting must provide the following information and we should ensure that we completely understand and analyze them: Accounting is defined as the 'the art of recording, classifying and summarizing in terms of money transactions and events of a financial character and interpreting the results thereof .' The American Accounting Association Committee defined accounting as - The process of identifying, measuring and communicating economic information to permit informed judgment and decision by the user of the information. The Accounting Principles Board of the American Institute of Certified Public Accountants (AICPA) stated "the function of accounting is to provide quantitative information, primarily financial in nature about the economic entities that is intended to be useful in making economic decision." Business Managers and outside interested parties make use of accounting information for decision making that affect the business. The primary purpose of accounting is to provide information about financial transaction, i.e., transaction involving money of a business enterprise. When a person starts a business or even to maintain the accounts of his daily expenditure he must make use of financial accounts. The two primary objective of any business are To earn profit. To have sufficient funds to pay their debts as and when they are required to be paid. This information makes a firm or an individual person take the right business related decision which helps to take the business further. Thus, accounting information, if properly and systematically recorded and reported, can direct a business enterprise to run on successful and efficient lines. Before we move on to understand more about Financial accounting we must clearly understand the advantages-disadvantages and limitations of accounting. Advantages Maintenance of

FREE MOVEMENT OF PERSONS IN EU LOW Essay Example | Topics and Well Written Essays - 1250 words

FREE MOVEMENT OF PERSONS IN EU LOW - Essay Example nce of the European Court of Justice's (ECJ) ruling was. In Defrenne, the individual acted against a condition in her contract of employment that required her to retire at the age of 40, whilst male employees continued up to the age of 55. She pleaded her defense on the basis of Article 141 of the Treaty of Amsterdam (then Article 119), guaranteeing equal pay for equal work. The fundamental problem at hand was whether the provision could be enforced horizontally- against a private party by such a party- as Sabena Airline was classified as a private party, albeit with the state as a majority shareholder, on the basis that it was constituted under private law, and with staff under private contracts of employment. However, the ECJ held that Article 141 did have direct effect so that the equal pay principle applied to contractual relations between employer and employee in a Member States. This was on the grounds that 'Article 119 is a mandatory in nature'. But because of a general principle of legal certainty, there could not be direct effect for retrospective applications, thus only claims for equal pay already brought at the date of the Defrenne judgment could be pursued in national courts. The Defrenne case also provides an example of the court interpreting the Van Gend En Loos conditions for direct effect flexibly. Article 141 states that 'the application of the principle that men and women should receive equal pay for equal work', and this was deemed to lack sufficient precision to be invoked by a private party and enforced by a national court. This is on the basis that it did not impose a precise negative obligation on the Member States- or Belgium in this case- nor did it provide a clear definition of terms such as 'priciple' or 'pay' or 'equal work'.5 However, the case retains its credibility as the court segregated the principle of equal work, within the article, with the factual uncertainties regarding the terms stipulated. Indeed, the case shows a clear determination by the courts to ensure tht the EC's aims were not ignored by laggard Member States. As a conclusion, therefore, the aforementioned considerations portray that Defrenne was successful in her claims, and the court did give priority to the social, rather than economic, aims of Aritcle 141, upholding 'one of the fundamental human rights', and therefore pursing its obligation to ensure the respect of such rights.6 The case of Baudet7 was another case relying on the success of the Defrenne claim. However, Defrenne was only successful in claiming the first of her three claims- that in respect of wages paid to her during her employment by Sabena. The other two, the indemnity paid to her at the termination of her employment and her pension rights could not be claimed as the court deemed that