The financial management policies of Sainsburys - Free Essay Example

Sample details Pages: 13 Words: 3924 Downloads: 6 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Level High school Did you like this example? Report to critically evaluate the Financial Management policies and practices of J Sainsbury plc over the last five years. including gearing dividend decisions, investment performance appraisal and cost of capital subjects. J. Sainsbury plc was established in 1869 by John James and Mary Ann Sainsbury. Don’t waste time! Our writers will create an original "The financial management policies of Sainsburys" essay for you Create order It is established as Britainà ¢Ã¢â€š ¬Ã¢â€ž ¢s oldest food retailer. It comprises two divisions à ¢Ã¢â€š ¬Ã¢â‚¬Å" Retailing, by way of its supermarkets and smaller convenience stores, together with its financial services, Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s Bank. It aims to provide high quality products, at good value with an excellent standard of service. It is the third largest grocery chain in the UK behind Tesco and Asda/Wal-Mart. [1] The J. Sainsburys food retail area serves over 16 million customers a week by way of a total 788 stores and an internet-based home delivery service. The financial services area of Sainsburys Bank, offers a variety of packages including life insurance, saver accounts, credit cards and travel insurance to name a few. In October 2004 the supermarket giant was suffering the consequences of the increasing success of its competitors and it responded by announcing a dramatic recovery plan which would serve to lead it out of the spiraling losses the company was experiencing. Still reeling from the impact of late 1990à ¢Ã¢â€š ¬Ã¢â€ž ¢s BSE financial implications where the stores lost out over two million on fresh beef alone.[2] The Making Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s Great Again strategy served to increase their overall profits by over 200 million before tax in just over one year.[3] Before floundering again two years later under speculation of an impending takeover. A fiscal breakdown of the procedures between 2003 and 2008 demonstrates the financial narrative of a company experiencing highs and lows in a competitive environment, maintaining its significant profile and diversifying its options. 2003-2005 Following on from 2002 and a year in which sales growth increased profits and encouraged the operational gearing, Sainsbury Shareholdersà ¢Ã¢â€š ¬Ã¢â€ž ¢ funds increased by  £155 million to  £5,003 million, with net debt increasing by  £248million. Public confidence had been gained but severe losses were still being documented. The company also found themselves having to increase their borrowing and extended their loans by an additional three and a half years. The overall Group gearing, or Net debt divided by total equity, rose to 28% with group capital rising from 11.1 % to 11.5%. This will no doubt be a reflection of the number of investments that the Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s group made during this year.[4] The company Directors recommended the payment of a final dividend of 11.36 pence per share, at an increase of 0.54 pence from 2002 and a total dividend for the year ending 2003 of 15.58 pence per share, complimenting the increase in the number of shareholders that year. This total also reflected the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s aim to encourage profit growth in 2004. In terms of the groups investments during these two years the one million pound investment it had made in the Homebase stores was sold. The final disposal of this investment made the company a total profit of around  £61 million, after taking into account any liabilities following the sale of the partner business in 2001which boosted the profits for the group noticeably in 2003.[5] The figures below illustrate the differences in terms of the increased investments and total debt that the company experienced over one year.[6] 2003 2002 Cash and current asset investments 659 386 Debt (2,063) (1,542) Fixed asset investments Group Company 2003 2002 2003 2002 Shares in group undertakings (note 16) à ¢Ã¢â€š ¬Ã¢â‚¬Å" à ¢Ã¢â€š ¬Ã¢â‚¬Å" 7,661 6,227 Joint ventures (note 17) 9 44 6 33 Own shares at cost1 86 88 à ¢Ã¢â€š ¬Ã¢â‚¬Å" à ¢Ã¢â€š ¬Ã¢â‚¬Å" Other unlisted investments at cost 17 42 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 25 By the end of 2003 Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s were in trouble and fighting to maintain their positioning amongst the other major chains. In July 2003 Asda gained 17% of the market share. Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s slipped from a position of 17.1% of the market share to just 16.2%. Following the merger with Wal-Mart, Asda proceeded to overtake Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s as the second largest supermarket in the UK. [7] In 2004 it was determined that an increase in profits was needed urgently through sales and it was agreed that in order to meet these targets group managers would be provided with financial incentives. Consequently a share incentive scheme was initiated for all senior managers within Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s plc. Performance of these managers would be assessed over a period of four years and only when all targets had been met would the scheme be awarded.[8] Although the scheme encouraged increased and improved working practice it did look to the media like the Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s group were floundering, with a public announcement that acknowledged the weaknesses that existed within the company. What followed was a continued drive to invest and increase performance. Their 2 005 annual report stresses the importance attached to investment with the creation of a specialist web site designed to provide information on current investors in addition to attracting new ones.[9] This 2005 report also outlines the Performance indicators for 2004 and 2005 for Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s initiatives nationwide. In terms of offering new provision to its customers as part of the ongoing attempts to raise their profile the group launched its Wheel of Health campaign to encourage shoppers to think about the healthier options where eating is concerned and an astonishing 250,000 children took part in their Taste of Success initiative. This programme had the aim of assisting young people in a bid to encourage learning about food and nutrition. Running in partnership with the British Nutrition Foundation and the Design Technology Association, curriculum courses around food technology were built into the scheme which hosted food awards and awareness training for teach ers across the UK. Efforts were made to engage more with the community and align the company to the needs of assisting with regeneration across the country. It was an excellent attempt at active inclusivity and would have served to improve their image at the time significantly. Local Heroes awards were given to colleagues who demonstrated acts of courage, assistance or excellence within their communities, participating once again in the Investors in People scheme and reaching out to their own staff for their knowledge input and consultation around the way in which the business operates overall. Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s also became heavily involved with Comic Relief activities, raising seven million pounds throughout its stores for the charity and developing a vouchers for school campaign to support schools buying sports equipment. It seems that Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s had a stake in everything in 2005 and was actively playing its part for the environment by reducin g packaging significantly, reducing its CO2 emissions and introducing biodegradable methods for its waste produce. During this year the company headed up the Dow Jones Sustainability Indices and proved themselves to be the only retailer in the UK to appear in the Global 100 list of sustainable corporations. In 2005 they also took the award for Organic Supermarket of the Year.[10] Looking at the overall Capital between 2003 and 2005 the company argued that capital was in decline in 2003 due to the fact that the Easter holidays were much earlier than usual and a significant amount of new lines were being introduced. [11] Group capital expenditure for the year amounted to 1,197 million, compared to 1,159 million the previous year. This increase can also be attributed to the variety of new business transformation concepts. Essentially higher levels of spending had been necessary to adopt innovative activities for all stores to participate in across the UK. During this year Sain sburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s bought up a number of additional retail units acquired from the newly liquidated Ames Department stores. These needed financial support over the next couple of years in terms of refurbishment and conversion into new Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s supermarket stores. By 2004 capital expenditure was reducing and the company was seeing the signs of improved cash flow, additionally supported by lower dividend payments.[12]. In 2004/05 Capital expenditure dropped to around  £500 million. Throughout 2004/05 Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s integrated an energy savings programme across all of its stores and offices with a spend of over  £14million working in partnership with npower[13] 2006 to 2008 By 2006 Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s recovery plan was beginning to demonstrate a real difference. In 2005 it had set itself a target of  £2.5 billion in sales over a three year period. There were vast improvements in the retail operating profit m argins, demonstrable by a 14.3% operating profit growth recorded for 2005/06. By 2006 they were over half way to achieving their  £2.5 billion sales target. Their operational gearing had improved and risen considerably. During November 2006 Citigroup were predicting an increase of 64% in their overall profits before tax to reach  £193 million. Shares in Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s also rose to all time high in eight years, to a staggering 420p.[14] This overwhelming continued improvement in operational gearing can be attributed to greater sales and a reduction in costs. For example the group managed to make significant savings in labour and IT during this period.[15] This resulted in their ability to demonstrate higher investment in the overall quality of price and product. Between 2005 and 2006 a final dividend of 5.85p per share was announced. By 2007 a final dividend of 7.35 pence per share was proposed. [16]Once again illustrating the continued economic stre ngth of the company over a comparative short space of time. The table below illustrates the comparative performance indicators for Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s between 2005 and 2006[17] Continuing operations 2006 2005 Sales (inc VAT)  £17,317m  £16,364m Sales (ex VAT)  £16,061m  £15,202m Underlying operating profit  £342m  £325m Underlying profit before tax  £267m  £238m Profit/(loss) before tax  £104m  £(238)m Profit/(loss) after tax  £58m  £(187)m Underlying earnings per share 10.50p 8.30p Basic earnings/(losses) per share 3.80p (17.40p) Proposed dividend per share 8.00p 7.80p What is immediately obvious here are the increased levels of profit and the tremendous rise in value against Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s shares. As mentioned previously the new stores made a tremendous contribution to the noticeable growth in sales, including the introduction of 14 new supermarkets and 20 new metro convenience stores. In 2006 The Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s Group made other investments by way of completing nine extensions, 28 refurbishments, with a total 94 refurbishments and conversions of its convenience stores overall[18]. By 2005/06 the effects of their Making Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s Great strategy were becoming very apparent. Around this time the retail industry were however experiencing the negative effects of financial increases across the UK placed upon rent, rates and wages. In addition many energy supply companies were gradually introducing their higher costs and Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s estimated their energy expenses to total around Ã⠀šÃ‚ £55 million by the end of 2007.[19] In 2005 Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s owned 455 supermarkets. In 2006 they had targeted and additional 131 stores to invest in and refurbished 37 of these by March. They extended ten stores and acquired nine disbanded Safeway stores from Morrisonà ¢Ã¢â€š ¬Ã¢â€ž ¢s in this same year. These ex-Morrisonà ¢Ã¢â€š ¬Ã¢â€ž ¢s stores provided Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s with around a 20% increase in overall sales. This demonstrates their ability to penetrate new locations successfully. During 2006 the group also embarked on an enhancement programme for their online home delivery service. As a consequence they received a sales increase of over 25% from this market.[20] 2005 witnessed another significant move by Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s to assist with their recovery programme, when they decided to terminate their IT outsourced contract with company Accenture. In 2000 Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s had signed a contract worth over  £1 .7 billion, scheduled to continue for seven years. In 2003 this was reviewed and extended to 2010. In the meantime Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s decided to invest in its own IT systems and made the move towards developing their own in-house systems. This decision also followed in the wake of the Accenture infrastructures failing to adequately support the needs of the company and costing Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s at one point  £500 million in supply chain and IT assets. At the time Chief Executive Justin King responded publically that à ¢Ã¢â€š ¬Ã‹Å"The IT cost is a greater proportion of sales than they were three years agoà ¢Ã¢â€š ¬Ã¢â€ž ¢. [21] Dropping the contract and focusing on an in-house infrastructure in 2005 enabled Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s to recoup some of ità ¢Ã¢â€š ¬Ã¢â€ž ¢s losses and the drain in spend that Accenture were taking from the company each year Capital expenditure reduced in 2006 to  £525 million, a sharp decrease from the pre vious financial year where capital expenditure had reached a staggering  £901 million. This can however largely be accounted for as the increase had included Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s new investments in the ex-Morrisonà ¢Ã¢â€š ¬Ã¢â€ž ¢s stores and the balance of this was significantly outweighed by the resulting increase in sales.[22] 2007 witnessed another sharp increase in capital by  £212 million on the previous year and can mostly be attributed to the cost of refurbishment and extensions to existing stores.[23] Throughout 2006 and 2007 Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s had begun talks with the Qatari based investment fund, Delta Two, with regard to a possible takeover and a proposed bid amounting to  £10.6 billion. The bid was quashed finally at the end of 2007; as a result of the effects of the global credit crunch, but not without its consequences. The public and investors had panicked and lost confidence in the Sainsbury group and share prices plumme ted by 20%, impacting on the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s overall market value which reduced by  £1.8 billion.[24] Delta Two remain in possession of 25% ownership of the group (the Sainsbury family hold 18%) and would be at liberty to present a new offer in light of the fact that six months have elapsed since their last bid failed. It is unlikely to consider a new takeover bid, in terms of the Sainsbury group refusing to back down against their offer and the Qatarià ¢Ã¢â€š ¬Ã¢â€ž ¢s inability to negotiate, but the likelihood of some future takeover is not completely improbable, considering this particular deal became so near to closure and received such immense media attention. Brian Revell of Unite, which is Britains largest union consisting of 20,000 members at Sainsburys declared the failed takeover bid to be a positive move for the supermarket and looks forward to a period of stability and business as usual. In contrast Revell has stated that there remain issues across the group which are still not resolved. We are aware that significant Sainsburys shareholders have designs on splitting the companys retail and property interests. Such a split would not be good news in our judgment and we would urge the board to resist the temptation. And other investors such as Robert Tchenguiz whose property empire owns a 10% stake in Sainsburys is continually lobbying the board to release the  £8 billion value of Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s, in order to re-invest in a significant property enterprise. [25]The companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s most recent announcements to begin moving more resources into non-food initiatives, may see a more gradual shift into different, more varied opportunistic markets such as this. Similarly only six months ago Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s announced their new investments of  £273 million into the joint venture property enterprise British Land. 2008 has marked the end of the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s Making Sainsbu ryà ¢Ã¢â€š ¬Ã¢â€ž ¢s Great Again strategy, launched in 2004 at the height of their financial difficulties and struggle to maintain their profile. This recovery plan had revolved around improving customer incentives and operational efficiency in order to increase sales and profit enhancement. The original sales target set by the group in 2004 had been an agreed  £2.5 billion. With sales of  £2.7 billion announced in March of this year the supermarket giant has managed to exceed their target, with profits also significantly increasing by 28.4% before tax. A final dividend of 9.00 pence per share agreed in 2008 raises the year end dividend to 12.00 pence. This demonstrates an increase of 23.1 per cent compared to 2007.[26] However the Financial Times income statement for Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s confirms that Year on year since 2004 little progress has been made in their total net income which has risen from 325.00m to just 329.00m. What is apparent is the grow th in revenue by 4.00% during this period which can be attributed to the increase in the cost of goods sold as a percentage of their sales. Cash flow margins from these figures also illustrate considerable losses in cash reserves for 2008. This is probably accountable by way of the 791million the company spent on investments.[27] It was announced at a Food and Grocery conference earlier this year that Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s will now take forward a new strategy, following on from the success of Making Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s Great Again. The new From Recovery to Growth plan heralds s the start of another three year initiative that will anticipate a sales growth of  £3.5 billion. Around  £15 million will be invested in the project.This latest strategy will see Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s focusing on new business opportunities, improving their online home delivery service and diversifying its products to expand further into the non-foods market.[28] Conc lusion Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s has responded to a variety of financial challenges over the past five years, dealing with the threat of stronger competition, a fluctuating economy which has influenced UK shopping trends and beaten back the threat of takeover and possible insolvency. In 2005 the sales figures, profit losses and ever decreasing share prices were presenting a bleak picture for the company. A massive recovery plan, expansion of its stores and nationwide initiatives and new partnerships enabled the company to recuperate its losses and generate a huge increase in sales. Early measures taken to dramatically cut the costs of ità ¢Ã¢â€š ¬Ã¢â€ž ¢s IT outsourcing in 2005 also contributed to the decrease in unnecessary investments. Together with their shrewd publicity campaigns led by the popular celebrity chef Jamie Oliver, Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s used a number of combined profile raising and financial initiatives in order to deliver a complete economic turnaround . In 2008 Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s total retail sales including VAT currently stand at 19,287 million, an increase on their previous year from 18,227 million. And a considerable improvement on their sales figures recorded for 2005 at 16,354 million. Since 2005 a steady year on year rise has amounted to a total increase in sales of just under  £300 million. Similarly their profits have soared. Profit before tax in 2008 confirms a 28.4% rise at  £488 million. Precisely  £108 million compared to 2007. Profits in 2006 were recorded at  £108 million. This illustrates an overwhelming profit increase of  £380 million for Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s over just two years. Like-for-like sales, excluding fuel, has risen 3.9 per cent. The group has recorded 13 consecutive quarters of like-for-like growth. Sales, cost cutting and profit targets under this programme have all been exceeded in accordance with the Making Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s Great Again strategy. In the face of continued speculation regarding the global economy and less disposable income, Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s Chief Executive, Justin King has acknowledged the ongoing worries regarding consumer spend across all economies, declaring Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s to be à ¢Ã¢â€š ¬Ã‹Å"clearly under pressureà ¢Ã¢â€š ¬Ã¢â€ž ¢, expecting the market to continue to be à ¢Ã¢â€š ¬Ã‹Å"intensely competitiveà ¢Ã¢â€š ¬Ã¢â€ž ¢. He has also positively indicated that à ¢Ã¢â€š ¬Ã‹Å"people eat at home more rather than spending money on visiting restaurants.à ¢Ã¢â€š ¬Ã¢â€ž ¢ [29] Which will obviously falls in favour of the retail food market. Sainsburys has lost some of its share in the market recently and customers have been turning to cheaper supermarkets. In response the company launched their à ¢Ã¢â€š ¬Ã‹Å"Feed your family for a fiver campaign earlier in the year, championed once again by Jamie Oliver. The scheme seeks to provide customers with a range of h ealthy, fresh and tasty meal options for four people at a budget of  £5 or under. Another interesting point to note is that Justin King as declared food price inflation to exist at 2% with regard to Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s supermarkets, whereas the Office for National Statistics quotes the figure to be 6.6%. Time will only tell how Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s fair the recent storm involving the impact of the credit crunch. Sainsbury shares have also dramatically recovered after decreasing to 320p in March this year. But overall the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s high volume of sales and their cost efficiencies will help to ease any impact of investment in price and new salary increases. Primarily Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s has fought to focus on providing for the specific needs of the customer over the past few years and has succeeded in benefiting from those objectives. Bibliography Boyer, K.K, Frohlich, M.T, Hult,T.M (2004) à ¢Ã¢â€š ¬Ã‹Å"Extending the Suppl y Chain: How Cutting-edge Companies Bridge the Critical Last Mile Into Customers Homesà ¢Ã¢â€š ¬Ã¢â€ž ¢, AMACOM Div Mgmt Assn Financial Times (2008) https://markets.ft.com/tearsheets/performance.asp?s=uk%3ASBRY, Date accessed 12/09/08 Food and Grocery conference (2008) https://www.igd.com/cir.asp?menuid=22cirid=2563, Date accessed 12/09/08 Investment Advisory site article à ¢Ã¢â€š ¬Ã‹Å"Donà ¢Ã¢â€š ¬Ã¢â€ž ¢t Sell Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢sà ¢Ã¢â€š ¬Ã¢â€ž ¢, Rodney Hobson (2008) https://www.fool.co.uk/news/investing/company-comment/2008/05/14/dont-sell-sainsbury.aspx, Date accessed 12/09/08 Jivkov, M (2006) à ¢Ã¢â€š ¬Ã‹Å"The Week Ahead: Huge profits leap in store for J Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢ Independent Newspaper Knights, M (2005) à ¢Ã¢â€š ¬Ã‹Å"Sainsburys calls time on IT outsourcing contractà ¢Ã¢â€š ¬Ã¢â€ž ¢, Computing magazine MacArthur Foundation (1999) J Sainsbury Plc and the Home Depot: J. 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S.: Island Press Walsh, F (2007), à ¢Ã¢â€š ¬Ã‹Å"Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s: a history in Picturesà ¢Ã¢â€š ¬Ã¢â€ž ¢, The Guardian newspaper Ibaraki, T, Nonobe, K, Yagiura, M (2005) Metaheuristics: Progress as Real Problem Solvers: Springer Wildman, M (1998) The BSE Inquiry / Statement No 166, J Sainsbury plc (2008), Flex News J Sainsbury plc: Three-Year Targets Exceeded https://www.flex-news-food.com/pages/16427/Sainsbury/j-sainsbury-plc-three-year-targets-exceeded.html J.Sainsbury plc (2003), Annual Report and Financial Statements https://www.jsainsburys.co.uk/files/reports/ar2003/pdf/annual_report.pdf, Date accessed, 11/09/08 J.Sainsbury plc: Investors Report: Company News (2004) https://www.jsainsburys.co.uk/index.asp?PageID=418news_filter=allYear=2004NewsID=489, Date accessed 11, 09, 08 J.Sainsbury plc, Company news (2005), https://www.jsainsbury.com/index.asp?PageID=322subsection=news_releasesYear=2005NewsID=531, Date accessed 10/09/08 J.Sainsbury plc, Corpo rate Responsibility Report (2005) https://www.j-sainsbury.com/files/reports/cr2005/index.asp?pageid=22, Date accessed 10/09/08 J.Sainsbury plc: Annual Report (2005) https://www.jsainsburys.co.uk/files/reports/cr2005/files/pdf/report.pdf Date accessed 08/09/08 J.Sainsbury plc: Annual Report (2006) https://www.j-sainsbury.com/ar06/overview/groupperformance.shtml, Date accessed 09/09/08 J.Sainsbury plc: Chief Executiveà ¢Ã¢â€š ¬Ã¢â€ž ¢s Operating Review, Annual Report (2006) https://www.j-sainsbury.com/ar06/ceor/ceor10.shtml, Date accessed 09/09/08 J.Sainsbury plc: Full Financials, Annual Report (2006) https://www.j-sainsbury.com/ar06/fullfinancials/summary9.shtml, Date accessed 10/09/08 J.Sainsbury plc-Financial Review Annual Report (2007) https://www.j-sainsbury.com/ar07/businessreview/financialreview4.shtml Date accessed 08/09/08 J.Sainsbury plc Governance Directorà ¢Ã¢â€š ¬Ã¢â€ž ¢s Report, Annual Report (2007) https://www.j-sainsbury.com/ar07/governance/ Date ac cessed 09/09/08 J.Sainsbury plc: Chairmanà ¢Ã¢â€š ¬Ã¢â€ž ¢s statement (2008) https://www.j-sainsbury.com/ar08/chairman/index.shtml, Date accessed 10/09/08 1 Footnotes [1] Boyer et al (2004) à ¢Ã¢â€š ¬Ã‹Å"Extending the Supply Chain: How Cutting-edge Companies Bridge the Critical Last Mile Into Customers Homesà ¢Ã¢â€š ¬Ã¢â€ž ¢, AMACOM Div Mgmt Assn [2] Wildman,M (1998) The BSE Inquiry / Statement No 166, J Sainsbury plc [3] (2008), Flex News J Sainsbury plc: Three-Year Targets Exceeded [4] https://www.jsainsburys.co.uk/files/reports/ar2003/pdf/annual_report.pdf [5] https://www.jsainsburys.co.uk/files/reports/ar2003/pdf/annual_report.pdf [6] https://www.jsainsburys.co.uk/files/reports/ar2003/pdf/annual_report.pdf [7] Ibaraki,T, Nonobe,K, Yagiura,M (2005) Metaheuristics: Progress as Real Problem Solvers: Springer [8] https://www.j-sainsbury.com/index.asp?PageID=322subsection=news_releasesYear=2005NewsID=531 [9] https://www.j-sainsbury.com/files/reports/cr2005/index.asp?pageid=22 [10] https://www.j-sainsbury.co.uk/files/reports/cr2005/index.asp?pageid=90 [11] https://www.jsainsburys.co.uk/files/reports/ar2003/pdf/an nual_report.pdf [12] https://www.jsainsburys.co.uk/index.asp?PageID=418news_filter=allYear=2004NewsID=489 [13] https://www.jsainsburys.co.uk/files/reports/cr2005/files/pdf/report.pdf [14] Jivkov,M (2006) à ¢Ã¢â€š ¬Ã‹Å"The Week Ahead: Huge profits leap in store for J Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢ Independent Newspaper [15] https://www.j-sainsbury.com/ar07/businessreview/financialreview4.shtml [16] https://www.j-sainsbury.com/ar07/governance/ [17] https://www.j-sainsbury.com/ar06/overview/groupperformance.shtml [18] https://www.j-sainsbury.com/ar06/fullfinancials/retailing.shtm [19] https://www.j-sainsbury.com/ar06/fullfinancials/retailing.shtm [20] https://www.j-sainsbury.com/ar06/ceor/ceor10.shtml [21] Miya Knights (2005) à ¢Ã¢â€š ¬Ã‹Å"Sainsburys calls time on IT outsourcing contractà ¢Ã¢â€š ¬Ã¢â€ž ¢, Computing magazine [22] https://www.j-sainsbury.com/ar06/fullfinancials/summary9.shtml [23] https://www.j-sainsbury.com/ar07/businessreview/financi alreview7.shtml [24] Fiona Walsh (2007), à ¢Ã¢â€š ¬Ã‹Å"Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s: a history in Picturesà ¢Ã¢â€š ¬Ã¢â€ž ¢ , The Guardian newspaper [25] Fiona Walsh (2007), à ¢Ã¢â€š ¬Ã‹Å"Sainsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s: a history in Picturesà ¢Ã¢â€š ¬Ã¢â€ž ¢ , The Guardian newspaper [26] Chairmanà ¢Ã¢â€š ¬Ã¢â€ž ¢s statement (2008) https://www.j-sainsbury.com/ar08/chairman/index.shtml, Date accessed 10/09/08 [27] https://markets.ft.com/tearsheets/performance.asp?s=uk:SBRY [28] Food and Grocery conference (2008) https://www.igd.com/cir.asp?menuid=22cirid=2563 [29] https://www.fool.co.uk/news/investing/company-comment/2008/05/14/dont-sell-sainsbury.aspx

Does College Prepare You For Life - 850 Words

Does College prepare you for life? Colleges and Universities are windows of knowledge that many people try to break, in doing so, people are ready for the next stage of their life. But not many have the option to go the world where knowledge is everything, and end being a simple worker all his life. People would judge a person for not having a degree, bachelor and many more. But do they ever think that colleges or universities are really preparing you for any jobs, does a piece of paper worth a lot now a days. Freeman Hrabowski wrote an article responding to people that think educations is a waste of time, and it is called â€Å"College Prepare People for life† (Hrabowski). In the article he mentions many positive thing about going to college and what is the outcome of going to college. But I believe that, he hasn’t done a very good job to explain why college is a good place to go prepare yourself for the real world. I believe that college is very important for our life , but not many of us know if we are really learning something while being in college. I feel like colleges or universities has become a place where we go just to go or try to earn a degree in any field. Therefore, I believe that colleges doesn’t enhance our basic skills, doesn’t give us a certainty of us getting a good job, doesn’t give us the hardships of the real world and it isn’t a place where everyone gets treated it equally. Colleges and Universities are places where we go and learn about us and what weShow MoreRelatedJiddu Krishnamurti s Concept That The True Function Of Education1351 Words   |  6 Pageseducation should be to prepare people for life. In addition, I will relate Jiddu Krishnamurti’s concept to my own personal life. As a result, one should agree that the true function of education should be to prepare people for life. 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Essay on The Philosophy of Cognitive Science - 2158 Words

The Philosophy of Cognitive Science Psychophysical dualism — the distinction between mind and body — is the counterposition between essentially irreducible elements: the mind and body. Such a dualism implies the main ontological problem of the philosophy of cognitive science and philosophy of mind: the mind-body problem (MBP). The dualism and the referred-to problem has been insistently discussed in the philosophical tradition and several solutions have been proposed. Such solutions are properly philosophical or require a scientific approach. First, I will expound the philosophical solution to the MBP proposed by Descartes, to be followed by an exposition of Ryles criticisms to the solution. Second, from Ryles criticism, I will deduce†¦show more content†¦Our communication is composed of three parts: First, we shall expound the cartesian dualism and its implied MBP both developed in the Metaphysical Meditations. The explanation is followed by Gilbert Ryles criticisms to the cartesian tradition in philosophy; Second, we shall deduce a solution of the MBP — by the means of the principle of embodiment of mind — that is related to the neural network models of mind proposed by cognitive scientists; Third, we shall analyse the conceptual components of the mentioned principle in order to show some philosophical difficulties linked to them and present some relations between the mentioned difficulties and the interdisciplinary methodological hypothesis of the cognitivist research program. II - MIND-BODY PROBLEM AND THE CARTESIAN DUALISM In the main work of Renà © Descartes, Meditationes de Prima Philosophia (1641), the french philosopher had estabilished the distinction between soul and body and formulated the MBP. The order of reasons, that was proposed by Descartes in construing the MBP, may be expounded as follows: 1 - The principle of hyperbolic doubt (every proposition having no immediate evidence must be false) has its limit defined by the cogito aperception. Such aperception represents the fist truth: I think, then I exist. 2 - The proof of the souls existence represented by the cogito gives the possibilityShow MoreRelatedCognitive Psychology Essay1294 Words   |  6 PagesEvolution of Cognitive Psychology Plynia Welty Psych 560 June 11, 2012 Brian Uldall Evolution of Cognitive Psychology Cognitive psychology embarked on a revolutionary journey since the era of Saint Thomas Aquinas (Dr. King, 2012). St. Aquinas was the pioneering mind behind the idea that behavior can be divided into two areas, cognitive and effect. Logging empirical research on a subject provides practitioners a comprehensive view of the subject matter (Dr. King, 2012). 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Use Of Cell Phones On Campuses Nationwide And How / If...

1. What is/are the article’s main research question(s)? The topic in question focuses on the relationship between the use of cell phones on campuses nationwide and how/if they affect students’ academic performance. 2. What is their substantive and statistical hypotheses? The authors believe that there is a correlation between cell phone use and academic performance, but there are several factors that need to be taken into account. Such factors include: sex, cigarette smoking, class standing, and undergraduate major. Both of their hypotheses have to do with these factors and the direct effect they have on a students GPA. 3. What is their theoretical background? The authors rely on recent research studies regarding cell phone use among college students, noting that the students primarily use them for social networking, surfing the Internet, watching videos, and playing games. The authors also mention previous studies that suggest cell phone use can lead to a sedentary lifestyle, which might negatively affect behaviors that are vital for academic success. 4. What are the IVs and DVs? The independent variable in the experiment would be the cell phone use by the college students. The dependent variable is the academic performance. 5. What level of measurement did they use for all of the IVs and DVs in the study? Independent Variables: Smoking (smoker vs. non-smoker) – nominal, categorical Class standing (fresh, soph, junior, senior) – ordinal, categorical Total phone callsShow MoreRelatedImpacts of Information Technology on Individuals, Organizations and Societies21097 Words   |  85 Pagesdistribute physical media presented a number of technical and logistical difficulties for movie pirates, which limited the scope of their operations. Thus, picture studios largely ignored these activities. 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A Critical Evaluation of The Usefulness of Integrated Reporting

Question: Discuss about the Critical Evaluation of The Usefulness of Integrated Reporting. Answer: Introduction In corporate communication Integrated Reporting (IR) is considered as the main process which is seen to drive value creation. IR is identified as a precise communication tool for stating about the organization strategy, performance and governance which leads to creation of these values in the short, medium and long term. This report is able to state on the different aspects of IR as mandated by the King III Report on Corporate Governance for South Africa, which is able to combine the reporting of both non-financial and financial performance measures for promoting corporate strategy (Rensburg and Botha 2014). IR is depicted as a concise communication on the strategy of the organization, performance and activities which led to value creation. Alongside IR, The International Integrated Reporting Council (IIRC) is identified with a global coalition of the standard setters, investors, regulators and individuals involved in theaccounting profession and NGOs. The main vision of the IIRC is understood with the alignment of the capital allocation and corporate behavior with an objective to achieve a wider goal in terms of the sustainable development and financial stability. The introduction of the new reporting standard can introduce major research on the financial reporting done by companies (Thomson 2015). Some of the main analysis of the report will include the discussions on the events which led to the need for IR. The financial reporting is identified with non-relevancy, historical aspect and non-transparency. Some of the other important aspects of the discussion will be included with concerns of resource scarcity and environment. The important discourse of the study is also able to discuss on benefits and challenges of the application of Integrated Reporting. The concise report on the organization strategy and business model will be associated to the context in which the organization operates (Bouten and Hooze 2015). Analysis The requirement for Integrated Reporting came into limelight because of several events. In general capitalism is seen to rely on efficient allocation of the capital for delivering returns to the investors in the long-term, medium term and short-term. It is the duty of the companies to engage in managing the financial capital to the investors which is seen to be generated from the non-financial capital such as people, trademarks/copyrights and natural resources (Eccles and Serafeim 2014). The western model of the capitalism was questioned with the banking crisis which originated in 2007. IR is reflected with the long-term and broad consequence of the decisions associated to the wide range factors to sustain and create values. The global crisis of 2007-2009, acted as a catalyst for the establishment of the Integrated Reporting Council (IIRC), and developing Integrated Reporting (IR). This was seen as a means of enhancing the financial stability and rebuilding trust in capital market an d also serve in the real economy. IIRC is considered with the coalition drawn from the broad global communities which has represented the global communities with the interest of evolution of corporate reporting. The South African discussion paper can support the IIRC thinking. The intrinsic learning process from South Africa has provided the companies with the understanding of the development process of integrated reporting (Zhou, Simnett and Green 2017). On creating the balance between regulation and market led integration program it has been discerned that the application of the integrated reporting is not just applicable in case of the South African listed companies. The use of IR is evident is several non-listed companies which is identified with the appropriate benefits which is seen to be related to market-led initiative (Feng, Cummings and Tweedie 2017). It is also shown that due to the exiting problems with traditional financial reporting, IR was introduced to combat the failing reconciliation ofaccounting standards. Some of the common problems with the financial reporting are recognize with the complexity of the reporting standards, long disclosures and absence of any linkage between the strategy and operations. It needs to be further discerned that the financial standards in several aspects is to be assessed with non-relevance of the prescribed framework. In several cases they also represented non-transparent information which calls for the need to implement IR. The IFRS regulations vary from country to country, therefore it cannot be said that they are able to followed single universal standard for the assessment of the increasing need of the stakeholders (Adams et al. 2016). It is further depicted that several countries were seen to be imposing carve outs (removal of offending passages) and carve ins (additions) relating to the official standard which is prescribed by the International Accounting Standards Board (IASB). Countries such as India and China are prominent examples for this. On the other hand, Australia and Canada have been able to adopt an unadulterated version of IFRS (Ahmed Haji and Hossain 2016). The revenue recognition is considered as a complex problem, as in several cases the contract for the product is depicted with a futures upgrade which cannot be predicted in general situations or at times of sales. Henceforth, with the inclusion of general financial reporting and other determinates of the sales data is found to be a difficult task (Bhasin 2017). The problem associated to the revenue recognition has led to several problems associated to unofficial measures to report the financial performance, during instances of virtual operations of the business. The massive success of the social network giants such as Facebook and Twitter have been depicted with a traditional method for recognition of the revenues measurement of revenue and expenses. This prevented the true and fair representation of the various took the aspects of business reports. In addition to this, the historical cost concept may not be appropriate for depreciation and amortization of the assets in a true and fair way against the standards issued by IR. Some of the other relevant factors which led to the adoption of IR is interpreted with the scarcity of resources and the various types the other environmental concerns (Stubbs and Higgins 2014). IIRC and IR The formulation of IR is depicted to be consistent with the issues associated to corporate reporting which is based on the significant number of the corporate reporting trends which is being followed across the globe. There is several range of the market factors which is driven by a complex and dated method of reporting (Serafeim 2015). The opportunities of the implementation process are seen to be evident with the affordably of the new technology and the need for transparency, inclusiveness and considering more information associated to the material for the modern business. The vision of IIRC is measured with the alignment of the capital and responding to the behavior to the wider nature of the changes which is seen to be associated to the various nature of other information. This is seen with the motive to include principle-based guidance and element contents to explain the necessary information associated to the integrated reporting. The IIRC frameworks was released to follow with an extensive consultation and testing by the investors and the businesses across all the regions in the world. The various types of the other aspect of financial reporting is understood to be directly included across 140 businesses and investors from 30 countries (Atkins and Maroun 2015). The primary objectives of Integrated Reporting are aimed at responding to the need for consistent, concise and comparable financial reporting. Integrated Reported also considered amalgamation of the financial and non-financial aspects of the financial information which is seen to be structured around the organizations strategic objectives. In addition to this, some of the other reporting aspects for the IR is seen to be based on the consideration of the important elements of the reporting aspects which is related to the supporting the needs of the long-term investors and taking into consideration a broader aspect for the long-term consequences of decision making (Verschoor 2014). The reflection of the interconnection among the environmental, social, governance and financial factors in decisions are seen with the effect in the long-term aspect in terms of the performance and condition thereby making out the clear linkage among the sustainable and economic value. Based on the principles of integrated reporting it helps in providing the appropriate framework for the social and environmental factors, which is taken into account on systematic basis. One of the objectives of IR is also considered with bringing reporting closer to the information which is seen to be used by the management for running the business in an efficient way thereby able to address the needs of day to day requirements (Dumay et al. 2016). Benefits of IR Some of the most noted benefits of the inclusion of IR, is depicted with the consideration, that the information and the parameters go beyond the scope of normal financial information. In addition to this, some of the other benefits of using IR is realized to be based on the reporting considerations which is taken into account with the improved ability to identify and respond to the opportunities, changes and risk in the business environment. IR has helped in better decision making and linking of the social, environmental, CG and financial performance. Some of the other benefits are depicted with the linkage of overall executive compensation and financial performance. Integrated reporting is considered with better resource allocation and capital allocation (Mio, Marco and Pauluzzo 2016). IR is able to provide a breakthrough in the value creation and enabling the organizations in working cohesively. The main benefits are also described in terms of using the new information which is observed to be conducive in terms of the addressing the various perspective of creating better value for the organization. The improvement in the decision-making process were largely attributed in terms of the changes pertaining to the management information. The improving nature of the management information is evident with the integrated reporting which is having an engagement with the external stakeholders. Another perspective of the benefit is depicted with connecting the departments and broadening the perspectives (Harold 2014). The foundational benefits of the organizations are considered with the internal engagement which is described as per the increased mutual understanding and respect. The most important aspect of the benefit is considered with the organizations experiencing a new and better understanding of how they are created and destroyed. There is a major breakthrough in understanding the value creation which one of the most important objective of IR. Henceforth, it is not surprising that these areas of the organizations which are seen with dramatic impacts. Another important benefit of IR was determined with the understanding of how the non-financial performance leads to better financial performance (Rensburg and Botha 2014). Some of the important form of the benefits experienced by the board is considered with the improvement in terms of the collaborative initiatives seen with the main form of the outcomes which are associated to measuring and managing of the performance. Based on the significant illustrations of the report, the improvement process was discerned at all stages. The improvement process depicted with the collaborative initiatives is seen with board reporting more dimensions of performance. The uncovering of the range of the other management which is associated to the management system changes and including expanded board assessment for effective risk assessment. The executives are able to prepare a timely report thereby addressing the widespread nature of the changes. In several reports it was addressed that the reporters were able to view the significant benefit of IR with driving the change in the top management and reporting process (Reuter and Messner 2015). The better allocation of capital and other resources was evident with the following of the various types of the processes which are directly linked to the human capital and financial capital. The better allocation of the resources is seen to be taken into account with better inclusion of financial and non-financial information into a single document (Lee and Yeo 2016). The relationship with the strategy of the organization and governance is depicted with appropriate governance and business model which needs to be transparent. In several situations the competitive benefits are taken into consideration through operational efficiencies, innovation and differentiation. In addition to this, the improved stakeholder relations are well-thought-out with better understanding of the needs associated to the managing their expectations. IR also leads to improved compliance with the CG regulations (Stacchezzini, Melloni and Lai 2016). Challenges of the IR implementation Despite of the significant pros of IR, the main drawback of this reporting is seen to be given in form of the complexity of the reporting standards. In addition to this, it is also discerned that IR lacks clarity and conviction which will allow it to achieve the goals are apparent. The lack of the acceptance of IR was identified as the main problem in some regions. The framework for IIRC looks forward to overcome the main gaps in the framework which needs to be fleshed out (Burke and Clark 2016). Some of the other grey areas of integrated reporting is identified with other forms of reporting such as statutory narrative reports associated to sustainability. Duplication of the information needs to be avoided in IR (Atkins et al. 2015). Several companies have been involved with the wait and see approach for the integrated report and this observation is evident with the imperial evidences of the study. An augmented focus needs to be given for offering more to the public in terms of the integrated reporting. The reports should be made comprehensible and legible to the broader stakeholder audience. The printing of news space needs to be decreased in case of integrated reporting. The companies need to seek diversification from the integrated reporting which initially decreased the summarization of the financial and non-financial information. In several instances the companies are not able to fully appreciate the values which they bring to their business. IR is still viewed as a compliance driven method which is often discerned with more work during the preparation of the reports. It needs to be further discerned that some of the most eminent companies are already disclosing the key elements, however they are still seen to lack the connection among the key elements such as strategy resource allocation, business model, performance, governance opportunities and risks. Moreover, the intricacy of the IR is able to make the stakeholders difficult to understand the various aspects of financial performance related to the business and it needs much time to interpret and understand the financial performance of a business. The integrated report is further able to include necessary standardization associated to depict the true operating performance in the business. The slow nature of the progress is identified as another limiting factor for IR. In several instances IR may not be consistent with the presentation and true operating performance of the business (Adams 2015). Some of the different types of the other downsides needs to be also presented with lack of clarity, complexity and lack of the acceptability of the standards. The IIRC framework is further able to include the other considerations of the IIRC gaps, depicted with the relationship among the integrated report and other forms of the reporting such as sustainability reports and narrative reports. The framework lacks certain aspects of informed guidance and including good examples thereby eliminating the issues pertaining to transparency in reporting and inclusion of commercial sensitivity. This is well-thought-out with a higher sense of risk exposure in respect of looking forward to other information (Eccles and Serafeim 2014). Another form of the key challenge of the IR is clearly discerned with the transitioning to a traditional annual report which is seen to be focused toward presenting the detailed disclosure in an understandable manne, integrated from the initial implementation and publication process. A tremendous coordination needs to be given during the situation when there is lack of experience in the interdepartmental cooperation (Harold 2014). IR over 300 pages which was launched in 2010. The executives of the business are prone to be exposed to the key business issues (Perego, Kennedy and Whiteman 2016). The report is seen to be well received by the staff however in various situations there is a lack of interest from the investment analyst and the regulators of the information. It needs to be further assessed that the downside of IR is depicted with the increased costs and resource requirements which are related to the various types of the other considerations such as lack of experience and incr ease in the guidelines. Moreover, the introduction of IR may lead to sweeping changes and go through lengthy implementation process. This may take several years to get integrated from the initial implementation and publication process. A tremendous coordination needs to be given during the situation when there is lack of experience in the interdepartmental cooperation (Harold 2014). Conclusion The learnings of the study are able to depict that the global crisis of 2007-2009, acted as a catalyst for the establishment of the Integrated Reporting Council (IIRC), and developing Integrated Reporting (IR). IIRC is considered with the coalition drawn from the broad global communities which has represented the global communities with the interest of evolution of corporate reporting. The South African discussion paper can support the IIRC thinking. The intrinsic learning process from South Africa has provided the companies with the understanding of the development process of IR. The IIRC frameworks was released followed with an extensive consultation and testing by the inventors and the businesses across alt the regions in the world. It needs to be further determined that the various types of the other aspect of financial reporting is seen to be directly included across 140 businesses and investors from 30 countries. Some of the important form of the benefits off IR is associated w ith better decision making and linking of the social, environmental, CG and financial performance. The assistance in better allocation of the capital resources are considered with both human capital and financial capital. Despite of the significant benefits, some of the main downsides are considered with the increased cost of implementation. IIRC gaps is depicted with the relationship among the integrated report and other forms of the reporting such as sustainability reports and narrative reports. Furthermore, the executives of the business are more prone to be exposed to the key business issues. References Adams, C. A. (2015) The international integrated reporting council: A call to action, Critical Perspectives on Accounting, 27, pp. 2328. doi: 10.1016/j.cpa.2014.07.001. Adams, C. A., Potter, B., Singh, P. J. and York, J. (2016) Exploring the implications of integrated reporting for social investment (disclosures), British Accounting Review, 48(3), pp. 283296. doi: 10.1016/j.bar.2016.05.002. Ahmed Haji, A. and Hossain, D. M. (2016) Exploring the implications of integrated reporting on organisational reporting practice, Qualitative Research in Accounting Management, 13(4), pp. 415444. doi: 10.1108/QRAM-07-2015-0065. Atkins, J. F., Solomon, A., Norton, S. and Joseph, N. L. (2015) The emergence of integrated private reporting, Meditari Accountancy Research, 23(1), pp. 2861. doi: 10.1108/MEDAR-01-2014-0002. Atkins, J. and Maroun, W. (2015) Integrated reporting in South Africa in 2012, Meditari Accountancy Research, 23(2), pp. 197221. doi: 10.1108/MEDAR-07-2014-0047. Bhasin, M. L. (2017) Integrated Reporting The Future of Corporate Reporting, International Journal of Management and Social Sciences Research, 6(2), pp. 1731. Available at: https://www.iafa.ie/irish_accounting_review/. Bouten, L. and Hooze, S. (2015) Challenges in sustainability and integrated reporting, Issues in Accounting Education, 30(4), pp. 373381. doi: 10.2308/iace-51093. Burke, J. J. and Clark, C. E. (2016) The business case for integrated reporting: Insights from leading practitioners, regulators, and academics, Business Horizons, pp. 273283. doi: 10.1016/j.bushor.2016.01.001. Dumay, J., Bernardi, C., Guthrie, J. and Demartini, P. (2016) Integrated reporting: A structured literature review, Accounting Forum, 40(3), pp. 166185. doi: 10.1016/j.accfor.2016.06.001. Eccles, R. G. and Serafeim, G. (2014) Corporate and Integrated Reporting: A Functional Perspective, SSRN Electronic Journal. doi: 10.2139/ssrn.2388716. Feng, T., Cummings, L. and Tweedie, D. (2017) Exploring integrated thinking in integrated reporting an exploratory study in Australia, Journal of Intellectual Capital, 18(2), pp. 330353. doi: 10.1108/JIC-06-2016-0068. Harold, P. R. (2014) Is integrated reporting in the future?, The CPA Journal, 84(3), pp. 6267. Lee, K. W. and Yeo, G. H. H. (2016) The association between integrated reporting and firm valuation, Review of Quantitative Finance and Accounting, 47(4), pp. 12211250. doi: 10.1007/s11156-015-0536-y. Mio, C., Marco, F. and Pauluzzo, R. (2016) Internal application of IR principles: Generalis Internal Integrated Reporting, Journal of Cleaner Production, 139, pp. 204218. doi: 10.1016/j.jclepro.2016.07.149. Perego, P., Kennedy, S. and Whiteman, G. (2016) A lot of icing but little cake? Taking integrated reporting forward, Journal of Cleaner Production, 136, pp. 5364. doi: 10.1016/j.jclepro.2016.01.106. Rensburg, R. and Botha, E. (2014) Is Integrated Reporting the silver bullet of financial communication? A stakeholder perspective from South Africa, Public Relations Review, 40(2), pp. 144152. doi: 10.1016/j.pubrev.2013.11.016. Reuter, M. and Messner, M. (2015) Lobbying on the integrated reporting framework, Accounting, Auditing Accountability Journal, 28(3), pp. 365402. doi: 10.1108/AAAJ-03-2013-1289. Serafeim, G. (2015) Integrated Reporting and Investor Clientele, Journal of Applied Corporate Finance, 27(2), pp. 3451. doi: 10.1111/jacf.12116. Stacchezzini, R., Melloni, G. and Lai, A. (2016) Sustainability management and reporting: the role of integrated reporting for communicating corporate sustainability management, Journal of Cleaner Production, 136, pp. 102110. doi: 10.1016/j.jclepro.2016.01.109. Stubbs, W. and Higgins, C. (2014) Integrated Reporting and internal mechanisms of change, Accounting, Auditing Accountability Journal, 27(7), pp. 10681089. doi: 10.1108/AAAJ-03-2013-1279. Thomson, I. (2015) But does sustainability need capitalism or an integrated report a commentary on The International Integrated Reporting Council: A story of failure by Flower, J., Critical Perspectives on Accounting, 27, pp. 1822. doi: 10.1016/j.cpa.2014.07.003. Verschoor, C. C. (2014) Integrated Reporting Lags in the U.S., Strategic Finance, 96(12), pp. 1315. Available at: https://widgets.ebscohost.com/prod/customerspecific/s7154645/customproxy.php?url=http%3A%2F%2Fsearch.ebscohost.com%2Flogin.aspx%3Fdirect%3Dtrue%26db%3Dedb%26AN%3D99822987%26site%3Deds-live. Zhou, S., Simnett, R. and Green, W. (2017) Does Integrated Reporting Matter to the Capital Market?, Abacus, 53(1), pp. 94132. doi: 10.1111/abac.12104.

Diagnostic & Statistical Manual of Mental Disorders-Free-Samples

Question: There are several changes from DSM IV to DSM 5 manuals in diagnostic criteria and grouping. Critically evaluate three of these major changes. Answer: Diagnostic and Statistical Manual of Mental Disorders (DSM) is an authoritative guide published by American Psychological Association (APA) used by health care professionals guiding the diagnosis for mental disorders containing symptoms, descriptions and criteria. Many editions of DSM are being modified, reviewed and enlarged when first DSM I was introduced by APA in 1952. New categories of diagnosis were introduced with distinct hierarchy in well-known practice recommending single pathology identification explaining clinical status symptoms (Birgegrd, Norring and Clinton 2012). Gradually, the concept of DSM III was abolished and the concept of co-morbidity was introduced confirming DSM IV during 1990s. In 2013, a new version was introduced by APA providing an official list of mental disorders. It guides treatment for mental disorders being the largest change reflecting scientific understanding of the mental issues and its treatment. A lot of modifications took place from DSM IV to D SM V having implications on the understanding and treatment of mental disorders. The modifications took place in seven aspects; autism spectrum, bipolar disorder, ADHD diagnosis, PTSD symptoms, dementia reclassification, intellectual disability and artificial categorization modification (Regier, Kuhl and Kupfer 2013). The following discussion involves the critical evaluation of three major changes from DSM IV to V in terms of bipolar disorder, autism spectrum and dementia reclassification. The main change occurred in DSM V is that the terminology of general medical condition is modified to another medical condition relevant for disorders. DSM IV failed to reflect upon the shared symptoms or features of diagnostic groups like bipolar disorders with psychotic disorders, internalizing (depressive, anxiety, somatic) or externalizing disorders (conduct, substance abuse, impulse control) (Cosgrove and Krimsky 2012). On a contrary, DSM V restructured interrelationships, across and within diagnostic chapters. The strength of earlier DSM classification was to diagnose baseline psychiatric diagnosis on the defined and operational criteron that resulted in inter-rater reliability. This was the greatest weakness in DSM IV where patients were formally diagnosed under which only half of the patients were actually treated. There was lack of operational categorization of subthreshold diagnoses in DSM IV whereas in DSM V, there is high recognition where large number of patients is seek ing treatment who were formally under Not Otherwise Specified (NOS) group (Kupfer, Kuhl and Regier 2013). Elimination of bipolar disorder is a major modification from DSM IV to V. DSM IV contains diagnosis of mixed episode, bipolar I disease requires that the person meet the full criteria simultaneously for major depressive episode and mania that is removed in DSM V. There is enhancement in the accuracy for diagnosis and its facilitation at early stage detection in the clinical settings. The criterion A now contains hypomanic and manic episodes including an emphasis on the energy and activity changes and mood in DSM V. This change from IV to V removed the restriction and helpful in diagnosing patients from DSM IV subdiagnostic bipolar syndromes (Grunze et al. 2017). In the new version, a specific terminology mixed features is added applying to episodes of hypomania and mania and previous criteria is removed. In this, depressive features and its episodes in the context of bipolar or depressive disorder are added when hypomania/mania features are present. DSM V also allows the accurate specification of particular conditions that is related to bipolar disorder that includes categorization of individuals with past history of major depressive disorders meeting the criteria for hypomaniac condition except duration criterion of consecutive four days (Swann et al. 2013). The second condition that comprises other specified bipolar related disorder having fewer symptoms of hypomania meeting criteria for full bipolar II syndrome however, duration for four days is sufficient. The diagnosis of bipolar disorder in DSM IV has few shortcomings; large proportion of patients who were treated for the bipolar disorders had to be allocated to NOS and vague groups. However, with the introduction of DSM V, bipolar disorders are identified with a new specifier of mixed features applied to hypomania or mania episodes where depressive features are exist. In DSM V, there is also elimination of childhood bipolar disorder as in DSM IV; there was a harmful over-diagnosis and treatment of this condition. However, in DSM V, there was removal of this condition replaced with Disruptive Mood Dysregulation Disorder (DMDD), where all children who were formally diagnosed with bipolar disorder will fall under the category DMDD (Etain et al. 2013). This new category does provide a new way to diagnose this condition more accurately matching set of symptoms characterized by extreme tempered outbursts. Many threshold groups have been added to bipolar disorders, depression and mixed sta tes that are operational in DSM V. The mania and hypomania episodes encountered during treatment of depression under certain conditions are also added under bipolar disorders. DSM V main lines the definition of major depressive disorders basic to DSM IV. Hypomanic and manic episodes are radically revised in this new version impacting on bipolar disorders. Three main changes are being witnessed in DSM V regarding gate questions of hypomania and mania (criterion A), reduction in exclusion criteria and vigorous effort for the operationalization of subthreshold syndromes in bipolar disorder that were earlier diagnosed as NOS (Uher et al. 2014). The mood change that is accompanied by persistent increase energy or activity levels is also included in DSM V. However, this new version is quite strict and restrictive excluding the people who report only one out of three bipolar symptoms and also irritable and elated mood. Apparently, individuals who had been diagnosed with bipolar I or II disorders or manic episodes in DSM IV are now being classified as subthreshold bipolar group under DSM V. On a contrary, the new strict DSM V rule is not data based and there is in deed contradiction of available evidence. According to Angst (2013) patients receiving treatment for major depressive disorders demonstrated one of the three gate questions clearly and with validity. In addition, Exclusion criteria are one justified and amplified change in DSM V concerning bipolar II disorder diagnosis. DSM IV major change in depression into hypomania was exclusion criteria principle. However, in DSM V, it explained that this condition persists at full level syndrome that is beyond physiological effect of the treatment being explicit bipolar II disorder criterion. DSM V is like DSM IVV allowing scope for clinical judgment to causality. There is also a new formal criterion for medication or substance-induced bipolar related disorder. According to Angst et al. (2012) DSM V will be able to diagnose bipolar II disorder twice as often as bipolar I having a prevalence approach. Bipolar II will be more frequently diagnosed in logical and justified manner explaining a milder condition more prevalent than severe mani a. According to Phillips and Kupfer (2013) during the long-term illness, bipolar patients experience milder conditions like minor depression rather than major syndromes. However, despite of the advancement made in the new version, bipolar disorder is still under-recognized in DSM V. The epidemiological studies and its re-analyses demonstrated that major depressive disorder (MDD) is a heterogeneous group with% hidden cases. It requires systematic screening for hypomania in individuals with previous history showing little appreciable impact on hidden bipolarity detection (Koukopoulos and Sani 2014). Concisely, even after DSM V introduction, vast majority of major depressive episodes (MDE) continued to be diagnosed under MDD. The second modification in DSM IV is autism spectrum diagnostics classification. In DSM IV, pervasive development disorders were also considered under autism spectrum disorders (ASDs). This includes Aspergers disorder, autistic disorders and pervasive Developmental Disorder Not Otherwise Specified (PDD-NOS). However, with the introduction of DSM V released in 2013, significant modifications have been done in the ASDs categorization. The main reasons for change includes; there was difficulty in applying criteria for PDD subtypes schematically, children diagnosed with AS met the criteria for AD being similar and for controlling the exponential rise in cases (McPartland, Reichow and Volkmar 2012). In DSM V, the four separately classified issues that are very common being unified under ASDs header. The previous categories of DSM IV are no longer in use and separate levels are replaced under one umbrella of ASDs. The severity levels of ASDs are based on support needed for the patients in terms of challenges faced with repetitive behaviours, social communication and restricted interests. The revision suggests that older version was not precise and various clinicians diagnose patients with different disorders and also some changes diagnosis because of same symptoms differing year to year. In the new version, autism is defined by common set of behaviour characterized by single terminology according to severity levels 1, 2 and 3. The removal of PDD-NOS and Aspergers disorder is the significant change in DSM V and patients who are currently diagnosed with these conditions will be re-diagnosed and evaluated (Grzadzinski, Huerta and Lord 2013). However, this may create confusion among parents of children who are diagnosed with these conditions, adults and children who are strongly identified with these diagnoses. The new ASDs classification is stricter, thorough as compared to old criteria. In DSM V, more symptoms are required to meet the new criteria within arena of fixated interests or repetitive behaviours. There is also reorganization made in DSM V as DSM IV currently holding domains for ASDs includes impairments in communication, social interaction, restricted interests and repetitive behaviours. In DSM V, social interaction, communication domains have been merged into one entitled, Communication/Social Deficits (Frazier et al. 2012). This is a remarkable change where language development delay is no more necessary for the diagnosis. Although, the modifications are made with a hope to make ASDs diagnosis more reliable, specific and valid, however, there are legitimate concerns raised regarding the impact of people on the spectrum of autism. The biggest concern is that the higher functioning patients will no longer be able to meet the guidelines of strict diagnostic criteria and therefore , will face difficulties in accessing the relevant services. The main question is what will happen to the patients who are currently diagnosed with PDD-NOS or Aspergers disorder (Kim et al. 2014). There is also growing uncertainty that how the educational and state services, insurance companies will adopt to these modifications. In DSM V, to fulfil ASD criteria, symptoms must be present during childhood manifesting social demands exceeding capacities having a marked effect on the functional ability and level of severity specified. Apart from removal of separate Aspergers and autism categories to ADSs, there is also removal of criteria including; cognitive and language delay, lack of imaginative or varied play. The levels are also well specified under DSM V. Level 3 comprises of categorization requiring highly substantial support measuring severe deficits in non-verbal and verbal communication, very limited response and initiation as compared to others. Level 2 requires substantial support having marked deficits in communication, abnormal response and limited initiation speaking few words. Lastly, level 1 category requires support having deficits in social communication, unsuccessful overtures and deficits in response and initiation (Mahjouri and Lord 2012). The new diagnosis for autism in DSM V is purely based on behaviours and no differentiation of Asperger syndrome, PDD-NOS and Childhood Disintegrative Disorder. There is no definition for aetiology within ASD with simplified approach and fewer ways for a person to meet criterion in two domains. The social communication domain also recognizes the social function of communication being some of the advantages of DSM V ASD (Lai et al. 2013). It is evident that ASD changes will be going to affect people and families currently diagnosed with ASD and pose challenge to clinicians on how they are going to use this new criterion for the evaluation of children and its impact on availability of resources. Reclassification of dementia is another modification from DSM IV to V. In the new version, dementia and learning or memory difficulties categories called amnestic disorders are subsumed into a new category of major neuro-cognitive disorder (NCD) (Tay et al. 2015). This new criteria splits the disorder into broad severities of major and minor for encouraging early detection, treatment of the issues. The terminology, dementia in etiological subtypes is not precluded from application where this term is standard. In DSM V, cognitive impairment at less severe level, a new disorder permitting diagnosis of less disabling syndromes, mild NCD, nonetheless might be the focus of treatment and concern. The diagnostic criteria in DSM IV comprises of memory impairment (category A1) and fulfilling of one or more symptoms like apraxia, aphasia, agnosia and executive functioning disturbance (category A2). Category B- the cognitive deficits in A2, A1 causing significant impairment in occupational or s ocial functioning representing significant decline in functioning level. Category C defines that cognitive deficits does not occur exclusively during course of delirium (Sachdev et al. 2014). DSM V criteria (previously dementia) is now NCD providing evidence for cognitive decline from decreased performance level in one or more domains of cognitive functioning like language, memory and learning, complex attention, executive function, social cognition and perceptual-motor being category A with no sub classification (Strydom et al. 2013). Category B defining cognitive deficits interfering with independence and assistance required for activities of daily living (ADL) classified under NCD. Category C defines that cognitive deficits is not exclusive in delirium and a new category D is introduced defining that cognitive deficits not explained by other mental disorders like schizophrenia and major depressive disorder. The new version focuses on the decline from level of functioning rather than cognitive deficits and term NCD removed the stigmatization that people have about older term dementia. There is potential fallout in this change as healthcare professionals have to spend considerable amount of time in understanding and transitioning to new system learning the differences between minor and major NCDs and explanation of significance and differences to the patients and family members. This new system can confuse older individuals about dementia as they consider it as Alzheimer failing to comprehend between the two conditions. Another challenge is lack of recognition regarding the minor condition as patients may not be serious about the progression to major condition (Carpenter and Tandon 2013). Using DSM V, clinician will diagnose major or minor condition due to Alzheimer and MCI will be diagnosed as mild NCD due to Alzheimer leaving the end result confusing for the clinician, patient and family members. The concept needs to be explained to the population with correct guidance for eliminating the confusion. From the above discussion, it can be concluded that DSM V is a strict, advanced and restrictive form than DSM IV. DSM IV is a statistical and diagnostic manual adopted by APA in correlation with ICD-10 Classification of Mental and Behavioural Disorders by World Health Organization (WHO). DSM IV was used as an axial system grouping disorders into broad categories like personality disorders, mental retardation, and all psychological categories except personality disorder and mental retardation. In contrast, DSM V provides better classification of dementia, autism and bipolar disorder. Aspergers disorder and pervasive disorder are put under category of ASD, bipolar disorder falling under DMDD and reclassification of dementia. In this, amnestic disorders are subsumed into new category NCD splitting into broad categories. DSM V has controversial issues like Aspergers disorder removal and inclusion within Autism much to dismay of current patients with this disorder. However, DSM V is a rig ht step towards acknowledging new terms and mixed groups in bipolar disorder. In addition, it created confusion among the clinicians and require consideration in learning and explaining the new version to the patients. It causes potential fallout for the patients who are currently being diagnosed or treated for the conditions that are being removed or merged. Therefore, DSM V provide significant changes from DSM IV providing tightened up definitions, adding rating levels of severity and elimination or grouping of specific disorders. The diagnostic criteria are clarified and provide changes for the clinicians outlining more valid diagnoses. References Angst, J. (2013) Bipolar disorders in DSM-5: strengths, problems and perspectives.International journal of bipolar disorders,1(1), 12 Angst, J., Gamma, A., Bowden, C.L., Azorin, J.M., Perugi, G., Vieta, E. and Young, A.H. (2012) Diagnostic criteria for bipolarity based on an international sample of 5,635 patients with DSM-IV major depressive episodes.European archives of psychiatry and clinical neuroscience262(1), 3-11 Birgegrd, A., Norring, C. and Clinton, D. (2012) DSM?IV versus DSM?5: Implementation of proposed DSM?5 criteria in a large naturalistic database.International Journal of Eating Disorders,45(3), 353-361 Carpenter, W.T. and Tandon, R. 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